Everybody Loves Canon

Canon scored marginally high in overall marketing support than its rivals. However, other areas like channel relationship management and online support are its major weak parameters, where it still lags behind HP. While Canon came for major praise from channel partners for its allocation of funds for marketing (co-op funding), it outscored HP in other parameters including Innovativeness of market development programs and flexibility in conducting localized promotions.It is a case of musical chairs for the laser printer category with Canon regaining its #1 slot in 2014 that it lost to HP the year before. A closer look at the results reveals that Canon and HP had neck to neck competition, with Samsung, Brother and Panasonic all falling behind in the laser printer market.

But what really tilted the scales for Canon in 2014 was its near unanimous endorsement by the channel partners for its transparency in commercial terms and policies as well as promptness with which the schemes/incentive programs are communicated. Partners also swear by Canon’s credit policies, back-end incentives and their settlement, product pricing and most importantly the profit margins it gives to partners.

Though it was pipped to the post by Canon, the partners also appreciate HP’s ability to provide satisfactory repair and replacement services for its customers. Besides, HP has a strong stock replacement policy and service approach. And thanks to its myriad of new product launches throughout the year, HP never loses out on diversity of its product range. In fact, overall on most product quality parameters, HP outscores Canon and the other competitors convincingly.

However, HP needs to put some more efforts in maintaining its relationship with the partners. Particular Achilles Heels have been its effectiveness in managing disruption due to changes in personnel as well as consistency in honoring commitments made by its personnel to the partners. These somehow stymie the consistency and effectiveness of HP’s communication with channel partners

Following the integration of IPG and PSG, the company increased its focus on the consumer channels significantly. HP’s success with the channel partners has been the result of its investments made in programs, people and resources to equip their partners and help them to drive profitable growth.

Samsung despite its limited product portfolio, often faced parallel import issue which impacted the authorized channel. To counter parallel import issue it also discontinued some of its printer model. This, in turn, impacted its ratings on many parameters by the channel partners.

Swot Analysis of Winner Trio

Canon

Strengths

• Transparency in commercial terms and policies
• Promptness with which the schemes/incentive programs are communicated
• Allocation of funds for marketing (co-op funding)

Weaknesses

• Less dedicated personnel for maintaining relationship
• Less effective with which vendor manages disruption due to its change in personnel
• Inefficient of online resources offered

HP

Strengths

• Ability to provide satisfactory repair & replacement services
• Promptness in stock replacement
• Diversity of the product range

Weaknesses

• Delayed back-end incentives and their settlements
• Less availability of competent account managers

Samsung

Strengths

• Price vs. performance ratio
• Presence of vendor’s service centre in locality/city/region
• Innovativeness of market development programs

Weaknesses

• Less manpower at disposal
• Not effective presence of Online Partner Portal & its effectiveness