cs

CUSTOMER SATISFACTION:

Satisfaction is a person feeling of pleasure or disappointment

resulting from comparing products perceived performance in relation

to his or her expectations.

Whether the buyer is satisfied after purchase depends on the

offer’s performance in relation to the buyer’s expectations.

As this definition makes clear, satisfaction is a function of

perceived performance and expectations. If the performance falls

short of expectations, the customer is dissatisfied. If the performance

matches the expectations, the customer is satisfied. If the performance

exceeds expectations, the customer is highly satisfied or delighted.

Many companies are aiming for high satisfaction because

customers who are just satisfied still find it easy to switch when a

better offer comes along. Those who are highly satisfied are much

less ready to switch. High satisfaction or delight creates an

emotional bond with the brand, not just a rational preference. The

result is high customer loyally.

Xerox’s senior management believes that a very satisfied or

delighted customer is worth 10times as much to the company as a

satisfied customer. A very satisfied customer is likely to stay with

Xerox many more years and more than a satisfied customer will.

Some of today’s most successful companies are raising

expectations and delivering performances to match. These companies

are aiming for T C S - Total Customer Satisfaction.

The key to generating to high customer loyalty is to deliver

high customer value. In addition to tracking customer value

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expectations and satisfaction, companies need to monitor their

competitor’s performance in these areas. For example, a company

was pleased to find that 80 percent of its customer said they were

satisfied. Then the CEO found that its leading competitor attained a

90 percent customer satisfied score. He was further dismayed when

he learned that this competitor was aiming to reach a 95 percent

satisfaction score.

For customer- centered companies, customer satisfaction

ratings make sure that target market knows it. Although the

customer-centered firm seeks to create high customer satisfaction, its

main goal is not to maximize customer satisfaction if the company

increases customer satisfaction by lowering its price or increasing its

services, the result may be lower profits. The company might be able

to increase its profitability by means other than increased satisfaction

(for example, by improving manufacturing processes or investing

more in R&D). Also, the company has many stakeholders, including

employees, dealers, suppliers, and stockholders. Spending more to

increase customer satisfaction might direct finds from increasing the

satisfaction of other philosophy that it is trying to deliver a high level

of customer satisfaction subject to delivering acceptable levels of

satisfaction to the other stakeholders with in the constrains of its total

resources.

Companies should also note that managers and sales people

could manipulate customer satisfaction rating. They can be especially

nice to customers just before the survey. They can also try to exclude

unhappy customers from the survey. An another danger is that if

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customer know the complete will go out its way to please customers,

some may express high dissatisfaction (even if satisfied) in order to

receive more concessions.

Some companies navigate all these pitfalls to reach their

customer value and satisfaction. We call these companies high-

performance businesses.

The research of customer satisfaction enables us to offer our

customers, what they really want and not what we think they would

want.

The level of competitiveness on the market is getting higher,

the quality of service and products does not differ greatly, but the

customer’s expectations are constantly growing. That is why a

satisfied customer is becoming such an important factor. The

company, which is familiar with perceptions and attitudes of its

customers, has an opportunity to make better business decisions.

Since the company knows whether its satisfied customers

expectations and needs or not, it can take different measures to meet

the needs of their customers even better.

TOOLS FOR TRACKING AND MEASURING

CUSTOMER SATISFACTION:

A customer-centered organization makes it easy for its

customers to deliver suggestions and complaints. Companies and

adding web pages and e-mail to facilitate two-way communication.

These information flows provide companies with many good ideas

and enable them to act quickly to resolve problems.

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Customer satisfaction surveys: studies show that allough

customers, are dissatisfied with one out of every four purchases less

than 5 percent of dissatisfied customs will complain, complaint level

are thus not a good measure of customer satisfaction. Responsive

companies measure customer satisfaction directly by conducting

periodic survey. They send questionnaires or make telephone alls

to random sample of recent customers. They also solicit buyers on

their competitor’s performance.

While collecting customer satisfaction data, it is also useful to

ask additional questions to measure intention; this will normally be

high if the customer’s satisfaction is high. It is also useful to measure

the likelihood or willingness to recommend the company and brand to

others. A high positive word-of-mouth score indicates that the

compete is producing high customer satisfaction.

GHOST SHOPPING:

Companies can hire persons to pose as potential buyers to

report on strong and week points experienced in buying company’s

and competitor products. These mystery shoppers can ever test

whether the company’s sales personal handle various situations well.

LOST CUSTOMER ANALYSIS:

Companies should contact customers who have stopped buying

or who have switched to another suppliers to learn why this

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happened. When IBM loss a customer, it mounts a though effort to

learn where is failed. Not only is it important to conduct exit

interviews when customers first stop buying. But it is also necessary

to monitor the customer’s loss rate. If it is increasing, this clearly

indicates that the company is failing to satisfy customers.

MAINTAINING CUSTOMER SATISFACTION:

The philosophy behind maintaining your customer is simple;

now that you have them maintain them. When you consider the

amount of time and money invested in them, you can not afford to

loss them. This investment goes beyond your personal

expenditures. It also includes your firm’s advertising and marketing

cost to reach that particular market segment. Your customer,

therefore, should be treated as if the life of your business

dependent on them which it does!

15 WAYS TO KEEP YOUR CUSTOMER SATISFIED:

1. Show them that you think of them. Send them helpful

newspapers clippings or articles, cartoons related to their business and

“here’s an idea thought you’d enjoy” notes. Send your clients

Christmas/new year cards, birthday cards, and thank you notes.

2. Drop by to show them new products and brochures and offer

additional services. Always make an appointment before making your

call respect your client’s time as you do your own.

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3. Offer a sample gift to enhance the use of your product. See how

they are utilizing your product or service and suggest other way that

they can benefit from it. They may not be realizing its full potential.

4. Offer “customer discounts “on new products or services to

encourage additional business.

5. When new employees are hired, offer to train them free of charge

in the use of your peoduct.

6. Repay or compensate them for lose time or money caused by

problems encountered with your product. If you pinch pennies,

your customer may do the same.

7. be personal. Record detail about your client’s life and enter these

in your file. It’s so much nicer to day to someone, “how is bob?”

rather than, “how’s your husband?”

8. Tell the truth; lies have a way of coming back to haunt you.

9. Accept returns without batting an ayelash. In the long run, they

are much less expensive than finding a new customer.

10. Be ethical. Keep all your information about the account

confidential.

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11. Be certain that your company follows through on its

commitments. This includes selivery, installtion, packaging, and so

on.

12. Show your appreciation for their referrals by reporting back to

them on the outcome.

13. If your company has a newsletter, obtain permission from your

successful clients to write about them on it. Naturally, you would

send them a copy.

14. Keep track of their results with your product and meet

periodically to review the entire picture (their business, industry,

trends, competition, and e.t.c)

15. Keep the lines of communication forever open. As in any

relationship, you must be able to exchange grievances, ideas, praises,

and victories.

What all of this comes down to is that you should be willing to

“go the extra mile” for your accounts. They extra effort you

expend now will be repaid handsomely in the future.

The bottom line in maintaining your clients is services,

and more services. Be there for your customers and they all want to

stick with you. If you meet their needs, they all think twice

before switching to another company, even if they have voice

some serious concerns. “Make new clients, but keep the old. One is

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silver and the other gold”. Develop the “gold” you have and the silver

may take care of itself.

HANDLING CUSTOMER COMPLAINTS:

Whether your customer’s complaint is legitimate or not, follow

it up with a service call. Whenever possible do it personally instead

someone from the customer service department. It provides the

personal service that your customer appreciates and it may

obviate the need for a technician or serviceman to call. As an

alternative, both of you can go together to handle customer

complaints. Keep the following guidelines in mind:

1. Don’t procrastinate making the call. Often the problem is not as

serious as it sounds. Some customers “read the riot act” when

they call about a complaint. A delay in responding will only

irritate your client more.

2. Admit mistake and apologize. Just because you made the sale does

not mean you can become defensive about your company, product or

service. Even the most reputable companies make mistakes and have

problems with their products. You may want to restate the customers

complaints to show that you are listening and have an understanding

of the problem.

3. Show compassion for your customer. Whether the complaint

proves to be true or false, show your customer that you are concerned

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and will investigate the problem immediately. Help the customer

calm down by saying “I can understand why you feel they way you

do”.

4. Actively listen to your customer’s complaints. Talking will make

him feel less anxious about it let your customer “vent” his feeling

before you react to the situation. Be sympathetic and encourage the

customer to “blow up”. Afterward he’ll fell better: this means he’ll

be in a better frame of mind.

5. Don’t pass the buck to your company or someone else within it.

This may take the blame off you, but it undermines the integrity and

organization of the company, and your customer will lose confidence

in your firm.

CUSTOMER SATISFACTION AND VALUE:

Today’s companies are facing their toughest competition

ever. The companies can move from a product and sales philosophy

to a marketing philosophy.

Today’s customers face a vast array of product and brand

choices, prices and suppliers. How do customers naked their choices.

We believe that customer’s estimate which offer will deliver

the most value. Customers are value maximizers, within the bounds

of search cost and limited knowledge, mobility and income. They

form an expectation of value and act on it.

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CUSTOMER VALUE:

Our premise is that customers will buy from the form that

they perceive offers the highest customer delivered value.

Customer delivered value is the difference between total custom

value and total customer cost. Total customer value is the bundle of

benefits customer expect from a given product or service. Total

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Personnel Value Energy Cost

Product Value Monetary Cost

Service Value Time Cost

Psychic Cost

Customer delivered value

Total Customer Value Total Customer Cost

customer cost is the bundle of cost customer expects to incur in

evaluating, obtaining, using and disposing of the product or service.

ATTRACTING AND RETAINING CUSTOMER:

In additions to improving their relations with their partner in

the supply chain, many companies are intent on developing stronger

bonds and loyalty with their ultimate customs. In the past many

companies took their customers for granted. Their customers may not

have had many alternative sources of supply, or all suppliers were

equally deficient in services, or market was growing so fast that the

company did not know about satisfy its customers. Clearly, things

have changed.

Today’s customers are harder to please. They are smarter, more

prices conscious, more demanding, less forgiving and approached by

more competitors with equal or better offers. He challenges, acceding

to Gaffer Gitomer, is not to produce customers; several competitors

can do this. The challenge is to produce loyal customers.

ATTRACTING CUSTOMERS:

Companies seeking to grow their profits and sales have to

spend considerable time and resources searching for new customers.

Customer

Acquisition requires substantial skills in lead generation, lead

qualification and account conversion. To generate leads, the company

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develops ads and places them in media that will reach new prospects;

it sends direct mail and makes phone calls to possible new prospects

its sales people participate in trade shows where they might find new

leads, and so on. All this activity produces a list of suspects. The next

task is to quality which of the suspects are really good prospects, and

this is done by interviewing them; checking on their financial

standing, and so on. The prospect may be graded as hot, warm and

cool, the sales people first contact the hot prospects and on account

conversion which involves making presentations, answering

objections, and negotiating final terms.

THE NEED FOR CUSTOMER RETENTION:

Unfortunately, most marketing theory and practice center on

the art of attracting new customers rather than on retaining existing

ones. The emphasis traditionally has been on making sales rather

than building relationships; on reselling and selling rather than caring

for the customer afterward.

The key to customer retention is customer satisfaction.

A highly satisfied customer.

Stays loyal longer.

Buys more as the company introduces new products and

upgrades existing products.

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Talks favorably about the company and it products.

Pays less attention to competing brands and advertising and is

less sensitive to price.

Offers product or service ideas to; the company.

Costs less to serve than new customers because transitions are

reutilized.

Thus a company would be wise to measure customer

satisfaction regularly. The company could phone recent buyers and

inquire how; many are very satisfied, satisfied, in different,

dissatisfied and very dissatisfied. It might lose as much as 80 percent

of the dissatisfied customers, may be about 40 percent of the

dissatisfied customers, about 20 percent of indifferent customers, and

may be 10 percent of the satisfied customers, but it may loose only 1

or 2 percent of its very satisfied customers. The moral: try to exceed

customer expectations, not merely meet them.

Some companies think they are getting senses of

customer satisfaction by tallying customer complaints. But, 95

percent of dissatisfied customers don’t complain; many just stop

buying. The best thing a company can do is to make it easy for the

customer to complain. Suggestion forms and company toll-free

numbers and e-mail addresses serve this purpose.

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Listening is not enough, however. The compete mist

respond quickly and constructively to the complaints. Because loyal

customers account for a substantial amount of company profits, a

company should not risk losing a customer ignoring grievance or

quarreling over a small amount.

To day more and more companies are recognizing the importance of

satisfying and retaining current customers. Here are some interesting

facts bearing on customer retention.

Acquiring new customers can cost five times more than the

cost involved in satisfying retaining current customers.

The average compete loses 10 percent of its customers each

year.

A 15 percent reduction in the customer defection rate can

increase profits by 25 percent to 85 percent depending on the

industry.

There are two ways to strengthen customer retention. One is to

erect high switching barriers. Customers are less inclined to switch to

another supplier when this would involve e high capital costs, high

search costs, or the loss of loyal customer discounts. The better

approach is to deliver high customer satisfaction, this makes it harder

for competitors to over come switching inducements. The task of

creating strong customer loyalty is called RELATIONSHIP

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MARKETING. Relationship marketing embraces all those steps that

companies undertake to know and their value customer better.

Strong companies develop superior capabilities in managing

core business processes such as new –product realization, order-to-

remittance, and customer service. Managing these core processes

effectively means creating a MARKETING NETWORK in which the

company works closely with all parties is the production and

distribution chain, suppliers of raw materials to retail distributors.

Companies no longer comet-marketing network do.

Losing profitable customers can dramatically affect a firm’s

profits. The cost of attracting a new customer is estimated to be five

times the cost of keeping a current customer happy. The key to

retaining customers is relationship marketing. To keep customers

happy, marketers can add financial or social benefits to products, or

create structural ties between the company and its customers.

Quality is the totality of features and characteristics of a

product or service that bear on its ability to satisfy stated or implied

needs. Today’s companies have no choice but to implement total

quality management programs if they are to remain solvent and

profitable. Total quality is the key to value creation and customer

satisfaction.

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OBJECTIVES & METHODOLOGY FOR THE

PRESENT STUDY

The present chapter deals with the objectives of the

present study, the sampling procedure, tools for collection of data,

analysis of data and limitations of the study.

OBJECTIVES:

The following are the main objectives of the present study.

To study the level of customer satisfaction of Xerox

photocopier

To know the market share of Xerox photocopier

To Identify the new requirement of customers

SAMPLING PROCEDURE

UNIVERSE:

The first step in developing any sample design is to clearly

define the set of objectives technically called the universe, to be

studied. The universe for the present study constitutes the entire

government departments in and around the city of Hyderabad and

secunderabad, and the universe here is finite.

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SAMPLE SIZE:

Sample size refers to the no of items to be selected from the universe

to constitute a sample.

Out of the universe a sample of 225 respondents have been

selected for the present study.

SAMPLE UNIT:

A decision has to be taken concerning a sample unit before

selecting sample. Sample unit may be geographical one such as state

district village e.t.c.

Only government sectors were targeted in the survey.

Data for this survey was collected from the employees and the

executives who are directly involved in the usage and purchase of

photocopier. The composition consists of managing directors, deputy

directors, general managers, administrators, project leaders. Who can

provide accurate information regarding the usage and are the

decision-maker regarding the purchase of the equipment’s.

SOURCES OF DATA COLLECTION: The sources of data collection for the present study include

both primary and secondary sources.

1. Primary data

2. Secondary data

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PRIMARY DATA:

For the collection of primary data the researcher used

questionnaire method. Well-structured questionnaires were prepared.

The researcher personally approached the government employees and

administered the questionnaire. The questionnaire consists of 12

closed ended questions.

SECONDARY DATA:

The researcher also collected information through secondary data.

The two major sources of secondary data are

a) Internal sources b) External sources

Internal sources:

Internal records in the company such as company journals,

magazines, cataloguesnclude information about the product being

researched, its history, company background and history, market

share and competitors information. The researcher also collected

information from the company financial records and sales records etc.

External sources:

The second source for collecting secondary data was external

sources. The researcher collected the information from web sites,

business newspapers, magazines etc.

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TECHNIQUES FOR DATA COLLECTION:

Using survey method collects the data. In the survey method

questionnaire technique is adapted for the collection of data. The

questionnaires contain both open ended and closed-ended questions.

Tools for data analysis

Analysis was done on the basis of nature of data, statistical tool

used for analyzing the data was percentage method. Percentages were

calculated for each question separately.

LIMITATIONS:

The researcher being a student doing project work in the

company he was unable to extensively cover the market due to

stipulated time limit, which for the purpose of the survey was 2

months.

Apart from that, the major constraints in this study were

Time constraints

Respondent bias

Refusal to co-operate

Lack of information on part of the respondents

The results of the analysis based on the survey may not reveal the

complete Indian and global scenario because the survey is restricted

to only a few market segments and cities.

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THE HISTORY OF PHOTOCOPIER

Today’s photocopier is the culmination of years of trying to

find the best way to produce multiple documents in the least amount

of time. Chester F. Carlson, the inventor of the process of

xerography, found that his job in a patent office warranted the need

for better, faster copies of patents. He was arthritic at the time,

making hand-written copies painfully insufficient, so…. Carlson

began to research the area of photoconductivity. The basis of

photoconductivity is that when light strikes the surface of certain

material, its conductivity increases. For a listing of sites about

photoconductivity.

Carlson then experimented in his kitchen with the principles of

“electro photography” and applied for a patent in 1937. The first

“photocopy” was made by a zinc plate covered in sulfur. The words

“10-22-38 Astoria” were written on a microscope slide, which was

placed on top of more sulfur and under a bright light. After the slide

was removed, a mirror image of the words remained.

This process still left much room for improvement. Can you

imagine having to use the chemicals yourself/ this may be one of the

reasons that more than twenty corporations turned Carlson down

between 1939 and 1944. Eventually, improvements were made. The

photoconductive plate was covered in Selenium instead of sulfur,

allowing for better photoconductivity. A new corona wire was used

to apply electrostatic charge and transfer the powder from the plate to

the paper. Also, toner was introduced for image clarity.

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Where did all these improvements lead to/ In 1947, a Rochester

company, Haloid, invested in the electro-photography process and

introduced the photocopier in 1949. The process still took more than

14 steps and 45 seconds to produce a copy. After more

improvements, Haloid introduced the first automated photocopier in

1959. Haloid changed its name to Xerox in 1961.

GROWTH OF PHOTOCOPIER INDUSTRY IN

GLOBAL SCENARIO:

Key not estimates that the market for photocopiers (copiers)

machines was worth 580 pounds m at msp (manufacturers’ selling

prices) in 1999, composed of 580 pound m from copiers and 110

pounds m from fax machines. These figures include sales of

multifunctional products (MFPs), which the manufacturers tend to

position as developments of photocopier/printers.

Copiers fall into seven segments according to their speed of

operation, plus an eighth segment for colur copiers, which accounts

for a small but fast growing proportion of the market.

The photocopier market has shown a gradual increase in

volume between 1995 and 1999. Improved performance and price

ratios have tended to decreased the value of sales but this effect has

been offset by other factors, mainly the trend from analogue to more

expensive digital copiers and the growth in sales of colour copiers.

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Several different trends could affect the market progress up to

2004, but key not predicts that the overall effect will be a fairly flat

value and volume. Sales of multifunctional photocopier products are

having an impact on the fax sector and manufacturers expect that they

will account for up to a third of unit sales by 2002. Their penetration

is limited mainly to the small office/home office (SoHo) sector and

very small business customers. The thermal roll fax sector is

expected almost to disappear by 2002.

In the photocopier market the trend to change to digital from

analogue seems certain to progress further. Digital copiers could

possibly account for 70% of placements in 2000 and nearly all of the

market by 2004. A further fall in the price of colour copiers is

expected and their sales will subsequently increase. Further growth is

expected for networked digital copier/printers.

Key note estimates that the apparent UK market for

photocopiers and fax machines, including multifunctional products,

will remain fairly static over the period from 2000 to 2004, rising to

705 pounds m in 2000 before falling back to 690 pounds m by 20004.

GROWTH OF PHOTOCOPIER INDUSTRY IN

INDIAN SCENARIO:

Documentation Industry is expanding at a rate of more than 20 per

cent and the world majors have recognized the Indian market as a

thrust area. They are present in India either through joint ventures or

through 100 per cent subsidiaries. The high import duties, which had

tilted the balance earlier in favor of the unorganized market, are now

22

being rationalized. The market is perceived as being very lucrative

considering the potential demand of photocopiers. The key success

factors are technology, after-sales service and accessibility to the

consumer. Being partners of global players, all the major companies

have access to latest technology. After-sales service has so far played

an important role in the expansion of the markets. However,

sustainable income of a company will largely depend on the number

of machines sold as the customers enter into the service agreement

with companies. India being a signatory of the International

Technology Agreement is committed to reducing the import duty on

digital photocopiers by 2003. This will transform the market, which is

expected to treble by 2004.

These are the some of the companies, which are manufacturing the

photocopiers, Printers, Scanners and Fax Machines.

XEROX

This Company has state-of-the-art manufacturing facilities at

Rampur, UP, for copiers, toners, developers, printer wire board

assemblies and complex engineering components under one

roof. Besides marketing its products in India the company is an

important supplier of copiers, components and consumables for

Xerox plants worldwide. Modi Xerox has positioned itself as a

complete document company and cornered a 55 per cent

market in the photocopiers market. The transition has enabled

it to offer a range of products including copiers, printers and

fax machines. Clearly a front-runner.

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RICOH

Ricoh company Ltd. Is one of the world’s leading suppliers of

office automation equipment, including copiers, facsimile

machines, data processing systems, and related supplies. The

company is also renowned for its state-of-the-art electronic

Devices Ricoh Company, Ltd., is one of the world’s leading

suppliers and photographic equipment.

GESTENTER

A 51 per cent subsidiary of Gestenter Holdings, UK, the 73-

year-old Indian arm of the company manufactures and

distributes copy printers, stencil duplicators, accessories and

consumables. The company also provides technical services. It

launched digital photocopiers last November. It is the market

leader in the copy printers and stencil duplicators segment,

with market shares of 70 per cent and 85 per cent respectively.

A strategic alliance with its subsidiaries to exploit the Indian

market is likely.

CANON

A 100 per cent subsidiary of Canon, Japan, the company was

incorporated in 1997 to manufacture and market Canon

products in India. It has a market share of 11 per cent in the

Indian photocopier market. Canon offers the latest technology

products from its parent's stable, and after-sales service is

rendered through its direct and indirect service channels. The

market in India is expected to grow by more than 15 per cent

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and the company expects to derive a major part of its income

by selling boxes. This company has potential and could emerge

as a dark horse from this segment.

HP

A 100 per cent subsidiary of Hewlett-Packard (hp), US, the

company was established in India in 1994. The company's

offerings span IT infrastructure, personal computing and access

devices, global services, and imaging and printing. The May

2002 merger of Hewlett-Packard and Compaq Computer

Corporation forged a dynamic, powerful team of 140,000

employees with capabilities in 160 countries and doing

business in 43 currencies and 15 languages.

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EVOLUTION OF XEROGRAPHY

Chester F. Carlson was born way back on February 8, 1906 in

that great city of Seattle. His father was a barber who ended up

settling the family in San Bernardino, California. Unfortunately, his

father developed crippling arthritis. Then, to make things even worse,

both mom and dad contracted tuberculosis. By the time Chester was

fourteen years old, he was the main source of income for the Carlson

household. Mom died when Chester was seventeen years old.

Yet, despite all of Chester's hardships, he managed to enroll

himself in a junior college at Riverside, California. He then moved on

to earn his Bachelor of Science degree in Physics from the California

Institute of Technology in 1930. This left Carlson $1,400 in the hole

during the Depression. Finding a job to pay off this debt was not easy.

Chester sent out letters to 82 different companies. He only received

two replies, and no job offers.

Carlson ended up working as a research engineer for Bell Labs

in New York City for just $35 per week. This job didn't last very

long. As the depression deepened, Bell was forced to lay Carlson off.

Realizing that he probably could not find a job in his desired field,

Carlson settled for a job at the electronics firm of P. R. Mallory,

which was famous for its batteries. He was eventually promoted to

manager of Mallory's patent department. At night, he went to law

school to become a patent lawyer. This dead end job at Mallory ended

up leading Carlson to the invention that would change the world. He

found that there were never enough copies of patents around. There

were only two choices at the time to get more copies: either send the

26

patents out to be photographed or laboriously write new ones. Both

methods proved to be very expensive and time consuming. To make

matters worse, Carlson was nearsighted and started to suffer from

crippling arthritis.

Carlson knew there had to be a better way to make copies. The

only problem was that no one knew how. He was going to find out.

It would be nice if Carlson had immediately found a solution to

this copy problem, but it wasn't that easy. Chester's first step was to

head straight to the library - the New York Public Library to be

specific. He spent many months pouring through tons of scientific

articles. Articles related to the field of photography were immediately

ruled out. This field was loaded with tons of corporate researchers

that had extensively analyzed every nook-and-cranny of the process.

Besides, photography was a wet and messy process. No, the answer to

quick.

Copier .

Carlson turned his attention to the field of photoconductivity. This

was a relatively new field that was discovered by the Hungarian

physicist Paul Selenyi. It seems that when light strikes the surface of

certain materials, it's conductivity (flow of electrons) increases.

Carlson, being a physicist, had that flash of inspiration that all

inventors talk so much about. Perhaps you just made the same

realization. (You're about fifty years too late.) Carlson realized that if

the image of an original photograph or document were projected onto

a photoconductive surface, current would only flow in the areas that

light hit upon. The print areas would be dark and not allow any

current to flow.

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But, as all inventors know, inspiration doesn't make for an

invention, it's the perspiration. You know, thirty seconds to think of

the solution, sometimes an entire lifetime to actually get it to work.

Carlson set up his lab in every inventor's favorite workplace,

the kitchen. It was in the kitchen of his Jackson Heights, Queens’s

apartment that the basic principles of what he termed

"electrophotography" were put down. His first patent was applied for

in October of 1937.

Unfortunately, his wife was getting sick of these endless

experiments and demanded that he get out of her kitchen. (She

eventually walked out of his life for good. I bet she regretted that

decision after he made his millions.) The laboratory was moved to a

room in the back of a beauty salon owned by his mother-in-law in

Astoria, Queens. Since he was suffering from arthritis and had little

patience for the endless experiments, Chester hired an unemployed

German physicist named Otto Kornei to help him out.

You may recall from your high school earth science classes

that sulfur is a yellow mineral that does not conduct electricity. This

is true, but when exposed to light, it will conduct a small amount of

charge. So, one day Otto took a zinc plate and covered it with a

coating of freshly prepared batch of sulfur. He then wrote the words

"10-22-38 Astoria" on to a microscope slide in India ink. The room

was darkened. The sulfur was rubbed with a handkerchief to give it a

charge. The slide was then placed on top of the sulfur and placed

under a bright light for a few seconds. The slide was then removed

and the sulfur surface was covered with lycopodium powder (the

waxy spores from clubmoss).

Drum roll, please...

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With one giant breath of air, the lycopodium was blown off of

the sulfur surface. And there it was - an almost exact mirror image

that said - you guessed it - "10-22-38 Astoria".

The real trick was in preserving the image. Carlson took wax

paper and heated it over the remaining powder. The wax cooled

around the spores and was then peeled away. Yes, the first photocopy

(if you consider the spores of a fungus to be a copy) had been made.

Needless to say, this product was not quite ready for the office.

A tremendous amount of work still needed to be done, but Carlson's

theory was confirmed. But, research takes money, and Carlson didn't

have any. Kornei couldn't see where this was all leading and quit. He

went to work for IBM and was later rewarded for his efforts with

stock from Carlson.

With such a great product, one would think that the companies

would be banging at his door throwing large wads of cash into his lap.

This was not the case. Between 1939 and 1944, Carlson was turned

down by more than twenty of the large corporations, including IBM,

Kodak, General Electric, RCA, and the like.During this time, Carlson

continued his work at P. R. Mallory, which occasionally took him to

the Battelle Memorial Institute, a nonprofit organization that invested

in technological research. During one visit in 1944, Carlson casually

mentioned that he held several patents on a new reproduction process.

As a result of this encounter, Battelle officials expressed interest and

signed a royalty-sharing deal with Carlson, giving Carlson a 40%

share in the proceeds. Battelle was well aware of the amount of

research that needed to be done, but went to work to solve the many

problems. Battelle assigned the project over to a man named Roland

M. Schaffert, a research physicist and a former printer. Schaffert

29

worked on the project all by his lonesome self for nearly a year.

(After all, this was during World War II and our nation's research

energy was focused elsewhere.) When the war ended, Battelle

provided Schaffert a small group of assistants to improve on the

process.

The first step that the Battelle staff took was to develop a new

photoconductive plate. Carlson's sulfur plate just didn't do it. Instead,

Battelle developed a new plate that was covered with Selenium,

which was a much better photoconductor. Next, they spent nearly a

year developing the corona wire to serve a dual role: to apply the

electrostatic charge to the plate and to transfer the powder from the

plate to the paper.

One of the most important developments was the invention of a

better dry ink. Carlson's use of lycopodium powder and other

materials produced a somewhat blurry image. Battelle researchers

substituted a fine iron powder for dry ink and mixed in ammonium

chloride salt and a plastic material. The ammonium chloride was

included to clean up the image. It had the same charge as the metal

plate, so in the areas where there is low charge or no image, the iron

particles stuck to the salt and not to the plate. The plastic material was

designed to melt when heated and fuses the iron particles to the paper.

They called this material toner, since one could very simply use

different tones of developer to produce any color desired. (Three

superimposed colors could be used to produce full color copies.)

On January 2, 1947, Battelle signed a licensing agreement with

a small Rochester company known as Haloid. Haloid manufactured

photographic products at the time and was looking for new

technology to develop. Haloid’s investment in electro-photography

30

was a big gamble, since the company had only earned $101,000 on

sales of $6,750,000 in 1946. The research would cost Haloid a

minimum investment of $25,000 per year.

Battelle and Haloid demonstrated electro-photography to the

world on October 22, 1948, ten years to the day after Carlson's first

successful experiment. The first photocopiers were introduced in

1949. The whole process was inefficient and was not practical when

making a dozen or more copies. It took fourteen different steps by the

user and some forty-five seconds to produce a single copy. These flat

plate (as opposed to the rotating drums currently used) machines were

rejected for being too complicated.

Back to the drawing board.

At the same time, Haloid came up with a better name for the

process. Somehow the name electro-photography was not very

catchy. An Ohio State professor suggested xerography from the

Greek words Xerox for "dry" and graphs for "writing". Haloid named

its first photocopier the Xerox Model A, the last X being added to

make the name similar to that of Kodak, another Rochester

corporation. In 1958, Haloid officially changed their name to Haloid

Xerox, and finally to just

plain old Xerox in 1961.

Success didn't really come to Haloid until 1959 when they introduced

the Model 914, the first fully automated photocopier. It was called the

914 because it could handle paper up to 9 x 14" in size (legal size).

This machine was so popular that by the end of 1961 Xerox had

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nearly $60,000,000 in revenue. By 1965, revenues leaped to over

$500,000,000.

Of course, all good things must come to an end. Chester

Carlson, finally enjoying the profits from his years of hard work,

collapsed and died on September 19, 1968 while walking down 57th

Street in New York City. He had been attending a conference and was

on his way to see a movie during some spare time. Of the estimated

$150 million dollars he had earned from Xerox, he had generously

given about $100 million to charity.

XEROX Corporation

Xerox is the global leader in the document management business,

offering the most innovative array of document products, services and

solutions in the industry.

The Business of Xerox

Xerox has successfully transformed itself into a digital, color

and document solutions and services company, advancing well beyond

its predominantly black-and-white, light-lens copier heritage. Today's

Xerox offers unrivaled expertise in the production and management of

documents: color and black-and-white, digital and paper, across

networks or on a desktop, in a commercial print facility or a quick-

print shop, for the small office or the global enterprise.

Xerox and its joint-venture partner, Fuji Xerox Co. Ltd. of Japan, offer

the industry's broadest range of document products, services and

solutions. It includes dozens of digital imaging devices: printing and

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publishing systems, presses, multifunction devices, digital copiers. It

includes laser and solid ink printers, fax machines, document-

management software, and supplies such as toner, paper and ink. There

also are solutions that help businesses easily print books or create

personalized documents for their customers. And there's a range of

comprehensive document-management services, such as running

customers' in-house production centers, developing online document

repositories, or analyzing how businesses can most efficiently create

and share documents in the office.

Xerox's strategic focus is on three primary markets: high-end

production environments, networked offices from small to large, and

services. Two unifying themes cross all areas and play to Xerox's core

strengths: Color, and solutions that tailor Xerox devices to solve

customer problems.

Of the $15.8 billion in 2002 revenue, the United States

accounted for $9.9 billion; Europe accounted for $4.4 billion; and

Latin America, Canada and other countries accounted for $1.5 billion.

Also in 2002, revenue derived from Xerox's services offerings

represented about $3.3 billion, which includes document outsourcing.

Color revenue, including sales of everything from network printers to

digital color presses and related services and supplies, was $2.8 billion.

About 18 percent of all Xerox equipment sale revenue came from color

equipment.

In October 2000, Xerox began an aggressive turnaround

program to improve liquidity, stabilize operations and significantly

reduce its cost base to improve competitiveness. Since then the

company has effectively executed on key elements of this plan; by the

end of 2002, Xerox had sold about $2.7 billion in assets, eliminated

33

$1.7 billion in annualized costs and reduced total debt by $4.4 billion –

all while sustaining investment in research and development and

creating a strong foundation for the future with re-energized office,

production and services offerings.

A BRIEF HISTORY OF XEROX

Chester Carlson, a patent attorney and part-time inventor, made

the first xerographic image in his makeshift laboratory in Astoria,

Queens, in New York City, on Oct. 22, 1938. He spent years trying to

sell his invention without success. Business executives and

entrepreneurs didn't believe there was a market for a copier when

carbon paper worked just fine. And the prototype for the copier was

unwieldy and messy. Some 20 companies, IBM and General Electric

among them, met his invention with what Carlson called "an

enthusiastic lack of interest."

Finally in 1944, the Battelle Memorial Institute in Columbus,

Ohio, contracted with Carlson to refine his new process, which Carlson

called "electrophotography." Three years later, The Haloid Company, a

maker of photographic paper in Rochester, N.Y., approached Battelle

and obtained a license to develop and market a copying machine based

on Carlson's technology. Haloid later obtained all rights to Carlson's

invention. Carlson and Haloid agreed the word "electrophotography"

was too cumbersome. A professor of classical languages at Ohio State

University suggested "xerography," derived from the Greek words for

"dry" and "writing."

Haloid coined the word "Xerox" for the new copiers, and in

34

1948, the word Xerox was trademarked. Inspired by the early, modest

success of its Xerox copiers, Haloid changed its name in 1958 to Haloid

Xerox Inc. The company became Xerox Corporation in 1961 after wide

acceptance of the Xerox 914, the first automatic office copier to use

ordinary paper.

September 1999 marked the 40th anniversary of the Xerox 914.

More than 200,000 units were made around the world between 1959

and 1976, the year the company stopped production of the 914. In

1985, 26 years after its introduction, Xerox announced that it would no

longer renew 914 service contracts in the United States. Instead, a time

and materials repair service was offered for the more than 6,000 units

still in operation. Today, the Xerox 914 is part of American history as

an artifact in the Smithsonian Institution.

XEROX AND QUALITY:

Xerox products are consistently rated among the worlds best by

independent testing organizations. Since 1980, Xerox and Fuji Xerox

have won 25 national quality awards in 20 countries, including the

world's three most prestigious. In the United States, Xerox is a two-

time winner of the Malcolm Baldrige National Quality Award: for

Xerox Business Services in 1997 and for Xerox Business Products and

Systems in 1989. Xerox Europe, formerly Rank Xerox, won the first

European Quality Award in 1992. Fuji Xerox won the Deming Prize,

Japan's highest quality award, in 1980.

In 2000 the company rededicated itself to quality - long a core

value at Xerox – and updated its set of quality principles and resources

to be faster and more focused. "New Quality" integrated components

of Xerox's traditional "Leadership Through Quality" strategy and was

35

strengthened with Six Sigma concepts. Building on that experience, in

2002 Xerox began an enterprise-wide effort integrating Six Sigma and

Lean Manufacturing tools and processes into a comprehensive strategy

called Xerox Lean Six Sigma. It is a disciplined, data-driven method

of reducing waste and variation in processes so they consistently

deliver products and services at the quality levels, speeds and prices

that customers value – and therefore improve Xerox business results.

Dedicated Xerox Lean Six Sigma deployment managers and "Black

Belt"-led projects now exist in every business throughout the

company.

XEROX AND DIVERSITY:

Xerox views diversity in the workplace as both a moral

imperative and a competitive advantage. People of all ages and from

different backgrounds bring fresh perspectives and boundless

creativity in solving real business problems.

Under the company's balanced work force strategy, senior

managers are evaluated on their ability to hire, retain and promote

minorities and women. Even when the company must reduce its ranks,

the smaller work force is expected to mirror the percentages of

minorities and women in the work force before the reduction.

At the end of 2002, Xerox's U.S. work force was 16 percent

African-American, 8.1 percent Hispanic and 5.3 percent Asian.

Women made up about 33 percent of the total U.S. work force of

40,100. About 52 percent of Xerox senior executives are women,

women of color, or people of color.

36

Caucus groups are another piece of the diversity story at Xerox.

These independent groups of Xerox employees date from the 1960s.

The caucuses, akin to networking and mentoring groups, help

members negotiate the corporate world and work to ensure that their

members, like all Xerox employees, have equal opportunity in hiring,

promotion and training. Caucuses exist for African-American,

Hispanic, Asian, women, and gay/lesbian employees.

Xerox has been consistently recognized by independent

organizations for its employee diversity successes as well as for its

commitment to supplier diversity. Since 1985, Xerox has purchased

more than $4.1 billion in goods and services from minority- and

women-owned businesses in the United States.

Xerox's social responsibility efforts are an extension of the

company's belief that a successful corporation must be an active

participant in society. The company carries out most of its

philanthropy through The Xerox Foundation. It assists a variety of

social, civic and cultural organizations that provide broad-based

programs and services in areas where Xerox employees work and live.

Xerox also is committed to a program of grants to colleges and

universities to prepare qualified men and women for careers in

business, government and education; to further advance knowledge in

science and technology; and to enhance learning opportunities for

minorities and disadvantaged people.

The Foundation contributed some $12 million in 2002 across

five broad areas: education and work force preparedness, science and

technology, cultural affairs, national affairs, and employee/community

activities. Employee/community activities are supported primarily

through four programs.

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The Xerox Community Involvement Program helps fund teams

of employees who work on specific community projects of their

choosing. In 2002, more than 17,500 employees participated in 660

projects. More than 391,200 employees have participated in this

program since it began in 1974.

Under the Social Service Leave Program, employees are granted

paid leaves of up to one year to work on social action projects of their

choice. The program, one of few corporate sabbatical programs

designed to provide opportunities for employees to work full-time in

their communities, is believed to be the oldest of its kind in American

business. Nearly 450 employees have taken leaves since the program

began in 1971.

The Foundation also matches employee gifts to higher

education under the Xerox Employee Matching Gifts Program - about

2,300 gifts in 2002. And under the Employee United Way program, it

educates employees about United Way services and administers

employee contributions. In 2002, Xerox people and the Foundation

gave nearly $5 million to United Way.

XEROX AND WORK-LIFE:

Xerox is committed to helping employees balance the demands

of their professional and personal lives, in the belief that such balance

helps employees to be more satisfied and productive on the job. Xerox

offers a variety of alternative work arrangements and benefits

including flex hours, job sharing and telecommuting, help for first-

time home buyers, child-care subsidies, child-care counseling and

referral, adoption assistance (up to $3,000 per child), help with

parenting and educational concerns, and assistance with elder-care

38

issues.

XEROX AND THE ENVIRONMENT:

Xerox is a pioneer in designing and building "waste-free"

products. In a world of finite resources, Xerox uses materials and

energy efficiently to minimize waste and emissions. Each year, Xerox

saves several hundred million dollars through product remanufacturing

and parts reuse initiatives, diverting well over 100 million pounds of

waste from landfills. All Xerox-designed copiers, printers and

multifunction products are developed to be remanufactured at the end

of their initial life cycles.

Customers also benefit from Xerox's initiatives. The replaceable

copy/print cartridges in Xerox office equipment can be returned free of

charge to be reused, remanufactured or recycled. For some Xerox

products, the return program includes waste toner -- a first for the

industry. Xerox products meet the environmental performance

requirements of the world's strictest ecolabels – including Canada's

Environmental Choice, Germany's Blue Angel and the U.S.

Environmental Protection Agency's ENERGY STAR® - and can save

customers up to 50 percent of electricity costs.

The Xerox Document Centre® family of digital multifunction

products, debuting in 1997, was the first to be designed with

environmental considerations from inception. These MFPs feature

quiet operation, low emissions, energy- and paper-saving features, and

design that will support multiple lifetimes – all characteristics that

have been extended and enhanced in successive generations of

multifunction systems. In addition, by combining the functions of

39

multiple products into one machine, Xerox MFPs significantly reduce

the materials and energy required to provide customers with copy,

print, fax and scan capabilities. The annual energy consumption of

today's Xerox WorkCentre Pro® multifunction system is up to 25

percent less than the combined annual energy consumption of the

standalone copiers, faxes and printers it can replace.

Xerox Phaser® solid ink printers are notable for conserving

materials. They weigh about 25 percent less than typical color laser

printers, and they produce about 95 percent less waste during use

because there are no cartridges and minimal consumable supplies.

Providing high-quality recycled papers since 1994, Xerox also

offers recycled papers with up to 100 percent post-consumer waste

content. Xerox machines are optimized for their use. A growing

number of papers are manufactured using elemental chlorine-free or

totally chlorine-free bleaching and de-inking processes.

As one of the largest resellers of cut-sheet paper in the world,

Xerox ensures the practices of its paper suppliers are consistent with

its environmental goals. In 2003, Xerox will issue to its paper

suppliers a set of environmental requirements, which support Xerox's

commitment to source paper from suppliers that practice sound

environmental management and sustainable forestry.

Xerox has integrated environmental considerations into its

manufacturing operations through implementation of an ISO 14001-

conforming environmental management system. All Xerox

manufacturing sites have achieved certification to this standard.

XEROX AND THE OLYMPICS:

Xerox has been an Olympic sponsor for almost 40 years, first

40

supporting the 1964 Winter Games in Innsbruck, Austria. As a Top

Olympic Partner, Xerox will document the 2004 Summer Games in

Athens, Greece. The company will provide high-speed color and

black-and-white printing and management of official Olympics results

and related documents. Xerox also has long nurtured the Olympic

movement off the playing field, through initiatives such as the Team

Xerox Olympian Program, which helps raise funds for athletes.

THE XEROX TRADEMARK:

The Xerox Trademark Xerox is a famous trademark and trade

name. Xerox as a trademark is properly used only as a brand name to

identify the company's products and services. The Xerox trademark

should always be used as a proper adjective followed by the generic

name of the product: e.g., Xerox printer. The Xerox trademark should

never be used as a verb. The trade name Xerox is an abbreviation for

the company's full legal name: Xerox Corporation.

Xerox adopted "The Document Company – Xerox" as its

corporate signature logo in 1994 to better reflects the companies core

business: document management. At the same time, Xerox launched

the "digital X" as its marketing symbol. The symbol's upper right

quadrant depicts the pixels of digital imaging and the movement of

documents between the paper and electronic worlds. XEROX, The

Document Company and the digital X are registered trademarks of

Xerox Corporation.

41

Xerox At Glance

Chairman and Chief Executive Officer

Anne M. Mulch

Xerox Mission Statement

Our strategic intent is to help people find better ways to do

great work -- by constantly leading in document technologies,

products and services that improve our customers' work processes and

business results.

XEROX VALUES:

Since our inception, we have operated under the guidance of six core

values:

We succeed through satisfied customers.

We deliver quality and excellence in all we do.

We require premium return on assets.

We use technology to develop market leadership.

We value and empower employees.

We behave responsibly as a corporate citizen.

Headquarters

800 Long Ridge Road Stamford, Conn. 06904

42

Founded 1906

Rochester, N.Y., as The Haloid Company; named Xerox Corporation

in 1961.

Business

Xerox Corporation offers an array of innovative document

solutions, services and systems – including color and black-and-white

printers, digital presses, multifunction devices and digital copiers --

designed for offices and production-printing environments. It also

offers associated supplies, software and support.

2002 Revenue

$15.8 billion

2002 Commitment to Research & Development

$917 million, or about 6 percent of revenue.

Employees

As of year-end 2002: 67,800 worldwide, including 40,100 in the

United States.

XEROX INDIA:

The Document Company Xerox India Limited is dedicated to

providing solutions that simplify your work and make you more

productive. Whether you're a small business or a multinational

corporation, we offer products and services that can help your

company improve its business processes and share crucial

information and knowledge. These products make it easy for you to

view, organise and share information in the form of digital

43

documents; to send documents on networks throughout the office or

around the world; and to print, publish and copy them onto paper.

Xerox India Limited is part of Xerox, the US $17 billion

Fortune 500 global Document Company. We are the first in India to

help you recognize the new value of documents in the creation,

capture and transfer of knowledge in the workplace. We are also the

first to help you understand that documents comprise the most

pervasive vehicle that people use to share knowledge with each

other. Our growing portfolio of global, industry-based document

solutions combine services, software and hardware into partnerships

that bring high value to our customers' mission-critical business

processes.

The Vision

The Document Company, Xerox Modicorp will be the leader

in the document market in India, providing document solutions that

enhance business productivity.

The Mission

To develop, manufacture, market, service and finance a

complete range of document processing products, services and

solutions so as to help our customers become more productive.

Xerox India limited , erstwhile Modi Xerox was the outcome of

one man's vision to usher white-collar productivity in India. In the

1960s and 1970s Dr Bhupendra Kumar Modi, erstwhile founder

Chairman and President, Modi Xerox experienced first hand the

power of xerography and discovered the simple joy of copying

reference study material at the touch of a button.

44

Through a tie up with Rank Xerox, a member of the worldwide Xerox

family in UK, Dr Modi founded Modi Xerox, a joint venture

partnership and brought to Indian offices a new level of productivity

and efficiency in business management.

The Xerox Modicorp story can be divided into the following phases:

The Start-up years (1983 - 86)

The Take-off Phase (1986 - 89)

Maturing of the Partnership (1989 - 91)

Evolution into The Document Company (1991 - 95)

Gearing up for Globalisation & Knowledge Growth (1995 - 99)

2000 & Beyond : Leading the Digital Document Revolution

Xerox India Limited has successfully transitioned three major

movements in India since its inception:

From copying to printing.

From black and white to colour.

From stand-alone analog to digital, networked products.

RECOGNITIONS ACHIEVED:

First in industry to achieve ISO 9002 for both

Manufacturing and Customer Service Support.

Among first 10 companies in India to obtain ISO 14001 for

complete environment management systems.

National HRD Award

45

Quality training programs and Best Practices imbibed and

shared within Xerox (Egypt and Saudi Xerox) as well as

lead management bodies in India.

Benchmark Manufacturing & Supply Chain operations for

copiers, consumables and parts.

Photoreceptor and Toner multinational qualifications from

Xerox.

Export Achievement Awards 1996-97 & 1997-98

1999 Golden Peacock Award for Value Engineering new

Modi Xerox 5216 copier variant.

ENVIABLE ENVIRONMENT HEALTH & SAFETY

RECORD:

Seven British National Safety Council Awards

22 Xerox Earth Awards

Xerox D&M Safety and Safety Gold Award

Benchmark levels on biological and environmental.

MARKETING CONCEPTS:46

SPANCO Concept:

XEROX adopts the SPANCO concept of Industrial Marketing

for marketing and selling of its products.

The following are the steps involved in the sales cycle of

XEROX products.

SUSPECTING

In this step the customer is contacted either by:

Telemarketing

Cold calls

This is generally done to find whether there is any requirement

for the product or not. The following questions are generally asked :-

What is the purchase process?

Who is the decision maker?

What is the time of purchase?

What is the financial position?

What kind of products is required?

PROSPECTING

After suspecting, the data collected is analyzed to answer

following questions:

What is the status of the lead?

Whether there is a genuine requirement?

What kind of product can be offered?

What kind of offer can be given?

47

APPROACH:

After getting a confirmation that the customer is a prospect, a

proposal is send to the customer stating the type of products available

with the prices.

NEGOTIATION:

After going through the proposal the customer calls up the

sales executive for further discussion. During the discussion the terms

and conditions are laid down both by the customer and sales

executive as well. Negotiation are normally done on:

Price

Service

Features of the product

Offers on the product

Guaranty or Warranty on product

CLOSING:

After negotiation the customer either agrees or disagrees for

purchase. The deal is closed as per the case.

ORDER:

If the customer agrees on purchasing the product and complies

with the terms and conditions then an order is placed. Based on the

data of delivery and installation on the order, the product is delivered

and installed.

48

SPANCO CONCEPT OF SELLING

49

APPROACHING

NEGOTIATING

CLOSING

ORDERING

SUSPECTING

PROSPECTING

BOSTON CONSULTANCY GROUP (BCG) MATRIX

The Boston Consultancy Group (BCG), a leading management

consulting firm, developed and popularized the growth-share matrix.

It helps a firm to identify the company’s business or products with

respect to the market growth and market share.

The different products under the XEROX can be plotted in the

BCG matrix.

(BCG Matrix)

Different products of XEROX can be allotted place in the

BCG matrix according to the Market share and Revenue collected.

Star : Stars are high growth, high share business or

products .They often need heavy investment to finance their rapid

growth. A star is the market leader in a high-growth market. It enjoys

the maximum penetration in the market.

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WC 428

DC 12

1025 5223

Phaser 6200

The market survey has revealed that WC 428 and DC 12

machines of XEROX are present in the market in maximum numbers.

CASH COWS: Cash Cows are low growth, high share

business .These need less investment to hold their market share. They

provide a lot of cash that the company uses to pay its bills and to

support other units that need investment.

The market survey has revealed that 1025 and 5223 machines

of XEROX are present in the market in maximum numbers.

DOGS: These are low growth, low share products. They may

generate enough cash to maintain themselves , but they are not large

sources of cash.

Phaser 6200 of XEROX is considered to be a Dog for the company .

QUESTION MARK: These are low share business units in high

growth market. They require a lot of cash to hold their share. A

Question market means a lot of cash to the company.

The XES Synergix machine of XEROX have been sold in

relatively small number but due to the high price of these machine it

generates huge revenue for XEROX.

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THE SWOT ANALYSIS

A scan of the internal and external environment is an important

part of the strategic planning process. Environmental factors internal

to the firm usually can be classified as strengths (S) or weaknesses

(W), and those external to the firm can be classified as opportunities

(O) or threats (T). Such an analysis of the strategic environment is

referred to as a SWOT analysis

It helps a company to analyze its strengths and weaknesses.

The firm can cash upon its strengths and make good use of the

opportunities. It can work upon its weaknesses and try to convert the

treats into opportunities.

The SWOT analysis for XEROX can be explained by a SWOT

matrix.

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PatentsStrong Brand NameStrong sales networkNetworking companyQuick development High Quality product

High cost structure

Huge potential marketNew technologiesLoosening of regulationsExports to neighboring countries

Shift in customer’s tasteJobbersLow prices products of competitors

STRENGTHS:Patents : XEROX has obtains a number of patents since the time it

developed the first photo-copying machine.

STRONG BRAND NAME:

XEROX has a tremendous brand name. Almost every one who

knows copier knows the word XERX.

STRONG SALES NETWORK:

The company has a strong sales network, which spreads, all across

the country. The Division’s vast distribution and support network

spanning over 100 locations and over 400 experienced personnel

further reinforce its strong operational capabilities. The company‘s

widespread operations also facilitate easy customer reach. This also

helps the company in improving its after sales service and the

response time to customer complaints becomes very less.

NETWORKING COMPANY:

XEROX being a networking company gains an edge when it comes

to digital copier which are specially built for a networking

environment.

HIGH QUALITY PRODUCTS:

XEROX offers high quality products to its customers. It offers a

differential advantage over the competition in quality and service.

QUICK DEVELOPMENT OF PRODUCT:

The R & D of XEROX works night and day to develop new and

innovated products, faster that its competitors can do.53

WEAKNESSES:

HIGH COST STRUCTURES: The one and only weakness

which was found out was that few of the products of XEROX were

high priced than the competitors. So inspite of being the best quality,

the customers prefer to go for the low priced products of the

competitors.

OPPORTUNITIES:

Huge potential market:

The survey had revealed that there is a huge potential in the market

as there are a number of companies which require these

documentation work.

New technologies:

As technology today is rapidly changing, XEROX can come up with

technological advanced products and versions of the existing

products.

Loosening of regulations:

In this era of liberalization, XEROX can utilize the loosening of the

norms and regulation to the fullest.

Exports to neighboring countries:

XEROX can export the products to the neighboring countries which

are not so developed.

54

THREATS:

Shift in customer’s taste : In this changing world, the customer taste

and preferences are also changing. So XEROX has to work

accordingly otherwise it may loose its customer base.

Jobbers:

Many of the organizations are outsourcing their documentation work

through Jobbers. So these Jobbers pose a threat to the company.

Low prices products of competitors:

The customers often go for the lower priced products of the

competitors. So it affects the sale of the company’s products.

55

CUSTOMER SATISFACTION ONPHOTO COPIER

OWNING OF PHOTOCOPIER

TABLE 4.1

Option No of respondents Percentage

Yes

No

100

20

88%

12%

Interpretation

From the above table, it is evident that 100 out of 120 respondents, have

said that they have a photocopier, and the remaining 20 respondents do not have a

photocopier

56

OWNING OF PHOTOCOPIER

0%

20%

40%

60%

80%

100%

Yes No

NO

.OF

RE

SP

ON

DE

NTS

(%)

Graph - 1

57

PERCENTAGE OF MARKET SHARE

TABLE 4.2

PARTICULAS NO. OF RESPONDANTSPERCENTAGE OFMARKET SHARE

XEROX

CANON

HCL TOSHIBA

OTHERS

62

16

12

10

62%

18%

10%

10%

Interpretation

From the above table, It is clear that out of 100 respondents,

Xerox market share constitutes to 62%, canon constitutes 18%, HCL

Toshiba constitutes to 10% and others constitutes to 10% of market

share

58

PERCENTATAGE OF MARKET SHARE

0%20%40%60%80%

XEROX CANON HCLTOSHIBA

OTHERS

NO.O

F RE

SPON

DENT

S (%

)

Graph - 2

59

SOURCES OF INFORMATION FOR PURCHASING PHOTO COPIER

TABLE 4.3

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

ADVERTISEMENTS

SALES PERSON

MAILERS

REFERENCE

OTHERS

15

40

3

2

2

24

65

5

3

3

Interpretation

From the above table, it is observed that out of 62

respondents 24 % of respondents got the idea about Xerox photo

copier from advertisements, 65 % are got the idea from sales persons,

5% are from mailers, 3% are got the idea about Xerox from reference

60

SOURRCES OF INFORMATION FOR PURCHASING PHOTOCOPIER

0%10%20%30%40%50%60%70%

NO

.OF

RE

SP

ON

DE

NT

S (

%)

Graph - 3

61

TYPE OF SERVICE CONTRACT

TABLE 4.4

SERVICE CONTRACT

NO. OF RESPONDATSPERCENTAGE

(%)

FSMA

AMC

THIRD PARTY

55

3

4

89

5

6

Interpretation

Form the above table it is clear that out of 62 existing

customers in government sector 89% of customers are covered under

full service maintaince agreement (FSMA), 5% are covered under

annual maintenance contract (AMC), and reaming 6% of customers

are covered under third party service contract.

62

TYPE OF SERVICE CONTRACT

0%20%40%60%80%

100%

FSMA AMC THIRDPARTY

NO.O

F RE

SPON

DENT

S (%

)

Graph - 4

63

QUALITY OF CUSTOMER SERVICE

TABLE 4.5

OPTION NO.OF RESPONDANTS PERCENTATE (%)

EXCELLENT

GOOD

POOR

63

141

21

28

63

9

Interpretation

From the above table, it is clear that out of 225 respondents, 63

opined that quality of customer service is excellent, 141 respondents

are said that is good, 21 respondents expressed that the quality of

customer service is poor received from Xerox India ltd.

64

QUALITY OF CUSTOMER SERVICE

0%

10%

20%

30%40%

50%

60%

70%

EXCELLENT GOOD POOR NO

.OF

RE

SP

ON

DE

NTS

(%)

Graph – 5

65

AFTER SALES SERVICE SUPPORT

TABLE 4.6

OPTION NO.OF RESPONDENTS PERCENTAGE(%)

VERY MUCH SATISFIED

SATISFIED

DIS SATISFIED

VERY MUCH

DISSATISFIED

70

123

25

7

31

55

11

3

Interpretation

From the above table, it is inferred that out of 225 respondents

70 customers are very much satisfied with the after sales service

support of Xerox, 123 customers are satisfied, 25 customers are

dissatisfied, and 7 customers are very much dissatisfied with the after

sales service support of Xerox photocopier.

66

AFTER SALES SERVICE SUPPORT

0%

10%

20%

30%

40%

50%

60%

VERY MUCHSATISFIED

SATISFIED DISSATISFIED VERY MUCHDISSATISFIEDNO

.OF

RESP

ONDE

NTS

(%)

Graph – 6

67

WILLING TO USE/ PURCHASE

TABLE 4.7

OPTION NO.OF RESPONDENTSPERCENTAGE(%)

DEFINITLY WILL

PROBABLY WILL

MIGHT/MITHT NOT

PROBABLY WILL NOT

DEFINITLY WILL NOT

106

72

29

13

5

47

32

13

6

2

Interpretation

From the above table, it is clear that, out of 225 customers

47% of customers have said that they definitely will to use/purchase

Xerox photocopier again, 32% are probably willing, 13% are might or

might not, 6% are probably will not, and 2% of customers are

definitely will not use/purchase Xerox photocopier again.

68

WILLING TO USE/ PURCHASE

0%

10%

20%

30%

40%

50%

Definitly Will ProbablyWill

Might/MightNot

ProbablyWill Not

Definitly WillNot

NO

.OF

RES

PON

DEN

TS(%

)

Graph – 7

69

WILLILNG TO RECOMMEND

TABLE 4.8

OPTION NO.OF RESPONDENTS PERCENTAGE (%)

DEFINITLY WILL

PROBABLY WILL

MIGHT/MITHT NOT

PROBABLY WILL NOT

DEFINTLY WILL NOT

65

110

25

14

11

29

49

11

6

5

Interpretation

From the above table, it is clear that, out of 62 respondents

29% of customers are definitely willing to recommend others to

purchase the Xerox copier, 49% probably will, 11% might or might

not, 6% of customers are probably will not to recommend others to

purchase the Xerox photocopier.

70

WILLING TO RECOMMEND

0%

10%

20%

30%

40%

50%

60%

Definitly Will ProbablyWill

Might/MightNot

ProbablyWill Not

Definitly WillNot

NO

.OF

RES

PON

DEN

TS(%

)

Graph – 8

71

CUSTOMER SATISFACTION WITH RESPECT TO

FEATURES

TABLE 4.9

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH SATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

VERY MUCH DISSATISFIED

9

36

12

3

2

15

58

19

5

3

Interpretation

From the above table, it is clear that, out of 62 respondents,

15% of respondents are very much satisfied, 58% are satisfied, 19%

of the respondents are neutral, l5% are dissatisfied and 3% of

72

respondents are very much dissatisfied with the features of Xerox

photocopier.

CUSTOMER SATISFACTION WITH RESPECT TO FEATURES

0%

20%

40%

60%

80%

Very muchSatisfied

Satisfied Neutral dissatisfied Very muchDissatisfied

NO.R

ESPO

NDEN

TS

Graph – 9

73

CUSTOMER SATISFACTION WITH

RESPECT TO PRICE

TABLE 4.10

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH SATISFIED

SATISFIED

NEUTRAL

DISSATISFIED

VERY MUCH DIS SATISFIED

2

23

27

9

1

3

37

44

15

1

Interpretation

From the above table, it is observed that out of 62 respondents

3% of respondents are very much satisfied, 37% are satisfied, 44% of

respondents are neutral, 15% are dissatisfied, and 1% of respondents

are very much dissatisfied with the price of Xerox photo copier.74

CUSTOMER SATISFACTION WITH RESPECT TO PRICE

0%10%20%30%40%50%

Very muchSatisfied

Satisfied Neutral dissatisfied Very muchDissatisfied

NO.R

ESPO

NDEN

TS

Graph – 10

75

CUSTOMER SATISFACTION WITH

RESPECT TO QUALITY

TABLE 4.11

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH SATISFIED

SATISFIED

NEUTRAL

DISDATISFIED

VERY MUCH DIS SATISFIED

7

39

14

2

-

11

63

22

4

-

Interpretation

From the above table, it is evident that out of 62 respondents

11% of respondents are very much satisfied with the quality Xerox

copier, 63% are satisfied, 22% are neutral, 4% of respondents are

dissatisfied with the quality of Xerox photocopier.

76

CUSTOMER SATISFACTION WITH RESPECT TO QUALITY

0%20%40%60%80%

Very muchSatisfied

Satisfied Neutral Dissatisfied

NO.O

F RE

SPON

DENT

S

Graph – 11

77

CUSTOMER REQUIREMENTS

TABLE 4.12

OPTION NO.OF RESPONDENTS PERCENTAGE (%)

YES

NO

32

193

14

86

Interpretation

From the above table, it is clear that out of 100 respondents 14

% of customers are ready to buy new machines and 86% of customers

respond not to buy new machines at present.

78

CUSTOMER REQUIREMENTS

0%

20%

40%

60%

80%

100%

Yes No

NO

.OF

RE

SP

ON

DE

NTS

(%)

Graph - 12

79

SUMMARY

we all know that satisfaction is a persons feeling of pleasure or

disappointment resulting from comparing a products perceived

performance in relation to his or her expectations.

It is clear that satisfaction is a function of perceived performance and

expectations. If the performance falls short of expectations the

customer is dissatisfied. If the performance matches the expectations

the consumer is satisfied and if the performance exceeds expectations

is customer highly satisfied or delighted.

OBJECTIVES:

The following are the main objectives of the present study.

To study the level of customer satisfaction of Xerox

photocopier

To know the market share of Xerox photocopier

To Identify the new requirement of customers

SAMPLE SIZE:

80

Sample size refers to the no of items to be selected from the universe

to constitute a sample.

Out of the universe a sample of 225 respondents have been

selected for the present study.

TECHNIQUES FOR DATA COLLECTION:

Using survey method collects the data. In the survey method

questionnaire technique is adapted for the collection of data. The

questionnaires contain both open ended and closed-ended questions.

Tools for data analysis

Analysis was done on the basis of nature of data, statistical tool

used for analyzing the data was percentage method. Percentages were

calculated for each question separately.

LIMITATIONS:

The researcher being a student doing project work in the

company he was unable to extensively cover the market due to

stipulated time limit, which for the purpose of the survey was 2

months.

Apart from that, the major constraints in this study were

Time constraints

Respondent bias

Refusal to co-operate

Lack of information on part of the respondents

81

The results of the analysis based on the survey may not reveal the

complete Indian and global scenario because the survey is restricted

to only a few market segments and cities.

FINDINGS

The following findings are major for the present study

Xerox India Ltd is the market leader and accounts for 62% of

the market share.

In the present survey few (15%) of respondents are very much

satisfied and a majority (58%) of respondents are satisfied with

the features of Xerox photocopier.

Majority (62%) of the customers satisfied and a few (11%) of

the customers are very much satisfied with the quality of Xerox

copier.

In the survey 31% of customers are very much satisfied and

55% of the customers satisfied with the after sales service

support offered by Xerox India ltd.

Brand awareness of Xerox is, mainly due to sales persons.

In survey 14% of the customers were identified as the source of

potential customers of Xerox.

Large numbers of people are of the opinion that, Xerox India

Ltd. machines are very good quality machines, though they are

priced higher when compared to other brands that are available

in the market.

82

SUGGESTIONS

Xerox India ltd needs to improve its after sales service

support in order to keep the same potential in the market.

Xerox India ltd should organize workshops in order to

educate the customers regarding digital photocopier

machines.

Advertising and promotion campaigns should be under

taken to bring about greater awareness in the customers

regarding photocopier machines.

Consumer feedback must be taken after the sale of the

photocopier machines and consider the customer

requirements.

As the customers perceived it, price reduction per

machines and consumables are to be considered.

83

QUESTIONNAIRE

Customer satisfaction - On photo copier

NAME:

ADDRESS:

PH NO:

1)a) Do you have a photocopier?

( ) Yes ( ) No

b) If yes, please specify the details.

Make: -------------- Model No: ------------

2) What is the volume of copies you require through the copier per month?

( ) 0-2000 ( ) 2001-5000 ( ) 5001-10000( ) 10001-25000 ( ) Above 25000

3) How do you get the information regarding the source of copiers?

i) Advertisements --------------ii) Sales persons ----------------iii) Mailers -----------------------iv) References --------------------v) Others ------------------------

84

Note: If your photo copier is XEROX, please attempt question number 4,5,6,7,8 and 9 or else go to the question number 10.

4) Under which service contract you have been covered.

( ) FSMA ( ) AMC

( ) THIRD PARTY

5) Rate the quality of customer service you are receiving from XEROX.

( ) Very much satisfied ( ) Satisfied ( ) Neutral

( ) Dissatisfied ( ) Very much dissatisfied

6) How satisfied are you with the after sales service support from XEROX?

( ) Very much satisfied ( ) Satisfied ( ) Neutral ( ) Dissatisfied ( ) Very much dissatisfied

7) Will you use or purchase same photocopier again?

( ) definitely will ( ) probably will ( ) might or might not

( ) probably will not ( ) definitely will not

8) How likely are you to recommend it to others?

( ) Definitely will ( ) Probably will ( ) Might or might not

( ) Probably will not ( ) Definitely will not

9) How satisfied are you with the features of XEROX photocopier?

( ) Very much satisfied ( ) Satisfied ( ) Neutral

( ) Dissatisfied ( ) Very much dissatisfied

85

10) How satisfied are you with the price system of XEROX photocopier?

( ) Very much satisfied ( ) Satisfied ( ) Neutral

( ) Dissatisfied ( ) Very much dissatisfied

11) How satisfied are you with the quality or performance of XEROX Photocopier?

( ) Very much satisfied ( ) Satisfied ( ) Neutral

( ) Dissatisfied ( ) Very much dissatisfied

12) Do you have any plan to purchase or replace existing machine?

( ) Yes ( ) No

86

BIBLIOGRAPHY

Books

Marketing management: Philip Kotler

Principles of management: Philip Kotler

Research methodology: S R Kothari

Xerox records

Xerox India LTD Annual reports

Sales books

Brochures

Internet sites www.xerox.com

www.canon.com

www.thosiba.com

Magazines Business today

Business world

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