Samsung aims for #1 status in laser printers by mid 2003

Samsung Electronics India Information and Telecommunications Ltd (SEIIT) has

lined up an ambitious strategy to grab 45 percent of the laser printer market by

this year-end and become the number one vendor by mid-2003 displacing HP in the

segment. The strategy envisages a focussed attempt to capture the SME market by

providing a value proposition at the entry-level laser printer. Traditionally

printer vendors have positioned the laser printer for corporate and government.

During the year, the company would have a special emphasis on

multi-functional printers by launching several new products in the category. By

the year-end 2002, SEIIT plans to sell 35,000 units of laser printers valued at

Rs 56 crore and incur promotional expenditure to the tune of Rs 7 crore in the

process. The company will also have an additional revenue of around Rs 13 crore

from the sale of consumables.

	Expects to grab 45 percent laser marketshare by mid-2003
	Plans to sell 35,000 laser printers by year-end 2002
	To promote a buy- back scheme for inkjet printers

Despite being a fairly new entrant (since February 2001) in the country’s

laser printer business, SEIIT has zoomed to the #2 slot already with its

focussed campaign on the SMEs. According to the company’s figures, it finished

off the month of July 2002 by selling 2,800 units and capturing 35 percent

market-share. It hopes to ramp up its sales even further during the next couple

of quarters with increased government spending and penetration into smaller

towns. Almost 80 percent of the company’s sales are expected to be notched by

the its STAR dealers who will be roped in with attractive schemes and margins.

STARs are essentially box movers and would push the sale of entry-level laser

printers. At the same time, Spheres or corporate resellers would focus on

pushing the high-end MFPs.

Speaking about the promotion of laser printers in the SOHO segment, Moninder

Jain, Asst GM-Marketing, SEIIT, says, "Vendors have deliberately positioned

lasers at the high-end targeted at corporate and government. Our endeavor is to

educate the SOHO segment about the value in buying lasers in terms of better

quality, features and lower cost of ownership. Although the entry price of

inkjets are low, it has a huge recurring expenditure in replacing its

cartridges." Among the many schemes to be promoted by the company, there is

a plan to buy back inkjet printers from the SOHO segment and promote lasers in

its place.

This scheme would be made available to select resellers only. SEIIT officials

claim that one of the key drivers in the laser printer segment has been the DTP

business. DTP shops account for almost 30 percent sale of laser printers.

"They are tech-savvy and are familiar with printing technology. In fact,

DTP operators have been instrumental in pushing the learning curve of most of

our resellers with their detailed questions," points out Anish Srikrishna,

Country Product Manager (Printer Business), SEIIT. DTPs are a hugely successful

business community in India because of slack capital equipment investment by

SOHOs and homes. However, the company expects the scenario to change with

increased spending by the homes and SOHOs in getting better value for money.

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