Product Type: Market Research Report
Published by: AMI-Partners, Inc.
Published: March 2009
Product Code: R149-487Description This 44 page report includes strategies and recommendations for printing and copier vendors to reverse the reduction in office supplies/printing cost trend observed in among SMBs in the U.S. & Canada. A key strategy is to target high-value printing customers (HVPCs). HVPCs are the most attractive group as they spend more on printing hardware and supplies relative to the total number of small and medium businesses. “It is not practical, especially as vendors find themselves increasingly resource strapped, to try to address the whole market. Vendors that successfully target and address the needs of the HVPC will reap the larger benefit due to the HVPC’s higher propensity towards printing spending,” said Ms. Chong.
As more SMBs feel the effects of the economic slowdown, they are pressured to make internal changes and implement cost cuts. Reducing office supplies and printing costs is the most widely employed cost cutting plan among SMBs - 77% of U.S.MBs and 47% of U.S. SBs acknowledged that their company has taken measures to reduce office supplies and printing costs. “Printing and copier vendors need to react quickly to reverse this cost cutting trend and advance SMBs’ use of existing IT infrastructure. Vendors are already hit by slow hardware growth due to SMBs prolonging the lifecycle of printer hardware during lean times. Furthermore, AMI has observed a growing proportion of SMBs that are concerned with to what degree the economic downturn will impact their business. It is not farfetched to imagine SMBs will increase these cutbacks as concern grows and prolongs,” added Ms. Chong.
Table of Contents - Introduction & Notes
- Contents
- "Key Findings & Implications for Vendors "
- Key Findings - Business Conditions & SMBs’ Challenges
- Key Findings - SMBs’ Reaction to the Downturn
- Key Findings - Impact on IT Spending
- Key Findings - Vendor Priorities during the Downturn
- Key Findings - Priority Segment
- Key Findings - Vendor Messaging
- Key Findings - Business Profile of SMBs in U.S. & Canada
- SMBs’ Reactions To New Business Environment
- U.S. & Canada SMBs top strategic IT issues map to cost, productivity and customer intimacy concerns
- U.S. SMB business conditions have been affected by the downturn
- U.S. SMBs have undertaken cost cutting measures to counter the effects
- Economic concerns are growing
- High Value Printing Customer Opportunity
- High Value versus Medium/Low Value Printing Opportunity SMBs
- U.S. HVPCs are attractive targets as they spend more on printing
- Canada HVPCs also spend more on printing relative to their segment contribution
- High value printing customers are typically larger businesses in terms of employee size and annual revenue
- High value printing customers are typically larger businesses in terms of employee size and annual revenue
- HVPCs have more printing needs and a high propensity towards outsourcing brochures and document design needs
- HVPCs’ tendency to outsource is an opportunity to capture more value prints back in-house
- Vendors should clearly underscore the value propositions of in-house printing to HVPCs and tie them back to business benefits
- HVPC’s are more aware and concerned with “Green IT” themes
- Printing Market Opportunity & Usage
- Universe and IT Spending in U.S. & Canada
- Printer & copier hardware usage amongst U.S. SMBs
- Printing spending, shipments and install base amongst U.S. SMBs
- Printer & copier hardware usage amongst Canada SMBs
- Printing spending, shipments and install base amongst Canada SMBs
- Vendors should build awareness among SBs the benefits of marketing themselves during the downturn and encourage adoption of in-house printing
- Vendor should promote in-house marketing among MBs by reiterating the value propositions of reduced cost, turnaround time and flexibility
- Revisions to printing opportunity due to market downturn
- Printing features & services used in-house
- Retail stores and VARs are key printing channels
- Retail stores and VARs are key printing channels
- Printer & Office Equipment Maintenance
- Decision Makers & Purchase Preference
- Purchase preferences are increasingly sophisticated
- Formalizing an IT purchase process has grown in importance
- Owner, in-house IT & LOB are most involved in the IT purchase process
- External financing is an important part of IT purchasing
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