Seiko | SLP200 | PRODUCT PLANNING

PRODUCT PLANNING
DYMO is a an important brand of Esselte Corporation, one of the world's leading manufacturers of
office products. It offers labeling solutions that help people organize and identify their world. Its
partnerships mainly concentrate on two areas, namely printing applications (e.g.internet postage services,
medical applications, etc), and technology.
Although DYMO continues to explore new markets (office -- home -- commercial use) and new products,
it keeps losing market share and profits and no longer can sustain its leading position in the marketplace.
Therefore, efforts have been made in this report to examine DYMO’s current portfolio and customers.
Insights are developed into its current strengths and issues, customer needs, and future needs. Based on
these insights, a fresh portfolio is recommended in the end that address not only current customers but
also future customers.
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
CURRENT PORTFOLIO
DYMO Portfolio
LabelWriter 310
Price: $114.00
LabelWriter 315
Price: $107.00
LabelWriter 330
Price: $135.00
ExecuLabel LM150
Price: $29.44
LabelManager 300 LabelManager 400
Price: $64.59
Price: $169.99
LabelPOINT 100
Price: $29.99
LabelPOINT 200
Price: $45.54
LabelWriter 330 Turbo LabelWriter SE 330
Price: $180.99
Price: $237.36
Time Stamper
Price: $82.99
LetraTAG
Price: $22.99
LetraTAG QX50
Price: $22.67
Lable Buddy
Price: $5.00
RhinoPRO 1000
Price: $39.99
RhinoPRO 3000
Price: $62.99
RhinoPRO 5000
Price: $88.99
Lable Blaster
Price: $4.99
Organizer Xpress
Price: $12.99
1011 Metal Tape Embosser
Price: $191.86
Professional products
LabelPOINT 300
Price: $62.28
Personal products
Ad
mi
n
Clo istra
tio
th
n
Ga Mark
rde ing
n
Ho ing
bb
i
Kit es
ch
e
Sc n&F
ho oo
d
o
Ad l&Ki
res ds
s
Fil ing
eF
o
Eq lder
uip s
m
S en
an helv t To
d ing ols
Ca , D
b
W ine raw
Sa arn ts ers
fet ing
y L an
P ab d
an atch els
d O Pa
utl ne
W ets ls
Ma ire a
rki nd
ng C
ab
Ba
le
rco
Sin de
ag
e
Sh
ipp
i
Na ng L
me ab
B els
Te adg
La st T e
be ub
lin e
g
Overview of Current Solutions
Home
Office
Datacom/Electrical
Environment
Shops&Warehouses
Plant
Receptions Desk
Laboratory
Observations & Insights
Industrial products
--Focused on office applications and implementing a strategic
extension into the commercial market
--Inconsistent brand image across different product lines
--Involvement of keyboard operations in half of the offerings
--Unique Selling Point:
--Busy environment: frequent use, sharing, high efficiency
--Stand-alone or used with computers
--Compatibility: different systems, languages, symbols
--Versatile printing styles: typeface, colors, lines, label sizes, etc
--Applicable to a variety of media (e.g. paper, plastics, metal, etc)
--Display capability
--Convenient label cutting
--Easy to use
--Insufficient feature distinctions among different products in the
same series except prices
--Different than office solutions which have a good coverage of
various functions, home and commercial solutions tend to be
more specific and focused
--Applicable to small-scale printing rather than mass production
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
CURRENT PORTFOLIO
Product Price Map
Personal
products(5)
Professional products:
Handheld Labelmakers (3)
Industrial
products (3)
Industrial
product
Professional products:
LabelWriter Printers (4)
Professional products:
LabelWriter Printer
Observations & Insights
A. Pricing
0
$2
0
$4
0
$6
00
0
$1
$8
40
20
$1
$1
60
$1
Professional products:
Desktop Labelmakers(3)
80
$1
PRICE
Professional products:
Desktop Labelmaker
5 products in this area
Personal products
B. Development
Industrial products
Professional products
Product Lifecycle
Sales
Life Cycle Stage Introduction
--Personal products as DYMO’s low-end line while LabelWriter
Printers as DYMO’s premium offerings
--Remarkable price leaps in the professional line and industrial line
--Existence of price gaps among the three product lines
--Dominant number of medium-price products
Growth
Maturity
Category Size
Small
Moderate
Large
Category Growth
Low
High
High
Category Attractiveness
Low
Low
High
Decline
Time
--Progressing from electronic machines to PC connected ones, which
accords with the evolution of human society. This enables a vision of its
digital and wireless future
--DYMO's development strategy is mainly to penetrate the existing market
and expand the market. In 1999, it tried the extension strategy. In 2003,
it drove true innovations by expanding into new markets like Electrical and
Datacom with new industrial products
--In spite of being at a mature stage of a product life cycle with many rivalries,
DYMO has been able to grow at about 5-10% per year and to keep its
leadership in the market. It is the only manufacuturer in the labeling
industry whose product porfolio covers handheld, desktop labelmakers and
PC-connected label printers
--The global market for identification labeling is approximately USD 500
million. And DYMO's share is about 30% of this constantly changing market
--Esselte invested a lot of money on improving DYMO's audience's oniine
purchase experience in 2003. And it worked very well to bring a 32%
increase in the online sales
**Note: the category here refers to the labeling system category, the labeling industry.
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
COMPETITIVE LANDSCAPE
Competitive Landscape (DYMO LabelWriter 330)
Computer Software
(Excel, Filemaker)
New Technology (RFID)
DYMO Labelmakers
Brother P-Touch Labelmakers
Wasp Bar Code
Label Printers
DataMax Label
Printers
Panasonic Label
Printers
Office Filing
System & Signs
Esselte, Pendaflex,
Epson Receipt
Printers
Brother PT QL-500 Seiko SLP 240
OfficeMax, 3M,
Intermec Label
Printers
Brother PT QL-550 Seiko SLP 100
Citizen Label
Printers
Other DYMO LabelWriters Seiko SLP 200
Genicom Label
Printers
DYMO LabelWriter 330
Brother PT QL-500
Seiko SLP 200
DYMO LabelManager100
Casio Label Printer
Seiko SLP 200
Office Filing System
Organizing Furniture
Computer Software
Brother PT 9500PC
Zebra LP 2844-Z
Wasp W300
Intermec EasyCoder C4
Casio Label
Printers
Seiko Label Printers
Cognitive Label
Printers
Toshiba Label
Printers
Furniture
(Shelving, File
Cabinets,
Bookcases,and
Cloth Racks)
Spa
Steelcase, IKEA,
Haworth,
Movies
Zebra Barcode Printer
Fast food
Video rental
Shopping
Fax machines
Party
Consumer Electronics (PDAs&Cellphones)
HP, Sony, PalmOne, Blackberry
Motorola, Nokia, Sony Ericsson,
Philips, Samsung, LG, Vokaphone,
Personal copiers
Drinking
PC game
Cellular phones
Furniture
Travel
Hotel Deals
Golf
Tennis
Form: PC-connected Label Printers (USB/Serial/Parallel port)
-- Direct thermal printing in B/W
-- Inclusion of design software and networking
-- Instant monochromatic printing of both texts and graphics from
mainstream business software e.g. Word , Excel or Outlook.
-- Diversified labels for different things like file folder and visitor badge
DYMO's major competitors are P-touch labeling systems by
Brother International (Japan) and SLP products by Seiko Group.
Brother and Seiko are doing a better job in keeping consistent
Category: Labeling System (Direct Thermal / Thermal Transfer / Inkjet)
brand identities. Besides, they have lower prices and provide
Generic: Organization & Identification Tools
easier access to expendable supplies.
Budget: Doing with the equal money ($135.00)
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
CURRENT CUTOMERS
What Appeals to Current Customers?
Who are DYMO’s Current Customers?
Home/ Home Office Users:
Easy life by Doing-It-All
Small/Medium Office Users:
Efficiency by Organizing Things
Home/ Home Office
Users
Small/ Medium
Office Users
Industry Users
Commercial Users
Insights: Home users are often the actual buyers. In comparison, people in other
groups are most likely the users. Purchases in these groups are usually
made by sourcing departments in organizations.
Industry Users:
Precision and Safety by Marking Equipment
Commercial Users:
Information Tracking by Labeling Commodities
What Characterizes Current Customers?
Common Appeals: High performance; easy to use
Low volume printing; organizing stuff
Demographics
Youth
Babyboomers
Low Income
High Income
Psychographics
Aestheticians
Pragmatists
Messy
Organized
On-the-Go
Stable
Slow Pace
High Efficiency
Behavioral
Emotional Attachment
Unique
LabelingTasks
Occasional
Printing
Mass Printing
Outdoor Use
Work Need
Repetitive
Labeling Tasks
Regular
Printing
Small-scale Printing
Indoor Use
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
FUTURE CUTOMERS
Silvery Boomers
Chinese Youth
Demographics:
Demographics:
-- Population: 78 million male and female Americans born between 1946 and 1964.
The population will still be as big as 75 million in 2030
-- Occupation: 85% is still having a job now
-- Education: 25% of Boomers have college associate degrees
-- Spending: have the highest household income and spend more on consumer goods
than any other age group
-- Population: 15.8% of Chinese population born 1972-1987, the population will increase
to approximate 17.3% in the next 5 years
-- Occupation: Diverse
-- Education: 17% of the high school graduate student can get into a university or a college.
Each year, more than 1.8 million student get their bachelor degrees
Psychographics:
-- Hope to be able to postpone physical aging
-- Short of disposable time due to second career and complex lifestyles
-- Increased amount of discretionary dollars due to dual income
-- Desire to socialize and to stay connected with others
-- Desire to participate, learn and share
-- Shift from acquiring material possessions toward a desire to purchase
enjoyable and satisfying experience
Behavioral Patterns:
-- 87% retireers participate in mean programs at Senior Centers for the opportunity
to socialize
-- 85% plan on working during retirement to remain physically active
-- 80% of them plan to live independently -- 77% hope to keep aesthetic appeal
-- 69% plan to keep working beyong age 65
-- 56% stress fitness and spa facilities
-- 50% rate volunteering/community service as a critical part of their retirement plans
Insights:
Enhance
physical
emotional
agility
Male
Age
80+
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
Female
China
Wo rl d
9
8
7
6
5
4
3
2
1
0
1
2
3
4
5
6
7
8
9
Percent of total population
Psychographics:
-- Desire control over content
-- Advocacy of freedom, mobility & independence
-- Embrace both belongingness and individualism
-- Persistence and optimism
-- Brave and adventurous
Behavioral Patterns:
-- Addicted to online communities where they get connected and try out different identities
-- Heavy spending on mobile products and accessories which help spell out their identities
-- Indulged in DIY practices
-- Customization
Insights:
Enhance
social
connection
Enhance
consumer
experience
Enhance selfexpression
through product
vehicle
Build
a platform to
exercise the
control
Product Planning
Develop the
DYMO Communities
in both the virtual
and real world
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
FUTURE CUTOMERS
Now:
Innovation Leader
Next:
CUSTOMER INTIMACY
LEVERAGE DYMO BRAND
HYPOTHESIS:
Innovation Levels
Level Three
Customer Experience Innovation
Gen-DYMO: Empowered Experience to Nurture A New Community/Culture
Level Two
Product Innovation
Mi-DYMO: Identity -- Managemant -- Identification
Level One
Technology Leadership
Techno-DYMO: Influencer on Technology Immersion
Tactics:
New Market Segments
New Promotion Channels
New Niche Products
Re-organzation of Current Portfolio
Development of Consistent and Distinct Product Identity
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
PRODUCT OPTIONS
DYMO
“Fun” Line Opt 4
(Youniverse)
Fun-mate
Color Printing
Opt 10: SKU #1
USP: DIY casing and configurable
function keys
(Gadget Fans) Opt 7
Opt 14: SKU #1
USP: Modular design. Flexibility for
users to customize some
components so as to improve
the product’s performance.
Opt 11: SKU #2
USP: Design. Changeable cutting
tools to enable creation of
labels of irregular shapes.
Manual cutting .
Opt 12: SKU #3
USP: Manually/Automatically
stamping texts, graphics,
symbols, etc. Embedded
flash memory. Portable.
PC-connected.
Opt 13: SKU #4
USP: As a portable plugin for mobile
devices such as PDAs and
cellphones. Able to instantly
color print stuff like images
and messages. Portability.
Easy Line Opt 5
(Business; Industry; Laboratory; Commercial)
Gadget
Opt 6
“Professional” Line
Opt 15: SKU #2
USP: Souvenir version. Delicate
design and structure.
SmartManager
SLAN
(Business)
(The Rest Others)
Opt 16: SKU #1
USP: Able to print considerable DYMO
labels together with some of the
standard labels by other suppliers.
Opt 21: SKU #1
USP: Print diverse tapes in addition to
metal&vinyl labels for 1101 Metal
Tape Embosser
(Silverage)
AntiK
Opt 8
Sliverage Helper
Opt 9
Shared Features: Ergonomic and easy keyboard for the
elderly. Big screen. Hot keys for zooming in / out content. Exclusively
built-in big typefaces. Graphic user interface. Unique built-in electronic
pets for different individuals.
Opt 17: SKU #2
Opt 22: SKU #1
Opt 23: SKU #1
USP: Mirror printing. Automatic
printing on both sides.
USP: Design. Built-in patterns
of old style. Familiar life
and user experiences.
USP: Can print expiring labels to work
as a timekeeper (e.g. remind them
of taking medications in time.)
Color Printing
Opt 18: SKU #3
USP: Able to accommodate 3 different
types of labels at the same time.
Opt 19: SKU #4
USP: Bluetooth connection. Work with
external input device in addition to
a traditional keyboard. Portability.
Opt 20: SKU #5
USP: Compact design. Wireless connection.
Work with external input device in
addition to a traditional keyboard.
Opt 24: SKU #2
USP: Integrated RFID technology to help
the elderly easily locate whatever is
relevant to them
Option 1: Remove LetraTAG, Label Buddy, LabelWriter 315,
LabelWriter SE 300, and LabelManager 400 from
the existing portfolio
Option 2: Move LetraTAG QX50 to "Professional" line
Option 3: Move LabelPOINT 100/200/300 to "SLAN" sub-line
Product Planning Product
Min Planning
Ouyang MinInstitute
Design
Nov.Nov.
-- Dec.
Ouyang of
Institute
of Design
-- Dec.2004
2004
PORTFOLIO RECOMMENDATIONS
-- Recommendation One
-- Recommendation TWO
DYMO
Professional Line
Fun Line
(Youniverse)
Fun-mate
Option 10: SKU#1
USP: DIY housing
and custom keys
Option 12: SKU#2
USP: Manually/
Automatically stamping
texts,graphics,symbols,
and etc. Embedded
flash memory. Portability.
PC-connected.
DYMO
(Business; Industry; Laboratory; Commercial)
Gadget
(Gadget Fans)
SmartManager
(Business)
Option 14: SKU#1
LabelWriter 310
USP: Modular design.
LabelWriter 330
Flexibility for users to
LabelWriter 330
customize some
components to improve Turbo
its performance.
LabelManager
100
Option 15: SKU#2
USP: Souvenir version. LabelManager
300
Delicate design and
LabelManager
structure.
150
DataMark Date/
Time Stamper
SLAN
(The Rest Others)
RhinoPRO 1000
RhinoPRO 3000
RhinoPRO 5000
LabelPOINT 100
LabelPOINT 200
LabelPOINT 300
Option 21: SKU#1
USP: Design. Built-in
patterns of old style.
Familiar life and use
experiences.
Easy Line
(Silverage)
Sliverage Helper
Option 23: SKU #1
USP: Can print expiring
labels to work as a timekeeper (e.g. remind them
of punctually taking
medication.)
Option 23: SKU #2
USP: Integrated RFID
technology to help the
elderly easily locate
whatever is relevant
to them
Professional Line
Fun Line
(Youniverse)
Fun-mate
Option 10: SKU#1
USP: DIY housing
and custom keys
Option 12: SKU#2
USP: Manually/
Automatically stamping
texts,graphics,symbols,
and etc. Embedded
flash memory. Portability.
PC-connected.
Easy Line
(Business; Industry; Laboratory; Commercial)
Gadget
(Gadget Fans)
SLAN
SmartManager
(Business)
(The Rest Others)
Option 14: SKU#1
LabelWriter 310
USP: Modular design.
LabelWriter 330
Flexibility for users to
LabelWriter 330
customize some
components to improve Turbo
its performance.
LM 100
LM 300
Option 15: SKU#2
LM150
USP: Souvenir version.
LetraTAG QX50
Delicate design and
DataMark Date/
structure.
(Silverage)
AntiKHelper
Sliverage
Helper
Option 23: SKU #2
USP: Integrated RFID
technology to help the
elderly easily locate
whatever is relevant
to them
RhinoPRO 1000
RhinoPRO 3000
RhinoPRO 5000
LabelPOINT 100
LabelPOINT 200
LabelPOINT 300
Metal Tape Embosser
Time Stamper
Opt 22: SKU #1
USP: Design. Built-in patterns
of old style. Familiar life
and use experiences.
Option 20: SKU #1
USP: Compact design.
Wireless connection. Work with \
external input device in addition
to a traditional keyboard.
This portfolio would be my first recommendation. It well balanced profits and risk, long-term
development and short-term one, meanwhile manifests the strong innovation motive, which
is aligned with Esselte's new development goal. What's more important of all is that it
addresses to three significant types of audience who is or will most likely be DYMO's users.
This leads it to the vision of Customer Intimacy. DYMO is more than "organizing stuff". It is a
tool to differentiate one's identity, to let one manage their work better, and help identification.
It is also a foundation for people to share experience and create newstories. It is the DYMO
community and experience that is the core appeal winning its position in the competition.
This portfolio would be a safe yet secondary recommendation. It keeps low risks with medium
profits and is more focused on the exploration of new markets together with the penetration of
the existing markets. It is not addressing the needs of the target audience as well as the first
recommendation does. But it tries not to increase the intensity of the present competition.
Product Planning
Min Ouyang
Institute of Design
Nov. -- Dec. 2004
Download PDF