Our client, a manufacturer of office printers, was considering bringing a new low-end A3 multifunctional printer to selective markets, and wanted to understand how to position this new product and the impact it may have on their current entry-level A3 console. Specifically, the client wanted to understand
- How to price and position this new multifunctional printer against competition and other A3 and A4 devices to maximize revenue, profits, and sales
- The value potential customers have for certain features, especially those regarding scanning, security, and productivity
- The right marketing messages to best reach potential customers and distinguish this A3 printer from current printer products on the market
Their final objective was to better understand the market segments based on needs or customer outcomes; the need for A3 printers; the value for potentially new multifunctional printer features; and customers’ attitudes toward A3 systems as an integral element of their business operations.
We conducted a web survey of small (less than 100 employees) to medium-sized (100 to 1,000 employees) businesses. Using our Breakthrough Toolkit™, we analyzed the survey data to determine the following:
- Attribute importance and performance
- Brand value importance and performance
- Outcomes importance and performance
- Choice model competitive pricing on nine multifunctional printers, in three classes
- Choice model generic products—A3, A4, Color, and Mono
- Profiling next A3 multifunctional printer based on five feature levels
- Compositional conjoint to assess additional features
We delivered to the client a report on our findings and a fully detailed Breakthrough Toolkit, with pricing and profiling simulators.
There was a significant market opportunity for the client’s proposed A3 multifunctional printer. 14% of respondents chose the new proposed printer over all other printer options; over 50% of respondents chose the new proposed printer over other A3 printers.
There was limited cannibalization. Without the client’s new A3 printer, the majority of the market share shifted to competitors’ A3 printers. Increasing the price on the new A3 printer only had a 1% market share impact on the new A3. Customers who didn’t own an A3 printer were most likely to buy a low-end A3. Finally, adding some features to the new A3 printer increased its market share.
38% of companies with fewer than 50 employees and 62% of companies with more than 100 employees already owned A3 printers. Given the choice of a variety of A3 or A4 low-end multifunctional printers, 14% of respondents selected our client’s new low-end A3 printer. Given the choice of four generic A3 multifunctional color printers, including our client’s new A3 and their existing A3 printer, 39% of respondents selected the new A3, while 19% selected the existing A3 printer. The existing printer’s class share increased with increasing company size. If the new product was priced the same as the existing product, the share loss would go to the client’s competitors’ products, not to their existing product.
One of the client’s goals had been to determine the optimum configuration for their proposed A3 printer. Using the data from our survey and Breakthrough Toolkit, they found two configurations that together gave them maximum share value. The client decided to modify our recommendations and reintroduce their proposed A3 printer to selective markets.