What is the size of the writing instrument industry in India and what’s your market share in this?
The industry size is estimated at about Rs. 2,600 crore, out of which about 2,000 crore is in the organized sector. Linc Pen is one of the top three players in the organized writing instrument industry in India with an estimated market share of 10%. We have a strong hold in the eastern and northern regions of the country. We are the third-largest player [after Cello and G.M. Pens] and would be the market leader in the country’s eastern zone. Linc Pen is registered in more than 50 countries, which include markets like the Middle East, Southeast Asia and Africa. We also supply to global retail chains such as Wal-Mart, Asda and Tesco for their private-label business.
The pen industry has slowed down in the face of competition from PCs, laptops and tablets. What do you think is the future of this industry?
The writing instrument industry is selling strong, despite a thriving market for PCs, Internet, hi-fi organizers, keyboards, keypads and touchpads. Writing instruments will survive for years, thanks to the technological improvements in raw material, metals and inks that are used for manufacturing these pens, which are making them more consumer friendly. In spite of technological advancement, the pen industry will continue to evolve and withstand the shifting sands of time.
What are the differentiated features and the USP of your brand?
The key features include better grip and smoother ink flow as against “koi bhi pens.” The USP of Linc Pen is that it has been able to offer products with a high quality to price ratio. Linc was the first company to launch a gel pen at Rs.10 when the prevailing price of other brands was over Rs.15. Subsequently, we introduced the five rupee gel pen, which helped the company to be a brand leader in the gel pen segment.
How has your business grown in recent years and where do you see it heading in the next 3-5 years?
Linc Pen clocked a turnover of Rs.270 crore in 2011-12. We have an excellent distribution network across the length and breadth of the country with a presence in every state and we have over 3,050 stockists. Our manufacturing capacity is 1.5 million pens per day and we have a state of the art manufacturing facility in West Bengal in Serakole & Falta SEZ with plans to set up another plant in Gujarat. Linc Pen also exports to markets such as the USA, the UK, Southeast Asia, Bangladesh, Nepal & the Middle East. In the coming 3–5 years we are focusing on expanding sales further in the southern and the western markets, which will help the company improve its margins further.
Most brands are taking initiatives to connect with the youth. What is Linc doing to enhance its brand focus with this consumer segment?
We have always undertaken youth-centric initiatives, which have helped the brand build a strong connect with youngsters today. Our latest ad campaign is also geared towards connecting with young adults through the low involvement range of pens (which are mostly below Rs.15). The consumer has low involvement in purchasing the lower range of pens, where ‘Koi bhi pen chalega’ is the ideal consumer perception. So we came out with an ad campaign with the tagline ‘Linc pen lo, kismet badlo’ aimed at building preference towards ‘Linc pens’. The ad portrays a cautionary tale that warns consumers with a pinch of humor associated with it that importance should be given to what we write as well as with what we write.
Does your marketing mix take into account the importance that youth play in the success of a brand?
Our ideal marketing plan is to have an optimum mix of physical and digital channels with on-ground & retail activation. Apart from outdoors, we have increased our visibility at trade outlets, ramped up on-ground promotion, retail activation and sell-in schemes apart from social activation through digital platforms. Digital advertising and promotions is definitely more attractive for the youth today considering the time they spend watching TV & playing games. So we have plans to tie up with gaming sites like Zapak and India Gaming.
