1 / 29

The State of the Channel: 2012 DOES IT REALLY MATTER?

Explore the evolving landscape of marketing channels and the impact on businesses. From shifts in commercial printing to the rise of digital media, discover new opportunities and strategies for success in a changing market.

rubyz
Download Presentation

The State of the Channel: 2012 DOES IT REALLY MATTER?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The State of the Channel: 2012DOES IT REALLY MATTER?

  2. Channels are the least flexible aspectof the marketing mix. This is an open invitation to new competition.

  3. In the Battle for “Place,”Convenience Wins versus

  4. The State of the Channel: 2020BREAK WITH TRADITIONBEFORE SOMEONE ELSEBREAKS IT FOR YOU

  5. A Step Back: Why Channels? • Channels provide an advantage not easy created internally • … fill a void in a unique way that is proprietary and preferred • All channels exist to reduce the total long-term cost and increase the effectiveness of a system of relationships • (Selling direct is not always what it’s cracked up to be)

  6. Commercial Printing’sUndeniable Trends • Fewer and smaller print businesses • Greater distance between commercial print establishments • Fewer suppliers • Shrinking offset installed base,digital base increases • “Mainstream Print” disappears

  7. What Do TheseTrends Mean?

  8. By 2020, per capita consumption of US commercial printwill drop by -25% or more

  9. Fewer US Commercial Printing establishments: down 1/3 by 2020 … or worse… -40% from 2012 to 2020

  10. Content is Still Being Created

  11. Ad Agency + Graphic DesignEmployment Now Exceeds That of Commercial Print

  12. Fewer suppliers • Excuse me, sir, I came here to see the pre-press pavilion… can you tell me where that is? • Influence of long-established vendors is diminishing • Kodak working through bankruptcy • Heidelberg stock about €1.20 ($1.50) • Presstek 50 cents per share • Xerox shares were about $12 at end 2011, now are about $7.50

  13. CapEx investment rate shrinks • CapEx decreases from 5% to 3% of sales • Dealer opportunity:new homes for current installed base as industry consolidates

  14. Decreases in overall demandcreate new channel opportunities • Suppliers need to cut fixed costs • Workflows must become focused on multi-channel deployment • Printers seek new revenue sources • Content creators become new opportunity for graphic arts dealersand reps

  15. Commercial Printing’sSurvivors Will beHealthierSmallerMedia IntegratedFocused on SpecialtiesBroadly Dispersed

  16. Smaller markets+More complexity=Channel Restructuring

  17. New Issues for theBiggest Traditional Suppliers • Industry suppliers will restructure sales and service coverage • Shift from W-2 workers to 1099 independents and current dealers • Independent technical and service personnel

  18. Does Digital Media HoldOpportunities for the Dealer/Independent Rep?

  19. If You Believe in “Marketing Services” You Believe in this Chart

  20. Print Workflow Transforms into Multichannel Deployment • “BIG IRON”ERA • Single-purpose CapEx • Buy once and feed with consumables • DIGITAL ERA • Multi-purpose infrastructure • Constant CapEx upgrades and integration

  21. How Digital Media Changes the Print Workflow • Printers used to enter new markets withnew equipment that would last years • Printers will enter new markets with new software and new communications technologies that last for months

  22. Today’s “Mainstream Print” Decreases in Volume • Specialty production is more tactical than strategic • More specialized equipment, niche tactics, approaches

  23. Channel Questionsfor 2012-2020

  24. Are dealers the“systems analysts” for marketing services / communications logistics?

  25. Are dealers the newCapEx sales and service infrastructure for the industry’s formerhigh-flying vendors?

  26. Can dealers bring new ranges of specialties to printers anxious for new revenue streams?

  27. If you want thingsto stay the same,things will have to changeThe LeopardGiuseppe Tomasi di Lampedusa

  28. QUESTIONSThank You Very Much!

More Related