SUMMER PROJECT REPORT

“A STUDY OF CORPORATE BUYING BEHAVIOUR

TOWARDS MULTI FUNCTIONAL DEVICES”

Compiled to the Mumbai University in the partial fulfillment of the

requirement for the award of the degree in
MASTERS OF MANAGEMENT STUDIES

Submitted By:
Himanshu Kadaskar

Under the guidance of

Prof. G. Ramesh (Senior Core Faculty – Marketing)

St Francis Institute of Management and Research

SFIMAR

St Francis Institute of Management and Research, Mt. Poinsur,

S.V.P Road, Borivali (W) Mumbai.
Year: 2009 – 2011

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 Canon India Pvt. Ltd.
4th Floor, Centre Point Building,
S.V. Road,Juhu Junction,
Santacruz(West), Mumbai.

Date: 30/06/2010.

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Himanshu A. Kadaskar has successfully completed his
Summer project on ““A A STUDY OF CORPORATE BUYING BEHAVIOUR
TOWARDS MULTI FUNCTIONAL DEVICES DEVICES.” for a period of two months. i.e.
from 5th May 2010 to 30th June 2010.

During this period, we found him sincere, honest & hardworking.

We wish him all the best for further assignments.

For Canon India Pvt. Ltd.

Tushar Amin
Account Manager
Enterprise Solution - DC Division

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College certificate

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 ACKNOWLEDGEMENT
This project, though an individual project, wouldn’t have been possible without the constant
help and guidance of a few individuals whose support has been vital to the completion of the
project.

I would like thank my project guide Mr. Tushar Amin (Account Manager– Direct Sales,
Canon) who gave me the opportunity to work under his guidance in spite of his busy schedule,
and for helping me with the various queries and the required information required for the
completion of the project.

I would like to thank my college guide Mr. G. Ramesh (Senior Core Faculty –Marketing) for
his guidance during the project.

I would like to extend my sincere thanks to Dr. Thomas Mathew (Director-SFIMAR) who
was a source of inspiration throughout this project.

And lastly, I would also like to thank my parents and my fellow summer trainees for their
constant support and guidance during this project who made this project a memorable
experience.

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 Executive Summary
Canon India Pvt. Ltd. is a 100% subsidiary of Canon Singapore Pvt. Ltd, a world leader in
imaging technologies. It has been a wonderful learning experience working for such a great
company. It was a business to business selling so I have learned how to interact with different
kinds of people & have improved my communication skills. The training provided to me has
added tremendous value to my personality and I know it will surely help me in my future.

The main focus of this project is to go to the customers, ask them some questions regarding
which machine they are using and how much is their print load and for how long they are using
the machine for. The focus was to find about what all things are taken into account when a
company needs to buy a machine. To check whether their products are outdated or exceeded
five years( as the expected life of a MFD is five years) and if so then help them in buying a new
machine with the latest technologies which will suit to their working environment. In this we
are also going to find what factors affect buying a MFD over a printer. The project also
includes finding the potential customers for the products, and to provide them information
about the new technology with which a company is come up recently. The project can be
summed up with the brand awareness & promotion and studying how SPIN model is being
used in Canon.

The project also helps to get the Product-Market Expansion Grid which will help me to give a
proper idea of how Canon is going to grow. I have practically implemented the SPIN model.

The primary data was collected through questionnaire tool by interview technique. The
questions were a combination of close ended & open ended questions. While framing the
questionnaire care was taken that the question asked were not ambiguous or confusing. Simple
words were used and care was taken to eliminate the sensitive and personal questions.

The findings & recommendations are given on the basis of personal observation and the
responses given by the customers to the questionnaire. It has indeed been a pleasure working
with Canon India Pvt. Ltd. This provided me with an extremely good learning environment
which helped me gain a huge amount of practical knowledge.

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 Table of Contents
ACKNOWLEDGEMENT ...............................................................................................................4
Executive Summary .........................................................................................................................5
About Canon India .................................................................................................................. 11

Department Profile.................................................................................................................. 14

Organization Chart.................................................................................................................. 15

Marketing Mix ........................................................................................................................ 16

Introduction....................................................................................................................................20
Need for the study................................................................................................................... 20

Objective ................................................................................................................................. 20

Literature Review. .................................................................................................................. 21

Research Methodology: .................................................................................................................26

Analysis .........................................................................................................................................28
Questionnaire analysis: ........................................................................................................... 28

Correlation between Advertising Expense and Sales Revenue: ............................................. 34

Product-Market Expansion Grid: ............................................................................................ 36

SPIN Model ............................................................................................................................ 37

Findings and Interpretations ..........................................................................................................38

Recommendations..........................................................................................................................40
Limitation ......................................................................................................................................41
Conclusion .....................................................................................................................................42
APPENDIX A ................................................................................................................................44
APPENDIX B ................................................................................................................................46
APPENDIX C ................................................................................................................................50

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 List of Tables

Table 1: Company profile ................................................................................................................8

Table 2: Activities of Canon Group.................................................................................................8
Table 3: Product Market Expansion Grid ......................................................................................21
Table 4: Correlation data ...............................................................................................................34
Table 5: Product-Market Expansion Grid......................................................................................36

Table of Equations

Equation 1: Correlation Coefficient ...............................................................................................24

Equation 2: Correlation Coefficient ...............................................................................................25

Table of Figures

Figure 1: Organization Chart .........................................................................................................15

Figure 2: Advertising vs Sales Revenue ........................................................................................34

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 Company Name Canon Inc.

Founded August 10, 1937

30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-

Headquarters 8501, Japan

Chairman & CEO Fujio Mitarai

President & COO Tsuneji Uchida

25,683
Number of Employees
(As of December 31, 2009)

Table 1: Company profile

Main Activities of the Canon Group(As of December 31, 2009)

Office Network Digital Multifunction Devices (MFDs), Color Network

Office Business Digital MFDs, Personal-use Network Digital MFDs, Office Copying
Unit Machines, Full-color Copying Machines, Personal-use Copying Machines,
Laser Printers, Large Format Inkjet Printers

Digital SLR Cameras, Compact Digital Cameras, Interchangeable Lenses,

Consumer Digital Video Cameras, Inkjet Multifunction Printers, Single Function Inkjet
Business Unit Printers, Image Scanners, Broadcast-use Television Lenses

Semiconductor Production Equipment, Mirror Projection Mask Aligners for

Industry and
LCD Panels, Medical Image Recording Equipment, Magnetic Heads,
Others Business
Micromotors Computers, Handy Terminals, Document Scanners,
Unit
Calculators

Table 2: Activities of Canon Group

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A MODEST BEGINNING IN A SMALL ROOM
In 1933, a small laboratory dedicated to making high-quality cameras was set up in a simple
apartment room in the Roppongi area of Tokyo. At the time, all high-quality cameras were
European with the majority coming from Germany. It was in this small room that young people
with a big dream earnestly began their work on producing a high-quality Japanese camera,
marking the beginning of Canon. Through hard work and with an enterprising spirit, they
eventually succeeded in building a prototype, which was named Kwanon after the Buddhist
goddess of mercy. The following year, in 1935, Japan's first-ever 35 mm focal-plane-shutter
camera, the Hanza Canon, was born, along with the origin of the Canon brand.

STRIVING FOR THE WORLD'S BEST CAMERA

In 1950, Canon's first president, Takeshi Mitarai, went to America for the first time to attend an
international trade fair. Having seen modern factories and a high standard of living first hand,
upon his return, he built a fireproof factory of steel-reinforced concrete in the Shimomaruko
area of Tokyo, which he saw as essential for Canon to succeed in doing business with the world
at large. Mitarai also made clear his respect for humanity by stressing the importance of the
Sanji, or "three selfs" spirit, the guiding principle for Canon employees. In 1955, Canon made
its first step into the global market with the opening of a U.S. office in New York City. In 1957,
Canon set up its sole European distributor, Canon Europa, in Geneva, Switzerland. By 1967
exports already topped 50% of the company's total sales.

THE CHALLENGE OF DIVERSIFICATION

Soon after its founding, Canon was hard at work in 1941 on diversifying itself with the
introduction of Japan's first indirect X-ray camera and other products. In the 1960s, the
company took further steps toward diversification by adding electrical, physical and chemical
technologies to its optical and precision technologies. In 1964, Canon entered the office
equipment market with the debut of the world's first 10-key electronic calculator. In 1967, the
management slogan "cameras in the right hand, business machines in the left" was unveiled and
in 1969 the company changed its name from Canon Camera Co. Inc. to Canon Inc. Canon took
on the challenge of developing Japan's first plain paper copying machine, which it introduced
in 1970, and realized further diversification from one challenging field to the next.

AVERTING DISASTER WITH THE PREMIER COMPANY PLAN

By 1970, Canon grew to 44.8 billion yen in sales and more than 5,000 employees. But hit by
dollar and oil shocks, followed by problems with a defective electronic calculator display
component in 1974, Canon fell on hard times, and in the first half of 1975 failed to pay a
dividend for the first time since becoming a public company. In 1976, Canon unveiled its
Premier Company Plan, an ambitious strategy to transform Canon into an "excellent global
company" through such means as introducing a vertical business group constitution and

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establishing a horizontal development, production and sales system. The plan proposed high
ideals and pooled the strength of its employees, enabling the company to promptly recover.

CANON'S SECOND INAUGURATION

Canon continued to grow under the Premier Company Plan. With the dawn of the personal
computer age, Canon introduced to the world a series of products never before seen, among
them a personal copying machine based on an all-in-one cartridge system, a laser printer with
semiconductor laser, and a Bubble Jet inkjet printer. Canon also began promoting global
production in earnest on the road to becoming an excellent global company. Then, in 1988, the
51st anniversary of the company's founding, Canon announced its second inauguration and
unveiled its corporate philosophy of kyosei, A concise definition of this word would be "Living
and working together for the common good," but our definition is broader: "All people,
regardless of race, religion or culture, harmoniously living and working together into the
future." an unfamiliar term at the time. It also began promoting such progressive and
environmentally sound activities as toner cartridge recycling in addition to globalizing its
development sites.

THE EXCELLENT GLOBAL CORPORATION PLAN

Canon had developed unprecedented technologies and carefully nurtured them to create
business opportunities and products unrivaled by any other company. But by the mid-1990s,
the business division system that had been in place since the 1970s was showing signs of wear.
Canon also carried debt of more than 840 billion yen, meaning the company needed to improve
its financial constitution if it was to carry out long-term R&D projects and launch new
businesses. Fujio Mitarai became Canon's 6th company president in 1995, and in 1996 the
Excellent Global Corporation Plan was launched. Transforming the corporate mindset from
partial to total optimization and from a focus on sales to a focus on profits, the new plan was
the start of the innovations that characterize today's Canon.

Canon realizes that from the viewpoint of the entire product lifecycle, the raw materials / parts
manufacturing and product usage stages are significant contributors to the environmental
impact. We also understand that society requires immediately addressing environmental issues
such as global climate change, resource utilization of end-of-life products, and proactive
prevention of pollution due to disposal of these products in order to support a sustainable
society.
In this context, Canon is accelerating its efforts to develop environmentally conscious products
under a strategy that emphasizes energy efficiency, resource conservation and chemical
substance control in consideration of the entire product lifecycle.
Additionally, Canon actively provides information about our environmentally conscious
products that reflect the above-mentioned activities.

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About Canon India
Incorporated in 1997, Canon India Pvt. Ltd. is a 100% subsidiary of Canon Singapore Pte. Ltd.
a world leader in imaging technologies. Canon today has offices spread across 7 cities in India
with an employee strength of over 800 people and markets 140 comprehensive range of
sophisticated and contemporary digital imaging products in the country. These include
digitalcopiers, multi-functional peripherals, fax-machines, inkjet and laser printers, scanners,
All-in-ones, digital cameras, digital camcorders , dye sub photo printers and multimedia
projectors semiconductors, card printers & cable ID printers. .

Canon has pioneered Five technology ‘imaging’ engines viz: Optical Engine, Electro
photography, Bubble Jet, Semiconductors and Display which drives Canon’s cutting-edge
technology products. With over 1100 registered patented technologies in Digital Cameras, 2300
in inkjet printers, 5600 in multifunctional printers and more than 200 in scanners, Canon has
emerged as one of the leading technology innovators in the digital imaging space worldwide.

In 2009 Canon has been ranked amongst top 10 employers in India in the Business Today ‘Best
Companies To Work For In India’ survey. This ranking was given on the basis of a process that
involved an understanding of the HR systems of companies, a survey of their employees, and a
survey of their external stakeholders such as B-schools, placement firms, and alumni. It was
undertaken by Mercer Human Resource Consulting.

Canon takes pride in not only bringing quality products to the market; but also contributes to
minimizing environmental burden through effective application of environmental technologies.
Canon focuses on the development of resource conserving products that are smaller, lighter and
easy to recycle. In India, Canon takes responsibility to dispose off end of life Canon products
and other e-waste by sending such waste to government approved recycling agency.

Today, Canon India is certified for ISO 9001, ISO 14001 and OHSAS 18001. In 2006, the
company was certified for its "Strong commitment to excel" at the CII-EXIM Business
Excellence Award. Over the last 12 years of its India growth story, Canon’s comprehensive
range of the latest digital imaging products supported by a trained sales force across the country
has emerged as its key differentiator.

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Canon also holds the prestigious ISO/CD Certification for Validation Printing for its market
leading imagePRESS printer line. The new validation certification provides customers with a
competitive quality advantage, giving customers near contract quality print proofs and allowing
them to measure digital prints against lithographic offset printing quality. Canon’s
imagePRESS range is synonymous with quality output and the standard can now present its
customers with a certified, reliable and a stable system to achieve colour critical proofing.

Canon has around 380 primary channel partners 13 National Retail Chain partners, 6 Level IV
Master Service Centres, over 100 authorized service centers,over 4000 secondary retail points
including 270 National Retail Chain store partners & 33 Canon Care Centers. Canon products
are available in over 400 towns in India. Overall, Canon’s presence will increase to 5000
outlets by December 2009. By end of 2009, Canon has acquired a customer base of over 30 lac
customers in India.

As part of the company’s promise to enhance digital experience for consumers, Canon Image
Lounge was launched in 2008 in Gurgaon , Mumbai and Bangalore for customers to get a
touch and feel of Canon products. The lounges provide a comprehensive display of Canon’s
vast range of offerings and display over 101 consumer imaging products for consumers to
simply look, feel and experience without the compulsion on buying. Special photography
workshops and other customer engagement programs are being held in these lounges. Canon
has three Business Solutions Lounge for B2B customers in Gurgaon , Mumbai and Bangalore
showcasing business applications along with seminar rooms for business workshops.

Marketing highlights for 2009:

Canon India closed at revenues of Rs. 850 crore in 2009, with 27 per cent growth over 2008

• Canon emerged as the No. 1 in scanner category with 49% market share.
• Canon is now a market leader in the laser printer segment as well with 41% market
share.
• Canon India further consolidated its market presence in India with a market leadership
in DSLR category with 54% share, Photo printer category with 60% share, SLR
category and 31% in copier MFD category.

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 • Canon launched the “Press photographers” photo contest across Delhi, Mumbai,
Chennai and Kolkata. Over 300 media photographers participated in the same.
• Canon organized 55 photography workshops training 70,000 people across 55 cities.
• Canon’s Original Ink Centers touched 500 outlets across the country.

General Highlights 2009

• Canon made a pioneering move in the printing industry with the launch of ISO certified
standard of printing ‘images per minute’ ‘ipm’. Canon launched 24 new printing and
imaging products at the same event and also announced its foray into the surveillance
business.
• Canon introduced 23 New ‘Smart’ Cameras & Camcorders with Latest Technology.
• Canon organized a 15 day workshop on photography especially for the young
photography enthusiasts during the summer vacations in leading schools of Gurgaon
• Canon launched the ‘I can with Canon’ campaign that rides the theme of
empowerment to a Canon customer

Awards and Recognitions in 2009

The list of product awards received in 2009 is as follows:

• Digital Camera – 21
• Digital SLR – 9
• Canon Lenses – 5
• Living Digital recommended- Lide 100
• Best Buy Digit- PIXMA iP 1980

Apart from this Canon stood at 87th rank in the Powerbrands survey of top 100 brands in India.
Mr. Alok Bharadwaj was also felicitated with the ‘Pride of the Industry’ award along with the
award for the second most influential person in photography. He was also felicitated with the
award of the Best CMO this year by the CMO council. Canon was also featured in the Digit-
Icons of Trust survey wherein Canon ranked No 1 in Digital Cameras and No 2 in Printers. The
latest survey by 4Ps also pronounced Canon as one amongst the 100 Most Valuable Brands
with a rank of 87.

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Department Profile
Enterprise Solutions Division(earlier known as BUSINESS IMAGING
SOLUTIONS)

In line with the trend of the multimedia age, Canon Business Imaging Solutions is making all-
out efforts to create a new office- Environment where dreams can be materialized by high end,
cost effective office devices like image RUNNERs, Large Format Printers, Document
Scanners, Software solutions of document management etc.

The Enterprise Solutions – Direct sales division have a headcount of 93 people. The ES - Direct
division has a target of building 283 key major accounts and achieves 300% growth in our
colour high end machines. It has operations split into 4 regions – North and East, West and 2 in
South. A separate pre-sales department has been created under ES DC to cater to the unique
needs of the enterprise market segment. The pre-sales teams will help existing sales teams to
build the solution business in the metros of Delhi, Mumbai and Bangalore. In addition, to
provide enterprise customers customized approaches and provide relevant applications for
document management processes, a separate solution marketing department has also been
created. Canon expects its solution business to be a major driver for selling in all the major and
key accounts.

ES- Channel sales division has a headcount of 43 people. The ES – Channel sales division has a
target of staying as No.1 in digital copier category which Canon acquired in Q4 2006. To
increase the focus on the government and e-governance sector, a new Government business
department with a dedicated five member team has been created.

ES –Channel Sales has currently been seeing 25% of its business come from the government.
As a part of Canon's increased focus on colour – a Colour Specialist has been appointed - for
office colour and commercial colour. This Colour specialist will provide expert advice and
guidance to customers on the use of colour. This division will also oversee the marketing on
entire ES – Channel Sales and ES – Direct sales divisions.

Canon Enterprise Solutions Division helps organizations optimize enterprise printing with
solutions designed to take advantage of the features and functionality of Canon's
imageRUNNER line of multifunctional products. Canon's enterprise printing solutions enable
high-speed host printing, over the corporate LAN, with full finishing capabilities, with
solutions that monitor, measure, and manage copy/print/scan activity across the entire
enterprise.

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Organization Chart

CEO INDIA

Sr. VP CANON

ESD NRC BIS ICP

CSP(Consumer
Systems Product ) (Enterprise (National Retail (Business Imaging (Image Communication
Solution Division) Chain) Solution)Dealer Products ) Camera

WEST(Regional Sales
NORTH/EAST SOUTH
Manager)

Area manager

Major Accounts
Manager

Sr. Accounts
Manager

Accounts Manager

Figure 1: Organization Chart

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Marketing Mix
The marketing mix is actually the specification of 4 P’s including Product, Price, and Place &
Promotion describing the strategic position of a product in the marketplace. Canon uses this
model to full effect for their business model.

Product
The Image Runners are very much customized product line for the small and medium
businesses and as well as for Large enterprises. It offers you various facilities like scanning,
copying, printing, faxing and storing within the same machine. At the same time IRC can be
connected to the office’s network.

There are various categories of Digital Image Runners which are as follows:
1. Workgroup

Canon offers an array of digital multifunction copiers, with speeds ranging from 13 to 23
pages-per-minute, designed to meet every need, application and budget in the workgroup
environment.

2. Department

Canon's mid-volume multifunction copiers range in speed from 22 to 68 pages-per-minute and

are designed to handle the workloads of busy workgroups or departments.

3. Production

Ranging in speed from 80 to 105 pages-per-minute, Canon's high-volume digital copiers are
equally at home in large corporate workgroups, print-on-demand environments, central
reprographic departments and print-for-pay or walk-up environments.

4. Desktop

Canon's Desktop Copiers offer Digital technology providing outstanding quality output for
professional results.

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Canon Mono Solutions

A4 Black & White

The iR1024 is built to offer robust small & medium-sized businesses a desktop compact and
yet robust device not only produces high-speed copying, printing and colour scanning solution,
but also low running cost for every document output.

imageRUNNER 1024

Operating at speeds of up to 30 pages per minute (A4), the imageRUNNER 2530 provides a
compact suite of functionalities for small businesses and workgroups. From standard network
printing to built-in duplex, this multifunctional device is suitable for any office setting.

imageRUNNER 2530

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The new Canon imageRunner C4580i brings forth a range of revolutionary technologies for
higher volumes of colour work and maximum performance with no compromising in speed!
Now you can manage colour efficiently and control cost effectively from a single intelligent
multifunctional solution.

Color imageRUNNER 4580i

People
Canon’s main target audience is Small and Medium enterprises, Large Corporate houses,
Trusts, government organization etc. Any organization which deals with day-to-day paper
activity is our potential client like. Manufacturing firms are also our potential clients because
they require lot of paper work for bidding and procurement. Educational institutes also form a
major client base as they are into printing questions papers for their students. Pharmaceutical
companies are major clients as their average daily load is about 1000 pages. Some of the clients
for Canon IRC are HDFC, Cipla, ICICI, Exxon Mobil, Spanco, RFCL, ONGC, GAIL etc.

Price
The pricing forms a crucial part of corporate level products. There are various pricing regimes
for various channels and major accounts. The pricing are different for dealers, direct channel,
government organizations.

Direct clients have various options like outright payment, and rental basis-ownership.

In rental basis-ownership, there are two options:

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 a) Fixed Rental Option– It involves basic price of the machine, 15% premium, 0.03367 (3
years factorial), 12.5% VAT if only a copier otherwise 5% if copier cum printer, service
charge
b) Minimum Commitment Option - In this, monthly commitment, basic price of the
machine, 15% premium, 0.03367 (3 years factorial), 12.5% VAT if only a copier
otherwise 5% if copier cum printer, and service charge
For government organization, there is a special contract called DGS&D (Director General of
Suppliers and Disposals) or rate contract.

The present role of the DGS&D is mainly to conclude the rate contracts to be operated by the
consuming departments of the Government for items of common use. DGS&D has been
identifying such items, whose anticipated annual purchase by Government Organizations is
normally more than Rs. 25 lakh a year, and bringing such items on rate contract. The purchase
policy envisages according preference to indigenously produced stores vis-à-vis imported
stores. DGS&D concludes rate contracts with manufacturers, as a matter of policy. Only where
manufacturer himself does not market his products, DGS&D entertains sole distributor/ selling
agent in lieu. For imported stores, DGS&D may deal with stockiest/suppliers of imported stores
provided they have proven relationship with the foreign manufacturer with guarantee of after
sale service and supply of spares. Such entities are required to have adequate infrastructure for
after sale service in India.

For maintenance, there is a TGA (Total Guarantee Agreement) contract which involves
servicing and toner cost. It is usually for 3 years and for maximum 5 years. TGA lapses if 10
lakh copies or 5 years whichever is first.

Promotion
The main modes of promotion for Canon for IRC are:
• Organizing workshops in major cities
• Editorials in various leading business and IT magazines
• Direct sales promotions
• Company mostly benefits from its good quality products and customer experience
which translates into word of mouth publicity. And very committed and well trained
sales force.
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Introduction.
The topic for the project is “A Study Of Corporate Buying Behaviour Towards Multi
Functional Devices”. In this I will be studying the market and analyzing which company
machines are used in the Corporate for printing, coping and scanning. I will be able to find out
which are the potential customers for Canon products. I would also be able to find which things
are taken into consideration before buying a MFD. In this I am also going to find why printers
are preferred over an MFD. I will also be doing an overview of how Canon has done its
Product-Market Expansion. The project also includes finding the potential customers for the
products, and to provide them information about the new technology with which a company is
come up recently. The project has helped me to know the practical application of SPIN Model.
This project will help the clients understand the benefits of using Canon machines.

Need for the study

• As the recession has decreased so Companies will be able to spend money on the
development of the company. So it is necessary to know which are the potential
customers that can be tapped.
• Previous study shows that most of the Companies prefer All-in-one printers than MFDs.
How can this Printer market be converted to a MFD market needs to be analysed.
• It is necessary to analyse which machines are being presently used by the companies
and for how long have they been using it. This would help us to keep a track of the
market share.
• Canon has grown from a camera company to a digital imaging company. So how really
has it grown in the printing and copying section?

Objective
• To understand consumers purchasing behaviour regarding MFD and understand why a
Company prefers a printer and not a MFD
• To find out whether there is a correlation between Advertising Expense and Sales
Revenue.
• To understand how SPIN model is being used in Canon for making Sales

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Literature Review.
Canon India has a large product portfolio under its various departments. The various
Multifunctional devices are under the Enterprise Solutions Division. The Enterprise Solutions
Division is the backbone of Canon as this is the department which drives the profitability of the
company.

The project includes finding the potential customers for Canon, and to provide them
information about the new technology and software solutions which the company has launched
recently. The various MFD’s have been listed down in the Marketing Mix which is given in the
introduction of the company. In the project correlation is used to find if there is any relation
between Advertising Expenses and the Sale Revenue. A study is also going to be done which
will help us to know which are the factors that influence people to buy a printer and not MFD.
In Canon SPIN Model has been used to evaluate the setup of customer while approaching them
for sale of machines. This helps managers at Canon understand the situation and act
accordingly to provide the best solution for the clients. Various graphical analysis has been
done to determine the load of the customers in regarding to the print, scan and copy loads in
both black & white as well as colour machines and to identify if their current setup is more
expensive than the solutions provided by Canon. The comparative cost analysis has been given
in detail in Appendix C.

The Product-Market Expansion Grid:

Current New
Product Product

Current Market Penetration Strategy: Product-Development Strategy:

Market

New Market Development Strategy: Diversification:

Market

Table 3: Product Market Expansion Grid

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The Product/Market Grid of Ansoff is a model that has proven to be very useful in business
unit strategy processes to determine business growth opportunities. The Product/Market Grid
has two dimensions: products and markets.

Market Penetration: Sell more of the same products or services in current markets. These
strategies normally try to change incidental clients to regular clients, and regular client into
heavy clients. Typical systems are volume discounts, bonus cards and Customer Relationship
Management. Strategy is often to achieve economies of scale through more efficient
manufacturing, more efficient distribution, more purchasing power, overhead sharing.

Market Development: Sell more of the same products or services in new markets. These
strategies often try to lure clients away from competitors or introduce existing products in
foreign markets or introduce new brand names in a market. New markets can be geographic or
functional, such as when we sell the same product for another purpose. Small modifications
may be necessary. Beware of cultural differences.

Product Development: Sell new products or services in current markets. These strategies often
try to sell other products to (regular) clients. These can be accessories, add-ons, or completely
new products. Cross-selling. Often, existing communication channels are used.

Diversification: Sell new products or services in new markets. These strategies are the most
risky type of strategies. Often there is a credibility focus in the communication to explain why
the company enters new markets with new products. On the other hand diversification
strategies also can decrease risk, because a large corporation can spread certain risks if it
operates on more than one market.

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SPIN Model - Consultative selling involves deeper questioning of the prospect, about
organizational and operational issues that can extend beyond the product itself. This leads to
greater understanding of the prospect's wider needs, (particularly those affected by the
product), and the questioning process itself also results in a greater trust, rapport, and empathy
between sales-person and buyer.

S - Situation

P - Problem

I – Implication

N - Need

Situation Question

Questions that ask about facts or explore buyer’s present situation

Problem Question

These questions are about the problems, difficulties and dissatisfactions that the buyer is
experiencing with the present situation and that you can solve with your product or service.

Implication Questions

These are questions that ask about the effects or consequences of a buyer’s problem. These are
counted to be the most powerful as they help the buyer see that the problem is serious enough.

Need - Pay Off Question

These are questions that ask about the value or usefulness of a solution.

Steps in the SPIN Model

1. Discuss, understand or explain the situation with the prospect.

2. Next identify the problem that exists or could arise.
3. Explain, discuss or understand the implication of the problem for the prospect's
business (i.e, what organizational improvement can potentially be achieved).

23 | P a g e
 4. This effectively creates a need or opportunity to rectify the problem (by selling the
sales person's product/servi
product/service) - the 'payoff'.

The way in which SPIN model is used in Canon has been given in the analysis. Here with the
SPIN model managers at Canon could take the factors into consideration and make the proposal
which
ch is given below in Appendix B and how they giv
givee a comparison between a competitor’s
machine and Canon machine is given in Appendix C.

Correlation and Regression:

Correlation is a measure of the relation between two or more variables.. Correlation

coefficients can range from -1.00
1.00 to +1.00. The value of -1.00
1.00 represents a perfect negative
correlation while a value of +1.00 represents a perfect positive correlation.. A value of 0.00
represents a lack of correlation.

As mentioned before, the correlation coefficient (r) represents the linear relationship between
two variables. If the correlation coefficient is squared, then the resulting value (r2, the
coefficient of determination)) will represent the proportion of common variation in the two
variables (i.e., the "strength" or "magnitude" of the relationship). In order to evaluate the
correlation between variables, it is important to know this "magnitude" or "strength" as well as
the significance of the correlation.

As we have a series of ‘n’ measurements of X and Y written as xi and yi where i = 1, 2, …n

then the sample correlation coefficient
coefficient,, can be used to estimate the population Pearson
correlation r between X and Y.. The sample correlation coefficient is written

Equa
Equation 1: Correlation Coefficient

where X and Y are the sample means of X and Y, sx and sy are the sample standard deviations
of X and Y.

24 | P a g e
This can also be written as:

Equation 2: Correlation Coefficient

Simple regression is used to examine the relationship between one dependent and one
independent variable. After performing an analysis, the regression statistics can be used to
predict the dependent variable when the independent variable is known. Regression goes
beyond correlation by adding prediction capabilities.

The regression line (known as the least squares line) is a plot of the expected value of the
dependent variable for all values of the independent variable. Technically, it is the line that
"minimizes the squared residuals". The regression line is the one that best fits the data on a
scatter plot.

In the regression equation, y is always the dependent variable and x is always the independent
variable. Here are three equivalent ways to mathematically describe a linear regression model.

y = intercept + (slope*x) + error

In this equation ‘y’ represents the dependent variable and ‘x’ is the independent variable. Slope
indicates how much is the multiplying factor is the dependent variable of the independent
variable. ‘Intercept’ indicates that even if the independent variable is not present this much
dependent variable will be present.

25 | P a g e
 Research Methodology:

A Quantitative research Model is being followed in which we would concentrate more on the
quantity on information gathered.

Research Design-
An exploratory as well as descriptive research will be carried out with the help of
Questionnaires. Questionnaire will be formed in order to collect the data from Customers.

Data Sources:-
With an ideal Research Design, Primary data will be collected through questionnaires and
Personal interviews. The Secondary data sources comprised of company’s customer Database.

Research Approach:-
The primary data is collected from Surveys Research. As we are to do a Descriptive research so
Survey is the best way of doing it.

Research Instrument:-
We are using questioners as our instrument for gathering primary information.

Sampling:-
The sampling technique used was convenience sampling under non probability sampling.

Population:-
Corporate and SME’s

Sampling plan:-
Sample area: - Mahim Matunga, Dadar, Elphinstone Road, Lower Parel, Parel, Vadala,
Mahalaxhmi and Prabhadevi.

Sample size: - 200 Corporate.

Contact Method: - Personal Interview.

Research Tool: - Structured Questionnaires.

26 | P a g e
Questionnaire design:
The primary data was collected through questionnaire tool by interview technique. The
questions were a combination of close ended and open ended. While framing the questionnaire,
care was taken that the questions asked were not ambiguous or confusing. Questionnaire was
tested by the Sales Team of Canon. Simple words were used and care was taken to eliminate
sensitive and personal questions.

Secondary Data was collected from various reports published by Research Houses, Articles
from leading newspapers and magazines and various writings from internet. Case studies from
Canon India Archive have also been used as reference.

27 | P a g e
 Analysis

Questionnaire analysis:

If you are using a OAT, then what are you using?

Scanner
1%

Printer
47%
MFD
52%

From the data which has been gathered from the respective areas, it is observed that 47% of
Companies were using printer. Were as 52% of the companies were using MFD’s in their office
and 1% of the companies were using Scanners.

Which company machine are you using?

Ricoh Other 10%
5%

Canon
39%

HP
37%

Xerox
9%

From the data it can observed that 39% of the sample are using Canon machines, 9% of the
sample are using a Xerox machine,37% of the sample are using HP machines, 5% are using
Ricoh machines, & 10% of the sample are using other machines like Samsung, Sharp and
Toshiba.

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 Which company printers are being used?
Other
5% Canon
17%

Xerox
3%

HP
75%

From the data it can observed that 17% of the sample are using Canon machines, 3% of the
sample are using a Xerox machine, 75% of the sample are using HP machines, 0% are using
Ricoh machines, & 5% of the sample are using other machines like Samsung, Sharp and
Toshiba.

Which company MFD are being used?

Other
Ricoh 15%
10%
HP
1%
Xerox Canon
14% 60%

From the data it can observed that 60% of the sample are using Canon machines, 14% of the
sample are using a Xerox machine,1% of the sample are using HP machines, 10% are using
Ricoh machines, & 15% of the sample are using other machines like Samsung, Sharp and
Toshiba.

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 What is the main purpose behind using Business
Automation Tools?
Printouts
17%

Scanning
1%

All
82%

From the data it can be observed 17% of the samples are using the machine for only printout,
1% of the samples are using the machines for only Scanning, 82% are using the machines for
taking photocopies, scans and print outs, while none use it just for photocopies

The print outs are B/W or Color.

Color
15%

Black & white

85%

From the data interpreted we get that 85% of samples companies use the OAT for Black and
white printouts and copies, were as 15% of the sample companies use it for colour prints and
photocopies.

30 | P a g e
 What is the number of Black and White
printouts or copies taken on Monthly basis?
>10000
18%
<500
16%

5000-10000
17% 500-2000
26%
2000-5000
23%

From the data interpreted it has been observed that 16% of the sample take less than 500 prints
a month, 26 % of the sample take between 500 to 2000 prints a month, 23% of the sample take
between 2000 to 5000 prints a month, 17 % of the sample take between 5000 to 10000 prints a
month and 18% of the sample take more than 10000 prints a month.

What is the number of Colour printouts taken on

Monthly basis?
200-500 500-1000
0.5% 1.5%
>1000
<200 7%
1%

None
90%

From the data interpreted it has been observed that 90% of the sample companies do not take
Colour printouts, 1% of sample take less than 200 colour prints a month, 0.5% of the sample
take between 200 to 500 colour prints a month, 1.5% of the sample take between 500 to 1000
colour prints a month and only 7% of the sample take more than 1000 colour prints a month.

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 You are using this machine for last how many
years?
<6months
11%

>4yrs
32% 6month-2yrs
22%

2-4yrs
35%

From the data interpreted it has been observed that 11% of the sample have been using their
current machine for less than six months, 22 % of the sample have been using their current
machine for six months to 2 years, 35% of the sample have been using the current machine for
2 to 4 years while 32% of the sample have been using their current machine for more than 4
years.

Would you prefer a MFD over a printer?

No
40%

Yes
60%

From the data interpreted it has been observed that 60% of sample companies would prefer
MFD’s over printers and the remaining 40% sample companies said they won’t prefer it.
32 | P a g e
 If No, then why?
Inconvenience
20%

Space
8%

Price
72%

From the data interpreted it has been observed that the reason for companies for not preferring
MFD’s over printers in which 20% was because of Inconvenience, 8% was because of Space
and 72% was because of Price of the MFD’s.

Do you know about Canon’s new solutions?

No
38%

Yes
62%

From the data interpreted it has been observed that 62% of the sample companies knew about
Canon’s new solutions and 38% of the sample companies did not know about the solutions.

33 | P a g e
Correlation between Advertising Expense and Sales Revenue:
Here we will be seeing if there is any correlation between Advertising Expense of a year and
Sales Revenue of that year. Correlations are useful because they can indicate a predictive
relationship that can be exploited in practice.

As we have a series of 4 measurements of Advertising Expense and Sales Expense written as xi

and yi where i = 1, 2, 3,4 then the sample correlation coefficient, can be used to estimate the
population Pearson correlation r between Advertising Expense and Sales Expense. The sample
correlation coefficient is written

Year Advertising Sales(crore)

Expense (crores)
2007 40 530
2008 60 661
2009 100 840
2010 120 1200
Table 4: Correlation data

Advertising Expense vs Sale revenue

1400

1200 y = 7.595x + 200.15 (120, 1200)

R² = 0.9099
1000

800 (100, 840)

(60, 661) Advertising expense, Sale
revenue
600
(40, 530) Linear (Advertising expense,
Sale revenue)
400

200

0
0 20 40 60 80 100 120 140

Figure 2: Advertising vs Sales Revenue

34 | P a g e
So as we can see that there is a correlation between the two. The ‘r’ value comes to be
0.953892936 which is positive so we can say that there is a positive correlation i.e with
increase in the Advertising Expense the Sales also increase. The coefficient of determination
i.e. r2 is 0.909 so we can say that Advertising has influence of about 90.9 % on the Sales of the
Company.

Regression Line has a equation as

y = 7.595x + 200.1

In this equation ‘y’ is the Sales revenue which is the dependent variable and ‘x’ is the
Advertising Expense which is the dependent variable. So we can say that Sales Revenue is
7.595 times that of Advertising expense and a constant value of 200.1 which means that even if
there is no Advertising there will be a sale of 200.1 crore.

35 | P a g e
Product-Market Expansion Grid:
Current New
Product Product
Market Penetration Strategy: Product-Development Strategy:
Current Small Printers MFDs
Market For SME’s
Market Development Strategy: Diversification:
New Small Printers Surveillance, Printing
Market For Corporate Software and Printing Paper

Table 5: Product-Market Expansion Grid

Market Penetration Strategy:

In this Canon entered the market with small printers where it was targeting the SME’s.

Market Development Strategy:

In this stage a new market was targeted which was the Corporate. Here large numbers of
machines were sold to a single Company.

Product Development Strategy:

In this stage a new product was launched considering the demand and bringing innovation.
Image Runner series was launched in the Current Market which helped SME’s to reduce there
per copy charge and made using devices convenient.

Diversification:
In this stage to diversify Canon entered the Printing Software market and Print paper market. It
has also announced that it will be entering the surveillance system. The software which Canon
will provide are going to improve proper utilization of resources and will help in securing the
information. Canon will be entering the Print paper market as well by which it will be able to
provide its users paper which will be used for printing and photo coping.

36 | P a g e
SPIN Model
This model is extensively used by Canon Sales managers

SPIN is a questioning technique and is an acronym for Situation, Problem, Implication and
Need payoff Question. It is intended for large product or service sales.

Exceptional Sales performers discover prospect or customer needs by the use of four types of
questions, which are categorized by their purpose (function).

Situation Question: To gather background information and understand the context of the sale.

Problem Question: To explore the customer dissatisfaction and concern.

Implication Question: To develop and link apparently their knock on effect on the areas of the
customers business.

Need payoff Question: That invite the customer to consider the benefits of solving his or her
problem and having done so to express an Explicit Need for the solution (“If I can show you a
proven way to find a permanent solution to this adverse situation would you be willing to hear
my brief presentation).

A key factor in SPIN is that it encourages the customer to define the problem and desire for a
solution. Hence the sales person is viewed by the customer as a “consultant” rather than
someone simply attempting to gain a sale.

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 Findings and Interpretations
1. It is seen that 52% of the sample companies are using MFD in their office while 47%
are using desk printers and 1% of the sample are using only scanner machines.
2. In the MFD’s, Canon was the preferred choice of 60% of the companies. Xerox was
used by 14% of the sample companies, Ricoh was used by 10% of the sample
companies, 2% of the sample were using HP and 15% of the companies were using
others Brand MFD’s such as Toshiba, Sharp and Brother.
3. In the printers section it was seen that 75% of the users were using HP printers, 17%
were using Canon printers, 3% were using Xerox printers and remaining 5% were using
printers from other companies such as Samsung, Toshiba and Panasonic.
4. It was found that out of the sample companies many did not prefer MFD’s over
printer. The reasons were found to be Inconvenience, Space and Price. But out of
these three reasons Price was a major factor.
5. Canon should target those companies which have a load of more than 2000 copies
per month as Canon products will be beneficial for them. So from the data we have
got we can say that 58% of the samples companies can be the target customers.
6. Canon should target those companies which are using their recent machine for more
than 4 years as the machines are going to finish their Ideal Life. Canon has a Buy-back
offer in which it buys the old machine and gives a discount of that much amount on
the new machine. So from our data we have that 32% of the sample companies have
machines which have been purchased before 4 years so it can target them for now and
keep a track on the 35% of sample companies which have machines that are 2-4 years
old as they may be their future prospects.
7. So in total it is observed that 39% of the samples are using Canon machines, 9% of the
samples are using a Xerox machine, 37% of the sample are using HP machines, 5% are
using Ricoh machines, & 10% of the sample are using other machines like Samsung,
Sharp and Toshiba.
8. The main purpose of the OAT was for printing, scanning and photocopying, i.e. for all
the purpose.

38 | P a g e
9. It is observed that 85% of the companies take black & White printouts and
photocopies so they can be a target for the imageRunner series which supports Black
& White printout only. Were as 15% of the sample companies which take colour
printouts and photocopies can be a target for the imageRunner Colour series.
10. It was also observed that 32% of the sample companies did not know about the
Canon’s new solution, which shows that Canon has to work more on product
awareness.

39 | P a g e
 Recommendations
• Canon should concentrate on the printer section as there is a great potential for it
to grow its market share. For that it needs to promote its product and also have a USP
which will differentiate it from other competitors.
• It is known that Canon machines are costly as compared to the competitors so the
customers should be made aware about the benefits which they are going to get
after purchasing a Canon machine. Making its customers aware about how they
will be able to reduce their electric charges, how they will be helping the
environment by using Canon machines.
• Canon needs to concentrate on advertising of its products because its competitors
have increased advertising about its product due to which there a chances of
Canon losing its market share.
• Being the leader in the MFD section Canon should bring awareness in the
companies which are using competitor’s machines by providing them with proper
information and giving them a proper comparison between its machine and that of
its competitor.
• Make people aware about the maintenance plan of the machine offered by canon, due to
which running cost per copy gets decreased. Canon should promote more about their
maintenance plan, due to which the sales of machine can increase.
• Canon should explain why a machine need to be replaced after a time period, as this
will help them increase their sales by getting new customers who are using old
machines.
• Canon should promote its Buyback policy which it has, as that may help increase its
market share.
• Canon should come up with small MFD’s as it was found that many of the customers
do not prefer it over printers is due to space problem, so this will help in growth in the
market.

40 | P a g e
 Limitation
• This study does not cover the whole city only areas such as Mahim Matunga, Dadar,
Elphinstone Road, Lower Parel, Parel, Vadala, Mahalaxhmi and Prabhadevi.
• Most of the people interviewed were very busy so it was very difficult to take
appointment
• The price of Canon’s products is high in comparison that of other company’s products.
TG contract of this company is also costly. So it is very difficult to pursue the
customers.

41 | P a g e
 Conclusion
To conclude we can say that Canon has a potential in the printer section as it has very less
market share. The company need to advertise about its product as there is less awareness about
its products. It was observed that Canon products are costly. So the customers should be made
aware that even if cost of the product is costly but they provide with other benefits which will
compensate for the cost. As there is a correlation between Advertising Expense and Sales so we
can decide how much advertising must be done to get their target Sales. As Canon has entered
into the software market which will prove to be quite beneficial. Now a day’s Corporate are
concentrating on the information safety so by using Canon’s software they will be able to do
that. As Canon products are environment friendly so this is going to help it increase its sales as
all the Corporate are going for the Green revolution. Canon India has the unique distinction of
being the only Canon subsidiary to be profitable even during recession this shows the efforts
put in by the sales force and with their determination Canon India also can easily achieve its
target of being a 1billion $ company by 2015.

42 | P a g e
 Reference
Websites:

• http://www.canon.co.in/section/aboutus/canonindia.jsp
• http://www.canon.com/about/history/outline.html
• http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/272-A3-Colour/

• http://www.12manage.com/methods_productmarketgrid.html

• http://en.wikipedia.org/wiki/Correlation_and_dependence

• http://www.canon.co.in/sc/EN/145-Digital-Multifunction-Devices/271-A3-Black-
White/

• http://www.canon.co.in/c/EN/145-Digital-Multifunction-Devices/

• http://www.ricoh.co.in/products/

• http://h20424.www2.hp.com/program/wdyhts/enterpriseprint/in/en/products/enterprise_
printing_products.asp
Books:

• Marketing Management –by Philip Kotler.(Chapter 2 page 45, Chapter 19 page 545)

• Statistics for Management – Shailaja Rego, T N Srivastava(Chapter 8 Page 8.4)

• Canon Brochures

43 | P a g e
 APPENDIX A

Questionnaire
1. Name of the company? ________________________________________________

2. Name of the person? ________________________________________________

3. Are you using any Business Automation Tools in your Office?

1. YES
2. NO

4. If YES then what are you using?

1. Printers
2. Multi Functional Devices
3. Scanner

5. Which company machine are you using?

1. Canon
2. Xerox
3. HP
4. Ricoh
5. Other ____________

6. What is the Model number of the machine which you are using?
_______________________________

7. What is the main purpose behind using Business Automation Tools?

1. Printouts
2. Scanning
3. Photocopy
4. All

8. The print outs are.

1. Black and White
2. Color

9. What is the number of Black and White printouts or copies taken on Monthly basis?
1. Less than 500
2. Between 500 to 2000
3. Between 2000 to 5000
4. Between 5000 to 10000
5. More than 10000

44 | P a g e
10. What is the number of Colour printouts taken on Monthly basis?
1. None
2. Less than 200
3. Between 200 to 500
4. Between 500 to 1000
5. More than 1000

11. You are using this machine for last how many years?
1. Less than 6 months
2. 6 months to 2 years
3. 2 to 4 years
4. More than 4 years

12. Would you prefer a MFD over a printer?

1. Yes
2. No

13. If No, then why?

___________________

14. Do you know about Canon’s new solutions?

1. Yes
2. No

45 | P a g e
 APPENDIX B
Proposal

Canon India Pvt. Ltd.

4th Floor, Centre Point Building, S.V.

Road, Juhu Junction, Santacruz(West),
Mumbai
Dated: dd/mm/yyyy

To,

Concern person

Subject: Canon’s Document Management Solutions.

Dear Sir,

We would like to thank you for your Interest in Canon’s Document Management
Solutions. Reference to our discussion we are pleased to submit our techno-
commercial proposal for your kind perusal.

We would like to reiterate that we are very keen on enhancing our business
relationship with your prestigious company and would look forward to a mutually
beneficial business relationship.

Thanking you in anticipation of your valued order and assuring you of our best of
services at all times.

Yours truly,

For Canon India Pvt. Ltd.

XYZ
(enclosed techno-commercial proposal)

46 | P a g e
Brief History

In 1997, Canon India Pvt. Ltd. was set up in the country. Since then, Canon has grown in
strength to become one of India's leading player in the areas of document management and
imaging solutions. Today, Canon India is an ISO 9001: 2000 certified company. Canon's USP
in the Indian market is the fact that it offers a comprehensive range of the latest digital imaging
products supported by a trained support engineers force across the country. The range of
products offered by Canon in India is extremely diverse and includes copiers, printers,
facsimile machines, scanners, multifunctional devices, multimedia solutions, consumables,
digital cameras, digital camcorders and projectors. A hallmark of Canon's product portfolio is
that – its products are built on convergence of technologies to offer multi-functionality at
exceptionally high resolution.

Corporate Philosophy

The corporate philosophy of Canon is kyosei. A concise definition of this word would be
"Living and working together for the common good," but our definition is broader: "All people,
regardless of race, religion or culture, harmoniously living and working together into the
future." Unfortunately, the presence of imbalances in our world in such areas as trade, income
levels and the environment hinders the achievement of kyosei.

Business Imaging Solutions

In line with the trend of the multimedia age, Canon Business Imaging Solutions is making all-
out efforts to create a new office- Environment where dreams can be materialized by high end,
cost effective office devices like imageRUNNERs, Large Format Printers, Document Scanners,
Software solutions of document management etc.

Canon Business Imaging Solutions helps organizations optimize enterprise printing with
solutions designed to take advantage of the features and functionality of Canon's
imageRUNNER line of multifunctional products. Canon's enterprise printing solutions enable
high-speed host printing, over the corporate LAN, with full finishing capabilities, with
solutions that monitor, measure, and manage copy/print/scan activity across the entire
enterprise. (*The options may vary from model-to-model, in image Runner series, based on the
configuration offered as a solution. Please check with us for more details.)

47 | P a g e
 1) Model no. iR ADV C 5030 (Outright Purchase)

Digital Multifunction iR ADV C 5030 + Network UFR II Printing + Color Network Scanning
+ Universal Send (Scan to Mail) + Pedestal + Stabilizer.

Net Price of iR ADV C 5030 – Rs. XXXXX/- (plus Tax)

This will be the Net price that is after the buyback of the Canon CLC machine.

Terms & conditions for Service of iR ADV C 5030:

Total Guarantee with toner contract for iR ADV C 5030 for 20 lakh copies or 5 years
whichever is earlier (TG) Day 1:

A4 /A3 size B/W – XX/- paise per copy plus taxes.

A4 /A3 size Colour – Rs. XX/- per copy plus taxes.

(TG contract Day 1- includes all services, spares, preventive maintenance, drum and
TONER)

48 | P a g e
Terms & Conditions: Outright Purchase

1. Taxes& Duties:
All the above prices quoted for exclude other taxes and duties.
5 % VAT & 5.5 % Octroi is applicable on purchase of photocopying machine with
printer and 12.5 % VAT and 5.5 % Octroi is applicable on purchase of photocopying
machine without printer.
2. Payment Terms: 100% bill payment within 7 days of raising the invoices for the
monthly bills. 100 % advance in case of outright purchase.
3. Delivery: Our normal delivery time frame is 3 to 4 weeks from the date of receipt of
technically & commercially cleared Purchase or Rental Order receipt at our end. We
can look at expediting the same based upon your requirements and our stock availability
condition at the time of receipt of your valued order.
4. Exclusions: Anything that is not mentioned in our above offer is excluded from our
scope of supply. Some of the technical advantages mentioned above are not part of the
standard MFP and are to be bought as optional accessories. Any commercial or other
terms and conditions mentioned in this proposal are subject to change at Canon’s
option.
5. Services: Services to the above products will be directly provided by Canon after
singing of mutually accepted SLAs at all the direct locations and by Canon authorized
service partners at all the remote locations not in the scope of Canon direct service
operations.
6. Scope of proposal: The above mentioned commercials include Canon MFD under Total
guarantee contract with Toner.

Order to be placed at: Canon India Pvt. Ltd., Bhiwandi, Maharashtra

We hope the above offer is in line with your requirements, for any clarifications on the same
please feel free to contact us.

Warm regards,

For Canon India Pvt. Ltd.

ABC

Account Manager- DC Division

Mumbai

49 | P a g e
 APPENDIX C
Total Cost of Ownership (TCO)

Setup
Brand HP Canon
Model ***** ****
Speed 40 ppm 35 ppm
Functions Print Copy
Print
Scan (Pull Scanning)
60 GB HDD

Machine Cost Rs. 276,399 Rs. 275,000

Total Gurantee (TG) 1yr 5 yrs
Machine life 20 lacs copies

Cartridge cost/page Rs. 0.90 Rs. 0.35

Total cost for 20 lacs
prints 2000000x0.90=1800000 2000000x0.35=700000
AMC cost is not inclusive

Total cost of ownership 276399+1800000=2076399 275000+700000=975000

(Printer cost + Cartridge
cost)
SAVING : Rs.2076399 - Rs.975000 = Rs. 1101399 (53%)

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