So far this category has had a wholesale orientation rather than retail. Although pens have been sold through stationery shops and FMCG outlets, product displays have been poor. Luxor wants to direct sell Papermate to one lakh outlets in the country using wholesalers for replacements only. Says Manoj Kumar, general manager, marketing, Luxor, ''Normally in a shop all kinds of ball-point pens lie together in a bunch and the consumer either chooses one randomly or asks the shopkeeper to give him any one. And once the product has been placed in the shops, Luxor will follow it up with a mass advertising campaign.
Ad spends in the pen category are high.
Last year's billings were Rs 64 crore, which is huge given the 'commodity' nature of the category. Most players spend on an average 15 per cent of sales on advertising. Pen advertising has been dominated by fad rather than fashion and has seldom been supported by a good product. In a me-too situation advertising can register the brandname and create brand value. But advertising needs to be backed by distribution and a good product.