Day: August 8, 2017

Rank Xerox Case Analysis

Rank Xerox Case Analysis

In 1992, Rank Xerox decided to launch a new line of copiers made from refurbished or recycled parts. In spite of this reclaimed content, the company intends to position the machines as “new. ” This move can offer a response to the growing environmental pressures in Western Europe and throughout the world. But the company has to overcome a challenge: how to bring the new line to market, especially considering pricing, promotion, guarantees, and national regulations?? The marketing of its “environmentally responsible” has to be done wisely.

The company has to be very careful with its product positioning and overall management of the marketing mix. The fact that little market data existed about the new market made the task even more difficult. ?? Strengths ? • Leadership Trough Quality process as core of Xerox’s business strategy? • Awarded many quality awards? • Asset Recovery Operation (ARO): local initiative to rebalance the asset pool of returned copiers? • Obtaining of the industry-first ISO-9002 Quality System Assessment and Certification award? Implementation of a special Environmental Marketing Team (EMT)? • The high levels of reuse of raw materials and individual parts give ability to go public with tangible proof? • European manufacturing base allows to exploit the benefits from the reuse of parts and subassemblies? • The three product categorization addressed the problem of marketing terminology? • Implementation of the Total Satisfaction Guarantee program Weaknesses? • Refurbishing copiers added little benefit to the company’s product lines? • Insufficient data on Rank XEROX customers? No business is 100% environmentally friendly, copiers produce visible paper waste, malodorous ozone, noise, heat, dust? • Not yet able to determine the exact manufacturing cost of individual Green class machines? • The concept of the separate line with high reprocessed content was too revolutionary that no market-based examples existed concerning how to deal with customer guarantees? Opportunities? • European market ready for the introduction of an environmentally friendly product line? • The “green” line concept was revolutionary in the industry, allowing Rank Xerox to be the first mover with its line? Environmental awareness in Europe? • Protection of the environment: a major political and business priority? • More and more legislation aimed at reducing waste by promoting recycling and reuse? • Few companies had become responsive to the environmental pressures in Europe? • Lack of environmental leadership in any market as no company is recognized by the general public as an environmental conscious organization? • The copier market is a commodity market: focusing on everything around the product is the only way to   differentiate itself from the competition Threats ? Little market data existed about customer preferences concerning environmentally friendly products? • The “green” line concept was revolutionary in the industry, exposed the company to unknown liabilities and possible public consternation in case of failure? • Ability of Japanese companies to offer products at low prices in the US and Europe through great creativity and joint ventures wit European copier manufacturers? • Protected Japanese market? • Japanese are more rapid in new product commercialization? Enormous disparity between the countries’ physical and regulatory infrastructures concerning environment? • Level of acceptance of products with recycled parts varied greatly in the various countries? • Lack of environmental leadership in any market as no company is recognized by the general public as an environmental conscious organization? • Competitors are working on environmentally friendly practices? • Language differences created terminology problems: the word recycling has a different legal definition in almost every country? Homogeneous approach towards the whole European market rather complicated? Options generated?? 1- Positioning Xerox as a revolutionary Green company? 2- Keeping traditional communication for the brand while developing another communication plan especially for the “green line”. ?3- Positioning XEROX not as a green company but as a company which is moving towards green.?? Why Option 3 is better than the other options:?? Positioning XEROX not as a green company but as a company which is moving towards green.? avoid risk of boycott of   Xerox’s complete product line by customers in case of failure in the “green line”? – by promoting the brand as not a total green company Xerox avoid to be attacked by competitors or others about its other products besides its “green line” which are not 100% environmentally friendly (copiers produce visible paper waste, malodorous ozone, noise, heat, dust)? – A single message promoting the brand and the green line in the same time allows the marketing campaign to have a better effect to make Rank Xerox   perceived as the first mover in the copier market.