Pleasing Printers

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
HP 656
	‘Two pen´ feature allows usage of stand-alone black cartridge or color cartridge or both
	Features PhotoREt color layering technologyÂ
	Fold-up tray ensures protection from dust in non-AC environmentÂ
Canon BJC 2100 SP: Offering an economic printing solution
BJC 2100 SP
	Has a deskspace saving designÂ
	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.