The task of developing a printer with a feature-set that appeals to a large
number of customers was a challenging one for HP. Inputs to develop this
feature-set came from a number of countries and the result was HP’s 656 inkjet
printer. And the fruits of labor have been sweet.
According to IDC, 47 percent of all inkjet printers sold in the country come
from the HP deskjet 656 family. In other words, one out of every two printers
sold in the market comes from the 656 stable. Unlike its predecessors, the 656
features a fold-up tray to protect the printer from dust when not in use.
MICRO-SEGMENTATION
It was with the 656 that HP embarked on its customization strategy to appeal
to micro-segments within a larger market. The customization strategy is a result
of an extensive study by Gartner in the US and Europe which revealed that there
is a huge potential for impulsive buying in the IT-consumer space.
And this is precisely the buyer mindset that HP has set out to capture. It
has started the work by targeting the home market in India. Says Princy
Bhatnagar, Market Development Manager, Consumer Peripherals, Consumer Business
Organization, HP India, "We feel that the market segments of home, SOHO,
SME, large corporates and government are too large to be able to effectively
fulfill with a single offering."
Strengths | |
HP 656: Micro-segmentation at work |
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HP 656 | |
‘Two pen´ feature allows usage of stand-alone black cartridge or color cartridge or both | |
Features PhotoREt color layering technology | |
Fold-up tray ensures protection from dust in non-AC environment | |
Canon BJC 2100 SP: Offering an economic printing solution |
|
BJC 2100 SP | |
Has a deskspace saving design | |
Comes with both parallel and USB port connectivity options | |
Jumbo cartridge economizes printing cost |
FESTIVE OFFERINGS
First in line was the customization during the Christmas season in 2000.
Accessories which came along with the printer were customized around the festive
spirit. For example, the printer came with a free CD-ROM containing well-known
Christmas carols, greeting cards software and a HP greeting card paper kit.
An increase in sales following this scheme led HP to customize the 656 again
– this time around the colors of Holi. The printer came in a special package
showcasing the Holi spirit.
Latest in line is the printer customized only for ´kids´. It comes with a
new look and in five vibrant colors to enhance buying experience of a home user
with a strong bent towards the kids.
The launch had been timed to coincide with the summer vacations. The package
also bundled Walt Disney Magic Artist Deluxe software for kids to print Disney
characters in a variety of ways.
From start to finish the printer has been designed and packaged with the
target audience in mind.
Even the choice of colors for the printer was made after extensive research
in toy stores to determine what colors attracts children the most. Says
Bhatnagar, "We have done our homework for this printer quite
extensively." HP is also toying with the idea to launch a customized
printer for women in the future.
CANON CHALLENGE
Canon, a late entrant in the inkjet printer market space, is slowly making
its presence felt. Since it started selling printers in 1999, it has captured
11.2 percent of the inkjet market, according to IDC. And their offering, BJC
2100 SP, has come to occupy the position of a flagship product.
In the home segment, Canon commands an impressive 18 percent marketshare,
thanks to an undivided focus on the BJC 2100 SP. Says Alok Bhardwaj,
GM-Marketing, Canon India, "The home segment has been the engine of growth
for us."
Quoting IDC figures, he explained that the printer volume has constantly
grown for Canon. From 5,000 printers in Q3 of 2001, it doubled to 10,000 for the
first quarter of 2002. He added, "We are confident of taking this number to
15,000 by the end of the second quarter of this year."
The BJC 2100 SP has been positioned as the super economy printer that caters
to needs of a high print volume as well as a low print volume household. To
cater to needs of the high print volume household, it comes with the option of a
´Jumbo´ cartridge. A jumbo cartridge outputs as many as 7,200 prints per
cartridge. It also comes with a small footprint, therefore economizing on the
space it occupies too.
For the low print volume segment, the printer can also use an ink tank of
lower capacity. The ink tank prints up to 300 pages. "This helps further in
reducing the total cost of ownership, because wastage due to drying of inks is
minimized," says Bhardwaj. In effect, a need-based segmentation is at work
here.
Canon was not to be left behind in running promotions on its printers.
The company ran a timelimited promotion called the Hungama offer, where it
offered consumers a pack of 50 Luxor and Parker pens on the purchase of their
printer. "This promotion did a wonderful job for us," says Bhardwaj.
To amplify the effect of the promotion, Canon dovetailed it with a scheme
targeted at partners. Called the Festival Bonanza, the scheme helped add a push
to the pull that the other promotion created.
These schemes ensured that partners went laughing all the way to the bank,
while Canon slowly inched its way to more marketshare.