B2B Marketing Group Project Managed Print Services 1 BackgroundOver the past 12 years, there has been a trend by corporateenterprises, e.g. companies with 1,000 employee or greater tooutsource1 the management of their office equipment and documentprinting to major Office Equipment Manufacturers (OEMs), such asXerox, Hewlett Packard (HP), Lexmark, Ricoh, Canon, and KonicaMinolta. This practice is known as Managed Print Services (MPS)2 .During this time period, MPS has grown to be a $10.1B global marketgrowing at 8.4% CAGR (Compound Average Growth Rate) per year withapproximately 60% of enterprises now turning to OEMs to managetheir company’s office equipment and document printing. Thefollowing table shows the MPS worldwide market share and totalrevenue for the Top MPS providers as of year-end 2013. MPS ProviderMPS Revenue (US $Billions) Worldwide Market Share Xerox $3.6 35.6%Ricoh $1.8 18.0% HP $1.6 15.9% Lexmark $1.2 11.8% Canon $0.9 8.9%Konica Minolta $0.5 4.8% Others $0.5 5.1% Total $10.1 100.0% Xeroxis the MPS industry leaders with 35.6% market share, butcompetition is aggressive and also good at what they do. To learnmore about Xerox MPS, click on this link. Enterprise MPS contractsare typically for 5 years in length and range in revenue size from$3M to $50M or more. Given the duration and size of thesecontracts, decisions are typically made by a team of B2B enterprisedecision makers and take from 9 to 12 months to complete. B2BMarketing Group Project Managed Print Services 2 Your GroupAssignment During this group assignment, you and your assignedteammate(s) will take on the role of the Xerox MPS Global MarketingTeam. You have been provided a marketing budget of $1.5M with thegoal of increasing your global MPS market share. With the salescycle being 9 to 12 months in length, which for the purposes ofthis group assignment we will call the customer journey, you willwant to allocate your marketing budget on a variety of marketmaterials, programs, and promotion, which we will get to shortly.There are three phases to the customer journey: 1. InformationGathering – where potential customers use a variety of informationsources, such as Internet search engines, social media sites,online news media, and MPS provider web sites to gatherinformation. Approximately 60% of the enterprise decision maker’stime might be spend on gathering information before actuallyengaging an MPS provider. So this step in the customer journey isextremely important for an MPS provider to qualify and move ontoStep 2. 2. Provider Evaluation – after narrowing the number of MPSproviders down, the enterprise decision makers will now engageseveral MPS providers to gain additional insight into theircapabilities. This typically happens in one of two ways. Either thedecision makers issue an RFP (Request for Pricing) requesting thecompeting MPS providers develop a comprehensive written responsedetailing the capabilities of their MPS offering and/or the MPSprovider sales resources are given the opportunity to shareinformation about their company’s MPS offering and capabilitiesthrough presentations, case studies, thought leadership whitepapers, and the like. 3. Decision – in this last step of thecustomer journey, the enterprise decision makers make their finaldecision, typically between the remaining two competitors. Oftenthese decision makers will consult with an analyst company, likeGartner, IDC, Forrester or Quocirca4 . During this final step,potential clients will also often visit an MPS provider’s briefingcenter where MPS subject matter expert will provide in-depthpresentations and demonstrate their latest MPS innovations andcompetitive differentiators. They might also ask to talk with anumber of the MPS provider’s reference accounts and/or review morecase studies. Strategic Marketing Plan During the 4 weeks of thisgroup project (Units #5 through #8), you and your teammate(s) willneed to decide how you will communicate with one another to discussand develop a group presentation that addresses the following six(6) areas: 1. Executive Summary – provides a brief summary /overview of your entire Strategic Marketing Plan, e.g. TargetAudience through ROI. The Executive Summary should be the firsttopic that you include in your presentation, but the last topicthat you develop. B2B Marketing Group Project Managed PrintServices 3 2.

This is the answer I need most! Target Audience -identify three B2B decision makers (by job role) that you believewill be involved in making the MPS decision and document in yourGroup Report what you believe will motivate each of these decisionmakers in making their decision? 3. CompetitiveIntelligence - MPS has become a fiercely contested opportunity,with Ricoh, Hewlett Packard (HP), and Lexmark being Xerox’ biggestcompetitor. Before you determine how to allocate your marketingfunds, you will need to gain a better understand of the competitionand how they go-to-market. Given the work involved in analyzing thethree competitor listed above, you might want to agree on what toanalyze as a team, such as the competitor’s value propositions, MPScapabilities and offerings, and their marketing materials andprograms… then divide up the analysis responsibilities. Documentyour findings as part of your Group Report. 4. Value Propositions /Marketing Messages – having read through the Xerox MPS informationand studied the competition, discuss and determine with yourteammate(s) how you will differentiate Xerox MPS from thecompetition keeping in mind your target audience and what willmotivate each decision maker based on their role. Now determineyour value propositions and associated marketing messages thatwould appeal to all decision makers and those specific to eachdecision maker based on their role and what motivates them.Document your decision in your Group Report. 5. Marketing Mix –here is where you and your teammates get a chance to discuss andallocate your $1.5M marketing budget. Choose from the marketingdeliverables found on the following pages and align your selectionsto one or more the three stages of the Client Journey, e.g.Information Gathering, Provider Evaluation, and Decision. Keep inmind that you can use multiple units of each marketing deliverable,if you like. For example you could choose to develop 5 casestudies, but if you do, please ensure that you multiple the unitcost by 5. Include in your slides the total cost that you spent oneach stage of the Client Journey. What I will be looking for inthis section is that you have given some quality thought to yourmarketing mix, allocated your budget reasonably across the 3 stagesof the Client Journey, and that you haven’t exceeded you $1.5Mbudget. 6. Return-On-Investment (ROI) – determine how you willmeasure your ROI and document it in your Group Report. B2BMarketing Group Project Managed Print Services 4 MarketingDeliverables Line Item Unit Cost Description Analyst Reports $35KThe cost to fund research conducted by an analyst company alongwith the creation of a Analyst Report citing the research. MPSproviders often invest in Analyst Reports to leverage the analystcompany’s brand recognition. Analyst Briefing $75K Cost of planningand implementing an Industry Analyst Briefing of top analystscompanies to update them on your strategy. Typically AnalystCompanies then write reports about what was shared at the briefingwith the hope that they will speak positively about what theyheard. Brochure $15K The cost to design and develop a high quality4-page brochure. Client Case Study $10K The cost to create a 2-pagecase study brochure, plus videos, which can then be used on websites, social media campaigns, and presentations. Content MarketingCampaign $150K The cost to create and deploy a Content MarketingCampaign using a variety of social media channels, e.g. Facebook,LindedIn, and Twitter… Direct Marketing Campaign $125K The cost tocreate and implement a Direct Marketing (DM) campaign. DM is oftenused to proactively engage enterprise decision makers and startthem on the customer journey. Industry Marketing Materials $60K Thecost to develop a compendium of marketing materials associationwith one target industry… Decision makers often want to receivemarketing materials specific to their industry versus genericmarketing materials. Industry Recognition Materials $10K The costto create promotional materials associated with receiving MPSrecognition from an industry analyst companies like, Gartner, IDC…Media Tour $10K The cost to develop content for a News Media Tour.Microsites $5K The cost to create a customized customer prospectweb site that would contain most of the marketing contents listedon this and the previous page. B2B Marketing Group Project ManagedPrint Services 5 Marketing Deliverables Line Item Unit CostDescription MPS Demonstration $20K The cost to create ademonstration for use in an Executive Briefing Center. This costalso includes a video of the demonstration that can be used withpresentations and microsites. MPS Presentation $35K The cost tocreate a presentations that can be customized by sales resources.Paid Search $75K The cost of raising visibility to the top of thesearch engine pages on the likes of Google, Yahoo, Bing… Used todrive traffic to your corporate web site. Video $25K The cost todevelop a 3-minute video for use on YouTube, in presentation, andon the Corporate website. Webinars $25K The cost to create thecontent and implement a onehour webcast to communicate MPScapabilities to prospective customers. White Paper $10K The cost tocreate an 8 to 10-page Thought Leadership white paper. ThoughtLeadership white papers are an excellent way to communicatedifferentiation. Xerox.com $150K The cost of updating the corporateweb site with fresh new content throughout the year. XeroxSponsored Events $50K The cost of sponsoring a prospective customerevent for 100 customers in a hotel B2B Marketing Group ProjectManaged Print Services 6 Definitions Outsourcing Definition1 Thecontracting or subcontracting of noncore activities to free upcash, personnel, time, and facilities for activities in which acompany holds competitive advantage. Companies having strengths inother areas may contract out data processing, legal, manufacturing,marketing, payroll accounting, or other aspects of their businessesto concentrate on what they do best and thus reduce average unitcost. Outsourcing is often an integral part of downsizing orreengineering. Managed Print Services2 Managed Print Services (MPS)according to Gartner, a major analyst company is a generic term fora service offered by an external service provider to optimize ormanage a corporate enterprise’s document output to certainobjectives, such as driving down costs, improving efficiency andproductivity, and reducing the IT support workload. Under MPS, aservice provider takes primary responsibility for meeting thecustomer's office printing needs, including the printing equipment,the supplies, the service and the overall management of the printerfleet. The main components provided are needs assessment, selectiveor general replacement of hardware (optimization), and the service,parts and supplies needed to operate the new and/or existinghardware. The provider also tracks how the printer fleet is beingused, the problems and the user satisfaction. The MPS provideranalyzes the information gathered in the course of tracking printerusage and makes (or recommends to the customer) the adjustmentsneeded to not only ensure fleet efficiency but also meet changinguser needs. Voice of the Customer Insight3 Conducting customerfocus group and surveys to better understand customer satisfactionas well as future needs and requirement. Analyst Companies4Gartner, Inc. is the world's leading information technologyresearch and advisory company. Headquartered in Stamford,Connecticut, U.S.A., Gartner has 5,300 associates, including 1,280research analysts and consultants, and clients in 85 countries. IDC(International Data Corporation) is the premier global provider ofmarket intelligence, advisory services, and events for theinformation technology, telecommunications and consumer technologymarkets. IDC helps IT professionals, business executives, and theinvestment community make fact-based decisions on technologypurchases and business B2B Marketing Group Project Managed PrintServices 7 strategy. More than 1000 IDC analysts provide global,regional, and local expertise on technology and industryopportunities and trends in over 110 countries worldwide. For morethan 48 years, IDC has provided strategic insights to help ourclients achieve their key business objectives. IDC is a subsidiaryof IDG, the world's leading technology media, research, and eventscompany. Forrester is a global research and advisory firm, focusedon helping the world’s top companies turn the complexity of changeinto business advantage. Forrester research is based on insight andobjective advice enabling IT professionals to lead moresuccessfully within IT and extend their impact beyond thetraditional IT organization. Tailored to your individual role,Forrester resources allow business executives to focus on importantbusiness issues — margin, speed, growth — first, technology second.Quocirca is a primary research and analysis company specializing inthe business impact of information technology and communications(ITC). With world-wide, native language reach, Quocirca providesin-depth insights into the views of buyers and influencers inlarge, midsized and small organizations. Its analyst team is madeup of real-world practitioners with first-hand experience of ITCdelivery who continuously research and track the industry and itsreal usage in the markets.