Lexmark enhances brand value through new initiatives

In a country dominated by major printer brands like HP, Epson, Samsung and Canon, Lexmark has a tough task on hand to distinguish itself from the competition. But Lexmark is bullish on its prospects and hopes to make a difference with its innovative strategy. Srikanth R P reports

“The best marketed printer is not the best one”, says P G Kamath, general manager, Lexmark International (India). While the perception of the market may still be in the favour of the giants, Kamath is optimistic of turning the tide in favour of Lexmark. And if you look at the changes taking place in Lexmark India, the focus has been more on streamlining the network to create a foundation for growth.

P G Kamath claims that Lexmark’s warranty replacement support is unique as no other printer vendor offers this facility at a retail counter

To create a difference and inspire confidence in the brand among customers, Lexmark introduced a global initiative called ‘Lex Express’ in India. This initiative promised doorstep replacement for Lexmark’s inkjet range through a toll free number. This step helped in winning not only new customers but also customers from other brands who were disgruntled with post-sales service. The company also tied up with Accel ICIM to take care of post-sales support through Accel ICIM’s network throughout the country. Subsequently, the company appointed national distributor Ingram Micro to take care of consumable supplies and the laser printer business.

On the consumable supplies side, Lexmark has a two-tier channel structure under Ingram Micro—Lexmark Diamond Partners (sub-distributors) and Lexmark Premium Partner (dealers). Kamath has positioned Lexmark Diamond Partners in areas where the focus of the Diamond Partners would be more on strengthening the brand than on volumes. As the main distributor is Ingram Micro and Diamond Partners are confined to specific regions this strategy not only ensures that the distributor puts in more effort for growing the brand but also ensures stability in prices.

Next came in the decision to appoint national distributors Savex Computers and SES Technologies. While the tie-up with Ingram Micro was necessary as Lexmark needed the reach of national distributor Ingram Micro to push consumables all over the country it did not help in pushing the brand. This is where the appointment of smaller distributors like Savex and SES Technologies will help Lexmark in establishing the brand. With the basic set-up in place, Lexmark is now aiming for market share.

Enhancing brand value through retail

While the company has created a robust service infrastructure, today it clearly does not have brand recall that other printer giants command. To boost Lexmark’s brand recall, the company played another innovative move. The company recently appointed around 15 retail partners in Mumbai as Lexmark Retail Partners. While other brands too have been going the retail way, Lexmark is looking at making a difference here.

Says Kamath, “I am of the firm belief that no customer should buy any product before going in for a demo. Having our products displayed at a retail counter would help us in explaining to the end-customer that we are the best brand in terms of technology and value for money. Additionally, we have ensured three things that would go a long way in boosting the brand. One, the products available at any retail counter would be at the same price as at say, Lamington Road (the main computer products market in Mumbai). This would help in breaking the myth that buying IT products at retail outlets is an expensive proposition. Secondly, consumables would be available at the same shop. The third point is warranty. Lexmark will deliver the printer to the customer’s place at the company’s cost within two days.” Kamath claims that the warranty replacement support is unique and no other printer vendor currently offers this at the retail counter.

The first set of Lexmark retail outlets in Mumbai have been set up at Cyberciti (Marine Lines), Bon Moyar (Andheri) and Deekay (Thane), with product showcases at the IMAX Multiplex (Wadala) and R Mall Adlabs Multiplex (Mulund). Lexmark soon plans to extend the retail initiative with more outlets across Mumbai and Pune and then spread it to major cities across India. With over 70 percent of computer related products in India sold through the unbranded route, the market is still big enough for vendors like Lexmark to make a mark in a market that’s perceived as crowded.