Pen and paper

Romeo Jacinto received his first Parker on his 18th birthday. "It was a Parker 21 given by a college friend. Until then, I had always felt that I didn’t belong in Manila, that I was looked down at by classmates as that boy from the provinces," he said. "Using that Parker 21 made me feel very sophisticated and rich. It was and still is a prestige product after 100 years of being around."

Jacinto is now the vice-president for marketing of Star Paper Co., the Philippine exclusive distributor of Parker pens since 1992.

"We were in the market for new products. Star Paper had been in business since 1974 and there was a need to diversify from raw materials to markets. Our markets were constantly asking us what products other than paper could we offer them," he said.

In the course of a regional convention of paper suppliers, Jacinto casually mentioned to an Indonesian colleague that Star Paper was on the look out for non-paper products to distribute. The Indonesian, who held the Parker distribution franchise in his country, mentioned Jacinto’s dilemma to Parker executives.

"It happened so fast," Jacinto said. "A short time after I got back home, the Parker people called. They came to the Philippines to check out our company and our distribution network."

The deal was signed three months later. Star Paper agreed to carry the whole range of Parker but did not want to be tied down to a volume quota for the first year. In exchange, Parker committed full advertising support.

Display strategy

Bookstores are the main outlets of Parker products. "It is only in the Philippines that pens are sold in bookstores instead of in department stores," said senior product manager Ben Arlen Tan.

"When Socorro Ramos saw our sample display, she wanted us to put up one in all National Bookstore outlets the very next day," Jacinto said. "We could only open in five National outlets that first year."

The first Parker, a Parker 75, was sold for P2,500 at the Quad branch of National Bookstore. "We were still setting up our display and we were already selling Parkers," Tan said.

Today, Parker pens are sold in 36 outlets of National. Because of changes in Parker’s ownership, Star Paper also distributes locally Waterman pens. The Parker and Waterman brands are now owned by Newell Rubbermaid.

In 1992, Parker’s display strategy was considered unique.

Like many prestige products, Parker maintains a separate display area to entice stronger sales. Instead of lining up the pens like soldiers in a row, however, the pens are arranged in seemingly haphazard fashion at different heights. Top-of-the-line products instead of entry-level or fast-moving items are on display.

Added services

Sales promoters are trained to help customers choose the right Parker pen for their needs. "Since a Parker is usually purchased as a gift, our sales promoter will ask the buyer questions such as the age, sex, and relationship of the recipient," said Parker product manager Ronald Vizconde. "In many cases, our sales promoters end up as confidantes of the buyers. Some buyers refuse to deal with a new sales promoter, insisting on coming back the next day if the sales promoter is on her day off or going to the outlet where the sales promoter has been re-assigned."

In an effort to personalize the gift, Star Paper has purchased engraving machines, each costing about P130,000, for all of its Parker display areas. Simple engraving can be done while the customer waits. Printing in a maximum of six colors takes two weeks.

Because Parker pens carry a life-time guarantee, repairs are free. Star Paper maintains a centralized service center in Metro Manila. Outside the capital, owners of defective Parker pens or pens in need of repair bring the products to the nearest Star Paper branch, which, in turn, ships the items to Manila. Star Paper maintains branches in Cebu, Davao, Iloilo and Cagayan de Oro.

"Our distribution network is unusual in the paper supply business which depends largely on wholesalers. Because each branch keeps its own inventory, it can deliver our products faster and cheaper to our customers," Jacinto said.

These savings has enabled Star Paper to keep Parker pens prices at 1992 levels, making Parker pens sold in the Philippines cheaper than those bought in Hong Kong. – MJGrey