B2B group assignment - Fuji Xerox PDF

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BUSINESS TO BUSINESS MARKETING: FUJI XEROX

MKTG 1271, LF03 Lim Cher Eng

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Contents 1. Intro...................................................................................................................................................3 2. Segmentation....................................................................................................................................3 2.1 Segments.....................................................................................................................................3 2.2 PESTEL..........................................................................................................................................4 3. Supply chain and marketing channels................................................................................................5 3.1 Analysis of Current Supply Chain performance............................................................................5 3.2 Analysis of Current Distribution Channel performance................................................................7 3.3 Multi-Channel Integration Map...................................................................................................9 3.4 Porter’s Value Chain...................................................................................................................10 4. Current strategy and value proposition...........................................................................................14 4.1 Analysis of current strategy.......................................................................................................14 4.2 Analysis of current value proposition.........................................................................................14 4.3 Competitiveness........................................................................................................................15 5. Marketing activities using the Business Marketing Mix...................................................................16 5.1 Current Product offering............................................................................................................16 5.2 Current Service offering.............................................................................................................16 5.3 Current price offerings...............................................................................................................17 5.4 Current Communications Performance.....................................................................................18 5.5 Current sales management........................................................................................................19 6. Conclusion.......................................................................................................................................21 References...........................................................................................................................................22

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1. Intro Established in February 20, 1962 Fuji Xerox is a joint venture between Xerox Limited and Fuji Photo Film Co., Ltd to develop, produce and sell xerographic and document-related products and services in the Asia-Pacific region. The company provides digital imaging and printing equipment to the Asian market. Its products include digital printers, digital copiers, multi-functions machines, projectors, engineering plotters, image processing systems, fax machines, and related software (Hoovers, 2018) Capitalized at 200 million yen it has now increased to the current 20 billion yen. In their first year, they launched the industry-first plain paper copier, Fuji Xerox 914 and proceeded on the develop may more printing machines such as the world's first machine incorporating print and copy functions (Fuji Xerox Xero Printer 100) in 1987 and the world's fastest full-color digital publishing system (Color DocuTech 60) in 2000. As of March 2017, the company now has 47,357 consolidated and 8,172 unconsolidated employees with a total revenue of 1,080.9 billion yen (FujiXerox, 2018) Our group aims to compare the marketing performance of Fuji Xerox and their competitor, Canon Inc by conducting a thorough analysis of both their supply chains and marketing channels, to identify the difference in their strategies, value propositions and their market activities that help them achieve a competitive advantage. This report also seeks to provide recommendations for both companies to better evaluate their marketing mix. 2. Segmentation 2.1 Segments Fuji Xerox

           

AEC Aerospace Education Finance Government Healthcare Hospitality Insurance Legal Logistics Manufacturing Others

Canon

       

Banking and Finance Commercial Printing Creative and Design Education Information technology Legal Logistics Manufacturing

Table 1. Solutions provided by Fuji Xerox and Canon by industry The industry is segmented based on the type of market the business is in. Different businesses will have different specific needs. For instance, Segment Banking and finance

Needs  Labour-intensive administrative process is prone to human error  Hardcopy duplication take up expensive office space  Manual retrieval of contracts is time-consuming

Solution   

Scan-to-file solution allows for a speedy archival process, regardless of volume Digital storage takes up far less space offering room for growth Easy search function retrieves a file in seconds

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Commercial printing

  

Traditional offset printing inflexible to customise data on-demand Short print runs result in higher costs Longer turnaround time to meet customer requirements

 



Print customised documents on-demand with high quality colour reproduction Advanced digital printing technology that enables printing multi-page documents at high speeds Greater control over print output with conditional processing and true document personalisation

2.2 PESTEL Political Factors The Singapore government puts in place many schemes and grants to help companies grow and improve their capabilities. These schemes include  

The Productivity and Innovation Credit (PIC) allows companies to claim up to 400 per cent in tax deductions or up to S$100,000 cash payout pear year. The Working Capital Loan allows SMEs to obtain loans of up to S$300,000

All these government efforts is in favour of the printing industry as it increases business capabilities to buy these printing services. Economic Factors In 2017, the economy expanded by 3.6%, an improvement from the 2.4% growth in 2016. Nominal GDP increased to $447.3 billion in 2017, as compared to $427.9 billion in 2016 (SingStat, 2017). Favourable economy supports growth of new businesses and thus new business formations in Singapore totalled 16,096 in Q1 2017, registering a 6.3% increase Quarter on Quarter (QoQ) and 1.2% Year on Year (YoY), according to Hawksford Singapore’s Singapore New Business Trends Report Q1 2017 (GuideMeSingapore, 2017). This increase pool of customers for the printing industry. Social Factors Technological Factors Discovery of new technology will drive the industry and create various differentiation for companies. New technologies include:  Nanographic printing  3D printing  Hybrid printing technologies For consecutive three years now, Singapore has been placed at the top at the latest Waseda-IAC International E-Government Ranking list as the world’s most tech savvy in the world (Nag, 2017). Hence with high technology levels in the country, it is favourable to the printing industry. Environmental Factors The industry is venturing into being environmentally efficient through reducing carbon emission, conserving energy usage and engaging in recycling. Green initiatives efforts can be seen throughout supply chain management and distribution channels.

Legal Factors Consumer protection laws, such as warranties, provide consumers the ability to take legal actions under some circumstances. Therefore, it is crucial that companies to take into account these laws when training staffs and not partake in unlawful acts, such as deceptive advertising and pricing.

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Singapore's patent system will be stricter to better support innovators, in a move to promote innovation and further the country's economic growth (Salleh, 2017). Patents will enable companies in the printing industry to maintain exclusive competitive edges and this will drive up competitiveness. The Employment Act is Singapore’s main labour law. It provides for the basic terms and conditions at work for employees covered by the Act. The players in the industry have to abide by the country’s regulations.

3. Supply chain and marketing channels The table below displays the comparison of Fuji Xerox and Canon’s supply chain. Companies must pay close attention and manage their supply chain well because it plays a huge role in providing customer satisfaction by making sure there is a smooth flow of products and services (Williamson, 2010).

Fuji Xerox

Upstream Suppliers

Direct Suppliers

Manufacturers

Distributor

Customers

Raw materials are sourced from many different suppliers from all over the world.

YSoft provides YSoft SafeQ as the solution for perpetual and flexible subscriptions in the Xerox Secure Print Manager Suite for FujiXerox’s printers.

Main manufacturing plants/ facilities are located in

A total of 8 authorised resellers such as

Companies/busi nesses

Nuance provides embedded software such as Nuance Autostore and Nuance eCopy PDF Pro to FujiXerox





 

Sheng Zhen, Shanghai (China)Fuji Xerox of Shanghai Limited. Tokyo (Japan)-Fuji Xerox Manufacturing Co., Ltd, Ebina, Japan Thailand- Fuji Xerox EcoManufacturing Co., Ltd. Vietnam-Fuji Xerox Hai Phong Co., Ltd.



CoE Marketing (S) Pte Ltd



Xenetix Pte Ltd



Skydata Pte Ltd



Info Image Pte Ltd

All finished goods are then shipped out to the respective countries.

Canon

Raw materials are sourced from many different suppliers from all over the world.

Intel delivers highly accelerated 4K playback performance on a mobile PC with Intel Iris Pro graphics

3D Systems Partners supplies industrial and manufacturing, printers and software to Canon.

Chateaux becomes system integrator for rolling out Canon's Enterprise Imaging Platform (EIP).

Canon has 16 manufacturing facilities in Asia: Canon Dalian Business Machines, Inc. manufactures toner cartridges, toner cartridge recycling, LBPs

ASC Services and Supplies (ASC) is Canon’s sole authored dealer whose aim is to provide holistic solutions to all office equipment needs

Canon (Suzhou) Inc. manufactures color and monochrome digital copying machines

Canon Hi-Tech (Thailand) Ltd manufactures bubble Jet printers, personal-use copying machines, multifunction facsimile machines

3.1 Analysis of Current Supply Chain performance

SCM goals model GOALS

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Waste reduction Fuji Xerox It is vital that all suppliers adhere by the 15 environmental guidelines provided by the company to support their eco-conscious business activities. Fuji Xerox adheres by a corporate “Zero Land Fill” policy, where all products that have ended their effective life cycle will no longer be land buried but stripped off all the plastic carcass and electronic components separately so that it can be then recycled internally and convert 98% of all the recyclable parts to form the renewed raw materials again for it to manufacture into the next generations of new products. Unifying paper and digital information and seamlessly integrating this with cloud services and mobile solutions largely reduces paper volume. Canon Utilising an automated production line for toner and ink cartridge. This creates an extremely effective way to improve speed and quality while reducing cost of cartridge production simultaneously yielding an almost 100% non-defective product rate. All canon parts of their products are also recyclable. Flexible response Fuji Xerox Fuji Xerox adopts a JIT Process (Just-In-Time) for every process in building the product so as to reach the potential market just in time to distribute. Digitalised invoice management practices and Presence of on time reimbursement for supplier in regard for services rendered enables supplier management to be more efficient. Canon Implementation of EQCD concept2 with suppliers to stipulate timely delivery of high quality reasonable products to customers worldwide. 2 EQCD concept: “E” stands for environment: Companies are not qualified to manufacture goods if they are incapable of environmental assurance. “Q” stands for quality: Companies are not qualified to market goods if they are incapable of providing quality products. “C” and “D” stand for cost and delivery: Companies are not qualified to compete if they are incapable of meeting cost and delivery requirements

Unit cost reduction Fuji Xerox Ethical procurement activities implemented to Fuji Xerox’s suppliers improves their CSR management resulting to the number of production line suspensions reduction to zero. At zero production line suspensions, greater cost in not incurred. Reduction of imports of commodity paper supplies and Procure to Pay (P2P)1 system which reduces the number of active suppliers from 3,000 to 1,500 reduces logistics costs as well.

Canon Adoption of global perspective in purchasing quality where purchasing of merchandise occurs during the most timely period between the procurement division and the suppliers. At the most suitable priced period for the merchandise purchase according to its quality facilitates in unit cost reductions. Reduction in the number of active suppliers in the Procure to Pay (P2P)1 system from 3,000 to 1,500 enabling better management of business, inclining better procurement practices. 1

Procure to pay (purchase to pay or P2P) is the process of obtaining and managing the raw materials needed for manufacturing a product or providing a service.

Time to compression Fuji Xerox Mail and Distribution Services (M&DS) provide management of mailroom operations on behalf of our client, driving productivity gains and cost savings. Key functions include centralised receipt and logging and miscellaneous office services such as setting up meeting rooms, managing the vending machines and others. Fuji Xerox’s adoption of a JIT Process (Just-In-Time) for every process in building the product significantly reduces delivery time. Appointed vendors are recruited as part of the production value-chain from delivery to stocks availability are strictly measured by their readiness to meet FX production timeline.

Japan Total Quality Improvement process (TQI) ensures efficient manufacturing process from the designing to the assembling of the product.

Canon Partnership with outsourced companies such as uniFLOW to develop software business solutions for efficiency and mobility in secure printing anywhere. uniFLOW is designed to save your organization time and money by providing effective controls over its entire printer and multifunction printer (MFP) and scanner fleet. With its modular design, the uniFLOW solution can scale to fit any size organization, and can be customized to fit your organization's specific needs.

TIME Time to market Both Fuji Xerox and Canon engages in JIT model for their supply chain management which enables them to quickly react to any changes in the market demands.

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Time to service Fuji Xerox EPBB is a service offering that allows FXP to monitor and manage the customer's multi-function device remotely. It allows Fuji Xerox to be able to react to printing needs even before the problem arises. Canon The built in reporting system, uniFlow allows the administrator or finance department to see and control how much each printer and user is costing the company. Time to react Both companies formed transportation partnerships with different agencies and a dedicated team will ensure a smooth flow in the distribution chain and warehouses strategically built to ensure that the products are available and can be located at a shorter distance. POSTPONEMENT Time/place of final product configuration Fuji Xerox All X & Xerox products are manufactured in different parts of the world. For majority of the products that are marketed in AP region, all manufacturing and assembly activities are mainly carried out in the manufacturing plants/ facilities in    

Sheng Zhen, Shanghai (China)- Fuji Xerox of Shanghai Limited. Tokyo (Japan)- Fuji Xerox Manufacturing Co., Ltd, Ebina, Japan, Thailand- Fuji Xerox Eco-Manufacturing Co., Ltd. Vietnam-Fuji Xerox Hai Phong Co., Ltd.

All finished goods are then shipped out to the respective countries. Fuji Xerox Printers installation consist of a comprehensive package consisting of setup and training that enables the product to be fully productive at the completion of the installation. The printers will be installed by an authorised Fuji Xerox Printers Specialist who will be deployed to the company. Canon Canon assembles their products across their 16 manufacturing facilities in Asia and goods are later shipped out to respective countries. Printer installation with be executed by Canon technicians with installation fees included.

Both companies have similar supply chain business models with various direct suppliers and manufacturing plants located globally to ensure products are more smoothly delivered across the world. They have also implemented business processes such as JIT and EQCD to be prepared for sudden changes to the market and ensure efficient and effective delivery of supplies. Additionally, both companies have succeeded in allowing their supply chain to be environmentally sustainable by reducing waste and ensuring that suppliers abide by their environmental guidelines.

3.2 Analysis of Current Distribution Channel performance Distribution Channel Tasks model

SHORT PARA Reducing complexity

Fuji xerox Fuji Xerox currently has 3 exchange points 

 

Sales representatives deal directly with corporates through sales visits or joint sales calls to ensure their requirements are thoroughly met Direct engagement to customers via Fuji Xerox Direct (an online purchase service) Authorised resellers such as Xenetix Pte Ltd and Y-WA Business Solution with distribution

It is straightforward and convenient for companies as they can

Canon Canon also has 3 exchange points   

Via their official website using Canon Business Services Canon only has one authorized dealer (ASC) Sales visits

Canon Business Services is the specialist outsourcing and consultancy arm of Canon which provides a range of document management services for organizations to streamline their document processes and increase overall

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only interact on either options be it to make safe and reliable purchases.

Increasing value

Fuji Xerox engages resellers such as Xenetix Pte Ltd and Y-WA Business Solution to aid in their distribution of services. Xenetix: As one of the most prominent distributors of Fuji Xerox multifunction document systems and a leading provider of document and knowledge management solutions, they strive to provide excellent customer service through their strong team of sales consultants and managers who aim to provide businesses with a suite of software, hardware and services that effectively increases the efficiency of businesses using Fuji Xerox’s prod...