HP Retains Channel Champion Crown For Printers

HP retained its FY2013-14 Channel Champion crown in the category of printers sold to the consumer and SOHO segments. Canon held on to the second spot but was neck-to-neck with Epson. Samsung slipped to the last position.

Hewlett-Packard
HP retained its leading position with its continued push on channel management, customer marketing and channel marketing. It also streamlined its post-sales support.

Partners lauded HP’s initiative to hold advisory board meets at the regional level. This resolved issues related to incentive payouts and post-sales service

HP partners lauded the company’s initiative to hold advisory board meets at the regional level. This, according to them, resolved problems such as delays in backend and incentive payouts, and issues with post-sales service. Partners said that the company has a new partner portal to streamline and automate several processes including sell-out data, incentive and back-end outstandings, payment history and claims escalation. They said that as a result of the new portal the claims settlement and incentive payout duration reduced considerably.

The vendor increased the number of its sales executives visiting retail counters to educate in-store executives on new products as well as ongoing channel and customer schemes.

Respondents agreed that HP was the most aggressive in customer marketing and promotions around its Ink Advantage printers which helped increase traction in a market which otherwise saw a decline in demand during FY2013-14. HP also did localized promotions in cities and at HP Worlds through a third-party agency; this helped increase footfalls and conversions.

Respondents appreciated HP’s round-the-year customer promotions. It also offered channel schemes every month; these included cash discounts of Rs 100 to Rs 500 per printer.

The company scored well on post-sales warranty as it included even its fast-moving entry-level printers under the onsite warranty cover. While it offers a 1-year standard warranty on printers, it offered a 2-year extended warranty on laser printers for Rs 500. HP also started a campaign whereby its service representatives visited retailers to understand their feedback and explain warranty terms and the escalation matrix.

HP got low scores on channel profitability as respondents complained of channel over-capacity. Many said that following the integration of two of its divisions the number of volume partners for printers has increased, leading to over-distribution and disturbances in MOP. Many of its RDs also rued the lack of a territory protection policy; they said RDs from other regions sold products in their regions.

Canon
Canon retained its position as the second-most channel-preferred consumer printer vendor due to its aggressive strategy, improved channel focus and enhanced post-sales support.

The company expanded its inkjet printer and MFP range in Q3FY2013-14 and increased its focus on entry-level printers. Respondents saw increased traction for models such as the E510 and E560 Wi-Fi MFPs, and MP 287 MFP. They also commended Canon’s strategy of being price-aggressive on entry-level SKUs. However, Canon was dearer by 3-5 percent compared to HP in mid- and high-end models, which affected traction.

While Canon didn’t focus much on media promotions, it made up for it by offering attractive end customer deals including free headsets, Wi-Fi routers and backpacks with its printers. The company was also aggressive with in-store and local promotions through its third-party agency. An increase in the number of Canon Image Squares during the fiscal helped increase brand visibility and customer awareness.