Marketing Management II

Submitted by:
Raunak Narain – 2010160
Rachit Anand – 2010169
Rohit Kejriwal – 2010189
Rohit Ramachandran – 2010187
Varun Bhargava – 2010258

Camlin Ltd.
 Marketing Management II

INTRODUCTION:

Camlin Ltd is one of India’s leading stationery companies with a wide product
range and strong pan-India distribution network. Its wide distribution reach and
quality products have made it a household name in school and education
stationery products. Camlin’s products have been used by over three
generations and enjoy strong brand loyalty. It is a market leader in the art
materials product segment like water colours cakes/tubes, poster colours, wax
crayons, oil pastels, plastic crayons etc. Its strong distribution network with a
presence in 150,000 retail outlets and good relationship with schools have
distinguished it from competitors like Faber Castell and Hindustan Pencils Ltd. It
has four manufacturing units, three of them in Maharashtra and one in Jammu.
Camlin is also present in the office stationery segment and fine art and hobby
product segment.

Increasing affordability of Indian masses through higher disposable income has

resulted in increased demand for quality school and educational stationery. Over
the last 3 years, Camlin has seen strong growth in it business and profitability
through increase in capacities, increased in-house production, and focus on high
margin products.

BACKGROUND:

Camlin began 74 years ago in 1931, as a single product company. Today, the
company have achieved vision and have over 2000 innovative products. Camel
is a part of Camlin and are the most recognised stationery and art brand in
India.It has over 50,000 retailers under them and global presence too. The
company started with the famous brand CAMEL inks.
From inks, our activities expanded into a range of products, such as pain balms,
chalks, rubber stamp pads, gums, adhesives and so on. To take these products
across the length and breadth of the country, a distribution network was set up.

IMPORTANT EVENTS in CAMLIN’s history are as follows:

1962 - Entry into the art material market with products such as artists' and
students' oil and water colours, poster colours, geometry boxes, wax crayons, oil
pastels and water colour cakes.

1974 - Wooden pencils were introduced. A fully integrated factory was started in
Tarapur (100 kms from Mumbai) for manufacture of wooden pencils.
The Camlin Fine Chemicals & Pharmaceuticals Division were born. A new

Camlin Ltd.
 Marketing Management II

integrated ultra-modern plant was started in the Tarapur factory to drug

intermediates and antioxidants for the global market.

1987-Camlin became a public limited company and was listed on the Bombay
Stock Exchange.

1989-Technical collaboration was established with Pilot Corporation, Japan for

manufacture of 0.5 mm high-polymer leads.

1995-Camlin started a brand new, state of the art manufacturing facility at

Taloja M.I.D.C. near Mumbai for synthetic emulsion and adhesives. Marketing
collaboration was with world leaders Winsor and Newton (U.K.) in artists’
colours.

1998- All India Camel Colour Contest (AICCC), the most popular child-art
contest for school children, that blazed new trails, with a staggering 30 lakh
entries received for the contest.

1999-Glass colours were introduced in the hobby range. The All India Camel
Colour Contest featured in the Limca Book of Records, for the highest number of
entries received.

2003-Launch of Camlin Exam brand, the premium quality school stationery

brand.

2005-Saw the introduction of the new, state-of-the-art, plastic body marker

range.

Camlin Ltd.
 Marketing Management II

KEY STRENGTH & STRATEGIES:

1. Market leader in the profitable art colours products.

2. Quality products, wide product range and strong distribution network have
resulted in good brand equity.
3. Increase in capacities, increased in-house production and focus on high
margin products leading to strong growth in business and profitability.
4. Entered into technological and marketing arrangements with Pilot
Corporation, Japanese company for products where it lacks technological
and production expertise to leverage its strong distribution network and
its popular brand name.
5. Entered into production of markers in a significant way in the office
stationery segment.
6. The Jammu unit was set up in 2008. Manufacturing of products attracting
high excise duty is being done in the Jammu unit where it enjoys excise
exemptions
7. Entered into running of pre-schools to leverage its brand strength in the
field of education and associate with its consumer – the school kid – at an
early age.
8. It imports products from China as accessories to offer a broader product
range and complement the existing portfolio.
9. Camlin’s distributors had expanded from 600 to 1200 over the last few
years. Camlin plans to take it further to 2000.

Camlin Ltd.
 Marketing Management II

COMPETITORS:

The main competitors of Camlin are Hindustan Pencils Ltd, Faber Castell, Pidilite
and Navneet. They face a tough competition from these players. Navneet,
Hindustan Pencils Ltd and Faber Castell are the main competing players in school
and education products. Faber Castell again is a tough competitor in Office
products. In the Fine art and hobby products Pidilite is giving a tough fight.

The company also faces a tough competition from local players too in school and
education product but these organised market has been eating market share of
these unorganised players, who make cheaper inferior quality products, through
better quality products and distribution.

Camlin Ltd.
 Marketing Management II

PRODUCT:

Camlin is primarily present into 3 stationery segments:

School and education stationary-

In the school and education stationery segment,Camlin is a market leader in art

colours products like water colours cakes/tubes, poster colours, wax crayons, oil
pastels, plastic crayons, sketch pens,colour pencils etc.The plant at Jammu has
been set up to manufacture art colour products. Other products in the school &
education stationary segment include wooden pencils, scales, erasers,
sharpeners , math sets, dissection boxes, notebooks, mechanical pens,hi
polymer leads , fountain pen, ink etc. In FY10, about 62% of Camlin’s revenues
came from the school and education stationery segment.

Office Stationery–

In the office stationery segment,Camlin’s major focus are markers.Its Vasai

plant manufactures a wide range of markers. Its product range in the office
stationery segment include white board markers, permanent markers,
highlighters, ball pen, gel pen, stamp pads, refills, paint markers, CD markers,
carbon papers, glue sticks, etc. In FY10, Camlin derived 25% of its revenues
from the office stationery segment.

Fine art & hobby –

Camlin’s fine art & hobby segment comprises products like artist oil colours,
artist acrylic colours, canvas rolls, canvas boards, easels, artist water colours, oil
sketching papers, drawing inks, brushes, painting mediums, glass colours, fabric
colours, powder colours, fabric glue, artist poster colours, etc. The Tarapur plant
manufactures fine art and hobby products. In FY10,Camlin derived 13% of its
revenues from the fine art & hobby segment.

Product Range

Camlin’s vast portfolio consists of over 2,000 products in the Consumer Products
broadly categorized as:
* Technical & Drawing instruments
* Writing instruments
* Office stationery
* Adhesives
* Notebooks

Camlin Ltd.
 Marketing Management II

* Fine art
* Hobby art
* Scholastic art

Camlin have a very extensive & efficient customer feedback system which acts
as a very useful source of inputs for product development because of which it
has been able to maintain its leadership in the market for major product
groups.Sales team acts as an interface with the customers for the same, as well
as conducts market survey and maintains interactive relationship with various
artists through mediums like Art workshops for feedbacks that helps in constant
improvement in quality, innovative packaging, competitive pricing and effective
distribution.

Special attention is given to the packaging of the product as well.For

example,bright & vibrant colours like Yellow,Red and Green are used on the
covers ,banners etc.Designers are coming up with innovatively printed product
covers so as to attract young customers like school children.

Camlin Ltd.
 Marketing Management II

PRICE:

Office stationery
Technical & Drawing instruments
Price Price
Product (Rs.) Product (Rs.)

Permament Markers 20
Camel Mathematical Drawing 80
Instruments Set - Premium Range WhiteBoard Markers 25
Mathematical Instruments Spares 1 12 CD/OHP Markers 15
Mathematical Instruments Spares 2 25 Rubber Stamp Pads 16.5
Rubber Stamp Ink 25 ml – in Plastic 13
Bottles

Impress Carbon Papers 150

Writing instruments Camel Adhesive Paste 50ml 9
Price
Product (Rs.)

Regular Ink Filling Mechanism

Fountain Pen 36-R 35
Adhesives
Price
Fountain Pen 22-R 27 Product (Rs.)

Piston Mechanism Krafty Glue Stick (15gm) 30

Krafty Glue with applicator
Fountain Pen SLEEK 46 (25gm) 10
Adhelin Synthetic Glue - 30 ml - Tube
Fountain Pen 47-P 50 5
Trinity Pen
F Pen TRINITY Plastic Barrel, Metal Cap 70 Fine art
Brio Boxes 200 Camel Oil Colours for Artists'
Set of 12 Assorted Colours in 20ml 600
Tubes (20-L-12)
Set of 12 Assorted Colours in 9ml 275
Tubes (20-M-12)

Camel Oil Colours for Students'

120ml 155
60ml 95
Camel Artists’ Gesso 500 ml 295
Artists' Water Colour Set 24 Half Pans
in LW Metal Box 6395
Artists' Water Colour Set of 12 x 5 ml 4600
Tubes (Metal Box)

Camlin Ltd.
 Marketing Management II

Pricing Strategies :-
The pricing strategies followed by Camlin can be described as follows :-

 Premium Pricing Policy: - In order to be in line with its goal of

providing high quality stationery and also to make customers perceive it
as a high quality provider, Camlin sells its products at a premium range in
its various product segments.
 Margins for Retailers: - Camlin provides a margin ranging from 20 to 50
percent depending on individual product, which is strategically different
from its main competitor Navneet which provides a flat margin of 25
percent on its various products.
 Manufacturing Costs :- Manufacturing plants of Camlin are strategically
located in places like Jammu where various kinds of incentives are
provided like tax benefits or other forms of subsidies and also by
downward integration, i.e by acquiring supplier side industry, the overall
cost for the products has decreased and this added benefit may be used
for leveraging the distributors.

Sales Revenue

25%

School & Education Product

Fine Art & Hobby Product
Office Product
13% 62%

Camlin Ltd.
 Marketing Management II

PLACE:

Camlin is present in all parts if India and touches over 55 million households.
The Company has been extending this reach to more consumers every year
providing the customers with quality product.

Camlin has a strong distribution network as compared to its competitors and its
products are today available across over 150,000 retail stores. Camlin’s
distributors had expanded from 600 to 1200 over the last few years. Camlin
plans to take it further to 2000.

As India grows and this growth travels from larger cities to smaller cities and
class C towns, Camlin is extending its reach. Its products are today reaching
these smaller towns and connecting with consumers there. This is a whole new
market that is waiting to explode. Camlin is also increasing its interaction with
schools expecting to touch over 25,000 top schools and soon going forward.

The company has its presence in many foreign countries and exports its finished
goods to USA, Europe, Middle East, Asia Pacific.

The company has made several sales team for different region are allotted the
region who are in constant touch with the distributor and the retailers.

The high end products are available at the select outlets whereas the regualr
products are available at all the retail stores.

It has one of the most extensive distribution network of Branches, Depots,

Distributors, Retail outlets and B2B.

Camlin’s Corporate Office is in Mumbai and it has its Branch Offices in Banglore,
Chennai, Delhi, Pune and Kolkata.

It has 3 manufacturing units located in Vasai, Tarapur, Taloja of Maharashtra

region and 1 in Jammu. The main reason for setting up a manufacturing unit in
Jammu to gain maximum tax advantage.

It has a strong network of its warehouses situated in every part of the country;
Zirakpur, Chandigarh, Ambala, Dehradun,New Delhi, Lucknow, Jaipur, Indore,
Ahmedabad, Indore, Ranchi, Raipur, Guwahti, Kolkata, Patna, Cuttack,
Hyderabad, Pune, Banglore, Chennai, Madurai, Cochin

Camlin Ltd.
 Marketing Management II

The finished products from the manufacturing units are then transported to
depots and finally to the end consumers.
Majority of the products are manufactured at these manufacturing plants and
the balance is procured from various small scale units who cater to the
company’s requirements under strict supervision and quality control.

According to the management, large growth is expected from the Tier 3 and Tier
4 cities and the rural areas. The surplus income together with Government’s
emphasis on education is making the rural community to spend more on
education products. Camlin has increased its reach and logistic presence through
its distributors and dealers.
Wherever the Government schools are getting opened in both urban and rural
areas, the company ensures that it has reach and location over there and are
planning to grow at much faster pace in the coming years. This is a whole new
market that is waiting to explode. Camlin is also increasing its interaction with
schools. It expects to touch over 25,000 top schools soon going forward.

Capacity expansion well in place and that too in the high margin business Camlin
has invested extensively over the last three years to modernise and increase
capacity by four times. In FY 2010 the company made an investment of Rs
15.06 crore to modernize the manufacturing process, develop new office
products and writing instrument as well as create additional manufacturing
capacities for fast moving high-margin products.

Camlin Ltd.
 Marketing Management II

DISTRIBUTION CHANNEL OF CAMLIN

Camlin

Manufacturing
Centres

Mother Depot

Sales Depot

Direct Corporate
B2B Distribution
Dealers

Office Supplies Retailers

Camlin Ltd.
 Marketing Management II

PROMOTION:

To grow and sustain its brand loyalty in art colours products in the school and
education stationery segment and fine art and hobby products. Camlin has been
undertaking various promotional activities like the following –

All India Camel Colour Contest in which about 5mn students participate
Camel Art Foundation’s regional art exhibitions
Art teacher workshops
Hobby workshops
Craft competitions

Given the scale and nature of the company’s product portfolio, these are a
popular means to increase the penetration and reach. Camlin has also carved
out a strategy for the modern retail formats which are increasingly emerging as
strong consumer touch points. The overall promotion and advertising spends
have been 110mn over the past two years and management expects this to
increase by a modest another 10-15%.
Extensive distribution network of branches, depots, distributors, retail outlets
and B2B and good relationship with schools gives Camlin an advantage over its
competitor Faber Castell in terms of market penetration in tier-2 and tier-3
cities.

Camlin Ltd.
 Marketing Management II

Snapshot from Taare zameen par

Camlin undertakes all India camel colour competition 1-2 times every year
across India. For this purpose it has formed SAT (School Activity Team). This
event is aimed at their major target audience which is school children. The
students are required to draw and paint a picture using Camlin colours. An entry
label available with Camlin colours is to be submitted with each entry. This is
done just to ensure that the students are using Camlin colours for painting. This
helps them create

1. Increasing awareness of Camlin among students

2. Creating experience of using Camlin colours. A good experience generally

leads to students buying the product again and again

3. Word of mouth publicity from one student to another student.

Same kind of competition is held for artists (mandatory to use Camlin colours for
painting). The selected few paintings from all over India are displayed in art
exhibition organised by Camlin. If a painting is bought by someone then the
artist of that painting gets money plus additional incentives to do a word of
mouth publicity of their products.

Camlin doesn’t believe in giving cash discount to either retailers or consumers.

They offer it in terms of offering free products. For example: They give extra
sharpener with a box of pencil. Customer will use the sharpener for a long time.
This serves a dual purpose i.e customer feels he is getting something extra for
his money and as long as he has the sharpener, he remembers about Camlin.
As far as retailers are concerned, if a particular retailer is able to sell according
to the expectations of the company then they offer him with free additional
products which he can use for sale. This serves a dual purpose, increase in sales,
as retailer would be keen on getting his stock out. Moreover, retailer feels he is
earning more as the company has offered him free products which can be used
for sale.

Camlin Ltd.
 Marketing Management II

Painting competition from Taare zameen par

Retailers use price discounts to attract new tiers of product, brand switchers.
Many times Camlin introduces free trails with their existing products to increase
their product awareness and hoping that the consumer will like a product and
will buy it in future. Example: Offering of one glossy colour with a box of oil
pastels.

As a part of promotion Camlin conducts 1-2 day workshop known as art teacher
workshop at various art institute which is conducted by Camlin experts to
demonstrate their products.

A few handpicked artists are sent to euro tour (fully sponsored by Camlin) for
visiting museums, art galleries etc. When these artists return they are involved
by Camlin for publicity and they form an integral part of further campaigns
organised by the company in future.

Camlin has ventured into pre-school business to

1. Leverage and capitalize on the brand strength and equity in the field of
education.
2. Benefit of emotional disposition of consumers towards the brand due to
long association.
3. Associate with major consumer-school kid at an early age.

Camlin Ltd.
 Marketing Management II

WAY AHEAD FOR CAMLIN.

1. Product:
Camlin is doing a good thing by venturing into stationery market which is
very profitable. But it has not launched a wide variety of products in that
particular segment to attract consumers. Launching of new products into a
particular segment will help them compete with the current competitors in that
segment in a better manner. Some of the existing products are not selling well.
The company should try and discard these products and utilise the resources in
developing new products which can cater to future demands.

2. Price:
Camlin products are sold at a premium. But the different varieties take
care to cater to needs of different segments. The company should maintain this
status quo while launching products in different segment. Trying to compete
based on price would not be a good idea as it would affect the brand equity.
Pricing for new products should be based on the market leader’s price. Its major
focus should be trying to improve the quality of the product at the same cost so
that it can act as one of the entry barriers to the new companies coming into the
colour segment-which is since a very long time dominated by Camlin.

3. Place:
Camlin has targeted schools of mostly tier 1, tier 2 cities of mostly
Maharashtra region. Though it has presence in other regions of the country as
well its presence is not as much. It should try to target tier 3 cities and other
regions of the country as well. It should use its strong distribution network to
cater to the needs of children living in remote areas. They should set up
factories in eastern and southern parts of the country so as to minimise cost.
Moreover Camlin transports majority of their goods from their factory situated in
Mumbai to all over India. This increases their overall cost. Instead if they have
warehouse of their own where they could keep their goods it would be a better
idea. If they build a warehouse in Nagpur it would prove very beneficial for them
as Nagpur is centre of India and goods can be transported from here to all parts
easily.

4. Promotion:
To prevent new entrants from capturing its market share Camlin can
adopt the following measures
1. Stock the retail outlet with Camlin product so that new entrants find very
little shelf space.
2. Instead of heavy promoting product through television ads employ more
people to do on field marketing and try to search for new unexplored markets
for its product (Television ads should be shown on cartoon channels which would
help to reach the target audience).
3. Organise contests other than the traditional all India camel colour
competition such as slogan competition etc to lure more consumers into
purchasing their products.

Camlin Ltd.
 Marketing Management II

4. Create events for school children such as workshop where kids can come
enjoy and actively participate. This would help them to develop a good rapport
with their major consumers.
5. They should sponsor various all India events which are viewed by kids.This
can also include sponsoring movies made for kids like my friend Ganesha,
Hanuman etc.

Camlin Ltd.