Issue #0527/2 - In launching so many products, Canon has created a bewildering range of printers and AiO. Could it be too many and is this contributing to such high purchase prices?
Canon has recently announced its ‘Autumn Collection’ of consumer products, comprising more than 40 products in four main categories – digital photography, digital video, photo printers and projectors.
PIXMA iP1600Where printer products are concerned, Canon has a tendency to be the most expensive in the market for purchase but past tests have shown that running costs are certainly competitive, if not the lowest in the market – at least in photo printing.
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PIXMA iP2200This is not necessarily an achievement that Canon should be proud of. Too wide a range leaves the customer confused, bewildered and disoriented (I have experienced this myself in choosing a new laptop). The challenges of making a selection from such a vast array of products should not be underestimated. It can be bad enough trying to choose between products from several manufacturers, let alone trying to choose between so many products from one manufacturer.
Surely the result of such an approach is unnecessary money spent on production and marketing of such a large range of products?
PIXMA iP5200Consider a typical product development and sales cycle, including: conceptualising; planning; market research; technology development; industrial design; aesthetic design; factory tooling; parts procurement; manufacturing; assembly; packaging design; packaging manufacture; packing; storage; shipping; distribution; marketing research; marketing; all the management implications of each stage; and probably more!
A key aspect of product planning is differentiation. In order to avoid confusing the customer there has to be some clear reason for making a choice between any two products within a product range, regardless of which two are chosen to compare. Here we have Canon spending in all these areas on products where adequate differentiation is questionable.
PIXMA MP450Generally accepted in manufacturing circles is the principle that minimising SKUs equals maximising efficiency and profitability. Surely it would serve the customer, the channel and ultimately Canon itself better to reduce confusion for the customers, simplify the buying process, get a higher proportion of the product range onto retail shelves and reduce the manufacturing and overhead costs, thus allowing product prices to be reduced and also margins and profits to be increased!
PIXMA 6600D- Is this something to boast about?
- Can this spend build sales or is it merely an added overhead?
- Is this spend providing real value for money to Canon?
- Or is it feeding an ego that needs to be moderated?
PIXMA MP170In sharp contrast, Hewlett-Packard should be proud of itself for succeeding in rationalising the range to the extent that it has done. Even so, surely there must be scope for further rationalisation without compromising the differing needs of the diverse customer base? The number of printers in the Hewlett-Packard range has actually increased by two. It is the AiO range that has been reduced. Considering the fact that all of these printers and AiOs are photo capable, a strong case could easily be made for reducing the DeskJet/Photosmart ranges by at least one-third to fall more into line with the AiO range.
To service these ranges, Hewlett-Packard currently has at least three different major cartridge families on the go - the No.2x/5x series, the No.10x/3xx series and the new SPT (Scalable Printing Technology), No.363 series – plus several other cartridges in addition. All of these cartridge families are primarily photo capable.
PIXMA MP500While appreciating that the new SPT family is not in a position to offer itself for use in budget printers at this stage, surely the very capable No.2x/5x series could be retired from active service. After all, there are enough units in the user base to guarantee massive sales of this family for some years to come.
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