Himanshu a 21

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SUMMER PROJECT REPORT

A STUDY OF CORPORATE BUYING BEHAVIOUR

TOWARDS MULTI FUNCTIONAL DEVICES

Compiled to the Mumbai University in the partial fulfillment of the

requirement for the award of the degree in

MASTERS OF MANAGEMENT STUDIES

Submitted By:

Himanshu Kadaskar

Under the guidance of

Prof. G. Ramesh (Senior Core Faculty Marketing)

St Francis Institute of Management and Research

S F I M A R

St Francis Institute of Management and Research, Mt. Poinsur,

S.V.P Road, Borivali (W) Mumbai.

Year: 2009 2011


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Date: 30/06/2010.

This is to certify t

Summer project on

TOWARDS MULTI F

from 5th

May 2010 to 30t

During this period, we fo

We wish him all the best

For Canon India Pvt.

Tushar Amin

Account Manager

Enterprise Solution - DC

Canon

4th Floor, Centr

S.V. Ro

Santacruz

TO WHOMSOEVER IT MAY CONCERN

at Mr. Himanshu A. Kadaskar has successfull

A STUDY OF CORPORATE BUYING

NCTIONAL DEVICES. for a period of th

June 2010.

nd him sincere, honest & hardworking.

for further assignments.

Ltd.

Division

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India Pvt. Ltd.

e Point Building,

d,Juhu Junction,

West), Mumbai.

y completed his

BEHAVIOUR

wo months. i.e.


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College certificate


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ACKNOWLEDGEMENT

This project, though an individual project, wouldnt have been possible without the constant

help and guidance of a few individuals whose support has been vital to the completion of the

project.

I would like thank my project guide Mr. Tushar Amin (Account Manager Direct Sales,

Canon) who gave me the opportunity to work under his guidance in spite of his busy schedule,

and for helping me with the various queries and the required information required for the

completion of the project.

I would like to thank my college guide Mr. G. Ramesh (Senior Core Faculty Marketing) for

his guidance during the project.

I would like to extend my sincere thanks to Dr. Thomas Mathew (Director-SFIMAR) who

was a source of inspiration throughout this project.

And lastly, I would also like to thank my parents and my fellow summer trainees for their

constant support and guidance during this project who made this project a memorable

experience.


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Executive Summary

Canon India Pvt. Ltd. is a 100% subsidiary of Canon Singapore Pvt. Ltd, a world leader in

imaging technologies. It has been a wonderful learning experience working for such a great

company. It was a business to business selling so I have learned how to interact with differentkinds of people & have improved my communication skills. The training provided to me has

added tremendous value to my personality and I know it will surely help me in my future.

The main focus of this project is to go to the customers, ask them some questions regarding

which machine they are using and how much is their print load and for how long they are using

the machine for. The focus was to find about what all things are taken into account when a

company needs to buy a machine. To check whether their products are outdated or exceeded

five years( as the expected life of a MFD is five years) and if so then help them in buying a newmachine with the latest technologies which will suit to their working environment. In this we

are also going to find what factors affect buying a MFD over a printer. The project also

includes finding the potential customers for the products, and to provide them information

about the new technology with which a company is come up recently. The project can be

summed up with the brand awareness & promotion and studying how SPIN model is being

used in Canon.

The project also helps to get the Product-Market Expansion Grid which will help me to give a

proper idea of how Canon is going to grow. I have practically implemented the SPIN model.

The primary data was collected through questionnaire tool by interview technique. The

questions were a combination of close ended & open ended questions. While framing the

questionnaire care was taken that the question asked were not ambiguous or confusing. Simple

words were used and care was taken to eliminate the sensitive and personal questions.

The findings & recommendations are given on the basis of personal observation and the

responses given by the customers to the questionnaire. It has indeed been a pleasure working

with Canon India Pvt. Ltd. This provided me with an extremely good learning environment

which helped me gain a huge amount of practical knowledge.


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Table of Contents

ACKNOWLEDGEMENT ...............................................................................................................4

Executive Summary .........................................................................................................................5

About Canon India .................................................................................................................. 11

Department Profile .................................................................................................................. 14

Organization Chart .................................................................................................................. 15

Marketing Mix ........................................................................................................................ 16

Introduction. ...................................................................................................................................20

Need for the study ................................................................................................................... 20

Objective ................................................................................................................................. 20

Literature Review. .................................................................................................................. 21

Research Methodology: .................................................................................................................26

Analysis .........................................................................................................................................28

Questionnaire analysis: ........................................................................................................... 28

Correlation between Advertising Expense and Sales Revenue: ............................................. 34

Product-Market Expansion Grid: ............................................................................................ 36

SPIN Model ............................................................................................................................ 37

Findings and Interpretations ..........................................................................................................38

Recommendations ..........................................................................................................................40

Limitation ......................................................................................................................................41

Conclusion .....................................................................................................................................42

APPENDIX A ................................................................................................................................44

APPENDIX B ................................................................................................................................46

APPENDIX C ................................................................................................................................50


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List of Tables

Table 1: Company profile ................................................................................................................8

Table 2: Activities of Canon Group .................................................................................................8

Table 3: Product Market Expansion Grid ......................................................................................21

Table 4: Correlation data ...............................................................................................................34

Table 5: Product-Market Expansion Grid ......................................................................................36

Table of Equations

Equation 1: Correlation Coefficient ...............................................................................................24

Equation 2: Correlation Coefficient ...............................................................................................25

Table o f F igures

Figure 1: Organization Chart .........................................................................................................15

Figure 2: Advertising vs Sales Revenue ........................................................................................34


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Company Name Canon Inc.

Founded August 10, 1937

Headquarters

30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-

8501, Japan

Chairman & CEO Fujio Mitarai

President & COO Tsuneji Uchida

Number of Employees25,683

(As of December 31, 2009)

Table 1: Company profile

Main Activities of the Canon Group(As of December 31, 2009)

Office Business

Unit

Office Network Digital Multifunction Devices (MFDs), Color Network

Digital MFDs, Personal-use Network Digital MFDs, Office Copying

Machines, Full-color Copying Machines, Personal-use Copying Machines,

Laser Printers, Large Format Inkjet Printers

Consumer

Business Unit

Digital SLR Cameras, Compact Digital Cameras, Interchangeable Lenses,

Digital Video Cameras, Inkjet Multifunction Printers, Single Function Inkjet

Printers, Image Scanners, Broadcast-use Television Lenses

Industry and

Others Business

Unit

Semiconductor Production Equipment, Mirror Projection Mask Aligners forLCD Panels, Medical Image Recording Equipment, Magnetic Heads,

Micromotors Computers, Handy Terminals, Document Scanners,

Calculators

Table 2: Activities of Canon Group


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A MODEST BEGINNING IN A SMALL ROOM

In 1933, a small laboratory dedicated to making high-quality cameras was set up in a simple

apartment room in the Roppongi area of Tokyo. At the time, all high-quality cameras were

European with the majority coming from Germany. It was in this small room that young people

with a big dream earnestly began their work on producing a high-quality Japanese camera,marking the beginning of Canon. Through hard work and with an enterprising spirit, they

eventually succeeded in building a prototype, which was named Kwanon after the Buddhist

goddess of mercy. The following year, in 1935, Japan's first-ever 35 mm focal-plane-shutter

camera, the Hanza Canon, was born, along with the origin of the Canon brand.

STRIVING FOR THE WORLD'S BEST CAMERA

In 1950, Canon's first president, Takeshi Mitarai, went to America for the first time to attend an

international trade fair. Having seen modern factories and a high standard of living first hand,

upon his return, he built a fireproof factory of steel-reinforced concrete in the Shimomaruko

area of Tokyo, which he saw as essential for Canon to succeed in doing business with the worldat large. Mitarai also made clear his respect for humanity by stressing the importance of the

Sanji, or "three selfs" spirit, the guiding principle for Canon employees. In 1955, Canon made

its first step into the global market with the opening of a U.S. office in New York City. In 1957,

Canon set up its sole European distributor, Canon Europa, in Geneva, Switzerland. By 1967

exports already topped 50% of the company's total sales.

THE CHALLENGE OF DIVERSIFICATION

Soon after its founding, Canon was hard at work in 1941 on diversifying itself with the

introduction of Japan's first indirect X-ray camera and other products. In the 1960s, the

company took further steps toward diversification by adding electrical, physical and chemical

technologies to its optical and precision technologies. In 1964, Canon entered the office

equipment market with the debut of the world's first 10-key electronic calculator. In 1967, the

management slogan "cameras in the right hand, business machines in the left" was unveiled and

in 1969 the company changed its name from Canon Camera Co. Inc. to Canon Inc. Canon took

on the challenge of developing Japan's first plain paper copying machine, which it introduced

in 1970, and realized further diversification from one challenging field to the next.

AVERTING DISASTER WITH THE PREMIER COMPANY PLAN

By 1970, Canon grew to 44.8 billion yen in sales and more than 5,000 employees. But hit by

dollar and oil shocks, followed by problems with a defective electronic calculator display

component in 1974, Canon fell on hard times, and in the first half of 1975 failed to pay a

dividend for the first time since becoming a public company. In 1976, Canon unveiled its

Premier Company Plan, an ambitious strategy to transform Canon into an "excellent global

company" through such means as introducing a vertical business group constitution and


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establishing a horizontal development, production and sales system. The plan proposed high

ideals and pooled the strength of its employees, enabling the company to promptly recover.

CANON'S SECOND INAUGURATION

Canon continued to grow under the Premier Company Plan. With the dawn of the personal

computer age, Canon introduced to the world a series of products never before seen, among

them a personal copying machine based on an all-in-one cartridge system, a laser printer with

semiconductor laser, and a Bubble Jet inkjet printer. Canon also began promoting global

production in earnest on the road to becoming an excellent global company. Then, in 1988, the

51st anniversary of the company's founding, Canon announced its second inauguration and

unveiled its corporate philosophy of kyosei, A concise definition of this word would be "Living

and working together for the common good," but our definition is broader: "All people,

regardless of race, religion or culture, harmoniously living and working together into the

future." an unfamiliar term at the time. It also began promoting such progressive and

environmentally sound activities as toner cartridge recycling in addition to globalizing itsdevelopment sites.

THE EXCELLENT GLOBAL CORPORATION PLAN

Canon had developed unprecedented technologies and carefully nurtured them to create

business opportunities and products unrivaled by any other company. But by the mid-1990s,

the business division system that had been in place since the 1970s was showing signs of wear.

Canon also carried debt of more than 840 billion yen, meaning the company needed to improve

its financial constitution if it was to carry out long-term R&D projects and launch new

businesses. Fujio Mitarai became Canon's 6th company president in 1995, and in 1996 the

Excellent Global Corporation Plan was launched. Transforming the corporate mindset frompartial to total optimization and from a focus on sales to a focus on profits, the new plan was

the start of the innovations that characterize today's Canon.

Canon realizes that from the viewpoint of the entire product lifecycle, the raw materials / parts

manufacturing and product usage stages are significant contributors to the environmental

impact. We also understand that society requires immediately addressing environmental issues

such as global climate change, resource utilization of end-of-life products, and proactive

prevention of pollution due to disposal of these products in order to support a sustainable

society.

In this context, Canon is accelerating its efforts to develop environmentally conscious productsunder a strategy that emphasizes energy efficiency, resource conservation and chemical

substance control in consideration of the entire product lifecycle.

Additionally, Canon actively provides information about our environmentally conscious

products that reflect the above-mentioned activities.


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Canon also holds the prestigious ISO/CD Certification for Validation Printing for its market

leading imagePRESS printer line. The new validation certification provides customers with a

competitive quality advantage, giving customers near contract quality print proofs and allowing

them to measure digital prints against lithographic offset printing quality. Canons

imagePRESS range is synonymous with quality output and the standard can now present its

customers with a certified, reliable and a stable system to achieve colour critical proofing.

Canon has around 380 primary channel partners 13 National Retail Chain partners, 6 Level IV

Master Service Centres, over 100 authorized service centers,over 4000 secondary retail points

including 270 National Retail Chain store partners & 33 Canon Care Centers. Canon products

are available in over 400 towns in India. Overall, Canons presence will increase to 5000

outlets by December 2009. By end of 2009, Canon has acquired a customer base of over 30 lac

customers in India.

As part of the companys promise to enhance digital experience for consumers, Canon Image

Lounge was launched in 2008 in Gurgaon , Mumbai and Bangalore for customers to get a

touch and feel of Canon products. The lounges provide a comprehensive display of Canons

vast range of offerings and display over 101 consumer imaging products for consumers to

simply look, feel and experience without the compulsion on buying. Special photography

workshops and other customer engagement programs are being held in these lounges. Canon

has three Business Solutions Lounge for B2B customers in Gurgaon , Mumbai and Bangalore

showcasing business applications along with seminar rooms for business workshops.

Marketing highlights for 2009:

Canon India closed at revenues of Rs. 850 crore in 2009, with 27 per cent growth over 2008

Canon emerged as the No. 1 in scanner category with 49% market share.

Canon is now a market leader in the laser printer segment as well with 41% market

share.

Canon India further consolidated its market presence in India with a market leadership

in DSLR category with 54% share, Photo printer category with 60% share, SLR

category and 31% in copier MFD category.


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Canon launched the Press photographers photo contest across Delhi, Mumbai,

Chennai and Kolkata. Over 300 media photographers participated in the same.

Canon organized 55 photography workshops training 70,000 people across 55 cities.

Canons Original Ink Centers touched 500 outlets across the country.

General Highlights 2009

Canon made a pioneering move in the printing industry with the launch of ISO certified

standard of printing images per minute ipm. Canon launched 24 new printing and

imaging products at the same event and also announced its foray into the surveillance

business.

Canon introduced 23 New Smart Cameras & Camcorders with Latest Technology.

Canon organized a 15 day workshop on photography especially for the young

photography enthusiasts during the summer vacations in leading schools of Gurgaon

Canon launched the I can with Canon campaign that rides the theme of

empowerment to a Canon customer

Awards and Recognitions in 2009

The list of product awards received in 2009 is as follows:

Digital Camera 21

Digital SLR 9

Canon Lenses 5

Living Digital recommended- Lide 100

Best Buy Digit- PIXMA iP 1980

Apart from this Canon stood at 87th rank in the Powerbrands survey of top 100 brands in India.

Mr. Alok Bharadwaj was also felicitated with the Pride of the Industry award along with the

award for the second most influential person in photography. He was also felicitated with theaward of the Best CMO this year by the CMO council. Canon was also featured in the Digit-

Icons of Trust survey wherein Canon ranked No 1 in Digital Cameras and No 2 in Printers. The

latest survey by 4Ps also pronounced Canon as one amongst the 100 Most Valuable Brands

with a rank of 87.


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Department Profile

Enterprise Solutions Division(earlier known as BUSINESS IMAGING

SOLUTIONS)

In line with the trend of the multimedia age, Canon Business Imaging Solutions is making all-out efforts to create a new office- Environment where dreams can be materialized by high end,

cost effective office devices like image RUNNERs, Large Format Printers, Document

Scanners, Software solutions of document management etc.

The Enterprise Solutions Direct sales division have a headcount of 93 people. The ES - Direct

division has a target of building 283 key major accounts and achieves 300% growth in our

colour high end machines. It has operations split into 4 regions North and East, West and 2 in

South. A separate pre-sales department has been created under ES DC to cater to the unique

needs of the enterprise market segment. The pre-sales teams will help existing sales teams to

build the solution business in the metros of Delhi, Mumbai and Bangalore. In addition, to provide enterprise customers customized approaches and provide relevant applications for

document management processes, a separate solution marketing department has also been

created. Canon expects its solution business to be a major driver for selling in all the major and

key accounts.

ES- Channel sales division has a headcount of 43 people. The ES Channel sales division has a

target of staying as No.1 in digital copier category which Canon acquired in Q4 2006. To

increase the focus on the government and e-governance sector, a new Government business

department with a dedicated five member team has been created.

ES Channel Sales has currently been seeing 25% of its business come from the government.

As a part of Canon's increased focus on colour a Colour Specialist has been appointed - for

office colour and commercial colour. This Colour specialist will provide expert advice and

guidance to customers on the use of colour. This division will also oversee the marketing on

entire ES Channel Sales and ES Direct sales divisions.

Canon Enterprise Solutions Division helps organizations optimize enterprise printing with

solutions designed to take advantage of the features and functionality of Canon's

imageRUNNER line of multifunctional products. Canon's enterprise printing solutions enable

high-speed host printing, over the corporate LAN, with full finishing capabilities, with

solutions that monitor, measure, and manage copy/print/scan activity across the entire

enterprise.


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Organization Chart

CSP(ConsumerSystems Product )

ESD

(EnterpSolution Di

WEST(Regional Sales

Manager)

Area manager

Major AccountsManager

Sr. AccountsManager

Accounts Manager

NORT

Figure 1: Organization Chart

CEO INDIA

Sr. VP CANON

isevision)

H/EAST SOUTH

NRC

(National RetailChain)

BIS

(Business ImagingSolution)Dealer

(I

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ICP

mage CommunicationProducts ) Camera


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Marketing Mix

The marketing mix is actually the specification of 4 Ps including Product, Price, and Place &

Promotion describing the strategic position of a product in the marketplace. Canon uses this

model to full effect for their business model.

Product

The Image Runners are very much customized product line for the small and medium

businesses and as well as for Large enterprises. It offers you various facilities like scanning,

copying, printing, faxing and storing within the same machine. At the same time IRC can be

connected to the offices network.

There are various categories of Digital Image Runners which are as follows:

1 . Wor kgr oup

Canon offers an array of digital multifunction copiers, with speeds ranging from 13 to 23

pages-per-minute, designed to meet every need, application and budget in the workgroup

environment.

2 . Depar t men t

Canon's mid-volume multifunction copiers range in speed from 22 to 68 pages-per-minute and

are designed to handle the workloads of busy workgroups or departments.

3 . Pr oduc t i on

Ranging in speed from 80 to 105 pages-per-minute, Canon's high-volume digital copiers are

equally at home in large corporate workgroups, print-on-demand environments, central

reprographic departments and print-for-pay or walk-up environments.

4 . Des k t op

Canon's Desktop Copiers offer Digital technology providing outstanding quality output for

professional results.


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Canon Mono Solutions

A4 Black & White

The iR1024 is built to offer robust small & medium-sized businesses a desktop compact and

yet robust device not only produces high-speed copying, printing and colour scanning solution,

but also low running cost for every document output.

imageRUNNER 1024

Operating at speeds of up to 30 pages per minute (A4), the imageRUNNER 2530 provides a

compact suite of functionalities for small businesses and workgroups. From standard network

printing to built-in duplex, this multifunctional device is suitable for any office setting.

imageRUNNER 2530


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The new Canon imageRunner C4580i brings forth a range of revolutionary technologies for

higher volumes of colour work and maximum performance with no compromising in speed!

Now you can manage colour efficiently and control cost effectively from a single intelligent

multifunctional solution.

Color imageRUNNER 4580i

People

Canons main target audience is Small and Medium enterprises, Large Corporate houses,

Trusts, government organization etc. Any organization which deals with day-to-day paper

activity is our potential client like. Manufacturing firms are also our potential clients because

they require lot of paper work for bidding and procurement. Educational institutes also form a

major client base as they are into printing questions papers for their students. Pharmaceutical

companies are major clients as their average daily load is about 1000 pages. Some of the clients

for Canon IRC are HDFC, Cipla, ICICI, Exxon Mobil, Spanco, RFCL, ONGC, GAIL etc.

Price

The pricing forms a crucial part of corporate level products. There are various pricing regimes

for various channels and major accounts. The pricing are different for dealers, direct channel,

government organizations.

Direct clients have various options like outright payment, and rental basis-ownership.

In rental basis-ownership, there are two options:


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a) Fixed Rental Option It involves basic price of the machine, 15% premium, 0.03367 (3

years factorial), 12.5% VAT if only a copier otherwise 5% if copier cum printer, service

charge

b) Minimum Commitment Option - In this, monthly commitment, basic price of the

machine, 15% premium, 0.03367 (3 years factorial), 12.5% VAT if only a copier

otherwise 5% if copier cum printer, and service charge

For government organization, there is a special contract called DGS&D (Director General of

Suppliers and Disposals) or rate contract.

The present role of the DGS&D is mainly to conclude the rate contracts to be operated by the

consuming departments of the Government for items of common use. DGS&D has been

identifying such items, whose anticipated annual purchase by Government Organizations is

normally more than Rs. 25 lakh a year, and bringing such items on rate contract. The purchase

policy envisages according preference to indigenously produced stores vis--vis imported

stores. DGS&D concludes rate contracts with manufacturers, as a matter of policy. Only where

manufacturer himself does not market his products, DGS&D entertains sole distributor/ selling

agent in lieu. For imported stores, DGS&D may deal with stockiest/suppliers of imported stores

provided they have proven relationship with the foreign manufacturer with guarantee of after

sale service and supply of spares. Such entities are required to have adequate infrastructure for

after sale service in India.

For maintenance, there is a TGA (Total Guarantee Agreement) contract which involves

servicing and toner cost. It is usually for 3 years and for maximum 5 years. TGA lapses if 10

lakh copies or 5 years whichever is first.

Promotion

The main modes of promotion for Canon for IRC are:

Organizing workshops in major cities Editorials in various leading business and IT magazines

Direct sales promotions

Company mostly benefits from its good quality products and customer experience

which translates into word of mouth publicity. And very committed and well trained

sales force.


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Introduction.

The topic for the project is A Study Of Corporate Buying Behaviour Towards Multi

Functional Devices. In this I will be studying the market and analyzing which company

machines are used in the Corporate for printing, coping and scanning. I will be able to find outwhich are the potential customers for Canon products. I would also be able to find which things

are taken into consideration before buying a MFD. In this I am also going to find why printers

are preferred over an MFD. I will also be doing an overview of how Canon has done its

Product-Market Expansion. The project also includes finding the potential customers for the

products, and to provide them information about the new technology with which a company is

come up recently. The project has helped me to know the practical application of SPIN Model.

This project will help the clients understand the benefits of using Canon machines.

Need for the study

As the recession has decreased so Companies will be able to spend money on the

development of the company. So it is necessary to know which are the potential

customers that can be tapped.

Previous study shows that most of the Companies prefer All-in-one printers than MFDs.

How can this Printer market be converted to a MFD market needs to be analysed.

It is necessary to analyse which machines are being presently used by the companiesand for how long have they been using it. This would help us to keep a track of the

market share.

Canon has grown from a camera company to a digital imaging company. So how really

has it grown in the printing and copying section?

Objective

To understand consumers purchasing behaviour regarding MFD and understand why a

Company prefers a printer and not a MFD

To find out whether there is a correlation between Advertising Expense and Sales

Revenue.

To understand how SPIN model is being used in Canon for making Sales


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Literature Review.

Canon India has a large product portfolio under its various departments. The various

Multifunctional devices are under the Enterprise Solutions Division. The Enterprise Solutions

Division is the backbone of Canon as this is the department which drives the profitability of the

company.

The project includes finding the potential customers for Canon, and to provide them

information about the new technology and software solutions which the company has launched

recently. The various MFDs have been listed down in the Marketing Mix which is given in the

introduction of the company. In the project correlation is used to find if there is any relation

between Advertising Expenses and the Sale Revenue. A study is also going to be done which

will help us to know which are the factors that influence people to buy a printer and not MFD.In Canon SPIN Model has been used to evaluate the setup of customer while approaching them

for sale of machines. This helps managers at Canon understand the situation and act

accordingly to provide the best solution for the clients. Various graphical analysis has been

done to determine the load of the customers in regarding to the print, scan and copy loads in

both black & white as well as colour machines and to identify if their current setup is more

expensive than the solutions provided by Canon. The comparative cost analysis has been given

in detail in Appendix C.

The Product-Market Expansion Grid:

Current

Product

New

Product

Current

Market

Market Penetration Strategy: Product-Development Strategy:

New

Market

Market Development Strategy: Diversification:

Table 3: Product Market Expansion Grid


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The Product/Market Grid of Ansoff is a model that has proven to be very useful in business

unit strategy processes to determine business growth opportunities. The Product/Market Grid

has two dimensions: products and markets.

Market Penetration: Sell more of the same products or services in current markets. These

strategies normally try to change incidental clients to regular clients, and regular client into

heavy clients. Typical systems are volume discounts, bonus cards and Customer Relationship

Management. Strategy is often to achieve economies of scale through more efficient

manufacturing, more efficient distribution, more purchasing power, overhead sharing.

Market Development: Sell more of the same products or services in new markets. These

strategies often try to lure clients away from competitors or introduce existing products in

foreign markets or introduce new brand names in a market. New markets can be geographic or

functional, such as when we sell the same product for another purpose. Small modifications

may be necessary. Beware of cultural differences.

Product Development: Sell new products or services in current markets. These strategies often

try to sell other products to (regular) clients. These can be accessories, add-ons, or completely

new products. Cross-selling. Often, existing communication channels are used.

Diversification: Sell new products or services in new markets. These strategies are the most

risky type of strategies. Often there is a credibility focus in the communication to explain why

the company enters new markets with new products. On the other hand diversification

strategies also can decrease risk, because a large corporation can spread certain risks if it

operates on more than one market.


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SPIN Model - Consultative selling involves deeper questioning of the prospect, about

organizational and operational issues that can extend beyond the product itself. This leads to

greater understanding of the prospect's wider needs, (particularly those affected by the

product), and the questioning process itself also results in a greater trust, rapport, and empathy

between sales-person and buyer.

S - Situation

P - Problem

I Implication

N - Need

Situation Question

Questions that ask about facts or explore buyers present situation

Problem Question

These questions are about the problems, difficulties and dissatisfactions that the buyer is

experiencing with the present situation and that you can solve with your product or service.

Implication Questions

These are questions that ask about the effects or consequences of a buyers problem. These are

counted to be the most powerful as they help the buyer see that the problem is serious enough.

Need - Pay Off Question

These are questions that ask about the value or usefulness of a solution.

Steps in the SPIN Model

1. Discuss, understand or explain the situation with the prospect.

2. Next identify the problem that exists or could arise.

3. Explain, discuss or understand the implication of the problem for the prospect's

business (i.e, what organizational improvement can potentially be achieved).


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4. This effectively createssales person's product/

The way in which SPIN model

SPIN model managers at Cano

which is given below in Appe

machine and Canon machine is

Correlation and Regression:

Correlation is a measure of

coefficients can range from -1

correlation while a value of +

represents a lack of correlation.

As mentioned before, the corr

two variables. If the correlat

coefficient of determination)

variables (i.e., the "strength"

correlation between variables,

thesignificance of the correlati

As we have a series of n me

then the sample correlation

correlation rbetween X and Y.

E

where X and Y are the sample

of X and Y.

a need or opportunity to rectify the proble

service) - the 'payoff'.

is used in Canon has been given in the analys

could take the factors into consideration and

dix B and how they give a comparison betwe

given in Appendix C.

the relation between two or more variab

.00 to +1.00. The value of -1.00 represents a

1.00 represents a perfect positive correlation.

lation coefficient (r) represents the linear rela

ion coefficient is squared, then the resultin

ill represent the proportion of common vari

or "magnitude" of the relationship). In order

t is important to know this "magnitude" or "str

on.

asurements of X and Y written as xi and yi wh

coefficient, can be used to estimate the po

The sample correlation coefficient is written

uation 1: Correlation Coefficient

means of X and Y,sx andsy are the sample sta

24 | P a g e

(by selling the

is. Here with the

ake the proposal

n a competitors

les.. Correlation

perfect negative

A value of 0.00

ionship between

g value (r2, the

ation in the two

to evaluate the

ngth" as well as

ere i = 1, 2, n

ulation Pearson

ndard deviations
http://www.statsoft.com/textbook/statistics-glossary/n.aspx?button=n#Negative%20Correlationhttp://www.statsoft.com/textbook/statistics-glossary/c.aspx?button=c#Coefficient%20of%20Determinationhttp://www.statsoft.com/textbook/statistics-glossary/p.aspx?button=p#Positive%20Correlationhttp://en.wikipedia.org/wiki/Standard_deviation#With_sample_standard_deviationhttp://www.statsoft.com/textbook/statistics-glossary/n.aspx?button=n#Negative%20Correlationhttp://en.wikipedia.org/wiki/Standard_deviation#With_sample_standard_deviationhttp://en.wikipedia.org/wiki/Standard_deviation#With_sample_standard_deviationhttp://www.statsoft.com/textbook/statistics-glossary/c.aspx?button=c#Coefficient%20of%20Determinationhttp://www.statsoft.com/textbook/statistics-glossary/p.aspx?button=p#Positive%20Correlationhttp://www.statsoft.com/textbook/statistics-glossary/n.aspx?button=n#Negative%20Correlationhttp://www.statsoft.com/textbook/statistics-glossary/n.aspx?button=n#Negative%20Correlation


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This can also be written as:

Equation 2: Correlation CoefficientSimple regression is used to examine the relationship between one dependent and one

independent variable. After performing an analysis, the regression statistics can be used to

predict the dependent variable when the independent variable is known. Regression goes

beyond correlation by adding prediction capabilities.

The regression line (known as the least squares line) is a plot of the expected value of the

dependent variable for all values of the independent variable. Technically, it is the line that

"minimizes the squared residuals". The regression line is the one that best fits the data on a

scatter plot.

In the regression equation, y is always the dependent variable and x is always the independent

variable. Here are three equivalent ways to mathematically describe a linear regression model.

y = intercept + (slope*x) + error

In this equation y represents the dependent variable and x is the independent variable. Slope

indicates how much is the multiplying factor is the dependent variable of the independent

variable. Intercept indicates that even if the independent variable is not present this much

dependent variable will be present.


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Research Methodology:

A Quantitative research Model is being followed in which we would concentrate more on the

quantity on information gathered.

Research Design-

An exploratory as well as descriptive research will be carried out with the help of

Questionnaires. Questionnaire will be formed in order to collect the data from Customers.

Data Sources:-

With an ideal Research Design, Primary data will be collected through questionnaires and

Personal interviews. The Secondary data sources comprised of companys customer Database.

Research Approach:-

The primary data is collected from Surveys Research. As we are to do a Descriptive research so

Survey is the best way of doing it.

Research Instrument:-

We are using questioners as our instrument for gathering primary information.

Sampling:-

The sampling technique used was convenience sampling under non probability sampling.

Population:-

Corporate and SMEs

Sampling plan:-

Sample area: - Mahim Matunga, Dadar, Elphinstone Road, Lower Parel, Parel, Vadala,

Mahalaxhmi and Prabhadevi.

Sample size: - 200 Corporate.

Contact Method: - Personal Interview.

Research Tool: - Structured Questionnaires.


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Questionnaire design:

The primary data was collected through questionnaire tool by interview technique. The

questions were a combination of close ended and open ended. While framing the questionnaire,

care was taken that the questions asked were not ambiguous or confusing. Questionnaire was

tested by the Sales Team of Canon. Simple words were used and care was taken to eliminate

sensitive and personal questions.

Secondary Data was collected from various reports published by Research Houses, Articles

from leading newspapers and magazines and various writings from internet. Case studies from

Canon India Archive have also been used as reference.


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Analysis

Questionnaire analysis:

From the data which has been gathered from the respective areas, it is observed that 47% of

Companies were using printer. Were as 52% of the companies were using MFDs in their office

and 1% of the companies were using Scanners.

From the data it can observed that 39% of the sample are using Canon machines, 9% of the

sample are using a Xerox machine,37% of the sample are using HP machines, 5% are using

Ricoh machines, & 10% of the sample are using other machines like Samsung, Sharp and

Toshiba.

Printer

47%MFD

52%

Scanner

1%

If you are using a OAT, then what are you using?

Canon

39%

Xerox

9%

HP

37%

Ricoh

5%

Other 10%Which company machine are you using?


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sample are using a Xerox machine, 75% of the sample are using HP machines, 0% are using


Toshiba.


sample are using a Xerox machine,1% of the sample are using HP machines, 10% are using


Toshiba.

Canon

17%

Xerox3%

HP

75%

Other

5%

Which company printers are being used?

Canon

60%

Xerox

14%

HP

1%

Ricoh10%

Other

15%

Which company MFD are being used?


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From the data it can be observed 17% of the samples are using the machine for only printout,

1% of the samples are using the machines for only Scanning, 82% are using the machines for

taking photocopies, scans and print outs, while none use it just for photocopies

From the data interpreted we get that 85% of samples companies use the OAT for Black and

white printouts and copies, were as 15% of the sample companies use it for colour prints and

photocopies.

Printouts

17%

Scanning

1%

All

82%

What is the main purpose behind using Business

Automation Tools?

Black & white

85%

Color

15%

The print outs are B/W or Color.


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From the data interpreted it has been observed that 16% of the sample take less than 500 prints

a month, 26 % of the sample take between 500 to 2000 prints a month, 23% of the sample take

between 2000 to 5000 prints a month, 17 % of the sample take between 5000 to 10000 prints a

month and 18% of the sample take more than 10000 prints a month.

From the data interpreted it has been observed that 90% of the sample companies do not take

Colour printouts, 1% of sample take less than 200 colour prints a month, 0.5% of the sample

take between 200 to 500 colour prints a month, 1.5% of the sample take between 500 to 1000

colour prints a month and only 7% of the sample take more than 1000 colour prints a month.

10000

18%

What is the number of Black and White

printouts or copies taken on Monthly basis?

None

90%

1000

7%

What is the number of Colour printouts taken on

Monthly basis?


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From the data interpreted it has been observed that 11% of the sample have been using theircurrent machine for less than six months, 22 % of the sample have been using their current

machine for six months to 2 years, 35% of the sample have been using the current machine for

2 to 4 years while 32% of the sample have been using their current machine for more than 4

years.

From the data interpreted it has been observed that 60% of sample companies would prefer

MFDs over printers and the remaining 40% sample companies said they wont prefer it.

4yrs

32%

You are using this machine for last how many

years?

Yes

60%

No

40%

Would you prefer a MFD over a printer?


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From the data interpreted it has been observed that the reason for companies for not preferring

MFDs over printers in which 20% was because of Inconvenience, 8% was because of Space

and 72% was because of Price of the MFDs.

From the data interpreted it has been observed that 62% of the sample companies knew about

Canons new solutions and 38% of the sample companies did not know about the solutions.

Inconvenience

20%

Space

8%

Price

72%

If No, then why?

Yes

62%

No

38%

Do you know about Canons new solutions?


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Correlation between Advertising Expense and Sales Revenue:

Here we will be seeing if there is any correlation between Advertising Expense of a year and

Sales Revenue of that year. Correlations are useful because they can indicate a predictive

relationship that can be exploited in practice.

As we have a series of 4 measurements of Advertising Expense and Sales Expense written as xi

and yi where i = 1, 2, 3,4 then the sample correlation coefficient, can be used to estimate the

population Pearson correlation rbetween Advertising Expense and Sales Expense. The sample

correlation coefficient is written

Year Advertising

Expense (crores)

Sales(crore)

2007 40 5302008 60 661

2009 100 840

2010 120 1200

Table 4: Correlation data

Figure 2: Advertising vs Sales Revenue

(40, 530)

(60, 661)(100, 840)

(120, 1200)y = 7.595x + 200.15

R = 0.9099

0

200

400

600

800

1000

1200

1400

0 20 40 60 80 100 120 140

Advertising Expense vs Sale revenue

Advertising expense, Sale

revenue

Linear (Advertising expense,

Sale revenue)


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So as we can see that there is a correlation between the two. The r value comes to be

0.953892936 which is positive so we can say that there is a positive correlation i.e with

increase in the Advertising Expense the Sales also increase. The coefficient of determination

i.e. r2 is 0.909 so we can say that Advertising has influence of about 90.9 % on the Sales of the

Company.

Regression Line has a equation as

y = 7.595x + 200.1

In this equation y is the Sales revenue which is the dependent variable and x is the

Advertising Expense which is the dependent variable. So we can say that Sales Revenue is

7.595 times that of Advertising expense and a constant value of 200.1 which means that even if

there is no Advertising there will be a sale of 200.1 crore.
http://www.statsoft.com/textbook/statistics-glossary/c.aspx?button=c#Coefficient%20of%20Determinationhttp://www.statsoft.com/textbook/statistics-glossary/c.aspx?button=c#Coefficient%20of%20Determination


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Product-Market Expansion Grid:

Current

Product

New

Product

Current

Market

Market Penetration Strategy:

Small Printers

For SMEs

Product-Development Strategy:

MFDs

New

Market

Market Development Strategy:

Small Printers

For Corporate

Diversification:

Surveillance, Printing

Software and Printing Paper

Table 5: Product-Market Expansion Grid

Market Penetration Strategy:

In this Canon entered the market with small printers where it was targeting the SMEs.

Market Development Strategy:

In this stage a new market was targeted which was the Corporate. Here large numbers of

machines were sold to a single Company.

Product Development Strategy:

In this stage a new product was launched considering the demand and bringing innovation.

Image Runner series was launched in the Current Market which helped SMEs to reduce there

per copy charge and made using devices convenient.

Diversification:

In this stage to diversify Canon entered the Printing Software market and Print paper market. It

has also announced that it will be entering the surveillance system. The software which Canon

will provide are going to improve proper utilization of resources and will help in securing the

information. Canon will be entering the Print paper market as well by which it will be able to

provide its users paper which will be used for printing and photo coping.


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SPIN Model

This model is extensively used by Canon Sales managers

SPIN is a questioning technique and is an acronym for Situation, Problem, Implication and

Need payoff Question. It is intended for large product or service sales.

Exceptional Sales performers discover prospect or customer needs by the use of four types of

questions, which are categorized by their purpose (function).

Situation Question: To gather background information and understand the context of the sale.

Problem Question: To explore the customer dissatisfaction and concern.

Implication Question: To develop and link apparently their knock on effect on the areas of the

customers business.

Need payoff Question: That invite the customer to consider the benefits of solving his or her

problem and having done so to express an Explicit Need for the solution (If I can show you a

proven way to find a permanent solution to this adverse situation would you be willing to hear

my brief presentation).

A key factor in SPIN is that it encourages the customer to define the problem and desire for a

solution. Hence the sales person is viewed by the customer as a consultant rather than

someone simply attempting to gain a sale.


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Findings and Interpretations

1. It is seen that 52% of the sample companies are using MFD in their office while 47%

are using desk printers and 1% of the sample are using only scanner machines.

2. In the MFDs, Canon was the preferred choice of 60% of the companies. Xerox was

used by 14% of the sample companies, Ricoh was used by 10% of the sample

companies, 2% of the sample were using HP and 15% of the companies were using

others Brand MFDs such as Toshiba, Sharp and Brother.

3. In the printers section it was seen that 75% of the users were using HP printers, 17%

were using Canon printers, 3% were using Xerox printers and remaining 5% were using

printers from other companies such as Samsung, Toshiba and Panasonic.

4. It was found that out of the sample companies many did not prefer MFDs over

printer. The reasons were found to be Inconvenience, Space and Price. But out of

these three reasons Price was a major factor.

5. Canon should target those companies which have a load of more than 2000 copies

per month as Canon products will be beneficial for them. So from the data we have

got we can say that 58% of the samples companies can be the target customers.

6. Canon should target those companies which are using their recent machine for more

than 4 years as the machines are going to finish their Ideal Life. Canon has a Buy-back

offer in which it buys the old machine and gives a discount of that much amount on

the new machine. So from our data we have that 32% of the sample companies have

machines which have been purchased before 4 years so it can target them for now and

keep a track on the 35% of sample companies which have machines that are 2-4 years

old as they may be their future prospects.

7. So in total it is observed that 39% of the samples are using Canon machines, 9% of the

samples are using a Xerox machine, 37% of the sample are using HP machines, 5% are

using Ricoh machines, & 10% of the sample are using other machines like Samsung,

Sharp and Toshiba.

8. The main purpose of the OAT was for printing, scanning and photocopying, i.e. for all

the purpose.


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9. It is observed that 85% of the companies take black & White printouts and

photocopies so they can be a target for the imageRunner series which supports Black

& White printout only. Were as 15% of the sample companies which take colour

printouts and photocopies can be a target for the imageRunner Colour series.

10.It was also observed that 32% of the sample companies did not know about the

Canons new solution, which shows that Canon has to work more on product

awareness.


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Recommendations

Canon should concentrate on the printer section as there is a great potential for it

to grow its market share. For that it needs to promote its product and also have a USP

which will differentiate it from other competitors. It is known that Canon machines are costly as compared to the competitors so the

customers should be made aware about the benefits which they are going to get

after purchasing a Canon machine. Making its customers aware about how they

will be able to reduce their electric charges, how they will be helping the

environment by using Canon machines.

Canon needs to concentrate on advertising of its products because its competitors

have increased advertising about its product due to which there a chances of

Canon losing its market share.

Being the leader in the MFD section Canon should bring awareness in the

companies which are using competitors machines by providing them with proper

information and giving them a proper comparison between its machine and that of

its competitor.

Make people aware about the maintenance plan of the machine offered by canon, due to

which running cost per copy gets decreased. Canon should promote more about their

maintenance plan, due to which the sales of machine can increase.

Canon should explain why a machine need to be replaced after a time period, as this

will help them increase their sales by getting new customers who are using old

machines.

Canon should promote its Buyback policy which it has, as that may help increase its

market share.

Canon should come up with small MFDs as it was found that many of the customers

do not prefer it over printers is due to space problem, so this will help in growth in the

market.


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Limitation

This study does not cover the whole city only areas such as Mahim Matunga, Dadar,

Elphinstone Road, Lower Parel, Parel, Vadala, Mahalaxhmi and Prabhadevi.

Most of the people interviewed were very busy so it was very difficult to take

appointment

The price of Canons products is high in comparison that of other companys products.

TG contract of this company is also costly. So it is very difficult to pursue the

customers.


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Conclusion

To conclude we can say that Canon has a potential in the printer section as it has very less

market share. The company need to advertise about its product as there is less awareness about

its products. It was observed that Canon products are costly. So the customers should be madeaware that even if cost of the product is costly but they provide with other benefits which will

compensate for the cost. As there is a correlation between Advertising Expense and Sales so we

can decide how much advertising must be done to get their target Sales. As Canon has entered

into the software market which will prove to be quite beneficial. Now a days Corporate are

concentrating on the information safety so by using Canons software they will be able to do

that. As Canon products are environment friendly so this is going to help it increase its sales as

all the Corporate are going for the Green revolution. Canon India has the unique distinction of

being the only Canon subsidiary to be profitable even during recession this shows the efforts

put in by the sales force and with their determination Canon India also can easily achieve its

target of being a 1billion $ company by 2015.


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ReferenceWebsites:

http://www.canon.co.in/section/aboutus/canonindia.jsp

http://www.canon.com/about/history/outline.html

http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/272-A3-Colour/

http://www.12manage.com/methods_productmarketgrid.html

http://en.wikipedia.org/wiki/Correlation_and_dependence

http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/

http://www.canon.co.in/c/EN/145-Digital-Multifunction-Devices/

http://www.ricoh.co.in/products/

http://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asp

Books:

Marketing Management by Philip Kotler.(Chapter 2 page 45, Chapter 19 page 545)

Statistics for Management Shailaja Rego, T N Srivastava(Chapter 8 Page 8.4)

Canon Brochures
http://www.canon.co.in/section/aboutus/canonindia.jsphttp://www.canon.co.in/section/aboutus/canonindia.jsphttp://www.canon.com/about/history/outline.htmlhttp://www.canon.com/about/history/outline.htmlhttp://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/272-A3-Colour/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/272-A3-Colour/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/http://www.canon.co.in/c/EN/145-Digital-Multifunction-Devices/http://www.canon.co.in/c/EN/145-Digital-Multifunction-Devices/http://www.ricoh.co.in/products/http://www.ricoh.co.in/products/http://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asphttp://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asphttp://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asphttp://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asphttp://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_printing_products.asphttp://www.ricoh.co.in/products/http://www.canon.co.in/c/EN/145-Digital-Multifunction-Devices/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-White/http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/272-A3-Colour/http://www.canon.com/about/history/outline.htmlhttp://www.canon.co.in/section/aboutus/canonindia.jsp


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APPENDIX A

Questionnaire

1. Name of the company? ________________________________________________

2. Name of the person? ________________________________________________

3. Are you using any Business Automation Tools in your Office?1. YES2. NO

4. If YES then what are you using?1. Printers2. Multi Functional Devices3. Scanner

5. Which company machine are you using?

1. Canon2. Xerox3. HP4. Ricoh5. Other ____________

6. What is the Model number of the machine which you are using?

_______________________________

7. What is the main purpose behind using Business Automation Tools?1. Printouts2. Scanning3. Photocopy4. All

8. The print outs are.

1. Black and White2. Color

9. What is the number of Black and White printouts or copies taken on Monthly basis?

1. Less than 5002. Between 500 to 20003. Between 2000 to 50004. Between 5000 to 100005. More than 10000


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10. What is the number of Colour printouts taken on Monthly basis?

1. None2. Less than 2003. Between 200 to 5004. Between 500 to 1000

5. More than 1000

11. You are using this machine for last how many years?

1. Less than 6 months2. 6 months to 2 years3. 2 to 4 years4. More than 4 years

12. Would you prefer a MFD over a printer?

1. Yes2. No

13. If No, then why?

___________________

14. Do you know about Canons new solutions?

1. Yes2. No


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APPENDIX B

Proposal

Dated: dd/mm/yyyy

To,

Concern person

Subject: Canons Document Management Solutions.

Dear Sir,

We would like to thank you for your Interest in Canons Document Management

Solutions. Reference to our discussion we are pleased to submit our techno-

commercial proposal for your kind perusal.

We would like to reiterate that we are very keen on enhancing our business

relationship with your prestigious company and would look forward to a mutually

beneficial business relationship.

Thanking you in anticipation of your valued order and assuring you of our best of

services at all times.

Yours truly,

For Canon India Pvt. Ltd.

XYZ

(enclosed techno-commercial proposal)

Canon India Pvt. Ltd.

4th Floor, Centre Point Building, S

Road, Juhu Junction, Santacruz(We

Mumbai


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Brief History

In 1997, Canon India Pvt. Ltd. was set up in the country. Since then, Canon has grown in

strength to become one of India's leading player in the areas of document management and

imaging solutions. Today, Canon India is an ISO 9001: 2000 certified company. Canon's USP

in the Indian market is the fact that it offers a comprehensive range of the latest digital imaging products supported by a trained support engineers force across the country. The range of

products offered by Canon in India is extremely diverse and includes copiers, printers,

facsimile machines, scanners, multifunctional devices, multimedia solutions, consumables,

digital cameras, digital camcorders and projectors. A hallmark of Canon's product portfolio is

that its products are built on convergence of technologies to offer multi-functionality at

exceptionally high resolution.

Corporate Philosophy

The corporate philosophy of Canon is kyosei. A concise definition of this word would be"Living and working together for the common good," but our definition is broader: "All people,

regardless of race, religion or culture, harmoniously living and working together into the

future." Unfortunately, the presence of imbalances in our world in such areas as trade, income

levels and the environment hinders the achievement of kyosei.

Business Imaging Solutions

In line with the trend of the multimedia age, Canon Business Imaging Solutions is making all-

out efforts to create a new office- Environment where dreams can be materialized by high end,

cost effective office devices like imageRUNNERs, Large Format Printers, Document Scanners,

Software solutions of document management etc.

Canon Business Imaging Solutions helps organizations optimize enterprise printing with

solutions designed to take advantage of the features and functionality of Canon's

imageRUNNER line of multifunctional products. Canon's enterprise printing solutions enable

high-speed host printing, over the corporate LAN, with full finishing capabilities, with

solutions that monitor, measure, and manage copy/print/scan activity across the entire

enterprise.(*The options may vary from model-to-model, in image Runner series, based on the

configuration offered as a solution. Please check with us for more details.)


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1)Model no. iR ADV C 5030 (Outright Purchase)

Digital Multifunction iR ADV C 5030 + Network UFR II Printing + Color Network Scanning

+ Universal Send (Scan to Mail) + Pedestal + Stabilizer.

Net Price of iR ADV C 5030 Rs. XXXXX/- (plus Tax)

This will be the Net price that is after the buyback of the Canon CLC machine.

Terms & conditions for Service of iR ADV C 5030:

Total Guarantee with toner contract for iR ADV C 5030 for 20 lakh copies or 5 years

whichever is earlier (TG) Day 1:

A4 /A3 size B/W XX/- paise per copy plus taxes.

A4 /A3 size Colour Rs. XX/- per copy plus taxes.

(TG contract Day 1- includes all services, spares, preventive maintenance, drum and

TONER)


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Terms & Conditions: Outright Purchase

1. Taxes& Duties:

All the above prices quoted for exclude other taxes and duties.

5 % VAT & 5.5 % Octroi is applicable on purchase of photocopying machine with

printer and 12.5 % VAT and 5.5 % Octroi is applicable on purchase of photocopying

machine without printer.

2. Payment Terms: 100% bill payment within 7 days of raising the invoices for the

monthly bills. 100 % advance in case of outright purchase.

3. Delivery: Our normal delivery time frame is 3 to 4 weeks from the date of receipt of

technically & commercially cleared Purchase or Rental Order receipt at our end. We

can look at expediting the same based upon your requirements and our stock availability

condition at the time of receipt of your valued order.

4. Exclusions: Anything that is not mentioned in our above offer is excluded from our

scope of supply. Some of the technical advantages mentioned above are not part of thestandard MFP and are to be bought as optional accessories. Any commercial or other

terms and conditions mentioned in this proposal are subject to change at Canons

option.

5. Services: Services to the above products will be directly provided by Canon after

singing of mutually accepted SLAs at all the direct locations and by Canon authorized

service partners at all the remote locations not in the scope of Canon direct service

operations.

6. Scope of proposal: The above mentioned commercials include Canon MFD under Total

guarantee contract with Toner.

Order to be placed at: Canon India Pvt. Ltd., Bhiwandi, Maharashtra

We hope the above offer is in line with your requirements, for any clarifications on the same

please feel free to contact us.

Warm regards,

For Canon India Pvt. Ltd.

ABC

Account Manager- DC Division

Mumbai


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APPENDIX CTotal Cost of Ownership (TCO)

Setup

Brand HP CanonModel ***** ****

Speed 40 ppm 35 ppm

Functions Print Copy

Print

Scan (Pull Scanning)

60 GB HDD

Machine Cost Rs. 276,399 Rs. 275,000

Total Gurantee (TG) 1yr 5 yrsMachine life 20 lacs copies

Cartridge cost/page Rs. 0.90 Rs. 0.35

Total cost for 20 lacsprints 2000000x0.90=1800000 2000000x0.35=700000

AMC cost is not inclusive

Total cost of ownership(Printer cost + Cartridgecost)

276399+1800000=2076399 275000+700000=975000

SAVING : Rs.2076399 - Rs.975000 = Rs. 1101399 (53%)

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