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Clique Pens

Clique Pen is facing declining profits and increased competition. As VP of Marketing and VP of Sales disagree on how to use marketing funds, three options are proposed: 1) Use funds for consumer-focused ads and coupons to build demand. However, sales argues consumers care more about price than ads. 2) Give discounts to retailers for more shelf space, as sales prefers, but marketing warns this may reduce prices too much. 3) Bundle pens to differentiate Clique without lowering prices too much, but sales says past bundles did not work well.

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Kevin Hill
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823 views3 pages

Clique Pens

Clique Pen is facing declining profits and increased competition. As VP of Marketing and VP of Sales disagree on how to use marketing funds, three options are proposed: 1) Use funds for consumer-focused ads and coupons to build demand. However, sales argues consumers care more about price than ads. 2) Give discounts to retailers for more shelf space, as sales prefers, but marketing warns this may reduce prices too much. 3) Bundle pens to differentiate Clique without lowering prices too much, but sales says past bundles did not work well.

Uploaded by

Kevin Hill
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Ervie Nur Afifa Mukhlis

29118328
YP60A
Clique Pens : The Writing Implements Division of U.S. Home
Please make a marketing positioning statement of Clique Pen.
How should Clique Pen support the market position with marketing and sales promotion
program?

Company Background

Clique was established in 1922 and it’s the originally produce fountain pen and developed into a
ballpoint pens. In 1980 Clique was valued as $17 million. The main competitor is BIC, Scripto, Pentel,
Pilot, Papermate and sharpie. Which some of them apply an aggressive pricing and promotion strategy.
Currently clique is facing a dilemma situation. They have to compete with their competitor and they
have to fight for the shelf space in retailer store. and the declining of 6% (42%-36%) gross profit margin
in 2 years (2010-2012) caused by various discount, allowances and 0ff-inoices deals make the president
of the company want to find some alternatives to increase gross profit. how Clique Pen support the
market position with marketing and sales promotion program?and marketing positioning
statement!

Positioning statement Analysis

Target Segment :

Retailer (B2B) Direct consumer (B2C)


100% buy 10 or more three times a year 65% purchasing 3 or more twice a year
› exp : bookshop, supermarket, mass retailer,
warehouse club, dept store, and stationery › purchasing can be affected by brand, package
store. (Wal-Mart, Target, Walgreens, CVS and size and etc.
kroger)
› follow retailer marketing program : › mostly know what they want to buy when
additional discount, allowance come to retail store
› sensitive to stock out › paid attention to price-off deals
› tend to comparing price on the same product
› need Just in Time delivery
type
› remove slow selling product › make pen and pencil as a commodity
› favorable payment : 2% 60 net 61 days
As the data above the retailer could be a best target segment because their number of purchase(mass
purchased) and the frequency of purchase.

Customer Problem :

 Need just in time delivery to prevent stockout,


 just tend to sell high turnover product,
 need profitable agreement.

Frame of Reference :
Papermate, pilot, clique pen, pentel,etc. yet clique pen (market leader) and a new comers
compared to its competitor and have new innovation.

Basic Requirement :

 Can be use to write


 Well-function

Unique Value Proportion :

 “Secret sauce” formula


 “always ready ink” don’t need extra effort to make the tint ready to use
 Utilitarian design

Reason to Believe :

 don’t need extra effort to make the tint ready to use

Distinguished from Competition :

 Fast drying tint


 Smooth-roll stylus

Emotion End Benefit :

 Satisfaction, with the good quality yet low price


 Relief, because “always ready ink”

how Clique Pen support the market position with marketing and sales promotion program

The Dillema Faced

A different point of view between Chen as (VP Marketing) and McMillan as (VP sales) of the
implementation of Market Developing Funds.

Marketing View Point Sales View Point


› customer oriented MDF › Retailer oriented MDF
› want to use MDF to make an co-op ads and › control MDF discount and spend on
direct discount to consumer like coupon opportunistic use
› need to make a touch wit consumer › take advantage to take more shelf space from
through direct marketing competitor (buy it from retailer)
› want to increase the price because the › price reduction make a negative impact on
consumer is not sensitive about price profits
› reduce price for retailer just gave a chance
to them for make a bigger mark-up price › consumer did not swayed by ads
› worrying about competitor who play in thin
margin
› bundling package didn’t work effectively

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