CLIQUE PENS- THE WRITING IMPLEMENTS DIVISION OF US HOME

1. BACKGROUND OF THE CASE

The case was about the problem faced by Clique Pens, a writing implements division of
US. Home. For nearly three years, its gross profit margin gradually fell by 6 percent from
2010 to 2012. Even, no growth was found in 2013. Eliza Ferguson as the president of the
division formulated the strategy to dampen the gap between sales and cost. She proposed
Marketing Development Fund( MDF) to resemble allowance in discounting price. Her
action was supported by Logan Chen, the marketing vice president with his strong
argument. However, Ross McMillan (the sales Vice President) opposed with valid and
deep analysis.

2. PODUCT INFORMATION

Clique Pens was the result of US.home wiriting implement . In 1922 mennonite cousins
found Clique pens in Kansas City , Missouri. The utilitarian design became Clique Pens's
hallmark. It reflected the core principle of the creator which was the availability of ink
supply before flowing ink, without stroking pen. The core competency of Clique
compared to its competitior was in ink formula. Under US Home, Clique had steadily
grown an internationally sold stable of its brands in 2013.

3. SITUATION ANALYSIS

Case study discusses Clique Pens' dynamic marketing problem-The writing

Division implements that suffered a 6 percent reduction in its gross profit for 2 years
From 2010 through 2012.
• The biggest challenge is meeting the needs of consumers, distributors and increasing all
revenues by introducing a new approach, and gross profit margins.
• Clique Pens president-Elise Ferguson believes needless giving away and retailer
discounts must be reduced to control this amount so as to increase sales in impact.
• Application of customer-oriented MDF (Market Development Funds), as Logan has
indicated.
• He also claims that marketing and co-op promotional strategies are geared at
customers,Brand recognition advertisements such as instant coupons can drive sales and
Rising prices could help boost income for clique and retail buyers alike.
• Customers are not price-sensitive, and have no strong brand loyalty either. Any price
changes would also not result in income loss.
• As Logan Chen suggested, a price rise of 6 per cent would result in a decrease in sales
of just 1 per cent.
• Given the above facts, McMillan assumes that retailer implementation is targeted to
By acquiring more shelf space in retail centers MDF would boost market share.
4. PROBLEM IDENTIFICATION

The problem of the case was the decsent of gross profit margin for 4 year as much as 3
percent. Elisa Ferguson proposed MDF program to push the margin, so the problem can
be defined should Elisa Ferguson reduce the alowance for trader and increase the price of
clique pens and pencil.

5. RECOMMENDATIONS

• Use MDF programs and resize the contribution of Retailer’s discount to MDF
Programs (Consumer Promotion & Advertising Budget).
• Make the retailer sure that our product is good although the price increase.
• Clique needs to focus on growing their brand instead of focusing on only marketing
and sales and need to focus on awareness & positioning.
• The relationship with the retailers can be improved.
• The packaging of their product can be improved, it can be made more fashionable and
vibrant.
• New focus on market segmentation so that needs/wants of students could be identified
and accordingly packaging could be tailored.

SUBMITTED BY: RUCHIKA SINGH

ROLLNO: PGFC1955