Calcutta, Oct. 23: Samsung aims to bag the top slot the laser printer market by capturing more than a 50 per cent share by March 2004.
The company, which currently enjoys a 30 per cent market share, expects to generate revenues worth Rs 40 crore with a 35 per cent market share by the end of the current financial year. Samsung does not have a presence in the inkjet printer segment.
Explaining the company’s strategy, country product manager Anish Srikrishna says, “Samsung’s entry in February last year stirred up the stagnant laser printer market. We have made substantial investments in creating awareness regarding the viability of using laser printers and also on developing infrastructure for sales and services.” Samsung has earmarked around $ 1.5 million for promotional activities for the year and is expected to increase investments to educate the customer in an effort to expand the market.
“Laser printers offer a higher return on investment for the user. Cost of consumables on an inkjet printer is three times higher than a laser printer. Laser printers will drive growth and expansion in the printer business,” he said.
Currently Samsung has nine models of laser printers and four models of multi-function printers. The company plans to introduce one model of A3 printers and two models of colour lasers in the last quarter of 2002-03.
The company expects to achieve organic growth by focussing on the SME and the small-office-small-business (SOSB) segment. “With private corporate and government organisations slowing down on purchase of IT accessories in the first quarter of the year, the SME segment provided the thrust for growth. Currently, the small enterprise segment accounts for around 30 per cent of the turnover,” says Srikrishna.
The company also plans to strengthen its distribution network by substantially increasing its service centres. “In the east, we will increase the service centres from 20 to 50 by the end of the year. About 20 more service centres will be added in the south.”
The distribution strategy is driven by a multi-pronged approach with a countrywide network of 600 dealers. There are more than 10,000 final sell-out points all over the country. The eastern region contributes around 25 per cent of the total sales with an equal contribution from corporate and entry-level product sales, while the south contributes 32 per cent of the sales.