SUMMER TRAINING PROJECT REPORT

ON

“POTENTIAL OF COLOUR

MULTI FUNCTION DEVICE IN

COMMERCIAL MARKET”

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RICOH INDIA LIMITED BANARAS HINDU

UNIVERSITY

In Summer Internship ProgramOf

Master of Business Administration (MBA)

2009-11

Under the guidance of: Mr. Sukhdev Singh Mr. Gaurav Chauhan Operations Head Sales Manager Ricoh India Ltd Ricoh India Ltd

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New Delhi-20 New Delhi-20

Submitted by:

TANUJ CHANDRA

FACULTY OF MANAGEMENT STUDIES.BANARAS HINDU UNIVERSITY

VARANASI-221005Acknowledgement

I like to take this opportunity to express my deep sense of gratitude to Mr. Sukhdev Singh (Operations Head, 100, Okhla Industrial Estate, New Delhi) of Ricoh India Ltd. for allowing me to have my summer training in his company. He has been a constant source of inspiration, invaluable guidance and counsel throughout the entire period for the preparation of this project.

I would like to offer my sincere thanks to Mr. Gaurav Chauhan (Sales Manager) to act as the project coordinator & for his timely help and guidance.

I owe my special thanks to entire employees at Ricoh Branch, 100, Okhla Industrial Estate, New Delhi, for their support during the training period.

Last but not the least, my effort will remain incomplete if I do not express my gratitude and indebt to my teachers, friends and family members for their love and blessings and whose assistance and support are instrumental in successful completion of the project.

I will ever remain grateful to all.

TANUJ CHANDRA

MBA-IIIrd SEMESTER.

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Faculty of Management Studies, BHU

PREFACE

It gives me immense pleasure to present this report on the

topic

“THE POTENTIAL OF COLOUR MULTI FUNCTION DEVICES IN

THE COMMERCIAL MARKET.”

This was a project carried on to study the Potential of colour

multi function device of the Ricoh in commercial market of

Delhi. The analysis for the project is based on the Primary &

Secondary data.

The report addresses various issues, which would help in

taking decisions related to Promotion & Sale of Ricoh products.

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This report is submitted as a part of course curriculum of

Faculty of Management Studies, B.H.U.

I have given my best effort to cover all the aspects related to

the topic and to make the report purposeful.

TANUJ CHANDRA.

MBA –IIIRD SEMESTER

FMS-BHU

CONTENTS

Page no.

Executive Summary ……………………………………………………… 7

1. INTRODUCTION-

1.1 What is a MFD?……………………………………………...................... 91.2 Types of MFDs ..................................................................................................... 101.3 Characteristics of MFDs…………………..................................................... 14

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2. INDUSTRY PROFILE-

2.1 Overall Market Scenario……………………………………………. .... 222.3 Segment Analysis

…………………………………….............................. 23

2.4 MFD (Market Share) .......................................................................................... 27

3. COMPANY PROFILE

3.1 RICOH India limited: An Introduction ...........................................................30

3.2 RICOH Worldwide Product Line.....................................................................33

3.3 Key Executives of RICOH India Limited........................................................35

3.4 RICOH India: Business Portfolio ......................................................................36

3.5 Sales & Service Network .....................................................................................37

3.6 Accolades ................................................................................................................38

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4. THE STUDY-

TITLE………………………………………………………………………. 43 OBJECTIVES……………………………………………………………. ....44

4.1 Research Methodology-Sampling technique, Sample size, Sampling Design, Limitations, Field-work……………………………...............................45

4.2 Data Presentation & Interpretation….………………………...................50

5. CONCLUSION-

5.1 SWOT ANALYSIS ……………………………………………………..60

5.2 FINDINGS............................…………………………………………..... ...62

5.3 RECOMMENDATIONS………………………………………………. 63

5.4 LIMITATIONS……………………………………………………...........64

Bibliography ………………………………………………………………. 65

Annexure

Questionnaire .............................................................................................................67

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EXECUTIVE SUMMARY

Colour Multi-functional devices have really become very important in the present market scenario. Market of MFD’s is developing faster than its individual products. They have come up as a high utility cost cutting devices. So, MFD industry is growing at a high pace as all the companies are realising their utility. MFD’s have redefined printing. They leverage on the concept of ‘documents’ rather than ‘print-outs’. Earlier, documents in any organisation meant print outs or paper documents. In the present scenario, documents means both paper and electronic (digital) versions. MFD’s merge electronic and paper documents with communication capabilities. The MFD market is stacked with five very strong players which are Canon, Ricoh, Xerox, Sharp and Toshiba. All of which are coming up with new innovative products at regular interval of time. But, among them, Ricoh India Limited has made a name for itself with its innovative products and highly efficient after sales service.

My project as a summer internee in Ricoh India Limited was to explore the potential of colour multi function device in commercial market of Delhi. My job was mainly to survey in a specific geographical patch, mainly those were industrial places in Delhi as Barakhamba Road, Noida, Rohini.

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INTRODUCTION (Part – 1)

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1.1What is an MFD?

MFD stands for Multi functional devices, devices which incorporate a photocopier, network printer, scanner and fax machine in all in one. Hence, it is a cost cutting device.

A multifunctional device (MFD)-sometimes called a multifunctional printer—copies, prints, scan and faxes all from one physical unit. Most MFDs should allow us to carry out more than one of those tasks simultaneously. As either laser or inkjet printers, MFDs will print photos and a variety of other document types.Some print in colour while others print only in black and white. They al have various features and networking options and range hugely in price from just over Rs. 50,000 to around Rs. 3.5 lakh. Quality is fairly similar across the price range, although the high-end devices tend to be faster, have colour printing, and also more network and office functionality.In the home you would look at an MFD to save upfront cost and space if you plan to carry out a combination of faxing, scanning, printing (both photos and documents) and copying on a regular basis. As more households acquire broadband connections and transform into digital homes, scanning will play a bigger role, requiring residents to seek a combination of printers and scanners in order to print and share their photos and documents. With their own memory, MFDs have the ability to store documents and send them straight to e-mail, becoming intercommunication portals. When looking for more than one device, an MFD is a tempting option.

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It’s ideal for business and enterprise to look to MFDs on a way to increase productivity, streamline tasks and potentially decrease their costs (for example, only leasing one unit instead of three.)

1.2 Types of MFDs

MFD manufacturers traditionally divided MFDs in to various segments. The segments roughly divide the MFDs according to their speed in pages per minute (ppm). Despite this, many manufacturers are beginning to avoid the segment definition for their products, as speed and basic functionality alone are often not sufficient to differentiate the many features that the devices are capable of, two colour MFDs of a similar speed will be in the same segment, despite having potentially very different features sets, and therefore very different prices. From a marketing perspective, the manufacturer of the more expensive MFP would want to differentiate their product as much as possible to justify the price difference, and therefore the segment definition is avoided.

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Many MFD types, regardless of the category they fall in to, also come in a “printer only” variety, which is the same model without the scanner unit included. This is even the case with devices where the scanner unit physically appears to be highly integrated in to the product.

So, instead of rigidly segments defined based on speed, more general definition based on intended target audience and capabilities are now becoming much more common. While there is no formal definition, it is common agreed amongst MFP manufacturer in to the following categories.

AIO

An AIO is a small desktop unit, designed for home or office use.

Generally the features an AIO has focus on scan and print functionality for home use, and may come with bundled software for organizing photos, simple OCR and other uses of interest to a home user. An AIO will always include the basic function of print and scan, with most also including copy functionality and lesser number with Fax capabilities.

AIO devices are usually not networked and are generally connected by USB or parallel.

An interesting note about AIO devices is that they often have features lacking in the larger devices, due to their target towards home users. These functions include smart

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card reader’s direct connection to digitals cameras (e.g. Piet Bridge technology) and other similar uses.

The print engine of most AIOs is based on either a home desktop inkjet printer, or a home desktop laser printer. They may be black and white or colour capable.

SOHO MFD

A large desktop or small freestanding unit, designed for small office/home use. Often, the form factor of the MFD (desktop for freestanding) depends on the options added, such as extra paper trays or so on.Generally a SOHO MFD will have basic Print, Copy, Scan and Fax functionality only, but towards the larger end of the scale, may include simple document storage and retrieval, basic authentication functions and so on, making the higher end of the “SOHO” scale difficult to differentiate from the lower end of the “office” MFP scale.

SOHO MFDs are usually networked, however may also be connected via USB or, less frequently, parallel. SOHO MFDs may have basic finishing functionality such as duplexing, stapling and hole punching, however this is rare. In general, document output offset, sorting and collation are standard capabilities.

By comparison to an AIO, a SOHO MFD is more likely to have an automatic document feeder, greater fax capabilities and faster output performance. Most SOHO MFDs have their history in low end black and white photocopiers, and the print engine is therefore based around this type of technology.

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OFFICE MFD

A mid-sized free standing unit, designed as a central office system.

These units are usually the most fully featured type of MFD. They include the basic Print, Copy, and Scan functions with optional fax functionality as well as well as networked document storage with security, authentication using common network user credentials, ability to run custom software (often a manufacturer will supply a Software Development Kit), advanced network scan destinations such as FTP, WebDAV, Email, SMB and NFS stores, encryption for data transmission and so on.

Office MFDs usually have moderately advanced finishing functions as options such as duplexing, stapling, hole punching, offset modes and booklet creation.

Office MFPs are almost always networked, however some have optional or standard (infrequently used) USB and parallel connections. Most MFPs have their history in mid range photocopiers (both colour and photocopiers), and the print engine is therefore based around this type of technology. However, Hewlett-Packard has introduced two office MFPs based on fixed head Inkjet technology.

Production Printing MFP

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A large sized freestanding unit, designed as a central printing device or reprographic department device.

These devices while far larger and more expensive than office MFDs, generally do not have all of the advanced network functionality of their smaller relations. They instead concentrate on high speed, high quality output, and highly advanced finishing functionality including book creation with cover insertion (including hot glue binding) and so on. Production Printing itself is often further divided in to ‘light’ production and ‘heavy’ production printing, with the differentiating factor being the speed. A 100ppm device for example, falls in to the light Production Printing category by the standards of most manufacturers.

Because of the focus on printing, while most Production Printing MFPs have scanner, it is infrequently used and often only has basic functionality.

There are variety of different print engines for Production Printing MFPs, however in the “light” end of the Production Printing market, most are based on the large Office MFDs, which themselves are based photocopier technology as described above.

Production Printing MFPs may also be known as “Print on Demand” device or “Digital Presses”. This later term can also be used to refer to the print controller controlling the MFP however.

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Characteristics of MFDs

It is useful to consider the features and functions of and MFD before integrating it in to a home or office environment. It is possible to have an MFD with almost all of the features and functions listed below; however a typical AIO or SOHO MFD is unlikely to incorporate many of these.

An list (incomplete) of features that an MFD may offer or will vary depending on the MFD under consideration (in any segment).

Print features/functions

Input

Printer drivers are available for different operating systems.

PDLs (post Script, PCL, XLS etc.) and direct interpreters (PDF, TIFF etc.) supported.

Network, USB, Parallel or other connection types. Network print types available (Raw, LPR, IPP, FTP

printing, print via email etc.)

Output

Print speed (typically given in pages per minute or ppm).

Printer technology (e.g. Inkjet/Laser/colour Laser).

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Paper formats (what kind of paper sizes and stocks the MFP can output).

Direct CD/DVD Label printing (usually only available on some Inkjet AIO models).

Resolutions DPI- this is an important metric for both printing and scanning quality. ( Note that print DPI is rarely greater than 600 dpi actual. Some MFDs use a system similar to sub-pixel rendering on computer displays to give “enhanced” resolutions of 1200 x 600 or 1800 x 600, however it is important to note that this is a true resolution).

Duplex printing capability- whether the MFD can print on both sides of a sheet of paper without manual intervention by the user.

Ability to print directly to the MFPs internet storage function.

Capability of using the MFDs finishing functions. (see below under copy features/functions)

Scan Features/Functions

Input

Automatic Document Feeder (ADF)- this allows multiple sheets of paper to feed without manually placing each piece of paper on the plate glass.

Duplex Scanning capability (depends on the ADF) – whether the MFP can scan both sides of a sheet of paper without manual intervention by the user.

Ability to retrieve a document from internal storage and send it as if it was a new scan.

Output

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Scan transfer methods available (e.g. FTP, WebDAV, Email, SMB,NFS,TWAIN)

Scan file formats available (e.g. PDF, TIFF, JPEG, XPS, etc.)

Security of scanned documents – such as PDF encryption, digital signatures and so on.

Fax Features/Functions

Cordless telephone (generally only a consideration for AIO or smaller SOHO products).

Answering machine. Colour fax capability. TCP/IP Fax method such as SIP fax (fax over IP), Network

Fax (via SMTP), Internet Fax and so on. PC Fax send and receive capability.

Copy Features/Functions

Document finishing capability. Duplex Output. Stapling. Single point. Two Point. Staple Positioning. Hole punching. US hole punch or international. Number of holes (2/3/4). Folding. Half Fold/Crease.

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Fold and centre Staple (for booklet pagination). Cover insertion for booklets.

Cover binding (generally only available on production printing models) – differs from “cover insertion”, in that a cover is physically bound to the book instead of simply placing it around the other pages. Cover binding often uses hot glue to bind the cover to the finished book.

Trimming for folded documents to avoid “creep”. Tri fold/Envelope folding. Document editing modes. Booklet pagination/”perfect binding” booklet pagination. Page numbering/ text & Image Stamping/

Watermarking. Image scaling/rotation.

Document Storage Features/Functions.

Documents storage capability of the MFP. Storage (HDD) Capacity. User authentication for the stored document, and any

relationship to the user authentication of the MFP (e.g. Network authentication with a server or custom software, internal only etc.).

Network Features/Functions

Wireless network capability. Active directory or other authentication functionality.

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Data encryption. IPv6 support. SNMP support – both private and public MIB

specifications.

Other Features/Functions

Software – Many MFDs support advanced functionality through third party software such as Optical Character Recognition (OCR). In some cases, these software components are not specific to the MFD being used; however it is important to determine this. As in other cases, proprietary technologies are used that effectively tie the software to the problem.

Internal Architecture

Hardware

MFDs, like most external computer peripherals that are capable of functioning without the computer are essentially a type of computer themselves. They contain memory, one or more processors, and often some kind of storage, such as Hard Disk Drive or Flash memory.

As mentioned in the type of MFDs, the physical print engine may be based on several technologies; however most of the larger MFDs are evolution of a digital photocopier.

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Software

MFDs also run a set of instructions, either in firmware or from their original storage, which is comparable to the computer’s operating system.

Generally, as the size and complexity of an MFD increases, the more like a computer the device becomes. It is uncommon for a small AIO or even

SOHO MFD to use a general purpose computer operating system, however many larger MFDs run GNU/Linux(1) or V X Works(2).

Additionally, many print controllers, separate but integral to the MFD, also run computer operating systems, with GNU/Linux [3] and Microsoft Windows (often Windows NT 4.0 embedded, Windows XP embedded[4] and even Mac OS X[5] sometimes being used.

On top of the core Operating System or firmware, the MFD will also provide several functions, equivalent to applications or in some cases daemons/services on a desktop computing platform.

These functions may include (amongst many others):

MFD panel control for user input.

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Byte code interpreters or Virtual machines for internally hosted third party applications Web server for remote management functions.

Network service client for sending of documents to different destinations.

Network service servers for receiving documents for print or storage.

Image conversion and processing functions. Faster image processing functions (although, often this

task is handled by a separate print controller unit instead).

Computer systems equipped with the proper software must be able to take advantage of the MFD’s capabilities, an important requirement to research when considering integrating an MFD with an existing office. Some or all of the following functionality might be provided:

Device administration and configuration. Monitoring of print quotas, toner/ink levels etc. Document type/paper input mode selection. Document imaging, such as ad hoc imaging. Document management such as remote scanning,

document type conversion from text to PDF, OCR, etc.

Software developers for MFDs include Captaris [1], Ecopy, Nuance, NSi, Paper River Consulting, Ring dale and Omtool.

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Industry Profile (Part – 2)

The multi functional printer segment is a crucial product

segment in the information technology sector. It is

among the most voluminous, both in terms of revenues

and units, and also among the most dynamic.

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2.1 -OVERALL MARKET SCENARIO

According to reports and forecasts for FY 2007-2008, the

market size for inkjet printers was 5.7 lakh units, while

that for DMP (dot matrix printers) was 3.3 lakhs units and

for laser printers the number was 1.3 lakh units. During

the same period, the growth for inkjet was 24 percent

year-on-year, for DMP it was 6 percent and for laser

growth was pegged at 44 percent.

In terms of growth for 2007-08, the inkjet market will grow

at 13 percent, DMPs will grow at 6 percent or even take a

dip, and the laser market will grow by nearly 5-7 percent.

The total market for MFDs in Q3 2007 was 40,188 units,

valued at Rs 90.25 crore, thereby registering a sequential

growth of 107.7 percent and year-on-year (YOY) growth of

213.5 percent in unit terms. The reason for this is simple.

The sales of inkjet-based MFDs during Q3 2007 were

34,720 units, valued at Rs 29.03 crore, thereby posting a

sequential growth of 139.4 percent in unit terms.

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This market has outperformed all forecasts, something

that happened mainly due to one vendor; HP. Laser-based

MFDs witnessed a dip in share at the cost of inkjet. That

market grew at just 44.5 percent (YOY) and sequentially

by 12.9 percent.

The inkjet MFD market will register a CAGR of 83.1

percent in unit terms and 43.3 percent in value terms. The

growth for 2008 is expected to be 102.9 percent over

2007, whereas the laser MFD market is expected to grow

annually by 55.4 percent in 2008 over 2006. Value growth

might drop primarily due to further price cuts that are

expected to materialize in the near future.

2.2 -SEGMENT ANALYSIS

MFDs are the most important segment in printers because of

the growth in terms of volumes and the value in terms of

customer satisfaction. Although it won’t be appropriate to rate

players based on past performance, it is evident that there is

one leader in all segments with the DMP segment witnessing a

very tough fight.

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A)-Inkjet Printers

HP led the race with nearly 55 percent market share, followed

by Sharp, Canon, and Epson, which maintains a market share of

45 percent.

B)-Laser Printers

Laser market growth will be nearly 5-7 percent. The growth is

still primarily driven by the mono-laser segment. The main

reason colour lasers are not flying off the shelves is price—

although in the long run colour will rule. Besides the price

difference between a colour and a mono-laser printer, another

factor is the cost-per-page [for printing] difference between the

two.

The laser segment grew by a whopping 44 percent because of

a sharp decline in prices.

C)-Dot matrix Printers

The DMP segment is basically a stagnant market. The

government is the main driver for the dot matrix printer

segment. Around 30-35 percent of DMPs are sold through

tenders.

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2.3 -MULTI FUNCTIONAL DEVICE

A)-MARKET SIZE AND GROWTH

The increasing popularity of multi-functional devices can be

considered from the growth that this market has witnessed in

the last 1-2 years.

According to IDC, while the inkjet MFD market in India

has been growing at over 100 percent, the growth in

the laser MFD segment has been in the range of about

60-75 percent, though not very large in unit terms.

The cumulative (inkjet and laser combined) growth in

this segment is around 40-50 percent. “Currently worth

Rs 70-80 crore, this market is estimated to attain a size

of Rs 180-230 crore by the year 2008, thereby growing

at the rate of around 60 percent.

A major driver was the small office segment that wants

to get rid of inkjet printers. The largest growing

segment is MFD. The reason is simple: there is little

competition in this segment and it has a higher Average

Selling Price (ASP).”

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In today's enterprise, documents mean both paper and

electronic (digital) versions. MFDs merge electronic and

paper documents with communication capabilities. In

simpler terms, a convergence happened between 'hard'

and 'soft' copies. Let's say that you want to email an

important agreement to your client as a digital file.

Earlier, this would have meant scanning the entire

document and sending it across as a bulky image.

Today's MFDs are connected to the Internet and have

emailing capabilities. So all you have to do now is scan the

paper document and provide the printer with your client's

email address. The MFD will convert your scanned image

automatically into a PDF file and email it to your client.

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MFD-MARKET SHARE IN INDIA

19

19

21

20

14 3 2 2

Sales

Sharp

Canon

Ricoh

Toshiba

Xerox

Kyocera

Konica

Panasonic

(B)-COST AND MFDs

Like most good things in life, high-end MFDs also come at a

high price in terms of acquisition costs. However, prices have

been falling steadily and more enterprises are going in for it.

The reason behind this adoption in spite of high costs is simple.

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It is less costly and more efficient to have an MFD in the long

run

For example, getting a multifunctional device (MFD) makes

more sense for an SME, which has different teams with printing,

copying and faxing needs. Before the introduction of MFDs, this

meant having three different machines for each team, each

with its own operating and maintenance costs. Now it can be

done with a single device. The biggest advantage of having

an MFD is cost savings in the long run.

(C)-GROWTH DRIVERS

MFD prices have fallen by around 20 percent per annum,

propelled by factors like cuts in duty rates and

international price trends.

“Two years ago an entry-level MFD used to

cost about Rs 35,000, but now costs around Rs

20,000.”

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Company Profile (Part – 3)

3.1 Ricoh India Ltd.: An Introduction

RICOH INDIA LTD

VISION:

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“To be the winner in India in the 21st century by becoming the leader in document management solutions.”

MISSION

“To improve our customer’s workplace efficiency by providing innovative document management solutions.”

CORPORATE OFFICE:-

RICOH INDIA LTD

52 –B, 1st Floor, Okhla Industrial Estate,

Phase III, New Delhi – 110020

Phone: 011 – 41613010 - 15

Fax: 011 – 41612221/3019

Web site : www.ricoh.co.in

Guiding Principles and Values

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Customer Focus: We will build and maintain strong and long-term customer relationships.

Business Excellence: We will constantly strive to excel in everything we do.

Innovation: We will challenge the status quo; promote innovation and continuous improvement in all areas.We will act as an entrepreneur.

Social Responsibility: We will promote environmental and corporate social responsibility.

Integrity and transparency: We will act with integrity and transparency in all our dealings.

Respect and Trust: We will respect individual sensitivity and create mutual trust in our work and relationships.

Team Work: We will promote employee involvement through teamwork.

Innovation — A Ricoh Tradition

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The introduction of broadband communications into our

society has not only changed the office environment of our

customers but brought major changes to the nature of

business itself.

Ricoh has now determined to be a true solution partner that

offers solutions to customers’ problems from a customers’

viewpoint through working together with them. At the same

time, we always maintain our vision one step ahead of the

times.

As guides toward this goal, Ricoh identified three core

values: “Simplify knowledge creation”; “Create solutions

that fit”; and “Harmonize with the environment.” These

ideals express our determination to offer the most advanced

solutions that meet the ever changing needs of society.

The core values are also illustrated in our new logo. In fact,

they are the manifestation of our determination to continue

the journey of endless innovation.

We continuously examine our own corporate values from a

fresh point of view, and make our utmost efforts to fulfil our

corporate responsibilities. At the same time, we always

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Engineering MFPDigital Duplicator

High Volume Printing

CD/DVD Media

Gels printer

Digital Camera

Digital Color MFP

share our accumulated experience leading towards

innovation with our customers.

To seek new solutions for our customers we continue our

tradition of innovation.

3.2 Ricoh Worldwide Product line

Other Products

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• Fax machines •

DVD+RW/+R

• Digital printers •

Digital cameras

• Scanners •

Electronic devices

• Printed circuit boards

Software-related products

• Ridoc series

• LIMEDIO library information management system

• Ricoh Document SDK series, document and Image processing

tool

• TrueType fonts

• Various types of industrial and business software

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Internet-related products and services

• NetRICOH, one-to-one portal site for businesses

Supplies

• Toner

• PPC paper

• Thermal paper

• Thermal rewritable film

Affiliates’ products and services

• Measuring equipment

• Barcode equipment

• Educational equipment

• Air purifiers

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• Shredders

• Electronic whiteboards

3.3. KEY EXECUTIVES OF RICOH INDIA LTD.

Name Designation

N. Maitra CEO and President

Sujit Sanyal Sr. Vice President(Operations)

Neelam Bhan Sr. Manager – H.R

Manoj Kumar Vice President Finance

R. K. Baba Vice President Service

Anil Saini IT-HEAD

3.4 Ricoh India Business Portfolio

MONO Digital Copier ( M F P) (15 ppm to 135

ppm)

Colour Laser Printers

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Colour Gels Printer

Colour Multifunction Device(25 ppm & 30 ppm)

A0 Multifunction Device

3.5 Sales & Service Network

Ricoh India has sales and service network, present across the country with 16 branch offices, 210 dealers, more than 300 company and 300 dealer service engineers, covering the remotest of areas besides being present in small cities and large metros.

Ricoh India – Direct Sales & Service Network

15 branch offices across the country First office automation company certified to confirm to ISO

service standards ( ISO: 9002 :1994 ) Over 45000 satisfied customers Direct service from Ricoh’s 15 branches and all service

engineers are well trained in all product line.

Ricoh India – Dealer network

Over 150 A B A’s (Authorized Business Associates)

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With 140 plus ABA service engineers. Presence in remote areas, small cities and large metros.

Ricoh’s Service Network

Ricoh India limited has its offices and direct service support in 12 major cities and another 110 smaller towns all over India. This gives an indication of our commitment to reach out to each customer at any given time or place.

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3.6 Accolades

Corporate Awards

Ricoh has been recognized for its achievements as a company globally.

The Deming Award

Named for Dr. W. Edwards Deming, the Deming award recognizes corporations and individuals that demonstrate an outstanding commitment to quality control, and whose products or innovations make exceptional advances in the pursuit of quality. Less than 100 selected companies have won the Deming medal. Ricoh was the first office equipment manufacturer to win one. And today, Ricoh is the only such company to have won two.

Department of Communications, IT and the Arts

Certificate of Recognition 2002

The Minister of Communications, Information Technology and the Arts, Senator Richard Alston, awarded a Certificate of Recognition to Ricoh for its continued support of small-to-medium enterprises (SMEs) and the local ICT Industry.

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Environmental Awards

Since the 1990’s, Ricoh has been a world leader in the development of energy efficient and environmentally conscious products. Ricoh’s pioneering efforts in the Office Automation and Imaging Industry have been officially recognized across Japan, USA, and Europe.

World Environment Centre

19th Annual WEC Gold Medal Award 2003

Ricoh has been awarded the 19th annual WEC gold medal for International achievement in Sustainable Development. The prestigious WEC Gold Medal was awarded by an independent jury of distinguished international environmentalists to a corporation that demonstrates pre-eminent leadership and contributes to worldwide environmental quality.

Japan Industrial Journal

Global Environmental Award 2003

Ricoh won the 12th Grand prize for the Global Environmental Award, hosted by the Japan Industrial Journal. Ricoh was honoured for its resolute attitude towards the environmental

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management to sustain high-level environmental conservation activities.

Keizai Koho center

Outstanding Corporate Public Relations Award

Ricoh was selected as the winner of the Outstanding Corporate Public Relations Award by Keizai Koho center. Ricoh was awarded for its initiatives for environmental protection, and seeing itself as a global citizen, the company represented the best candidate to achieve a high level of business performance.

Council on Economic priorities (CEP)

Environmental Stewardship Award 2001

Council on Economic priorities (CEP) “Environmental Stewardship Award”, presented at CEP’s 14th Corporate Conscience Awards.

The US Environmental Protection Agency (EPA)

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Office Equipment Partner of the year 2001, 1999, 1998, 1997, 1996

Copier of the Future Award, 2000

Excellence in Consumer Education

Labelling Partner of the Year 2000

The Office Equipment Partner of the year award is EPA’s highest industry award. Ricoh has also been recognised as an industry leader for its role in the manufacture and promotion of ENERGY STAR copiers, facsimiles and printers.

Blue Angel Mark

In 1999, Ricoh earned the ‘highly recommended ‘appraisal from KOM, the German environment agency. Ricoh was rated first among the eleven electronics companies such as Sony, Ericsson and Nokia.

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The Study

(Part – 4)

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"THE POTENTIAL OF COLOUR

MULTI FUNCTION DEVICES IN

COMMERCIAL MARKET.”

OBJECTIVES

1) To acquire knowledge about various products of

the company through circularized instructions/

personal discussions/ websites/ handbooks etc.

2)To avail the information for the comparison

between the stand of Ricoh and its competitors.

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3)To prepare questionnaires & obtain feedback of

existing customers to access information regarding-

a) - The awareness of Colour MFD.

b) – The various usages of colour MFD by customers.

c) – If organizations are not using colour MFD then

how do they meet they requirements?

4.1 -RESEARCH METHODOLOGY:

Research is a systematic and logical study of an issue or a

problem to arrive at accurate results, research the job of

collecting, recording and analyzing relevant data to arrive at

decisions. The present study is systematic, objective and

exhaustive search for studies of the facts Relevant to a problem

in the field of marketing.

The search for the facts may be through either

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Unscientific method

Scientific method

Unscientific method consists of imaginations, blind belief or

impression rather than the facts.

Scientific method is the systematic approach to seek facts. It is

objective, precise and arrives at conclusion on the basis of

certain evidences. Hence the research for the facts should be

made by scientific method to arrive at accurate results. The

present research study is selected to study the influencing

factors for buying behaviours.

TYPE OF RESEARCH

Marketing research is the systematic and objective search for

and analysis of information relevant to the identification and

solution of any problem in the field of marketing. Type of

research is the research design and plan, structure and

strategy of investigation concerned so as to obtain the answers

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to research questions and to control the variance, it is the blue

print for the collection, measurement and analysis of data.

SAMPLING TECHNIQUE

Sampling is a systematic approach of selecting a few elements

(a sample) from entire collection unit (a population) in order to

make some reference about the total population. It is a small

specimen or a segment of the whole population, representing

its general qualities as for as possible.

Convenient sampling

As its name implies, convenient sampling refers to collection of

information from the members of the population who are

conveniently available to the research. The convenient

sampling method was used for the purpose of data collection.

A sample was chosen keeping in mind the objectives of the

research and time constraints, convenience-sampling method

was usual for choosing this sample size.

SAMPLING SIZE

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The sampling size chosen was One hundred & thirty

eight (138) from Delhi & Noida.

SAMPLING DESIGN

Sampling plan: An integral component of a research design is

the sampling plan, specifically it addresses three questions.

1-Whom to survey? (Sampling unit)- Managers

/ Office co-ordinators.

2-How many to survey? (Sample size)- Sample

Size was taken 138 due to certain constraints.

3-How to select them? (Sampling

procedure)- There was certain geographical patch

to be selected from where the samples could be

taken.

LIMITATIONS OF THE STUDY

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The study is time consuming and quite expensive.

A lot of respondents were not very keen in giving

answers. Some were either busy or in meetings.

Customers’ data provided by company was also not

fully updated.

The time period for the study was just two month.

For a survey conducted on subject like this, the sample

size should be more, since time was not enough; the

sample size was restricted to 138.

The study was conducted in Delhi in the month of June

so weather was one of main hurdle.

ACTUAL DATA COLLECTION/INFORMATION

The data / information collected from the various sources were

divided into two parts.

a. Primary source - “Questionnaires”

b. Secondary source - The secondary data was

collected from internet, journals, magazines,

books, etc...

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The research specific information was less available

through secondary sources & more emphasis was given

on the primary data.

DATA ANALYSIS

Based on what the various respondents’ opinion, the data

collected was analyzed using figures. No rigorous mathematical

analysis could be done. All estimations are solely on judgment.

For questions percentage was calculated and represented in

the form of charts.

After representing the data in the form of charts the same were

interpreted to get in-depth knowledge about the problem as

well as general information, which helped the researcher to

come at appropriate conclusions about the study and to give

relevant recommendations.

FIELD WORK

The survey was conducted for 30 days from 30 th May to 30 th

June 09 in Delhi. Some major places where survey was conducted are Barakhamba Road, Rohini, Noida .

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4.2 -DATA PRESENTATION & INTERPRETATION

Figure showing users of Multi function Device.

11281%

2619%

Break-up of Users & Non users of MFD

UsersNon users

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MFD No. Of Organizations

Users 112

Non-Users 26

Total 138

Interpretation:

The above figure shows that 81% i.e 112 organizations are using multi function devices where only 19 % i.e 26 organizations are not using multi function device out of total sample collected of 138 organizations.

Figure showing users of MFDs (Colour & B/W).

7466%

3834%

B/W MFDColour MFD

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MFD No. Of Organizations

B/W MFD 74

Colour 38

Total 112

Interpretation:

The above figure shows that 66% i.e 74 organizations are still using B/W multi function devices where 34 % i.e 38 organizations are using colour multi function device out of total 112 organizations using MFD.

Figure showing users of MFDs (Colour & B/W).

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Canon Ricoh Xerox Toshiba0

5

10

15

20

25

30

35

40

45

50

19

1

810

46

3

11

14

Company

Colour MFD Black & White MFD

Canon 19

46

Ricoh 1 3Xerox 8 11Toshiba 10 14Total 38 74

Interpretation:

The above figure shows that Canon is having best response among the Competitors of the MFDs in the surveyed market. Either it is B/W MFD or Colour MFD, Canon is the strongest player. Toshiba being the next one to the Canon.

Ricoh is facing Strong competition for MFDs from Canon and Toshiba in the market.

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Major applications of COLOUR MFD by Organizations

3848%

1519%

2633%

PrintingCopyingScanning

Equipments

No.

Printing 38

Copying 15

Scanning 26

Total 79

Interpretation:

The above figure can be interpreted as the MFDs are used for multipurpose document solutions, therefore organizations use MFD for various purposes out of which printing is the main application

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with 48% , and scanning the with 33%, and copying the least with 15%..

The major application of Colour MFD by Customers

3226%

1613%

7461%

Project ReportPresentationsExcel/Word file

Application No. Of organization

Overall % Comparative %

Project Report 32 26% 44%Presentation 16 13% 21%Excel/word file 74 74% 100%

Interpretation:

From the above figure it can be seen that Excel/word file is the major application of the Colour MFD by the organizations as all the users of colour MFD have agreed to it with 100% while, project report is used by 44% and presentation by 21% only. Thus we can interpret that Excel/word file is the most important application of colour MFD in the commercial market.

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Requirement of COLOUR MFD by the organizations using B/W MFD

Yes No0

5

10

15

20

25

30

35

40

45

50

28

46

Response Number of organizations

Yes 28No 46Total 74

Interpretation:

From the above figure, it is clear that 28 organizations out of collected sample of 74 organizations which are using B/W MFD requires the colour printing/copying /scanning while the rest 46 organizations does not require the colour printing/copying /scanning.

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The Printing size required by the organizations.

2589%

311%

A4A3

Size No. Of response

A4 25A3 3Total 28

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Interpretation:

Out of the 28 organizations which are using the B/W MFD, the 25 organization i.e 89% have the requirement of A4 size while the rest only 3 organizations i.e 11% have the requirement of A3 size. Thus we can say on the basis of data collected that the maximum organizations have the requirement of A4 size.

Application & the monthly usage volume

Printing Copying Scanning0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

Company

NO. Of response

Printing 96000Copying 28000Scanning 36000

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Total 160000

Interpretation:

The above data shows that the 28 organizations which are using B/W MFD have the colour printing application of 96000 pages per month, copying of 28000 per month and the scanning application of 36000 pages per month.

Factors which effect the selection of product

32%

14%26%

7%

21%

PriceAfter Sales ServiceRunning costFeaturesQualty of printing

Aspects Total marks obtained

Comparative Rank

Price 672

1st

After Sales Service 290

4th

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Running Cost 538 2nd

Features 145 5th

Quality of printing 425

3rd

Total 2070

Interpretation:

From the above data, we can interpret that Price is the most important aspect of the customers while selecting the product and Running cost stands 2nd in the rank, 3 rd is the quality of printing of the product after that comes the after sales service of the product, features of the product is considered at the end. The marks has been allotted according to the priorities of the customers , the first priority is given 5 marks and the last as 1 mark, then the whole data is compiled to find out their comparative overall ranking.

CONCLUSION (Part – 5)

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5.1 SWOT ANALYSIS

Strengths:

Wide range of products.

Innovative products.

Widespread network across the country with 16 branch offices , 210 dealers, more than 300dealer service engineer, covering most of the part of the country.

Very efficient after sales service as RICOH is in providing document solutions.

So many accolades with its name.

Environment friendly products.

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Weaknesses:

Low brand awareness. Relatively higher pricing. High competition from Canon and Toshiba.

OPPORTUNITIES:

As India is a growing economy, many of the countries will be entering this market. Ricoh can look them as their prospect customers by making proper strategy about advertising and selling.

Ricoh can also look for the unsatisfied customers of its competitors.

THREATS:

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Competitors like Canon, Toshiba and Xerox are definitely be the threats who can grab the opportunities available in the market.

5.2 FINDINGS

1) The colour MFD is the requirement of today’s market. Many organizations are feeling the need of Colour MFD.

2) There are definitely good competitors present in the market. They provide products with nearly same features and attributes. But, Ricoh is ahead them in providing after sales service.

3) Although Ricoh is a very good player in MFD market. But, Canon and Xerox are competing well ahead it.

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4) There is very low brand awareness among the customers about the Ricoh or the products offered by the Ricoh with respect to its competitors.

5) Among the Ricoh aware customers, MFDs are the most popular product.

6) Among the Ricoh’s products digital duplicators and wide format are less familiar among the customers in the market.

7) Nearly 90% of the Ricoh’s existing customers are satisfied with its products and services which is a very good part.

8) No Ricoh’s products users are willing to switch to another company.

9) Among the surveyed corporate, price and after sales service are two important aspects which are considered while purchasing of the office equipments.

5.3 RECOMMENDATIONS

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1) Ricoh should make strategy towards the spreading of awareness of its products which can be helpful in beating the present competitors in the market as well to get new market of colour MFD also.

2) Ricoh should advertise its innovative products heavily which will create better image in the mind of the customers and hence the awareness.

3) Ricoh should also look even in the small markets as they can be a better place to sell in mass the printers and equipments of small size.

4) Ricoh should advertise heavily in geographical patches which have more number of offices or organisations. This will increase the awareness of the Ricoh and its products.

5) Ricoh should mainly use its strength i.e after sales service and quality for the advertisement purpose which will definitely attract more customers and will increase awareness.

6) Ricoh should invade in those areas where it has less sales for the advertisement and selling purposes which will increase the number of prospect customers.

5.4 LIMITATIONSPage | 71

I didn’t possess any identity card of RICOH INDIA LTD., so many of the customers were reluctant in providing information.

Without any prior appointment, there were so many times that I returned empty handed even after waiting so much time. Also, many of the persons were not ready to meet.

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BIBLIOGRAPHY

Books

Kotler Philip, Marketing Management, the Millennium

Edition.

C.R Kothari, Research Methodology, methods and

techniques

Websites

www.ricoh.com

www.google.com

www.ricoh.co.in

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Company Profile:

Name of the Organization:__________________________________

Nature of Business:__________________________________________

Address:______________________________________________________

________________________________________________________________

Contact Person:_____________________________________________

Contact Number:___________________________________________

Designation:__________________________________________________

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Questionnaire

Q1-Is your organization using Multi Function Device?

a) Yes b) No

If yes,

Q1(i) Which of the following MFD you are currently using?

a) Colour MFD b) B/W MFD

Q1(ii) Please specify the brand:

a) THOSIBA b)XEROX c)RICOH

d) CANON e)OTHER___________

If using COLOR MFD :-

Q2(i) what is your application of Colour Multi Function Devices in your organization?

a) Printing b) Copyingb) Scanning d) other__________________

Q2(ii) which of the following is major application of colour printing in your Organization?

a) Project Reports b) Presentations

c) Excel/ Word file d)Other___________________

If using B/W MFD

Q3)-Does your Organization require Colour Printing /Copying /Scanning?

b) Yes b) No

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If yes,

Q3(i) which printing/copying/scanning size do you generally use?

a) A3 b) A4

Q3(ii) Specify the kind of application and monthly usage volume?

a) Printing ___________ b) Scanning_____________

c) Copy_______________ d) Other_________________

If no,

Q3(iii) How does your company meet the requirements of Colour application?___________________________________________________________

__________________________________________________________________________

Q4- What factors your organization consider while selecting the product, please rank them in order.( Rank 1- Most important, Rank 5-least important)

a) Price. 1 2 3 4 5b) After sales service. 1 2 3 4 5c) Running Cost. 1 2 3 4 5d) Features. 1 2 3 4 5 e) Quality of printing. 1 2 3 4 5

Q5-Do your company have requirement of any of the following products in future?

a) Colour Multi Function Devices.b) B/W Multi Function Devices.c) Printers ( colour / B&W)d) Wide format printers.

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Q6)what will be your time frame to buy the product?

a) Within 2 months. b) 2 to 6 months.b) 6 to 12 months. d) More than 12 months.

THANK YOU

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