Reynolds Pen Industry

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Positioning.
At the time of launch, Reynolds pens were much expensive (around 2.5 times) then the competitors products at that time. The offerings which were in the un organized sector were of poor quality. Reynolds used the skimming price strategy and became a successful brand. Besides, Reynolds also had a sturdy product casing (apart from a good, uniform flow of ink which ensured easy writing). Reynolds at that time capitalized on quality, which made consumers buy the product even at premium price, as they perceived it is reliable brand. Its Advertisements created awareness but the association came from ‘price quality’ perception in that of pen market. Reynolds achieved scientific pricing by working on the technology, in the context of how much those products would cost if imported.

Later on Reynolds targeted young generation through its romance ads. The young crowd which are largest users of pen in India were selected as target customer, and extensive product range was launched catering to their requirement, Currently Reynolds use Sachin Tendulkar as their brand Ambassador to help connect better with India’s younger crowd. Also the brand is now perceived to consist of cheap but high quality products.

Distribution
The company's products are available in 3, 00,000 retail outlets across India covered through a network of 2500 redistribution stockists and 27 main stockists. This is facilitated by a sales and marketing team of over 300 professionals. Write Site

Write Site, a novel concept in retailing, is an exclusive showroom for writing instruments. It showcases a range of global products from Sanford and Reynolds, in a smart yet easy ambience. Get to touch, feel and choose from a wide range of products in a relaxed and trendy atmosphere. We have products for all ages, ranging from five rupees to five thousand rupees a tour showrooms in Chennai, Guntur, Hyderabad, Noida, Gurgaon, Indore and Ahmedabad. Butwe are going national with a vengeance. Currently there are around 19 write sites located pan india .A team of experienced professionals lead the organization in various functional areas of manufacturing, marketing, sales, commercial, finance, human resources and EDP. An atmosphere that encourages learning and rewards superior performance has been the hallmark of the organization.

The company has also been instrumental in establishing the Reynolds brand name in the neighbouring markets of Bangladesh, Maldives and Nepal. Various products of the company are also exported to markets like Australia, Middle East and even to Reynolds, France Reynolds marketed under G.M. Pens India is currently a market leader in markers. However, Reynolds stands second to Cello India in ball pen and gel pen category. Product lines

Our product portfolio has grown from a single product in 1986 to 150 shop keeping units (SKUs). G M Pens manufactures and markets more than a million pens a day, in addition to various other instruments such as markers and coloring products. Reynolds current product lines extend to the following: 1)Ball pens 2)Gel pens 3)Gifts (Pen-set) 4) Retractable pen 5)Specialty pen 6)Pencil, eraser and sharpener7)Coloring 8)Registers

Reynolds-SWOT Analysis
Reynolds has now become synonymous with pen in India. The distribution network and its strategic pricing as well as the product mix have given it a competitive advantage. However, Reynolds is losing its strategic position because of the entrants of new players in the market. Strengths:

* Well-established distribution network extending to rural market * Strong brands in portfolio
* Diversified in the related line category
* Exclusive showroom ‘Write site’
 
Weaknesses:
* Low exports as China provides better substitute
* Most of the domestic players have strategic alliances with global players * Low price margins
* Low on product innovations
* Fierce competition from domestic and international players

Opportunities:

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