CHAPTER 1

1.1 INTRODUCTION

Founded in Hamburg in 1906 by three businessmen who set out to perfect the design of the

newly invented fountain pen, Montblanc has been synonymous with finely crafted writing

instruments for more than a century. The Montblanc Meisterstück, first produced in 1924, is

without doubt the world's most iconic pen, favoured by stars and statesmen, treasured by

lovers of beautiful objects, chosen to mark special occasions and handed down from one

generation to the next.

In recent years, Montblanc has extended its values of timeless design and flawless

craftsmanship to new areas, notably watches and fine jewellery, which – alongside its long-

standing leather goods collection – have become the pillars of one of the world's leading

luxury houses. At the same time, Montblanc, whose origins are in the culture of writing, has

set an international standard of cultural commitment, with wide-ranging initiatives to promote

the arts in many forms.

Montblanc, which belongs to Compagnie Financière Richemont, is today present in over 70

countries via some 5,000 sales outlets, including more than 450 exclusive boutiques. Its white

star emblem, inspired by the snow-covered summit of the Mont Blanc, Europe's highest

mountain, is recognised as a symbol of excellence throughout the world.

1

1.2 FACTS & FIGURES

Established 1906 in Hamburg

Headquarters Montblanc International GmbHHellgrundweg 10022525 HamburgTel. +49 (0) 40 840 010

Centres of excellence Hamburg, Germany (Writing Instruments)Le Locle and Villeret, Switzerland (Watches)Florence, Italy (Leather Goods)Paris, France (Fine Jewellery)

CEO, Montblanc International Lutz Bethge

Employees 3,000 worldwide

Subsidiaries 28 subsidiaries

Distribution More than 450 Montblanc Boutiques,5,000 outlets in more than 70 countries

Holding company Compagnie Financière Richemont S.A.

2

1.3 OBJECTIVES OF THE RESEARCH

To understand some of the Marketing Strategies used by MONT BLANC.

To know the importance of Strategic Management in the growth of an Organization.

To understand that, where the MONT BLANC products stands in the market among their competitors.

1.4 LIMITATION OF THE RESEARCH

It is simple to assume that every work will proceed without any hurdles. But as usual there

were many hurdles and bottlenecks faced during the working on this project. The main

limitations were as follows:

The limitation in this survey was that I could not conduct a survey on a big scale, due to

the time constraint.

Lack of co-operative attitude from companies.

Unavailability of the resource persons.

Ease of access to important and relevant data.

3

1.5 RESEARCH METHODOLOGY

Type of research:

I have carried out a research which is both qualitative and quantitative in its support. The

qualitative approach applies to both, descriptive and inductive forms of research. While as in

case of quantitative approach, an extensive use has been made of the literature available to

carry out a detail research on the nature of the problem. I have chosen MONT BLANC as the

target company for my research study.

Method of data collection & analysis:

The data, after collection, has to be processed and analyzed in accordance with the outline laid

down for the purpose at the time of developing the research plan. This is essential for a

scientific study and for ensuring that we have all relevant data for making contemplated

comparisons and analysis. 

4

Nature of data:

I have made use of both, the primary sources and the secondary sources of data in eliciting

information.

PRIMARY DATA: 

Data that has been collected from first-hand-experience is known as primary data. Primary

data has not been published yet and is more reliable, authentic and objective. Primary data has

not been changed or altered by human beings, therefore its validity is greater than secondary

data.

The primary source of data involves oral interviews and questionnaires. These sources are

inadvertently expected to yield more qualitative data and results. 

Primary data collection methods:

Interviews:

I have conducted oral interviews with retailers of MONT BLANC. In considering an oral

interview of such a nature, a follow up and step by step approach was adopted in getting

through the interviewees. The oral interview involved a set of well thought out questions that

were asked and the responses there on noted as a basis for analysis. Subsequently a graphical

analysis has been made based on the responses received from the persons questioned and

interviewed. 

Questionnaire:

I have collected primary data with the help of the questionnaire which was conducted with

the help of students, retailer, consumers.

SECONDARY DATA:

5

Data collected from a source that has already been published in any form is called as

secondary data. The review of literature in nay research is based on secondary data. Mostly

from books, journals and periodicals.

Secondary data collection method:

The secondary source of data includes relevant literature including periodicals and journal

articles in the areas of Marketing, customer satisfaction. 

I have collected the secondary data from the sites or links like;

www.montblanc.com

ww.fragrantica.com/designers/Mont-Blanc.html

en.wikipedia.org/wiki/Mont Blanc

I have also collected the secondary data from the books like:

Research Methodology - C.R. Kothari

Marketing Management - Philip Kotler

1.6 COMPANY PROFILE

6

HISTORY

In 1906, two German businessmen – Alfred Nehemias, a merchant from Hamburg, and

August Eberstein, an engineer from Berlin – returned from a trip to the United States. There,

they had been fascinated by a new invention: the fountain pen. Though still imperfect, this

ingenious design, containing its own ink tank, dispensed with the need for a separate inkwell

– an important consideration in an era when the rapid development of rail, road and air

transport meant that people were travelling more than ever before. Back in Hamburg, they

formed an agreement with Claus-Johannes Voss, a stationery trader, to produce their own

version of the new writing instrument.

It was more than two years before they were able proudly to present the result of their

endeavours: the premium-quality Rouge et Noir fountain pen. Its name, inspired by the

famous novel by Stendhal, gave an early indication of the company's literary leanings.

Advertised as "a fountain pen that does not make blots", it became so successful that it was

soon widely known by the nickname "Little Red Riding Hood", in reference to its distinctive

black ebonite body and red cap.

In 1909, the company, then trading under the name Simplo Filler Pen Co. GmbH, launched a

new design incorporating a number of significant improvements. What better way to express

this new summit of technical achievement and apotheosis of European craftsmanship than by

7

an analogy with Europe's highest mountain? The Montblanc fountain pen was born, the white

tip on its cap anticipating the future emblem of the brand.

By 1913, the new fountain pen had become a best seller. The company changed its name to

Montblanc Simplo GmbH and adopted an instantly recognisable trademark: a six-point white

star representing the snow-covered summit of the mountain Mont Blanc with its six glaciers.

Soon, the new logo would be famous throughout Germany and beyond.

In 1919, the first store selling exclusively Montblanc products – not only pens, but also ink,

writing paper and mechanical pencils – opened in Hamburg, a precursor of modern luxury-

brand boutiques. It was followed by others in major cities across Germany, as well as outlets

in London, Paris and Barcelona. Meanwhile, the company's advertising department adopted

innovative new methods inspired by trends in America. Huge Montblanc fountain pens were

mounted on cars and the company name was painted on the side of airplanes, while a

photograph of Paris in the 1920s shows a Montblanc advertisement covering the entire facade

of a building.

The true breakthrough, however, came in 1924 with the launch of the Montblanc Meisterstück

fountain pen. Its name proclaimed it to be a masterpiece, and a masterpiece it was – so much

so that the original design in black precious resin with its three gold-plated rings has remained

virtually unchanged to this day. The engraving "4810", recording the height of the Mont

Blanc in metres, was added to the Meisterstück's gold nib in 1929, while – as the collection

8

expanded to include other writing instruments – the figure "149" came to designate the

original fountain pen with its characteristic nib size.

In 1935, Montblanc established a workshop near Offenbach, a town at the time famed for its

leather craftsmanship, to create luxury small leather items, including pen pouches, notebooks

and writing cases. Even at this early stage, the company recognised that such accessories were

a natural complement to its writing instruments and sought out the most highly skilled artisans

to produce them.

Though the Second World War brought destruction both to the Offenbach leather goods

workshop and to Montblanc's Hamburg manufacture, the company recovered in the post-war

years, with the Montblanc Meisterstück in particular cementing its reputation as the writing

instrument of choice for both stars and statesmen.

As a global luxury goods market emerged in the 1980s, Montblanc focused its efforts on high-

end products, notably launching the Meisterstück Solitaire collection, the first precious metal

edition of the Meisterstück, in 1983. Three years later, the famous advertising slogan

"Montblanc, The Art of Writing" clearly established Montblanc's cultural connections. Back

in the 1930s, the company had been famous for its literary competitions and it now embarked

on an array of international sponsorships in literature, ballet and music, marking the start of an

enduring commitment to the promotion of the arts in many forms.

Throughout the 1990s, innovative initiatives in the world of culture accompanied Montblanc's

emergence as a luxury maison. In particular, the Montblanc de la Culture Arts Patronage

Award, established in 1992, became the one and only international award to honour

outstanding patrons of the arts in different countries.

The Limited Edition Patron of Art pen, created by Montblanc to mark the occasion, was the

first of the company's exceptional limited editions, dazzling demonstrations of its

craftsmanship, which are eagerly awaited by Montblanc connoisseurs the world over.

9

Having for nearly a century been associated with precision craftsmanship and the luxury of

taking time, it was only natural that, in 1997, Montblanc should found Montblanc Montre

S.A., its own watchmaking workshop in Le Locle, in the heart of the Swiss Jura. The

Meisterstück watch collection was the first of a succession of masterpieces to emerge from

this unique manufacture, which has since been complemented by the takeover of Minerva, a

small traditional workshop in Villeret famed for its exceptional handmade movements.

To mark its centenary in 2006, Montblanc unveiled the Montblanc Diamond Cut, an exclusive

cut replicating the company's celebrated star emblem in three dimensions. This glittering

achievement – making Montblanc the first company ever to have a patented gem cut derived

from its logo – signalled the entry of Montblanc into the glamorous world of fine jewellery.

Culture, quality, craftsmanship and continuity – these are the values which Montblanc carries

proudly into the 21st century, already writing another chapter in its history.

TIME LINE

1906

10

Alfred Nehemias, a Hamburg banker and August Eberstein, a Berlin engineer, concluded an

agreement to manufacture the newly invented fountain pen and established a factory in

Hamburg.

1908

An early premium-quality pen, named "Rouge et Noir", was launched by the company, then

trading as Simplo Filler Pen Co. GmbH.

1909

The first Montblanc fountain pen was launched. This new writing instrument featured

significant improvements, and its name was chosen – so the story goes – to represent its peak

of technical achievement and highest European craftsmanship.

1913

The six-point white star – representing the snow-covered summit of Europe's highest

mountain, the Mont Blanc – became the company's trademark.

1919

The first Montblanc Boutique opened in Hamburg, soon to be followed by others in Berlin,

Leipzig, Breslau, Hanover and Bremen.

1924

The legendary Montblanc Meisterstück fountain pen was launched. As its name proudly

proclaimed, it was a masterpiece of precision craftsmanship.

1929

11

The engraving "4810" first appeared on the Montblanc Meisterstück nib. Recording the height

in metres of the Mont Blanc as it was measured at the time, this figure has been engraved on

all Meisterstück fountain pens ever since.

1935

Montblanc established its first leather goods workshop near Offenbach, a town renowned for

its leather craftsmanship, to produce luxury small leather items.

1983

Montblanc introduced the Meisterstück Solitaire Collection, the first precious-metal edition of

the Meisterstück. The Meisterstück Solitaire 149 fountain pen in solid gold entered the

Guinness Book of Records as the most expensive fountain pen in the world.

1989

Montblanc moved into new, purpose-built Headquarters in Hamburg, integrating design,

production and administration, as well as the Montblanc Museum.

1990

Montblanc opened its first ever Montblanc Boutique in Hong Kong showing its strong

commitment to Asia.

1992

Montblanc established the Montblanc de la Culture Arts Patronage Award to honour

outstanding patrons of the arts. Its first Limited Edition Patron of Art pen celebrated one of

history's great art patrons as well as telling the fame of the awarded modern patrons, Lorenzo

de Medici. Meanwhile, the new annual Montblanc Limited Writers Edition paid tribute to

Ernest Hemingway.

1993

12

Dunhill Holding, having acquired Montblanc in 1985, was taken over by Vendôme, which

subsequently became Richemont, one of the world's largest luxury conglomerates,

encompassing – alongside Montblanc – such prestigious names as Cartier, Van Cleef &

Arpels, Jaeger-LeCoultre and IWC.

1994

The Meisterstück Solitaire Royal, painstakingly set by hand with 4,810 diamonds, became the

world's most expensive fountain pen.

1995

Montblanc became the founding sponsor of the Philharmonia of Nations, under the conductor

Professor Justus Frantz.

1997

Montblanc Montre S.A. was founded in Le Locle, Switzerland, for the manufacture of finely

crafted timepieces. The Meisterstück watch collection was presented at the prestigious Salon

International de la Haute Horlogerie in Geneva.

1999

The first Montblanc flagship store was inaugurated in New York, to be followed by others in

major cities across the globe.

2002

Premiere of the Montblanc Cutting Edge Art Collection: first vernissage at Montblanc

Headquarters in Hamburg.

2004

13

Montblanc joined forces with UNICEF to launch "Sign Up for the Right to Write", a

campaign to promote quality education for the world's children. This and subsequent

initiatives, including the Meisterstück "Signature for Good" special edition in 2009, raised

millions of dollars for UNICEF.

2006

Montblanc celebrated its centenary in the most sublime way imaginable, with the unveiling of

the precious Montblanc Diamond. Eight years in development, this breathtaking 43-facet cut

revealed the Montblanc emblem in three-dimensional form. Montblanc thus became the first

luxury brand ever to have a patented gem cut derived from its logo – a unique achievement

that was the inspiration for the launch of its fine jewellery collection.

2007

Montblanc's watchmaking expertise was further enhanced by the establishment of Institut

Minerva de Recherche en Haute Horlogerie at Villeret, Switzerland, perpetuating the 150-year

tradition of Minerva, a small manufacture famed for its exceptional handmade movements.

2008

At the Salon International de la Haute Horlogerie in Geneva, Montblanc unveiled the MB

R100 calibre, the first movement manufactured entirely in its own workshops. Integrating the

new movement, the Nicolas Rieussec Monopusher Chronograph paid tribute to the inventor of

the chronograph, Nicolas Rieussec.

2009

Montblanc inaugurated its largest flagship store in Europe on Paris' famous Rue de la Paix.

The 500-square-metre space, presenting the Montblanc fine jewellery collection under one

roof for the first time, also houses a design studio and fine jewellery atelier.

2011

14

World Premiere of the Montblanc ‘’Collection Princesse Grace de Monaco’’.

2012

World Premiere Opening of the biggest Montblanc store in Sanlitun, Beijing: 1,800m²,

Montblanc’s most impressive, innovative, four-storey interactive concept in the world.

CHAPTER 2

15

ANALYSIS I

2.1 SWOT ANALYSIS

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to

evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a

business venture. A SWOT analysis can be carried out for a product, place, industry or

person.

It involves specifying the objective of the business venture or project and identifying the

internal and external factors that are favorable and unfavorable to achieve that objective.

Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford

Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune

500 companies.

16

However, Humphrey himself does not claim the creation of SWOT, and the origins remain

obscure. The degree to which the internal environment of the firm matches with the external

environment is expressed by the concept of strategic fit.

Identification of SWOTs is important because they can inform later steps in planning to

achieve the objective.

First, the decision makers should consider whether the objective is attainable, given the

SWOTs. If the objective is not attainable a different objective must be selected and the

process repeated.

Users of SWOT analysis need to ask and answer questions that generate meaningful

information for each category (strengths, weaknesses, opportunities, and threats) to make the

analysis useful and find their competitive advantage.

SWOT allows to check relations between features (Strengths and Opportunities, Weaknesses

and Threats). SWOT gives answers: why focus on the weakness, which are important, but do

not intensify your threats or do not limit opportunities. Identification of these relations can

help to decide on which areas focus first and see what factors may have deciding meaning in

long-term perspective, what kind of goals should be defined.

Setting the objective should be done after the SWOT analysis has been performed. This would

allow achievable goals or objectives to be set for the organization.

Some findings from Menon et al. (1999) and Hill and Westbrook (1997) have shown that

SWOT may harm performance. Other complementary analyses have been proposed, such as

the Growth-share matrix.

STRENGTHS

Barriers of market entry

17

It makes jewellery, fine watchmaking and premium accessories, which encompasses

writing instruments, leather goods and fashion.

One of the top 10 biggest company in the Swiss Market Index 

It is the second-largest luxury goods company in the world by turnover.

Particular strengths in jewellery, luxury watches and writing instruments

Employs over 20,000 people

It encompass several of the most prestigious names in the luxury industry including

Cartier, Van Cleef & Arpels, Piaget, Vacheron Constantin, Jaeger-LeCoultre, IWC,

Panerai.

Domestic market

Monetary assistance provided

Existing distribution and sales networks

Reduced labour costs

High growth rate

High profitability and revenue

Experienced business units

WEAKNESSES

Brand portfolio

Cost structure

Future debt rating

Small business units

Need to promote and market brands aggressively.

Limited global presence specially in emerging economies

OPPORTUNITIES

New products and services

Global markets

18

Growth rates and profitability

New acquisitions

A joint venture of Richemont and Polo Ralph Lauren Inc.

More than dozen of companies are fully owned subsidies of Richemont

More enhanced penetration in global and emerging economies

Growing Demand

THREATS

Financial capacity

Cash flow

Tax changes

Growing competition and lower profitability

Increase in labour costs

Competition largely exists on how potent and valuable the brand image has become. 

Invest huge money in brand promotions in order to maintain their image.

Counterfeits often penetrate the market.

Price changes

Rising cost of raw materials

External business risks

increasing rates of interest 

COMPETITORS

Louis Vuitton

Gucci

2.2 PORTER FIVE FORCES ANALYSIS

Porter five forces analysis is a framework to analyse level of competition within an industry

and business strategy development.

19

It draws upon industrial organization (IO) economics to derive five forces that determine the

competitive intensity and therefore attractiveness of a market. Attractiveness in this context

refers to the overall industry profitability.

An "unattractive" industry is one in which the combination of these five forces acts to drive

down overall profitability. A very unattractive industry would be one approaching "pure

competition", in which available profits for all firms are driven to normal profit. This analysis

is associated with its principal innovator Michael E. Porter of Harvard University (as of

2014).

Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute

products or services, the threat of established rivals, and the threat of new entrants; and two

forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power

of customers.

20

BARRIERS TO NEW ENTRY 

This kind of industries consist high entry barriers will have fewer firms entering. With fewer

firms, there is less environmental complexity, and it is easier for existing firm to begin to

dominate the industry. Economic rents are usually higher in such an environment. This makes

the industry attractive.

THE BARGAINING POWER OF BUYERS

Mont Blanc carriers a high level of brand name and status with itself. Mont Blanc

manufactures products for the high status personalities. Here the buyers pays to maintain

status in the society, hence the bargaining power of buyer is very low.

THE POWER OF SUPPLIERS

A wide range of raw materials are needed for the components of a luxury accessories,

including metals, plastics, leather and ink chemicals which are abundant.  Pilot can easily

secure the suppliers which cater to its requirement of raw materials at its own factories.

THE DEGREE OF RIVALRY

Here the degree of rivalry are less. Brands like Parker, Gucci, Armani and Louis Vuitton

compete among each other.

THE SUBSTITUTE THREAT

The demand for performance apparel, watches, pen and accessories is expected to continue,

and hence we think this force does not threaten Under Armour in the foreseeable future.

2.3 PRODUCT LIFE CYCLE OF MONT BLANC

21

Mont Blanc has reached to the maturity stage in its product life cycle.

Mont Blanc is the leader in his field.

Mont Blanc known for its premium quality products such as watches, pen and

accessories.

Mont Blanc signifies the status of the personality.

Mont Blanc faces competition from the company such as Gucci, Armani, Parker and

many more.

One of the top 10 biggest company in the Swiss Market Index 

It is the second-largest luxury goods company in the world by turnover.

It makes jewellery, fine watchmaking and premium accessories, which encompasses

writing instruments, leather goods and fashion.

2.4 BCG MATRIX

22

The Boston consulting Group’s portfolio matrix allows a firm to visually display

information about each of its. The BCG matrix has as its axes the market growth rate

(Broken into high and low growth) and the relative market share as compared to the largest

competitors (high and low relative market share).

The BCG matrix method is based on product life cycle theory that determines the product

portfolio of a unit which contains both high growth product & low growth product having 2

Dimensions: Market share & Market growth.

BCG MATRIX CONSISTS OF 4 CATEGORIES:

1. STARS:

(High growth & High market share)

23

Stars are market leaders and growing fast. Stars have large reported profits but require a lot of

cash to finance the rapid growth. As per the company’s survey, Mont Blanc is touching the

peek of success & therefore comes under the STAR category thereby the Co. can invest a

large sum for its upliftment .

2. CASH COWS

(Low growth, High market share)

A cash cow usually generates more cash than is required to maintain its market share. It is in

low-growth market but has a dominant market share. Profits & cash generation should be high

due to its Low growth, the investment needed to be Low to keep Profits High. They are to be

"milked" continuously with as little investment as possible, since such investment would be

wasted in an industry with low growth.

3. QUESTION MARK:

(High growth, Low Market share)

They are business operating in a high market growth, but having a low market share. They are

a starting point for most businesses. Question marks have a potential to gain market share and

become stars, and eventually cash cows when market growth slows.

4. DOGS:

(Low growth, Low market share)

More charitably called pets, are units with low market share in a mature, slow-growing

industry. These units typically "break even", generating barely enough cash to maintain the

business's market share. Though owning a break-even unit provides the social benefit of

providing jobs and possible synergies that assist other business units, from an accounting

point of view such a unit is worthless, not generating cash for the company..

CHAPTER 3

24

ANALYSIS II

3.1 MONT BLANC COMPANY ANALYSIS

Montblanc will not sell customers or dealers replacement parts without the company

performing the repair. When a pen is damaged, it is accepted at any Montblanc boutique

where it will be forwarded to their service centre for evaluation. A quote for the repair will be

provided to the customer if the pen is out of warranty. If the estimate is accepted, the repair is

completed and Montblanc will provide a one year repair warranty on the work that was done.

All Montblanc boutiques have on-site technicians to service pens and perform simple repairs.

Montblanc also offers a free engraving service to customers, and can usually be performed in

their boutiques.

The Nib Exchange service by Montblanc operates as follows. Newly purchased pens can have

their nibs exchanged free of charge within the first six weeks; however, the exchange of older

and already worked-in nibs will incur a service fee. All Special and Limited Edition pens need

to be returned to the Hamburg manufacture, for strict control of the Limited Edition nibs.

Montblanc provides a two-year warranty on all of its products.

25

Next to various Limited Editions like the Patron of the Art Series with only a few hundred of

them being produced around the world, there are some Limited Editions produced from

editions of 4810 to those in tens of thousands.

The Patron of the Art (POA) Series are found in editions of 888. These models are intricately

adorned in diamonds, rubies, and other precious stones into precious metals typically in 18K

gold. A signature mark on these include a Mother of Pearl Montblanc Star adorning the cap.

Although cheaper, the Montblanc Writers Edition has been profitable. These pens are

launched each year, commemorating the life and work of a particular writer, with their

signature engraved into the cap of the edition. Usually, a symbol of their most distinguished

work is engraved onto the nibs, of the fountain pen versions. Montblanc use "aged resin" in

the caps of the pens in this series, to give the Montblanc star an 'off-white' or 'cream coloured'

appearance, thereby ensuring a contrast in colour when next to models from their regular

production line-up.

Apart from a serial number the Limited Edition pieces carry a distinct number placing it

within the release of the edition, i.e. 1/888 would be the first pen produced of an edition of

888 pens.

Special Editions include Patron of Art, Writers Edition, Great Characters, Diva Line,

Donation Pens and Artisan Editions. The Donation series includes some limited Editions like

26

the 2009 released Signature for Good limited edition. Montblanc donates parts of its proceeds

to UNICEF. They claim to guarantee a minimum of US $1.5 million worldwide within one

year.

Montblanc makes several models of pens, with the Meisterstück (fountain pen) representing

the cornerstone model. Each model is slightly different, however models created after 1990

have a serial number located on the ring at the top of the clip. Under the clip is usually the

words "Made in Germany" and often "Pix". Moreover, the barrel of the pen will reveal a

reddish hue under strong lighting. If the pen in question does not have these attributes then it

is quite possibly a fake. To date, however, there have been no reports of replica piston-filled

Montblanc fountain pens. In most cases, comparison of a genuine pen next to a replica will

reveal obvious irregularities.

The Artisan Atelier: where pure creativity meets the craft of precision

At the heart of Montblanc's writing instruments manufacture in Hamburg lies the

Artisan Atelier which shares the same commitment and philosophy to craftsmanship

as the Montblanc Watch Workshops in Switzerland. In this small workshop, unique in

the world, the most extraordinary ideas slowly take shape from first sketch to finished

article. From solid gold and precious gemstones, and on occasion such rare

materials as mammoth tusk or granite from the Mont Blanc, the Artisan Atelier crafts

jewels that happen to write, some in editions so limited they are simply one-of-a-kind

masterpieces. Montblanc's skilled designers, master goldsmiths and gemstone

setters here attain the true summit of their art with annual editions such as the Patron

of Art Limited Edition, as well as strictly limited series celebrating, among others, the

Beijing Opera or the Valentine’s Day, and the ‘Créations Privées’, genuine bespoke

designs commissioned by dedicated Montblanc connoisseurs the world over.

In terms of popular culture, Lupe Fiasco mentions the German brand in his song "Gold

Watch" from his Lupe Fiasco's The Cool album. Fiasco raps, "I like Montblanc pens and

Moleskine paper."

27

A trademark identified with Montblanc is the white stylised six-pointed star with rounded

edges, representative of the Mont Blanc snowcap from above, the symbol being adopted in

1913. The number "4810," the mountain's height in metres, is also a commonly recurring

theme.

They are always interested in creating network of people who shares their values and are

committed to strive to excellence. In any job position you may choose, they will offer you the

opportunity to contuniously learn and to further develop your skills in order to achieve your

career goals.

3.2 COLLECTION OF DATA AND ANALYSIS

28

For Montblanc, with a tradition going back more than 100 years based on the culture of

writing, it seems natural to get involved in fields that also stand for expert craftsmanship,

artistry, and quality. All projects initiated or sponsored by Montblanc in the fields of classical

music, theatre, and the fine arts on the one hand preserve traditional values and on the other

offer new ideas and perspectives.

1. Why is Montblanc so involved in the fields of art and culture? What is

the expected benefit.

For Montblanc, with a tradition going back more than 100 years based on the culture of

writing, it seems natural to get involved in fields that also stand for expert craftsmanship,

artistry, and quality. All projects initiated or sponsored by Montblanc in the fields of classical

music, theatre, and the fine arts on the one hand preserve traditional values and on the other

offer new ideas and perspectives. A traditional brand like Montblanc must continue

developing and needs new perspectives to compete on the market. Engaging with art and

culture, and especially with the people involved with their production, inspires and stimulates

us creatively – for ourselves and our work.

2. What does cultural sponsorship mean for people working at Montblanc?

Since we established the Montblanc Cultural Foundation in 1992, we have done a lot to offer

the experience of art and culture inside the company as well. In 1997, we established the

Montblanc Gallery, where we can show important contemporary works of art right at the

workplace. Two years later, in 1999, we added the Staircase Gallery as a second exhibition

space, a glass staircase running over three floors that can be used for installations.

In 1997, finally, we introduced the Montblanc Kulturkarte, which makes it possible for

everybody at Montblanc to get tickets for all concerts of the Philharmonia of Nations, but also

openings at Thalia Theater, the Hamburg State Opera, and Hamburger Kunsthalle – all at a

80% discount. The annual fee for the Kulturkarte is 10 euros, which we donate to the

Philharmonia of Nations. In this way, everybody working at Montblanc is personally involved

in our projects that support culture. Montblanc also gives everybody at the company what we

29

call ‘time for culture’: we organise concerts, readings, and theatre performances during work

hours. At those events, production takes a break.

3.How have your activities in support of culture changed since the

foundation was established?

Since the establishment of the foundation in 1992, Montblanc’s support of cultural projects

has become both more comprehensive and more intense. The partnerships initiated then still

exist to this day: more than 10 years of our own art collection, 11 years of Montblanc Young

Director’s Project, 17 years Philharmonia of Nations, more than 20 years Montblanc de la

Culture Arts Patronage Award, our prize for individual patrons of the arts. After 21 years,

Montblanc has become unthinkable without art and culture. What started as a few small steps

is now a well-established and indeed thriving part of our corporate culture.

4. What does a patronage award mean?

As far as we know, the Montblanc de la Culture Arts Patronage Award is the only prize

worldwide that is awarded to individuals who devote their own time and their private assets to

preserving and supporting culture. It was our idea to bring some publicity to these patrons, to

present their commitment, their projects, and also themselves as outstanding individuals,

which we hope will motivate others to follow their example. What started with the first award

30

in New York in 1992 now takes place in twelve countries and is supported by uncounted

famous artistic personalities who serve as jury members.

5. Why a corporate art collection and not increased support of public

museums and institutions?

If you want to support art and culture as a company convincingly and with a long-term

perspective, it is not enough to do that externally and publicize it: it must be experienced,

above all within the company. The idea of a corporate collection came up in the early 1990s

during our cooperation with Hamburger Kunsthalle and our acquisitions for their Gallery of

Contemporary Art. But it took a few years until we had developed a concept, and then in 2002

we presented within the company the idea of the collection Montblanc Cutting Edge Art

Collection with Big Lunar Module by Tom Sachs and other artworks. By now, the collection

comprises 160 commissioned works by artist from around the globe, all of whom explored the

motif of the white Montblanc star. A collection that we gave to ourselves as a present, and of

course we are proud that so many famous artists were willing to create a work for Montblanc.

6. What does Cutting Edge Art Collection mean?

Cutting edge refers to all those artists who with their outstanding ideas have contributed

significantly to the advancement of art and culture. To create something new you need to keep

questioning the familiar, established, and critically examine what you’ve learned. Artists who

look beyond the obvious, who broaden their cultural horizon, who are willing to take risks –

these are the artists we want to have in our collection so that we can learn from them and be

inspired for our own work. Cutting edge also means first-class, outstanding, successful: all the

things we all want ourselves to be.

7. How does Montblanc decide on projects to sponsor and acquisitions?

Happily, we have now established an international network of art consultants, gallerists, art

historians and artists, who all support us in the decision-making process. Even though

everybody at Montblanc who is directly involved in our cultural projects is also keenly

interested in art, it is not possible to realise so many projects without some outside help. Many

31

ideas also arise during our discussions with our partners. Cultural sponsorship cannot be

static; just like culture itself, our projects are always evolving and changing.

8. Why does Montblanc not support any literature projects?

Supporting literature and poetry seems of course quite obvious for a producer of writing

instruments. We often receive interesting offers that make it hard for us not to focus more on

literature in our international sponsorship programmes which are nationwide defined. Due to

language and cultural differences, supporting literature is actually the privilege of our local

markets.

Generally, Montblanc is not so much interested in supporting artists working in certain

disciplines – our main interest is an intercultural exchange. As producers of writing

instruments, we simply want to take one step further rather than to do what’s expected and

rather obvious. That is why we decided to focus on the field of visual and performing arts.

9. How significant is sponsoring for Montblanc, and how can a partnership

in the field of culture be successful for all partners?

It is important for Montblanc to support projects that could not be realised without our

support. That means we are frequently the sole sponsor; we often finance projects entirely, or

at least contribute a major part. In all our partnerships, our cultural partners alone decide on

content and the project’s artistic orientation. We contribute our know-how elsewhere, for

32

example when it comes to PR and advertising. Because of course we all want as many

interested people as possible to learn about these projects so they can participate in them.

10. An example for a successful partnership

The Young Directors Project has been held as part of the Salzburg Festival since 2002. When

Prof. Jürgen Flimm, director of drama of the Salzburg Festival approached Montblanc with

the idea for this project, it was clear that we would have to finance the project in its entirety if

it was to be realised. With the support of an international jury, Jürgen Flimm, later Martin

Kusej, Thomas Oberender, and now Sven-Eric Bechtolf have chosen four outstanding young

theatre directors each year, who have then been invited to Salzburg with their ensembles.

At the end of the festival, the winners are honoured with the Montblanc Young Director’s

Award.

Additionally, we finance a guest production through the sale of the Montblanc Max Reinhardt

Limited Edition, which is only available during the festival at our Salzburg Montblanc

boutique. The selection of the nominated directors is entirely up to the director and the

international jury; we are not involved. We have the opportunity to make this project possible

and to support it with an advertising campaign, a beautiful programme magazine, and the

award ceremony.

33

FUTURE PROSPECTS

To remains confident in its capacity to generate sustained profitable growth and will

continue to explore acquisition opportunities in line with its strategy of strengthening

its portfolio of brands.

To concentrate more on cooperate social responsibility which can will be beneficial

for the betterment of the society.

To concentrate more on the well-being of the employees by providing them good

working condition, and by conducting participative management.

To tackle all the threats with proper systematic decision making and by proper

management.

To upgrade our products as per the requirement of the customers and to create a

complete customer satisfaction.

To launch new range of products which will target new customers and to step in

different sectors.

34

CHAPTER 4

4.1 CONCLUSION

For over 100 years, Montblanc has embraced the traditions of lasting value and exquisite

craftsmanship. The company’s uncompromising principles of design, style, quality and

workmanship have allowed them to create heirloom collections that are passed from

generation to generation. The iconic Montblanc Star is a symbol of excellence – the pinnacle

of luxury writing instruments, timepieces, jewelry and leather – and the brand has made an

enduring commitment to encourage excellence through cultural advancement. Montblanc is

pleased to partner with the 24 Hour Company and Urban Arts Partnership to bring arts and

culture to the city’s youth.

In recent years, Montblanc has extended its values of timeless design and flawless

craftsmanship to new areas, notably watches and fine jewellery, which – alongside its long-

standing leather goods collection – have become the pillars of one of the world's leading

luxury houses. At the same time, Montblanc, whose origins are in the culture of writing, has

set an international standard of cultural commitment, with wide-ranging initiatives to promote

the arts in many forms.

Montblanc, which belongs to Compagnie Financière Richemont, is today present in over 70

countries via some 5,000 sales outlets, including more than 450 exclusive boutiques. Its white

star emblem, inspired by the snow-covered summit of the Mont Blanc, Europe's highest

mountain, is recognised as a symbol of excellence throughout the world.

35

4.2 RECOMMENDATION

Mont Blanc should enter in much more fields of business.

Mont Blanc should create more awareness through promotion and advertising.

Mont Blanc should produce their product at low range which can target more

customers like youths and upper middle class people.

Mont Blanc should get merged with the local players of the market which can help to

reach more customers.

Mont Blanc should increase their retail outlet and service centre which can create

more customer satisfaction.

Mont Blanc should also concentrate in cooperate social responsibility (CSR) which

will improve their goodwill and reputation in the market.

APPENDIX

36

5.1 QUESTIONNAIRE

1. Why is Montblanc so involved in the fields of art and culture? What is the expected

benefit.

2. What does cultural sponsorship mean for people working at Montblanc?

3. How have your activities in support of culture changed since the foundation was

established?

4. What does a patronage award mean?

5. Why a corporate art collection and not increased support of public museums and

institutions?

6. What does Cutting Edge Art Collection mean?

7. How does Montblanc decide on projects to sponsor and acquisitions?

8. Why does Montblanc not support any literature projects?

9. How significant is sponsoring for Montblanc, and how can a partnership in the field of

culture be successful for all partners?

10. An example for a successful partnership

5.2 BIBLIOGRAPHY

37

Marketing management – Philip kotler

5.3 WEBLIOGRAPHY

www.montblanc.com

ww.fragrantica.com/designers/Mont-Blanc.html

en.wikipedia.org/wiki/Mont Blanc

38