HP leads by a mile
 HP continues to enjoy significant channel mindshare in the inkjet printer category. The company ranked at the top on all four key criteria.
Canon ranked second as it fared better than Epson on all criteria except service and support. Epson, which was last year’s runner-up, came third, and respondents attribute this to the fact that the company didn’t demonstrate focus and aggression during 2008. Even the vendor’s distributors admit that the company may lose further marketshare unless it gets its act in place.
On the other hand, Canon became more forceful, with an improved marketing strategy, sales support, and channel management.
Interestingly though, in the southern region, Epson came ahead of Canon on all parameters.
Price-performance
HP’s products are rated to have better features, reliability and performance. Also, its printers’ cost of printing is lower, according to a majority of respondents polled and interviewed.
HP has a larger number of SKUs compared to Epson and Canon, giving a wider price-performance choice to customers.
Canon came second on price-performance as it scores over Epson in pricing. Canon is almost 10 percent cheaper than Epson and 5 percent cheaper than HP for entry-level MFDs.
Epson has priced itself almost 5 percent higher than market leader HP. This, many respondents said, is not the right strategy. Epson’s higher price is due to the 2-year onsite warranty it provides.
Marketing & branding
HP enjoys the widest customer awareness and strongest pull among the three. The company has the most aggressive channel and customer marketing strategy. What also helps HP in its visibility is that it has the largest network of exclusive and non-exclusive retail franchisees selling printers across the country. The company’s MDF and lead-generations programs were also rated highly.
Canon enjoys greater brand pull than Epson primarily because of the various digital imaging products it sells. The company has an MDF and lead-generation program, but where it lacks is marketing and customer promotions.
Epson needs to do a lot more promotions, and run regular schemes and events for both channels and consumers. Its MDF and lead-generation programs are not formalized, and thus inconsistent.
Service & support
Despite HP still providing carry-in warranty on some of its inkjet models—as compared to Epson and Canon, which provide onsite warranty for all their products—HP received the highest positive association score on this parameter. The company’s toll-free number was rated prompt and efficient. Its warranty turnaround is 2-3 days in tier-1 and tier-2 cities, and 4-7 days in smaller places. The company has the widest service network.
Though Epson has the best warranty policy, providing 2-year onsite warranty for most of its models, it was still ranked lower than HP. That, according to respondents, is because the company’s turnaround time for repairs is 24-72 hours. When it comes to replacement of spares, it takes much longer, 4-7 days, even in tier-1 and tier-2 cities.
Canon, according to respondents, has widened its support infrastructure over the past 12 months to cover more locations. The turnaround time for repair and replacement has also improved. The company provides onsite warranty for all products, but this is presently limited to tier-1 and tier-2 cities. As one moves to tier-3 and tier-4, there is a substantial drop in the warranty score.
Channel relationship
HP was rated high on this parameter because its channel managers are accessible and friendly, and the company has the best channel program. HP holds training programs once every year even in tier-3 cities. The company gives good back-end rebates, and is regular in communicating the launch of new products, schemes and price changes. In addition, HP is the most focused of the lot when it comes to building relationships with channels.
Canon ranked higher than Epson on this criterion primarily because the company’s retail and partner programs were ranked ahead of Epson’s. Its channel managers interact more frequently than Epson’s, and the vendor also holds regular meetings, twice every year in all major cities.
Except in the south, Epson received very low scores on channel relationships. Respondents from the other three regions opined that Epson has become less aggressive in their markets.
Winner in the Inkjet Printers Category in Channel Champions 2007
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