Are New Montblancs Catering Mainly To Collectors?

[Matlock]

Not really.

If you look at their financials, Pelikan had been making losses for years, and are only just scraping by

http://performance.morningstar.com/stock/performance-return.action?t=XBER:HEZ&region=deu&culture=en-US

 

I believe that Pelikan has recently been going through a streamlining operation to reduce it's debts and losses in order to try to return to profitability.

 

Newell Brand Inc appear to be doing a lot better

http://performance.morningstar.com/stock/performance-return.action?t=NWL&region=usa&culture=en-US

 

Cie Financiere Richemont(MB) are up and down

http://performance.morningstar.com/stock/performance-return.action?t=CFRUY&region=usa&culture=en-US

 

Pilot doing extremely well

http://performance.morningstar.com/stock/performance-return.action?t=7846&region=jpn&culture=en-US

 

When I said Pelikan are doing extremely well, I was referring to their writing equipment side. I think that, when you analyse the figures, what we have been saying about "Luxury" goods v. writing equipment is borne out.

[Ghost Plane]

I say yes, but it doesn't matter, a Fred says, wait a year or two, buy the LE/WE at a discounted price.

Unless you love larger nib sizes. In which case the nib butchers grind everything to nasty needles and any cost savings is lost given nib replacement costs.

[Prahasaurus]

I'm really missing the point of this. Montblanc is first and foremost a luxury brand. They generate huge revenues from a variety of products, of which fountain pens is only one category. Is this the tremendous insight you've decided to share with us, to open our eyes, to help us understand Montblanc has owners and interests and (gasp!) it's not just about making great pens? Oh my, thank goodness someone came by to share his marketing wisdom with us, we never would have made the connection!

 

You continue to downplay the importance of producing high quality writing instruments as part of MB's brand image. They need to look good, they need to imply exclusivity, yes, but they also need to write well. Not just average. Should that quality slip, MB lose the aura of a high end brand, and they know it.

 

The relationship people have to brands is incredibly complex, oftentimes a bit irrational. Performance is a factor, I would argue a very important factor, but perhaps not the deciding factor in why I chose MB. I also like the look of my pens, I like their history, I even like the MB logo, and have since I first saw it, before I even knew it was a luxury brand with a corresponding price tag.

 

Sweeping generalizations are rarely helpful. So you think MB is no longer the "writer's pen." Ok, great. Duly noted.

[inkstainedruth]

True. They dont make quills.

 

But they have ballpoints, fine liners, pencils, sketch pens, highlighters and fountain pens. And provide refills of all colors.

 

Ok they cater for 99% of writers then.

 

Well, I guess I'm a "1 percenter" then. Who knew....

Ruth Morrisson aka inkstainedruth

[jagwap]

 

Well, I guess I'm a "1 percenter" then. Who knew....

Ruth Morrisson aka inkstainedruth

Nobody comes to the fountain pen network forum for non-fountain pen discussions.

[Manalto]

Montblanc is first and foremost a luxury brand. They generate huge revenues from a variety of products, of which fountain pens is only one category. Is this the tremendous insight you've decided to share with us, to open our eyes, to help us understand Montblanc has owners and interests and (gasp!) it's not just about making great pens? Oh my, thank goodness someone came by to share his marketing wisdom with us, we never would have made the connection!

 

As a long-time fan of sarcasm, I just love the way some comments promote constructive discussion.

[Matlock]

 

As a long-time fan of sarcasm, I just love the way some comments promote constructive discussion.

 

[Ghost Plane]

Sarcasm is the least of the fascination of this thread.

 

Anyone remember the name of the younger guy on the A Team with the pretty hair and the frat boy grin? Not the crazy dude, the other, pretty one.

[Manalto]

Sarcasm is the least of the fascination of this thread.

 

Anyone remember the name of the younger guy on the A Team with the pretty hair and the frat boy grin? Not the crazy dude, the other, pretty one.

 

Who said "fascination"?

 

Lieutenant Templeton "Face" Peck (actor Dirk Benedict)

[max dog]

Hi:

 

Interesting insights, but I can't agree with your conclusions:

 

So they cut focus on products and focus instead on feelings... Who would have imagined!!!

 

No, they don't. It's right there, in the article you cite:

 

"Schmitz—who joined Montblanc in 1994 and was named CEO in 2003—is not your typical chief executive in an equally not-so-typical company. He is clearly at home in the luxury retail market and seems to have a sixth sense for innovation. And as this interview shows, this CEO is as savvy a marketer as any CMO, for he has been instrumental in positioning and shepherding Montblanc into the 21st century and elevating it from a household name—known for its dominance in the world of fine writing instruments—to a true luxury brand. [...] we made a decision to move away from functional writing instruments. [...] We eventually became, over the following 10years, a kind of jeweler—one that makes beautiful jewelry that happens to write. [...] Today, the white star means, “I am successful, I am educated.”"

 

And then, in case there are still any doubts...

 

"The company has expanded into fine timepieces and jewelry and has built a strong female clientele who recognizes the cachet of Montblanc."

 

See? From products, to pure branding. It's no coincidence this interview comes from The Chief Marketing Officer magazine instead of one devoted to fountain pens.

 

...but that's exactly what I already said. It's nice, nevertheless, seeing the very Montblanc's CEO confirming it, sometimes using my exact words.

 

Yes, well, more or less... it is the brand the one that needs to remain remarkable, something which happens partly because of pens, partly because of fancy boutiques, partly because exclusive events... and even strictly within the pens themselves, yes, they need to be remarkable, but they should be so "much less because of the function of the product and much more because of the meaning of the product".

 

I already told that too: "in order to maintain their reputation, Montblanc "need to be seen...". Sometimes, that involves products themselves, most times, it's cheaper and more effective doing it out of pure marketing."

 

...or, in Montblanc CEO's own words, "...The relationship between the brand and the consumer is expressed many different ways. It might be the product itself. It might be the advertising. It might be an in-store experience [...] There’s no doubt that, today, if you are in the brand business, you are more engaged than ever in this relationship with the consumer."

 

Well, yeah... what did say Voltaire about that?

 

In the end, please see this is not as a way to despise the company nor their products -nor the feelings of their supporters: I find fascinating how luxury companies operate, but I also find of interest understanding the framework they operate within, as a path to understand what to expect or what not to expect from them.

You seem to be fixated on the luxury aspect of MB. Yes they did go more luxury and focus on the meaning of their product to elevate the stature of writing instruments to more than just the utilitarian aspects of it. The point I keep making is that despite that clever marketing, the fact that their products, ie fountain pens are remarkable is what keeps them in the market leading position they are in. They cater to fountain pen enthusiasts as well as collectors.

[max dog]

Waterman ceased trading in 1954 and was declared bankrupt, The present Waterman is what was their French subsidiary. Parker withdrew from pen manufacture in 1985 and the company was taken over by a management buyout in Newhaven thus becoming a UK company. In 2010 Newhaven closed and all pen production was moved to France to the Waterman plant. Both companies being part of Newell Rubbermaid. Pelikan are doing extremely well and, along with Lamy, Parker,and others, this is mainly to do with their "budget lines". Parker and Waterman still produce high value pens, some costing a lot more than MB's LEs but they have the sense not to abandon their core market. It is pretty clear that MB would not survive without their "Luxury" status and are now more a "Luxury" brand than a pen manufacturer.

Well Parker, Sheaffer and Waterman (the French subsidiary) today are hardly the the companies they once were. Just go to their respective forums here and even their fans don't like the current pens they produce. Montblanc brand recognition in the fountain pen world is synonomous to Rolex in the watch world and Coke in the cola soft drink world today.

 

Lamy is taking on a similar approach to MB but focusing on lower tier of the market with the Safari and Lamy 2000.

 

Pelikan is surviving and that is great, but not to the success and market domination MB achieved.

[Ghost Plane]

Who said "fascination"?

 

Lieutenant Templeton "Face" Peck (actor Dirk Benedict)

Thanks. I admit to fascination with Dirk Benedict. The thread is more of the feeling you get watching a slow motion disaster.

[Manalto]

Montblanc brand recognition in the fountain pen world is synonomous to Rolex in the watch world and Coke in the cola soft drink world today.

 

 

Huh? Montblanc, Rolex and Coke? How about Glenlivet instead?

 

Thanks. I admit to fascination with Dirk Benedict. The thread is more of the feeling you get watching a slow motion disaster.

 

LOL - he was good in that role. He played it low-key while those around him (especially the manic Murdock/Dwight Schultz) were caricatures.

Edited February 4, 2018 by Manalto

[max dog]

I'm really missing the point of this. Montblanc is first and foremost a luxury brand.

 

 

I disagree with that statement first and foremost.

 

They are a writing instrument fountain pen company first and foremost with arguably the most famous fountain pen of all time, ie the 149, and they still offer the widest selection of nibs than any other manufacturer rivaled only by the big 3 Japanese brands. They still produce fountain pens that FP enthusiasts love for the writing performance and pleasure. They were successful breaking into the luxury market elevating the stature of fountain pens beyond just utilitarian writing implements which was necessary to create a niche market for fountain pens to survive. TWSBI survive in that niche market Montblance helped to create. TWSBI and a host of other lower tier brands just cater to the lower tier of that market, and MB and others play in the upper tier. MB probably could try to compete in the lower tier against TWSBI and the like, but it would probably eat into their profitability so they leave that end of the market to others who may be better suited to compete there. So what is so terribly wrong with that?

Edited February 4, 2018 by max dog

[jmnav]

I'm really missing the point of this. Montblanc is first and foremost a luxury brand.

 

I disagree with that statement first and foremost.

 

They are a writing instrument fountain pen company first and foremost

Then I think that's an end and we should agree on disagree.

 

Well... you, me... and Montblanc's CEO, which also happens to disagree with your views: "we made a decision to move away from functional writing instruments. [and become] a kind of jeweler—one that makes beautiful jewelry that happens to write."

[Ghost Plane]

Are we there yet?

[inkstainedruth]

Nobody comes to the fountain pen network forum for non-fountain pen discussions.

 

Quem?

I wasn't talking politics. I was making a joke in response to the comment about how MB makes writing instruments for 99% of writers. And up to this point *nothing* they make is of the remotest interest to me pen-wise (and I've tried both a 146 and a 149); I have liked a couple of their inks: Lavender Purple in their standard line, and Leo Tolstoy LE. I'm kinda interested in the Beatles LE ink, but ended up not buying a bottle of it at Christmastime.

Ruth Morrisson aka inkstainedruth

[Tom Kellie]

~ “Quem”.

As in the Latin term...or...an oblique reference to Sauternes?

After all of the foregoing in this thread, sipping a nice glass of Chateau d’Yquem would be a welcome act of closure and benediction.

Tom K.

[Matlock]

I believe that this has been a most interesting discussion. Some have answered the OP in a considered way, some have got on their high horse with rather indignant replies "how dare anyone criticize MB?". Some have replied with humour, some have sought to deride the remarks of others. Perhaps we should close this thread with the statement that MONTBLANC PRODUCE WRITING INSTRUMENTS and leave it at that. I bet it won't end there though .

[Manalto]

Or, we can end it here, at a nice, round #140 with a lighthearted, non-judgemental grammatical observation. I've noticed a British practice of referring to a company in the third-person plural (they): "Montblanc produce writing instruments." In the US, we tend to refer to a company in the third-person singular (it), "Montblanc produces writing instruments." The British way initially sounded odd to my American ear until I realized that, when using the pronoun, along with "it" we often switch to the plural "they" - "they're moving production to Timbuktu." Collective nouns (crowd, team, jury, etc.) generally follow the rule that, if the entities that comprise the group act as individuals, the plural is used (the jury are deliberating) or, if the concept of a single entity dominates, singular - (the crowd is breaking up). Raise your glass of magnificent Chateau d'Yquem for a toast, "Vive la difference!" (Thanks for bringing it, Tom.)

Edited February 5, 2018 by Manalto