Dan Johansen. we assess we implement we deliver. For Long Term Growth, Consider Bringing Wide Format and Cut Sheet Under The Same Roof!
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1 For Long Term Growth, Consider Bringing Wide Format and Cut Sheet Under The Same Roof! Ricoh Commercial and Industrial Printing Dan Johansen Marketing Manager, Graphic Arts Wide Format Ricoh USA, Inc. we assess we implement we deliver
2 Today we ll review: 1. The State of WF - Growth, Opportunity and Real World Potential 2. Wide Format applications and markets that will grow your portfolio and profit 3. Why adding WF is additive to your business 4. Expanding your current customer s wallet share while attracting new customers 5. Pitfalls to avoid 6. How finishing and installation is a critical link in delivering wide format products 7. What kind of WF device can be best for your business 2
3 Your Presenter Dan Johansen Boston Based 25 Years in CP and WF Founding Member First WF Shop in NE Recent GM multi-location Sign and WF printer Joined Ricoh
4 The State of the State Let s Face It. Declining margins continue to be a problem in CP. Maybe not for all, but for many. We all need to identify opportunities to grow Margins Wallet Share Customer Base Perhaps - there s a great way to positively impact all of these. 4
5 80% The news isn t so bad, but Expected 2017 Actual % 40% 20% 0% Source Caslon Increase by more than 10% Increase by 1-10% Remained flat- 0% increase Decreased by more than 10% Decreased by more than 10% 5
6 You re not just a printer anymore. Advertising Branding Collateral Cross-Media Direct Mail Promo Products Outsourcing Signage Websites 6
7 What Can You Do? Expand Capacity Invest in Equipment/Software Increase Efficiency Grow Share of Current Applications Expand Applications Enhanced/Differentiated Products New Categories Expand Offerings Ancillary Services 7
8 Wide Format is a Growth Engine Indoor/Outdoor signage POP Fleet Graphics Trade Show Graphics Banners Décor (wall covering/flooring) Corporate environments Short run offerings with sizes cut sheet can t meet 8
9 Wide Format is a Growth Market Good growth and margins Variety of applications and competitors Many service opportunities, demands Retail Value of Wide Format Digital Print ($B) $ % CAGR $16.1 Source: InfoTrends Wide Format Service
10 Wide Format Volumes Growing Providers Over the last year, in terms of volume that you sell, would you say that your wide format business Buyers What is the outlook now for wide format graphics purchasing at your company over the next 12 months? 7.5% Decreased 18.9% Stayed about the same 73.6% Increased 63.8% There will be no change 4.8% It will decrease 31.4% It will increase N = 53 Print Providers Source: Emerging Trends Wide Format, InfoTrends N = 526 Wide Format Buyers Source: Wide Format Printing Critical Element in the Communications Mix, InfoTrends 10
11 WF Application Opportunities GRAPHIC COMMUNICATION $700B PACKAGING $400B DECORATIVE $477B FUNCTIONAL $18B* (*Inkjet Related) Graphic Arts Ink & Toner Functional & Industrial Materials Paper Paper/Board/Plastic Industrial Substrates Objects Addressing CAD Photo Promotional Publishing Signs & Displays Transactional Brand Protection Coding/Barcodes Consumer Labels Corrugated Direct-to-Shape Flexible Packaging Folding Cartons 11 Ceramics Glass Architectural Automotive Consumer Electronics Consumer Goods Laminates Wall/Floor Coverings Wood Textiles 3D Prototypes Tooling / Manufacturing Printed Electronics Semiconductors Displays Solar Panels Biomedical
12 WF = Major Marketing Spend Survey What is your company s total annual spending on wide format prints as a percentage of your company s total marketing budget? Industry Share of Marketing Budget Spent on Wide Format Hospitality 19.9% Events 17.7% Entertainment/Amusement 16.5% Advertising/Media 15.4% Retail 14.9% Healthcare 14.5% Source: Wide Format Printing: A Critical Element in the Communications Mix, InfoTrends
13 Main Objectives of WF Graphics Three Responses Permitted 57.4% % 44.7% Promote products/services at point-of-purchase Presentation materials/displays Outdoor advertising Indoor signage/indoor decor for seasonal promotions 36.9% 35% 22.6% 4.9% Promote products/services at other locations Provide product/service information Provide directional information N = 526 Wide Format Buyers Source: Wide Format Printing: Critical Element in the Communications Mix, InfoTrends 2013 Other 13
14 Volume Driven by Applications Fine Art Vehicle Wraps Backlits Outdoor Signage Expanded CP Products Signage Wall Décor Specialty 14
15 Banners Posters Signs Photography POP displays/signs Decals Billboards Presentations Window Graphics Backlit displays Flags Fine art work Packaging samples Vehicle graphics Floor graphics Maps Textiles (soft Drawings Commercial/Dom Vehicle wraps Proofing/composi Industrial Avg Spending by Application Top 10 15
16 Location Location Location! Wide Format: It s Where the Consumer Is! Time + Place Present + Engaged 16
17 WF = Integral to Marketing Brand Equity Brand Recognition Long-Term Awareness Marketing Support Cost per Impression 17
18 Benefits The Customers Easier to find and locate products, companies or services Easier to distinguish between products Garner knowledge about product(s) and make informed purchasing decisions Ability to find a product based on personal preference or requirements 18
19 Benefits The Customers Customers can potentially make an informed purchase without the assistance of a sales associate Cleaner, more organized POP materials/displays allow for quicker stocking of shelves Potential for increased revenue Ability to guide customers to higher-grossing products/common sellers 19
20 Applications
21 Baggage Belt Gulfport-Biloxi Airport
22 Bus Wrap Copenhagen Zoo
23 WF is Everywhere!
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34 Not just Wide Format small stuff too!
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36 Learn to see like this:
37 Commercial Printers Moving into Wide Format 37
38 As Big As Quad Graphics 38
39 As Small as PIP Peoria 39
40 You re Not Alone Planned for 2014 Considering in 2015 Considering in 2016 or later None Digital Color Cut-Sheet Toner-based Printer/Press 45.6% 19.4% 11.4% 23.5% Digital Color Cut-Sheet Inkjet Printer 35.0% 27.2% 11.9% 26.0% Digital Color MFP/Copier2 13.6% 53.9% 8.3% 24.3% Digital Color Wide Format Printer 10.7% 26.5% 37.9% 25.0% Digital Color High-speed Roll-fed Printer/Press - TONER 10.0% 23.5% 34.2% 32.3% Digital Color High-speed Roll-fed Printer/Press - INKJET 8.5% 19.9% 39.8% 31.8% 0% 20% 40% 60% 80% 100% N = 412 Print Service Providers Source: Production Print Services in North America: Understanding Industry Transformation, InfoTrends
41 Delivering Growth The Value Proposition is Clear Wide Format is AFFORDABLE It s a natural extension of your current offerings to leverage existing relationships and expand your customer base WF technology opens the door for new print applications With a strong economy, marketing budgets increasing Average ROI of WF Solution is in MONTHS Average GM contribution is 2-10X of cutsheet in many markets 41
42 Trends Driving Demand for Digital WF 42
43 Digital WF Printing Trends Demand trends are driving the need for digital production Faster cycle times (61.5% of large format jobs are produced in 2 days or less*) Shorter runs Web-to-print/Online ordering New applications require new capabilities Personalization and versioning Expanded range of substrates for digital devices Cross-media integration to enhance customer experience, engagement, and interaction 43
44 Turn Speed = Capture What are the TOP THREE common turnaround times that you require for wide format graphics printing jobs? 73.5% turn in 24 Hours or Less 24 hours 2 business days 3 business days 43.7% 43.7% 41.8% 5 business days 31.9% > 1 week 4 business days Within the same day that I place the order 20.3% 19.4% 18.6% Provider produces immediately 11.2% N = 526 Wide Format Buyers 0% 10% 20% 30% 40% 50% Source: Wide Format Printing: Critical Element in the Communications Mix, InfoTrends
45 Smaller Orders Sizes How many wide format prints per order do you typically purchase? 100% 80% 60% 40% 20% Mean Number of Prints % 6% 5% 4% 5% 4% 5% 8% 7% 12% 9% 13% 23% 28% 16% 49% prints per order 101 to to to to to 20 6 to 10 <5 prints per order 74% of orders are 20 or fewer prints 0% Base = Wide Format Buyers Sources: Who Buys Wide Format?, InfoTrends 2011, Wide Format Printing: A Critical Element in the Communications Mix, InfoTrends
46 Getting Into Wide Format 47
47 Which One Are You? We re all-in Doing a little bit. You know In the mix. A little in-house. A mix of outsourcing Nope. I don t even know where to begin I m thinking about it 48
48 Where does that put you? Majority of CP s have nothing more than a narrow wide format inkjet device. But I m thinking about it! Here s the good news and the bad news. You re not alone. 49
49 Statistically, well under 10% of commercial printers offer wide format graphics printing services today. It is key to get into a given local market before competing commercial printers do. For those that do, he notes, expanding to include wide format graphics printing is among the lowest-risk and highest incremental profit opportunities accessible. Marco Boer, IT Strategies/Whatheythink.com 50 Boer, Marco. Wide Format Graphics Printing: The Numbers Speak Loud and Clear for those with the First Mover Advantage, WhatTheyThink.com,
50 How does Wide Format relate to my business? To understand this, you have to ask: Who are my customers and I meeting all of their needs? Where are they going for WF and who is my local competition? What drives their WF purchasing decisions? 51
51 How does Wide Format relate to my business? Consider your local area 5-10 miles around your location Corp offices Retail Restaurants Hotels Schools Local Gov t All buying Wide Format from someone! 52
52 So you re ready to expand your business with Wide Format Now What? 53
53 + Products More than just inkjet + Services Finishing, Installation? + Integration into your existing business 54
54 Products & Technology 55
55 Wide Format Technology 56
56 Wide Format Technology 57
57 Wide Format Technology
58 What to consider WF Products 1. Who are your customers? 2. Are you staffed to cross train or new hire? 3. What do you need to print on? 4. How large is large format for you? 5. Do you need white or specialty inks? 6. Device Maintenance 7. Flat / Roll / Hybrid 8. Workflow integration 9. How will you Finish? 59
59 Roll To Roll Printers Variety of flexible media Price points from $5k-$500k Options for inks based on need Basic Aqueous, Solvent/Eco, UV, Latex Broad group of products and options 60
60 Roll To Roll Printers
61 Flatbed Printers Designed for primarily rigid substrates Some have Roll option Ease of use for DS printing Large Footprint Ideal for heavy board use Real Estate Packaging Odd size/shape substrates 62
62 Flatbed Printers
63 Hybrid Printers Both RtR and Flatbed production Extremely versatile Ease of use Quick substrate changeovers Ideal for broad range of applications and diverse customer mix 64
64 Hybrid Printers
65 Finishing Products An integral part of your mix and often thought of last Virtually everything WF needs to be finished Adds add l value to your offering Huge benefits to do in-house 66
66 Finishing Products
67 Wide Format is an investment that pays for itself quickly 69
68 ROI Example - Wide Format Product Type Pro 16H LED Product Cost (Purchase Price) $129, Local Currency Term of financing (months) 60 Annual Percentage Rate 6% Monthly Payment $2, Ink & Media Cost Per Month $5, ROI Breakdown 40,000 35,000 30,000 Revenue by Period Printable ft 2 or m 2 per HR CMYK Day 1 Month Printable ft 2 or m 2 per HR CMYK + White 65 25,000 Productivity (time loss for loading, etc ) 10% Yeild Rate 90% Throughput per ft2 or m2 per Hour ,000 Printing Hours per Day 2 Printable ft² 280 5,605 Total ft 2 or m 2 Printed per Day ,000 Revenue 1,682 33,631 Work Days in Month 20 Total ft 2 or m 2 Printed per Month ,000 Average Sale Price ft 2 or m 2 $6.00 Ink Cost per ft 2 or m 2 $0.15 5,000 Printable Area Revenue Revenue per Month $33, BEP (Break Even Period) Months 4.6 ROI (by Month, Simple) 1126% 0 1 Day 1 Month 70
69 Other Considerations Product Focus Local Market Pricing Needs of current customers Attracting new customers 71
70 Understanding WF Revenue Opportunities An integral part of your mix and often thought of last Virtually everything WF needs to be finished Adds add l value to your offering Huge benefits to do in-house 72
71 Other Opportunities for WF Related Revenue Installation Services Local Permitting Logistics/Distribution Wholesale work for regional shops (at your discretion) 73
72 Key resources to support you WF technology suppliers WF Consumable suppliers* Regional industry groups (PIA, etc...) National groups (SGIA, ISA) 74
73 Printed Examples and Substrates 75
74 Open Discussion 76
75 Wide Format Portfolio With A Full And Diverse Portfolio, Ricoh Wide Format systems deliver digital innovation to help your business grow: Roll To Roll, Flatbed and Hybrid inkjet printers Finishing products for lamination and cutting COLOR RICOH Pro L4130/L4160 Mimaki JFX200/JFX500 RICOH MP CW2201SP EFI H1625 LED EFI Pro 16H Professional Services Service and Support 77
76 Your business. Our leadership. A world of possibility.
77 Wide Format Opportunity Abounds! Embracing change is vital to your business success. Let s meet it head on. We ll deliver more value and added services to achieve greater wallet share. We can help you expand your customer base with new, higher margin products. 79
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