Scripto, Inc.

Presented by:
Group 8
Gautam Mishra UM15266
Himanshu Kohli UM15267
Ishita Sinha UM15268
Niharika Patel UM15272
Nishant Panda UM15273
Param Malik UM15274
Malhar Patel UM15275

Company Background

Incorporated as Atlantic
Manufacturing company
in 1923, later adopted
name Scripto in 1946.

Started manufacturing
Mechanical pens. Later
diversified into ballpoint,
fiber-tips pens, ink, pen
components, lighters and
wide-angle cameras.

Series of acquisition
made the company
worlds largest combined
manufacturer of pens and
lighters.

1960: 2nd position in writing-instrument market in terms of sales with market share of 16%.
1964: 5th position in market in terms of sales with market share of 10%.
Reasons: Managerial Short comings, ill-advised decisions on capital expenditure and new
products at a time when heavy competition was there.
Year

Net Sales ($)

% Change in
Sales

Net Income($)

1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972

25750279
26344306
25237265
28714981
33494076
30462424
30914857
31229204
31928975
30979108
28378819

2.31%
-4.20%
13.78%
16.64%
-9.05%
1.49%
1.02%
2.24%
-2.97%
-8.39%

1705889
1536181
801748
1546138
1149324
715777
-173145
-1183335
-1074558
20012
239467

% change in
NI
Net Profit Ratio

-9.95%
-47.81%
92.85%
-25.66%
-37.72%
-124.19%
583.44%
-9.19%
-101.86%
1096.62%

6.62%
5.83%
3.18%
5.38%
3.43%
2.35%
-0.56%
-3.79%
-3.37%
0.06%
0.84%

Writing-Instrument Industry
With the invention of ballpoint pen in
1945, writing-instrument industry became
$281 million industry in 1970. (57%
market was of ball point pen).

Japanese company Pentel entered the

US market with 49 fiber tip pen. With
this porous tip pen market grew from
$15 million to $61 million in the period
1965 to 1971 with expected 20% growth
rate for the years to follow.

Soft-Tip Pen Market

Market grew highly competitive
between 1963 and 1972 with
presence of 40 manufacturers.
Two principle segments:
Students and business usages.
Focused advertisement for both
the segments onvarious
mediums.
22% sales occurred between
mid-August and the end of
September.

Gillettes Papermate
Flair Pen (49)
49% Market Share
$2 million on
advertisement

Scripto
19er Pen
$750,000 on
advertisement

1971
BIC
Banana (29)
$3 Million on
advertisement

Papermate
Write Brothers Pen (29)
$1 million on
advertisement

Scriptos Fiber tip pens & Sales Strategy

Pricing Strategy

Distribution Strategy

Introducing product regionally rather

than nationally.

Selling to general-line wholesalers who

dealt with numerous retailers.

Once sales is increased in given

region, company could expand its
advertising budget and can attain
greater economies of scale.

Scripto introduced 49 Graffiti pen

which was just me-too product with
annual advertising budget of
$250,000.
Later it launched 19 marker with 10%
margin for wholesalers and 50% for
retailers.
Scriptos Strategy was to sell quality
pen for considerably less than
competition. Low retail price resulting
in less revenue to be balanced by
increased sales volume.

Disposable Lighter market

In 1984, Scripto was acquired by Tokai Seiki, a Japanese firm having
sales of $170 million.
Scripto had 8% of market share in disposable lighter market. But after
acquisition, it increased to 20%.
In 1985 company came up with new Electra lighter with an advertising
budget of $5 million. This lighter had new design and electronic ignition
system.

Sales vs Marketing orientation

Sales Orientation

Marketing Orientation

Absence of extensive market research.

High marketing budget.

Curtailed Advertisement programs.

Stronger trade support (trade promotion

Absence of Sales forecasting system and

production scheduling efforts.

activities).

Uniting elements of marketing mix.

Concentration

on

effective relationship

between sales and marketing teams.

Thank You..!!