Xerox: A strong and loyal channel network is a key to success

Xerox comes with a strong history of offering “best in class” document management products and solutions to enterprises across segments and geographies. Xerox India offers a comprehensive line of over 100+ Office products to the Indian market. These include printers, multi-functional devices, scanners, projectors, wide format printers etc. spanning all parts of the small and medium enterprises, office and commercial segments. Xerox has established a comprehensive coverage footprint across India by engaging, managing and developing strong partnerships and channel relationships.

Xerox recognizes that a strong and loyal channel network is a key to success in the document management industry. To help develop these partnerships, we regularly conduct training programs and introduce schemes and programs to reward the performance of our partners. The key differentiator for Xerox is its commitment to provide our partners with a strong value proposition through cutting edge solutions and offerings. We have also expanded our distribution network and rolled out a‘two-tier’ distribution model (in early 2005) that has helped us expand our coverage and get closer to our customers. We are confident that our strong product portfolio, strong focus on customer value and unique value proposition for our channel partners will continue to be our competitive advantages.

In addition, Xerox consistently adopts innovative methods to communicate with the channel community. We use tools such as reseller meets which have proved to be an effective platform to reach out to the channel community and have a two-way exchange. We aim to leverage this platform to strengthen our bond with the partners and continue to invest in them to make this partnership an enduring and profitable one. In 2005, we conducted 50 plus road shows across 30 cities in India and received an excellent response from the reseller community. In 2006, through Discover India Yatra, we participated in 84 reseller meets.

In keeping up with the consistent efforts to strengthen our channel and reseller relationships we are directly engaging with the channel partners through “Momentum 2006” in Q4. The program has been launched with the punch line “It’s not just an equation; it is your chance to exceed expectations”. “Momentum 2006” will be a series of reseller meets that have been designed to serve as a platform to educate channel partners on Xerox’s product capabilities and advantages to accelerate demand for Office products in India. Xerox believes the new formula to success is Mass x Velocity = Momentum, a reinforcement of our commitment to the Channel Network.

“Momentum 2006” will cover 14+ cities including Chennai, Kolkata, Trivandrum, Lucknow, Delhi, Chandigarh, Hyderabad, Mumbai, Jaipur, Nashik, Ahmedabad and Bhopal, between October 14 and November 14, 2006. It aims to offer the following to the channel partners:

o Profitable partnerships:
The reseller meets will provide access to the entire Xerox Office product portfolio, rebates on equipment and supplies for channel partners. It will be a platform to sell extended service packages and referrals along with joint account planning

o Training and Support: “Momentum 2006” will provide free product training, access to Xerox WEB portal (MARCOM library etc.) training on direct communication for promotions, incentives, product launches and certification to sell high-end more profitable multi-function products amongst others

The agenda of the reseller meets includes an address by Xerox, new product launches, Quarter schemes for the partners, on the spot offers at the meets and a lunch / cocktails to close the session. Xerox is expecting participation from over 100 resellers in every location. The “Momentum 2006” will be an excellent platform for resellers to interact with Xerox and learn about the products and marketing strategies.

In addition, Xerox has a host of channel initiatives in the pipeline for 2006 which includes:
• Educate channel partners through reseller meets in a phased out manner in the next two months making them more adept at handling customer queries
• Increase Customer awareness through product road-shows and demonstrations
• Incentivise the channel partners with channel schemes to sell more SMB products. Xerox launched 8+ products for the SMB segment in August 2006 which include a mix of laser printers and multi-functional devices. With this launch, Xerox has a wide range of over 20 SMB products that are priced between Rs. 4500 and Rs 5 lakh. We also announced an investment of Rs. 17 crore for brand building and product marketing initiatives in 2006. Of this, Xerox has assigned Rs. 12 crore towards demand generation and market development activities for the SMB segment in India

Xerox currently engages 1300 channel partners and plans to increase this by 15% by the end of 2006 by providing nationwide network to service customers. Xerox has three national and two regional distributors which includes Redington India Limited, Ingram Micro, Esys, Ansatta and Micromax. Today having an exhaustive product portfolio and a well established channel network as Xerox’s growth pillars in India, the company is committed to bringing world class technology and innovative product categories to strengthen its position as a leading printing vendor and a trusted partner.

Annexure

Some key highlights of the New Office Group for 2006 include:

• Offering of over 100+ products for the Indian consumers
• Network of three national and two regional distributors
• Over 1300 resellers engaged
• More than 25 plus road shows and seminars coordinated across India
• Launched the most affordable laser printer in the Indian market in the sub Rs. 5000 category
• Opened the first retail showroom “Xerox Digital Gallery” in Bangalore for office products
• Launched “Ask Xerox” welcome centre that offers a single phone number access across India and operates on a 24x7 basis supporting four Indian languages
• Launched SMS services “Xerox” @ 3456 for enhanced customer and partner reach