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Classmate's Growth Strategy

The document discusses Classmate stationery products in India. It notes that Classmate was launched in 2003 by ITC and has grown its market share to 12% currently, with a goal to increase to 15%. Charts show projected profit growth through 2015. The strategy is to target business customers like schools in key cities to improve market share in a cost-effective way and eventually expand nationally. The target market includes students, employees, and schools in Bangalore, Mumbai, and Chennai which have the highest market share for the brand so far.

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Sathuluri Sambasiva Rao
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233 views7 pages

Classmate's Growth Strategy

The document discusses Classmate stationery products in India. It notes that Classmate was launched in 2003 by ITC and has grown its market share to 12% currently, with a goal to increase to 15%. Charts show projected profit growth through 2015. The strategy is to target business customers like schools in key cities to improve market share in a cost-effective way and eventually expand nationally. The target market includes students, employees, and schools in Bangalore, Mumbai, and Chennai which have the highest market share for the brand so far.

Uploaded by

Sathuluri Sambasiva Rao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Group 4

Ajay.B.S |Anil Kumar| Tanvi raj | Y


Gunasekar

Classmate and Stationery market in


India
The stationery market in India is worth 10,000
crores which includes 4000 crores notebook market
Just 25% of this market is under organized, branded
players
Classmate was born in the year 2003 under ITC
The FMCG major had a four-fold increase in revenue
from its Classmate and Paperkraft brands in 3-5
years.
75,000 direct stationery outlets in the country by
leveraging the mainstream channel network of ITC

Profit projection
1000
800
600
400
200
0
2003.0

2005.0

2010.0

2015.0

Cognitive process behind the


decision
The projected growth in 2015 is 1000
crores in the domestic market
The current position in the market is with
12% market share (Source: ITC portal)
Leveraging the supply chain of the home
brand helped classmate to grow to this
position.
Improving in the consumer market
demands huge investments in mass
media, retail stores and supply chain.

Cognitive process behind the


decision
So the better was to choose the business
to business segment.
Targeting businesses was already a
strategy used by classmate (TCS, WIPRO
and HDFC)
In order to achieve the proposed target
with the least spending's possible.

Objective and reason


To improve the market share by 15%.
Total market 10,000, current market share
is 12%.
12+15 = 27%, It will be 2,700 crore
revenue.
Success of this campaign will give out
almost 450 crore profit by itself.
Though the upcoming campaign is only for
Bangalore, Mumbai and Chennai. The
overall plan is to implement the same in a
nation scale.

Target market
General Market for Classmate: Students and
Corporate employees
Market for the current campaign: Schools in
Bangalore, Mumbai and Chennai.
They are the most receptive market for the brand
since its inception, with the highest market share
of 23% on an average.
According to the VALS: Thinkers, Achievers,
Experiencers and Believers.

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