Lyra Researchs Hard Copy Supplies Advisory Service

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Lyra Researchs Hard Copy Supplies Advisory
Service
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SAS Service Core Components
Selling cartridges, ink, toner, and media to an
ever-increasing number of end users demands a
keen understanding of various user
environmentscorporate, commercial, SOHO, and
homeeach of which requires different marketing,
packaging, and distribution channels. Lyra
Research's Hard Copy Supplies Advisory Service
(SAS), a high-level, online strategic and
tactical planning resource, provides the
strategic and tactical information and advice
that vendors need to thrive. The SAS allows
clients to augment their product development,
competitive intelligence, and marketing functions
without the addition of costly staff.
SAS Forecast 360
Primary Research
Written Analysis
Daily News Service
Expert consultation
Annual Briefing
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SAS Forecast 360
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SAS Forecast 360 Overview
Consumables
Marking Materials
Media
Installed Base
Average Price
Revenue
Shipments
Specific country data available through inquiry
Biannual
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SAS Forecast 360 Ink
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SAS Forecast 360 Toner
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SAS Written Analysis
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Written Analysis Understand Key Issues
Helps clients understand key issues and formulate
strategies to anticipate and respond to changes
in the industry
Delivers both strategic and tactical information
in qualitative and quantitative formats on
relevant issues and trends
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Examples of Market Perspectives
How Do Exchange Rates Affect Pricing?
Ink Jet Paper in Germany
HP Ink Jet Cost-per-Page Analysis
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From Market Perspective on HP Ink Jet
Cost-per-Page Analysis
The Real Cost of Printing The critical issue is
the actual price of making an ink jet print.
Figure 1 shows a timeline of HP monochrome and
color cost per page (CPP) through the last 15
years. Each point on the chart represents the
introduction date of a cartridge SKU and its CPP.
Clearly, the cost of printing a document on an HP
ink jet printer has varied over time and by
printer type. There aren't any clear trends in
HP's CPP, but nonetheless, one can see that
low-end models such as the DeskJet 710C, DeskJet
3520, and DeskJet 3910 have an above-average mono
and color cost per page. This can be traced back
to HP's razor-and-blades business model, which
requires substantial ink profit margins to
recover the loss on hardware
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From Market Perspective on Retail Watch Ink Jet
Paper in Germany

• Supermarkets and Drug StoresRossmann, Duetzer
  Freihelt Street, Cologne (www.rossmann.de)
  Rossmann (see Figure 1), similar to other health
  and beauty stores in Germany, also has a
  photographic section. At the rear of the store,
  we found half a shelf allocated to ink jet paper.
  The shelf was almost at floor level, and the
  inventory was partially hidden by the photo
  albums. Twenty-sheet packs of Kodak Premium,
  Ultra, and Everyday A4 photo paper were
  available, and we also found snapshot-sized Kodak
  Ultra glossy in 25-sheet packs, as well as some
  100-sheet packs of Kodak Everyday paper.

Figure 1 Rossmann
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SAS Primary Research
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Examples of Primary Research Reports
2006 Western European Consumer Survey

• Growth of Ink Jet MFPs
• The Photo Paper Choice
• Aftermarket Cartridge Use
• Ink Jet Cartridge Satisfaction and Purchase
  Preference

2006 U.S. Ink Jet and Laser Home User Survey

• To Last or Not to Last Ink Jet Photo Print
  Permanence and Cost
• Going Mass Market Photo Paper Purchase Channels
• Types of Documents Printed on Home Ink Jet
  Printers
• HP, Kodak, and the Rest Photo Paper Brand
  Preferences

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Primary Research Results from Lyras 2006 U.S.
Ink Jet and Laser Home User Survey
Types of Documents Printed at Home Using the
survey data and the aforementioned assumptions,
text documents accounted for 34 percent of all
printed pages from ink jet printers in the home,
followed by e-mail at 19 percent, other Web pages
at 12 percent, and driving directions, such as
those from MapQuest.com, at 10 percent (see
Figure 1).
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Primary Research Results from Lyras 2006 Western
European Consumer Survey
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SAS Analyst Inquiry
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Analyst Inquiry Ask the Experts
Informed, confidential, and targeted Call or
e-mail your analyst to support your
decision-making

• Additional research from Lyras published reports
• Specific forecast cuts fitting client-specific
  needs
• Insight and opinion on recent market events
• Objective feedback on product planning and
  development, marketing and sales strategies,
  product management, competitive issues, future
  trends, opportunity assessment

Examples

• What happens to an empty HP, Lexmark, or Dell ink
  jet cartridge?
• What trends are occurring in the Enterprise
  segment?
• What is the opportunity for growth in the SMB
  market?

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Analyst Inquiry What happens to an empty HP,
Lexmark, or Dell ink cartridge?
These cartridges dont enter the empties market.
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• These cartridges dont enter the empties market.

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What happens to an empty HP, Lexmark, or Dell ink
cartridge?
These cartridges dont enter the empties market.
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• 53 percent of people throw their used ink jet
  cartridges in the trash
• 12 percent of people mail their empty cartridges
  back to their printers OEM
• This leaves only 35 percent of empty cartridges
  for the aftermarket

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What happens to an empty HP, Lexmark, or Dell ink
cartridge?
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• There are two closed loop aftermarket systems
  that consumers can enter returning their
  cartridge to a retail refiller, or to a retail
  store that offers drop boxes for empty
  cartridges.
• These cartridges are refilled or remanufactured
  and sold through the same channel where they were
  dropped off. They dont enter the open market
  for empties.

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What happens to an empty HP, Lexmark, or Dell ink
cartridge?
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• Consumers can also drop empty cartridges off at a
  collection box in their community. These
  collection boxes are either owned by retail
  refillers or empties brokers. Most often,
  collection boxes are used for fundraising by
  non-profit organizations.
• The cartridges dropped off in a collection box
  owned by a retail refiller enter the closed
  loop system and are not sold on the open market.

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Analyst Inquiry What happens to an empty HP,
Lexmark, or Dell ink cartridge?
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• Consumers can also choose to mail their empty
  cartridges back to an empties broker via a
  prepaid mailer. Prepaid mailers can be found in
  post offices and other retail outlets.
• Empties brokers receive these cartridges and sell
  them to a remanufacturer. Note, however, that
  many remanufacturers have empties brokers as a
  division or subsidiary of the company.

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What happens to an empty HP, Lexmark, or Dell ink
cartridge?
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• Remanufacturers clean and refill the cartridges
  they receive from empties brokers and use them to
  supplement the empties they receive from a retail
  store (if they are partnered), or sell them to
  other retail channels to be sold back to the
  consumer.

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Analyst Inquiry What happens to an empty HP,
Lexmark, or Dell ink cartridge?
These cartridges dont enter the empties market.
Retail Stores
Remanufacturer
Retail Refillers
Mail to OEM
Consumers
Empties Brokers
Throw Away
Other Channels
Collection Box

• These cartridges dont enter the empties market.

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Why Choose Lyras SAS?
Comprehensive Full worldwide service covering all
regions

• Asia Pacific
• EMEA
• Latin America
• North America

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Thank you.

• Lyra Research
• 320 Nevada Street
• Newton, MA 02460
• 617-454-2600
• www.lyra.com