A Study On Consumer Preference For Classmate Note Books
A Study On Consumer Preference For Classmate Note Books
A Study On Consumer Preference For Classmate Note Books
PREFERENCE
(CALCUTTA UNIVERSITY)
CU ROLL NO – 181434-11-0034
1
Supervisor’s Certificate
This is to certify that ASHI DIXIT a student of BCOM Hons. in Accounting & Finance of
SHREE AGRASAIN COLLEGE under the University of Calcutta has worked under my
supervision and guidance for her project work and prepared a project a report with the title.
The project report, which she is submitting, is her genuine and original work to the best of
my knowledge.
Place: Howrah
Date : 01-July-2021
Signature :
STUDENT’S DECLARATION
I hereby declare that the Project Work with the title STUDY ON CONSUMER
PREFERENCE WITH BRANDED NOTEBOOKS- CLASSMATE. An Analysis submitted
by me for the partial fulfilment of the degree of B.com Honours under the University of
Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of study.
2
I also declare that no chapter of this manuscript in whole or in part has been incorporated in
this report from any earlier work done by others or by me. However, extracts of any literature
which has been used for this report has been duly acknowledged providing details of such
literature in the references.
Place: Howrah
Date : 01-July-2021
CU ROLL NO – 181434-11-0034
ACKNOWLEDGEMENT
3
I took a great deal of help and understanding on the part of variety of people and
organisations to prepare this project report. I would particularly thank my Project Supervisor
Prof. Neelam Jaiswal as she provided me guidelines and supported me during the project.
My special thanks to SHREE AGRASAIN COLLEGE, the B.com Hons. department for
providing me an opportunity to work and all the other professors of the department for their
guidance and support.
A sincere thanks to all the respondents who took part and spared their valuable time.
I also take up the opportunity to thank my family for their unconditional support.
CONTENTS
2. Conceptual Framework
2.1 Conceptual Discussion 10
2.2 S.W.O.T Analysis 11
2.4 Marketing Mix (4Ps) 12-13
4
2.5 Competitor Analysis 14
2.6 Literature Review 15
References 40
Annexure 43-46
India Stationery market holds tremendous growth potential as the country has nearly 24-26
crore students studying and requiring notebooks and other stationery materials. Increasing
number of schools and offices, improved standard of living as well as shift in focus from
inexpensive to premium quality products on account of rapidly burgeoning economy are
some of the crucial factors which would drive the demand for stationery products
in India over the next six to ten years.
In India, major demand for stationery products is generated from education sector due to
increasing enrolment of students in schools and higher educational institutions.Further,
growing e-commerce industry in the country is also contributing to rising sales of stationery
products. Office segment is the second highest consumer of stationery products and is
5
anticipated to register healthy growth during the forecast period due to growing demand for
stationery products in the service sector.
Amongst all, paper stationery accounted for the major revenue share in the overall India
stationery market. Exercise notebooks, copier paper and premium paper stationery are the key
revenue generating segments. Furthermore, exercise notebook segment has captured highest
share in paper stationery market.
The project intends to decipher the satisfaction and preference drawn by the customers from
the stationery brand launched by ITC- CLASSMATE. Stationery brands as such are a very
minor part of the FMCG industry because FMCG sector is largely organised. Classmate
notebooks offer wide range of designs, types, quality benefits and affordable pricing to the
customers.
Also, almost 85 per cent of the company's revenue comes from notebook sales, while the rest
is from other stationery products such as pens and art stationery. This ratio will change to
70:30 in favour of notebooks in the next five years.
The organized market for notebooks is around Rs 4,000 crore, where ITC's Classmate is the
market leader with a 20 per cent share. The other national brand, Navneet, is a distant second
with 7 per cent share. The rest of the market is controlled by a host of regional brands.
Classmate is an Indian brand of student stationery products. ITC Limited launched its
Classmate brand in 2003 with the notebooks category. Subsequently, Classmate added new
products to its portfolio which consists of pens, pencils, mechanical pencils and geometry
boxes. Classmate has 900 distributors who make the products available in over 70,000 outlets
in India. Classmate, brought in earnings of 40 crore in 2005-06. This increased to more than
Rs. 650 Crores in 2011-12 and increased to more than 1000crores in 2016-17.
Classmate manufactures notebooks, pens, pencils, mechanical pencils. Classmate notebook
brand has a product range of more than 300 variants, and is custom made to take care of
varying needs in notebooks, long books, practical books, drawing books and reminder pads
segments. ITC focused on the design elements of notebooks: each Classmate notebook has a
theme on the cover and related information inside. Pens:-ITC forayed into the pen industry
with the launch of Classmate pens across market offering the consumer stylish and attractive
designs. Pencils:-Classmate HB Jet Black Pencils mark the entry of Classmate into the
pencils category.
6
Fig. 1 –Classmate’s Logo
Mechanical Pencils-Classmate mechanical pencils are intended for sharp, precise writing
and drawing, especially used for precise drawings in subjects like maths, drawing and
engineering. Maths Instruments- Classmate Invento and Classmate Victor are part of the
range of geometry boxes.
Classmate launched a program called Classmate Ideas for India challenge. This was a part of
the company's centenary initiative. The nationwide program would invite ideas of the youth
who have the potential to transform India. Classmate Ideas for India challenge plans to reach
out to 2.5 million students across 30 cities, 500 schools and 200 colleges across the country.
The CII-ITC Centre of Excellence for Sustainable Development, WWF India, the Tony Blair
Faith Foundation, Janaagraha and the Akshaya Patra Foundation among others are the
program partners for the event. The program will encourage the finalists with an internship
with relevant program partners, besides cash prizes and other rewards.
Every Classmate notebook carries ITC's Corporate Social Responsibility message
on its back. For every four Classmate notebooks purchased, ITC contributes ₹1 to its social
development initiative that supports, among other projects (including development of tobacco
plantations to increase cigarette production), primary education.
7
1.3 RESEARCH OBJECTIVES
The following are the research objectives of this study are as follows:
To study the customer preference towards Classmate Notebooks.
To analyse the factors as to why customers prefer owning a Classmate Notebook.
8
Secondary data is research data that has previously been gathered and can be accessed by
researchers. Common sources of existing secondary data include data collected by
government public services departments, libraries, internet searches and censuses etc.
9
The time was a limiting factor in case of this study. If there would have been more
time, the number of respondents could have been more.
The entire Survey relies on primary source of data and not secondary source of data.
But the biggest barrier to the entire program was the government restriction due to
covid 19 and limitation to individual to reach out the major masses.
10
2.1 CONCEPTUAL DISCUSSION
This study is based on customer preference and customer satisfaction towards the Classmate
Notebooks by ITC. Customer preferences are expectations, likes, dislike, motivation and
inclinations that drive customer purchasing decisions. They complement customer needs in
explaining customer behaviour. For example, a customer needs shoes and they'd prefer a
particular style, brand and colour. Appealing to the preferences of customers is a basic
marketing technique that is useful for branding, product development, distribution and
customer experience. Customer satisfaction is a term frequently used in marketing. It is a
measure of how products and services supplied by a company meet or
surpass customer expectation. Customer satisfaction is defined as "the number of customers,
or percentage of total customers, whose reported experience with a firm, its products, or its
services (ratings) exceeds specified satisfaction goals." Customer satisfaction provides scope
for improvement in those areas where they customer was not fully satisfiable.
SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for
identifying and analysing the internal (strengths and weaknesses) and external factors (threats
and opportunities) that can have an impact on the viability of a project, product, place or
person.
11
2.2.1 Strengths
2.2.2 Weaknesses
2.2.3 Opportunities
2.2.4 Threats
The marketing mix has been defined as the set of marketing tools that the firm uses to pursue
its marketing objectives in the target. Thus, the marketing mix refers to four broad levels of
marketing decision, namely: product, price, promotion, and place or the 4Ps.
2.3.1 Product
12
pencils category. Mechanical Pencils-Classmate mechanical pencils are intended for sharp,
precise writing and drawing, especially used for precise drawings in subjects like maths,
drawing and engineering. Maths Instruments-Classmate Invento and Classmate Victor are
part of the range of geometry boxes.
2.3.2 Price
ITC adopts reasonable pricing policy for consumer products as it recognises that most Indians
belong to middle-class section of society and if the product prices are pocket friendly and
affordable, it will help in creating sales and ultimately will lead to better revenue figures.
Classmate’s selective pricing strategy is to maximize market shares. Classmatestrengthens
customer relationship, it protects their existing market share by preventing current customers
from jumping ship when a competitor rolls out a hot new offer. Better still, Classmate can
grow market share using the same simple tactic, as satisfied customers frequently speak of
their positive experience to friends and relatives who then become new customers. Gaining
market share via word of mouth increases a company's revenues without concomitant
increases in marketing expenses.
2.3.3 Place
ITC has an unmatched distribution network.Strong distribution shows its marketing mix place
strategy. Classmate’s products targets both rural and urban areas across India.Classmate is
constantly trying to reduce the lead time and to make the products reach to the retailers as
quickly as possible. Being an environment friendly organization, it is carbon positive, solid
waste positive and water positive. In rural areas, the level of distribution used includes
Producers, Agent, Wholesaler, Retailer leading to Consumer. In other areas of distribution,
the level of distribution includes Producer, Wholesaler, Retailer leading to Consumer.
Classmate tries to make it’s product available to the customer as conveniently as possible.
2.3.4 Promotion
13
ITC has a well-built brand presence because of the diversified and extended product
portfolio. Promotion is a major player for Classmate. It has taken help of several promotional
activities to market its products and create positive brand awareness. Classmate has adopted
an aggressive marketing strategy and taken help of every promotional tool like electronic,
print and social media at its disposal to market its products. Promotion of Classmate are
undertaken with the tag, “You are one of a kind”. It has launched several ad campaigns which
are shown via popular television channels, aired on radio and displayed via hoardings. It has
also roped in famous personalities for better visibility like Bollywood Actress,Soha Ali Khan
and Indian Cricketer, Yuvraj Singh. The main promotional strategies used by Classmate are-
Television Advertising
Magazine Advertising
Newspaper Advertising
The major competitors of Classmate Notebooks happen to beNavNeet, Bilt, Natraj and other
Local Brands. Classmate, NavNeet and Bilthas a high quality eco-friendly paper, with better
look and cover, whereas the Local brands have a low quality product with cheap binding.
Classmate enjoys Customer Value advantages such as I.T.C. image benefit, C.S.R (product
and psychological benefit), on the other hand, NavNeet has low monetary cost and enjoys the
Image Benefit of being one of the oldest stationery companies. The only benefit Bilt and
Local Brands enjoy is of low monetary cost and cost is very low respectively. When
companies like Classmate, NavNeet and Bilt enjoy the Maturity Stage of life cycle, Local
Brand is on the Decline Stage of the Life Cycle.
The following table show a Comparative Analysis of Classmate and it’s main competitors-
14
2.5 LITERATURE REVIEW
15
Impact of Cause Related Marketing on Consumer Purchase Decisions on FMCG
Brands in India (National Conference on Marketing and Sustainable Development
(NagarajaPandukuri, B. Abdul Azeem, T. Narayana Reddy, 14th October,2017)- The
article looks at the subject of cause-related marketing which is used by companies in their
marketing communication activities to showcase their commitment towards Corporate Social
Responsibility. It is believed that cause-related marketing is a communications tool for
building brand equity and increasing consumer loyalty. For instances, for every four
Classmate Notebooks purchased, ITC contributes Re1 to its social development initiative that
supports primary education along with various other projects. However, apart from this
general attitude of consumers towards marketing campaign of the companies and skepticism
also affects their responses to cause-related marketing campaign.
Primary data has been collected by means of well-designed questionnaire. Respondents have
been selected by using convenient sampling methods to know the customer preference with
special reference towards Classmate Notebooks. The data collected was then analyzed
through various statistical tools and techniques such as percentage, table, pie charts, diagrams
etc.
16
The secondary sources used to collect secondary data include –
Google
ITC
Wikipedia
Times of India
International Data Corporation
Business Wire
Live Mint
1. Age
17
RESPONSE (IN %)
Below 18 18-25 25-35 Above 35
5% 3%
17%
75%
Interpretation – Out of the total responses recorded, 75% of the respondents come under the
age range of 18 to 25 years. 17% of the respondents are below 18 years of age.5% of the
respondents are between 25 to 35 years. Only 3% of the total respondents are above the age
of 35 years.
2. Gender
18
Responses ( in %)
0%
36%
Female
Male
64%
Interpretation – Out of total responses recorded, 64% of them are female whereas 36% of
them are male.
3. Education
19
RESPONSES (in %)
8%
5%
Interpretation – Out of total number of respondents, 42% are higher secondary pass, 45%
are graduates, 5% are post graduates and lastly, 8% belong to other.
4. Occupation
20
RESPONSES IN %
Salaried Employee Other
8% 0% Home-Maker
0%
Business
7%
Student
85%
Interpretation – Out of the total respondents, 85% of them are students, 7% have their own
business, 8% are salaried employees,0% belong to “Other” and 0% are Home-Makers.
5. Annual Income
21
Rs 5,00,000- Rs 2
10,00,000
Above Rs 5
10,00,000
Responses in %
Interpretation – Out of the total respondents, 84% of them are not yet earning, 2% of them
have an Annual Income between Rs 50,000 to Rs 1,00,000, 7% have an Annual Income
between Rs 1,00,000 to Rs 5,00,000, 2% have an Annual Income between Rs 5,00,000 to Rs
10,00,000and 5% of them have Annual Income above Rs 10,00,000.
22
Responses in %
5%0%
95%
Yes No
Interpretation – Out of the total respondents, 95% of them use a Notebook, while 5% of
them do not use a Notebook.
23
Bilt 0
Local Brands 16
RESPONSES IN %
Bilt Local Brands
0% 16%
Navneet
1%
Pioneer
2%
Classmate
81%
Interpretation – Out of the total respondents, only 81% of them use a Classmate Notebooks,
2% of them use Pioneer Notebooks, 1% of them use NavNeet Notebooks, 0% of them use
Biltwhile 16% of them use Local Brand Notebooks.
24
ATTRIBUTES RESPONSES (in %)
Yes 99
No 1
RESPONSES IN %
No
1%
Yes
99%
Interpretation – Out of the total respondents,99% of the respondents are aware about the
Classmate Notebooks and 1% of the respondents are not aware about the Classmate
Notebooks.
25
Advertisements 23
From Family and 9
Friends
Retail Outlets 64
Social 0
Networking Sites
Others 2
Interpretation – Out of the total respondents, 64% of respondents got to know about
Classmate Notebooks from Retail Outlets, 23% of them got to know about the Classmate
Notebooks from Advertisement, 9% of them got to know about the Classmate Notebooks
from Family & Friends, 2% of them got to know about the Classmate Notebooks from
Others, 2% of them got to know about the Classmate Notebooks from Online Shopping
Portal and 0% of them got to know about the Classmate Notebooks from Social Networking
Sites.
26
ATTRIBUTES RESPONSES (in %)
Strongly Disagree 1
Disagree 1
Neither Agree nor 4
Disagree
Agree 51
Strongly Agree 43
Responses in %
1% 1%
4%
Strongly Disagree
43% Disagree
Neither Agree nor Disagree
Agree
51%
Strongly Agree
Interpretation – Out of the total respondents, 1% of the respondents opted for “Strongly
Disagree”, 1% of them opted for “Disagree”, 4% of them opted for “Neither Agree nor
Disagree”, 51% of them opted for “Agree” and 43% of them opted for “Strongly Agree”.
27
Strongly Disagree 1
Disagree 2
Neither Agree nor 3
Disagree
Agree 63
Strongly Agree 31
Responses in %
1% 2%
3%
Interpretation – Out of the total respondents,1% of the respondents opted for “Strongly
Disagree”, 2% of them opted for “Disagree”. 3% of them opted for “Neither Agree nor
Disagree”, 63% of them opted for “Agree” and 31% of them opted for “Strongly Agree”.
28
ATTRIBUTES RESPONSES (in %)
Strongly Disagree 5
Disagree 22
Neither Agree nor 30
Disagree
Agree 39
Strongly Agree 4
RESPONSES (in %)
4% 5%
22%
Strongly Disagree
39% Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
30%
Interpretation – Out of the total respondents, 5% of the respondents opted for “Strongly
Disagree”, 22% of them opted for “Disagree”. 30% of them opted for “Neither Agree nor
Disagree”, 39% of them opted for “Agree” and 4% of them opted for “Strongly Agree”.
29
ATTRIBUTES RESPONSES (in %)
Extremely Satisfied 30
Satisfied 66
Dissatisfied 1
Extremely Dissatisfied 1
Neither Satisfied nor 2
Dissatisfied
RESPONSES (in %)
1% 1% 2%
30%
Extremely Satisfied
Satisfied
Dissatisfied
Extremely Dissatisfied
Neither Satisfied nor Dissatisfied
66%
Interpretation – Out of the total respondents, 30% of the respondents opted for
“Extremely Satisfied”, 66% of them opted for “Satisfied”. 1% of them opted for
“Dissatisfied”, 1% of them opted for “Extremely Dissatisfied” and 2% of them opted for
“Neither Satisfied nor Dissatisfied”.
30
ATTRIBUTES RESPONSES (in %)
Rs50- Rs150 48
Rs150- Rs250 32
Rs250- Rs350 13
More than Rs450 7
RESPONSES (IN %)
More than Rs450
7%
Rs250- Rs350
13%
Rs50- Rs150
48%
Rs150- Rs250
32%
Interpretation – Out of the total respondents, 48% of the respondents spend Rs50-Rs150 on
Classmate Notebooks, 32% of them spend Rs150- Rs250 on Classmate Notebooks, 13% of
them spend Rs250- Rs350 on Classmate Notebooks and 7% of them spend more than Rs450
on Classmate Notebooks.
31
ATTRIBUTES RESPONSES (in %)
Yes 93
No 7
RESPONSES (IN %)
No
7% 0%
Yes
93%
Interpretation – Out of the total respondents, 93% of the respondents would recommend
Classmate Notebooks to others and 7% of them would not recommend Classmate Notebooks
to others.
32
5.1 SUMMARY OF FINDINGS
Out of the total respondents, 17% are below 18 years of age, 75% are of 18-25 years of
age ,5% are of 25-35 years of age and 3% are of above 35 years of age.
Out of total respondents, 64% were female and 36% were male and 0% opted for
“Others”.
Out of the total respondents, 42% are under higher secondary pass, 45% are
undergraduates, 5% are post graduates and 8% are “Other”.
Out of the total responses, 85% are students, 7% are in business,8% are salaried
employees, 0% were Home-Makers and 0% opted for “Other”.
Out of the total responses, 84% are not yet earning, 2% have an Annual Income of
Rs50,000 – Rs1,00,000, 7% have an Annual Income of Rs1,00,000- Rs5,00,000, 2%
have an Annual Income of Rs5,00,000- Rs10,00,000 and 5% have an Annual Income
more than Rs10,00,000.
Out of the total responses, 95% of them use Notebooks and5% of them do not use
Notebooks.
Out of the total responses, 81% use Classmate Notebooks, 2% use Pioneer Notebooks,
1% use NavNeet Notebooks, 0% use Bilt Notebooks and 16% use Local Brands
Out of the total respondents, 99% are aware about the Classmate Notebooks and 1% is
not aware about the Classmate Notebooks.
Out of the total respondents, 2% got to know about the Classmate Notebooks through
Online Shopping Portals, 23% got to know through Advertisements, 9% got to know
from Family and Friends, 64% got to know through Retail Outlets, 0% got to know
through Social Networking Sites and 2% got to know through Other Sources.
Out of the total respondents, 1% Strongly Disagree that Classmate Notebooks are of
premium quality, 1% Disagree that Classmate Notebooks are of premium quality, 4%
Neither Agree nor Disagree, 51% Agree and 43% Strongly Agree that Classmate
Notebooks are of premium quality.
Out of the total respondents, 1% Strongly Disagree that Classmate Notebooks are easily
available, 2% Disagree, 3% Neither Agree nor Disagree, 63% Agree and 31% Strongly
Agree that Classmate Notebooks are easily available.
33
Out of the total respondents, 5% Strongly Disagree that Classmate Notebooks are
affordable, 22% Disagree, 30% Neither Agree nor Disagree, 39% Agree and 4%
Strongly Agree that Classmate Notebooks are affordable.
Out of the total respondents, 30% are Extremely Satisfied using the Classmate
Notebooks, 66% are Satisfied, 1% are Dissatisfied, 1% are Extremely Dissatisfied and
2% are Neither Satisfied nor Dissatisfied using the Classmate Notebooks.
Out of the total respondents, 48% spend Rs50- Rs 150 on Classmate Notebooks in a
month, 32% spend Rs150- Rs250, 13% spend Rs250- Rs350 and 7% spend more than
Rs450 on Classmate Notebooks in a month.
Out of the total respondents, 93% would recommend Classmate Notebooks to others and
7% would not recommend Classmate Notebooks to others.
5.2 CONCLUSION
From the findings of the study, the following conclusions can be drawn:
In the Indian Stationery Market, Classmate Notebooks has been able to satisfy it’s
consumers because of which most of them seem to purchase it Frequently and spend a
relative amount every month.
The study also agreed to the fact that Classmate’s strategy of market share
maximization by making its products available to consumer at large, has also helped
in advertising through Retail Outlets as maximum number of consumersgot to know
about Classmate through them.
34
Classmate became popular in the Indian market mainly due toit’spremium quality
products, better designs and being easily available to it’s consumers. However, the
study also agrees that a significant number of people who took the survey (22%) find
that Classmate Notebooks are not that affordable.
Assuming that, Classmate Notebooks did not seem affordable to significant number of
people who took the survey, a major part of them are reclined towards availing
discount/offers given on Classmate Notebooks from time to time.
In a nutshell, Classmate has a unique business model. It has been successful at incorporating
a maximizing market share strategy into its consumer benefit process. At the same time, it
has dispensed with all traditional marketing methods and is fully engaged in introducing a
better distribution process. With this, it has taken the India by storm and has created a huge
following.
5.3 RECOMMENDATIONS
35
As Classmate aims at maximizing market share, it could work on the pricing strategy
so that it could penetrate the market and be easily acceptable by all segments of
society.
Through the study we could conclude that the consumers have a positive notion about
the Classmate Notebooks, however, it is proved that the people who took the survey
did not agree to it being easily affordable. So, Classmate could aim on providing the
quality benefit at a relatively more reasonable price.
REFERENCES
36
https://www.marketing91.com/marketing-mix-itc/
https://en.wikipedia.org/wiki/Classmate_Stationery
https://www.slideshare.net/102brandstrategy/shamael-ansari
https://www.mbaskool.com/marketing-mix/products/17001-itc.html
https://sonamkhatri2000.blogspot.com/2020/05/Marketing%20mix-of-ITC.html?m=1
https://www.gujaratresearchsociety.in/index.php/JGRS/article/view/484
https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&scioq=research+paper+on+indian
+stationery+market&q=articles+on+itc+classmate&oq=articles+on+itc+classm#d=gs_qabs&
u=%23p%3DeaBgyLDWk7IJ
ANNEXURE
1) Age
o Below 18 years
o 18 years- 25 years
o 25 years- 35 years
o Above 35 years
37
2) Gender
o Male
o Female
o Other
3) Education
4) Occupation
o Student
o Business
o Salaried Employee
o Home-Maker
o Other
5) Annual Income
o Yes
o No
o Classmate
o Pioneer
o NavNeet
o Bilt
o Local Brands
o Yes
o No
38
9) How did you find out about Classmate Notebooks?
o Strongly Disagree
o Disagree
o Neither Agree nor Disagree
o Agree
o Strongly Agree
o Strongly Disagree
o Disagree
o Neither Agree nor Disagree
o Agree
o Strongly Agree
o Strongly Disagree
o Disagree
o Neither Agree nor Disagree
o Agree
o Strongly Agree
o Extremely Satisfied
o Satisfied
o Dissatisfied
o Extremely Dissatisfied
o Neither Satisfied nor Dissatisfied
o Rs 50- Rs 150
o Rs 150- Rs 250
o Rs 250- Rs 350
39
o More than Rs 450
o Yes
o No
40