Clique Pens

Case Analysis
Submitted By: Group 11
UM20071 Adarsh Lath
UM20079 Aishwarya Parida
UM20080 Aiswarya Mishra
UM20086 Deval Gulati
UM20095 Manvi Borar
 Assessment of the Industry
Porter’s 5 SWOT Analysis
Bargaining power of buyers:
• Moderate to high
• Manufacturer needs to offer
Forces Model • Successful Go To • Organization culture
• Customer
Market track record
high trade discounts to
• Robust domestic dissatisfaction
retailers
market • Work force
• Brand awareness diversity
Bargaining Power of
Suppliers
• Low
• Every manufacturer Threat of New
S W
has a unique formula Entrants
to produce and design
the final product
• Moderate
• Due to capital
requirements and
O T
customer loyalties
Competitive rivalry • Growing market size • Increased bargaining
• Very high Threat of substitutes • Evolving preference of power of buyers
• Many manufacturers are • High customers • Increased cost
competing on prices and • Low switching costs component
trade discounts. due to high
competition
 Marketing & Promotion Strategy
Promotions
Expenditure Of total Promotional Budget• Worked Closely with ad agencies to develop and integrated package, trade and consumer
promotions to maintain market share and profitability.
• Consumer Promotions - Mostly through Coupons
• Also focused on social media.
• Joint promotions with vendors such as notebooks and stationery suppliers.
Product
• Innovation done mostly in terms of styling and other superficial changes.
15% • Collaboration between brand's product managers to promote something like a special pen and
pencil pack.
• Each company is in a race to provide more innovative and specific products to its suppliers.
55% Pricing
30% • Employing discretionary funds to direct money towards more effective retail display and
positioning
• Due to the presence of large competitors each company is following the price war strategy in
order to attract greater market share.
Place
• It is expected that more than 50 competitors are present within the US division which are
providing similar nature of products.
• Competition in the US division is extremely high due to the presence of large number of
Advertising Consumer Promotions Trade Promotions competitors.
 Purpose of Implementation of marketing-controlled
Case Concern 1 consumer-oriented & Sales-controlled retailer-oriented MDF
programs
Goals of marketing-controlled consumer- Sales-controlled retailer-
oriented MDF programs oriented MDF programs
Deliver the best marketing and Provide different incentives to the
advertising incentives to the customers retailers

To enhance the brand loyalty and 1 1

awareness among the customers Satisfy the needs of the retailers
2 2

Improve profits both for clique and

its retail buyers by increasing 3 Points of 3 Increase the shelf space in the
retailer's store
prices Analysis
Providing customer driven incentives 4 4
Increase the market share of the
whereas minimizing deals with the company by proving the discounts to
retailers 5 5
the retailers
To promote the brand among the
customer by consumer-directed Deliver the promotional
marketing and co-op advertising encouragements and allowances to the
campaigns, such as instant coupons, retailers
brand awareness advertisements.
 Analysing the economic and non-economic challenges
Case Concern 2 faced while implementation of both the MDF
programs

1 2 3
As the consumers
Consumer-oriented McMillan pointed out were not very price-
Points from the Case MDF could result in
an increase in retail
30% extra spent on
advertising than
sensitive, Chen
suggested they could
sales by 5% and necessary. This can increase the price by
increase gross profit be used to take more 6% to improve their
Possible Solutions margins by 2 points
(36% to 38%)
shelf space from
customers
profits, with only a
1% decrease in sales

1 2 3 4 5 6
Invest marketing Marketing programs
Adapt a highly Impose more
Focus on high quality budgets to develop should focus on Cutting off
collaborative systematic
buyers who has long term plan for cultivating brand loyalty ineffective
approach between regulations on trade
higher return, and growing brand in major targeted approaches in both
the marketing and deals to maximize the
guaranteed large recognition and loyal segments and on finding the departments
sales department to outcome of trade
sales customer base creative ways to Marketing & Sales:
establish a retail- promotions
incentivize customers at
oriented MDF
the point-of-sale