BUILDING YOUR FUTURE WITH PRINT EXECUTIVE SUMMARY

BUILDING YOUR FUTURE WITH PRINT EXECUTIVE SUMMARY

INSIGHT REPORT 2014 FOREWORD At Canon we are passionate about print and we understand the value that it offers businesses and consumers. Print captures memories, imagination and attention. Print builds brands, delivers corporate messages and sells goods, with its tactile nature remaining ever-popular. Our commitment to the future of the print industry and the value it delivers has led us to commission five independent market insight reports since 2008. These reports analyse the trends and opportunities in print, delivering market relevant data to Print Service Providers (PSPs) and ultimately help you to capitalise on a constantly changing marketplace. Our insight story began in 2008 with Digital Printing Directions, in which commercial printers were interviewed to understand how the market was evolving and where future success could be found. In 2009, we focused on CRDs with Corporate Reprographics trends and opportunities, before revisiting Commercial Printers in 2010 with Redefinition of the digital printer to analyse how they were succeeding through the economic downturn. In 2012, we took a new direction by launching, The Bigger Picture, your customers view of the value of print, providing detailed insights into the value of print, how it is used in conjunction with other media, and what PSPs need to do to meet customers needs more effectively. Following the success of these reports, today we re bringing you, Building your future with print. Within it you will see that we have engaged media buyers as well as print service providers, comparing their views and seeing where there are disconnects. We also revisit previous themes from past insight reports to see how anticipated trends may have changed over time. We believe this new report s findings will help deliver a fresh understanding of your customers requirements, as well as highlighting where opportunities lie for future success within the print industry. We re delighted to present this executive summary, containing a few selected highlights from our new report. ABOUT THE STUDY Canon has commissioned an independent technology research consultancy to undertake an in-depth survey of 552 Print Service Providers and print and media buyers across 25 countries. The survey comprises telephone interviews with 275 Commercial Printers and CRDs and 277 buyers, across a wide range of sectors and sizes. This provides a robust and representative view of key players in the print industry today. Some of the questions addressed in the full report include: What role does print have in multichannel communications, and how will this evolve over the coming years? How well are print providers meeting the needs of their customers? Which digital applications offer the greatest potential for future growth and more effective communications? What do print providers need to do to future-proof themselves? What new opportunities are on the horizon? Andrew Harris Professional Print Marketing Manager UK and Europe. 2 Insight Report 2014 Insight Report 2014 3

A POSITIVE MESSAGE OPPORTUNITY FOR GROWTH WITH MULTI-CHANNEL COMMUNICATIONS Building your future with print, highlights some positive messages in relation to print in the minds of buyers, as well as demonstrating how they perceive their supplier relationships. Print Service Providers are seen to be meeting the buyer s needs, with 78% believing they receive value for money from their PSPs. However, there is still room for improvement in terms of offering proactive advice, and bringing new developments and ideas to the table. 84% of buyers think that PSPs are meeting their overall communication needs Buyers awareness of all digital print applications has increased, with a notable rise in the use and consideration of customised event and promotional materials, short-run publications and targeted direct mail. The future demand for all digital applications is also expected to rise over the next 2-3 years, with 67% of Print Service Providers anticipating a growth in print on demand applications and 54% expecting a growth in customised and promotional materials. Print buyers awareness of all digital print applications has increased in the last 2 years The buyers anticipating an increase in their use of print highlight the value that print delivers to their business as a reason to drive their use of printed applications. Currently 20% of Print Service Providers offer their customers cross media or multi-channel campaign coordination. However the proportion of print customers now commissioning multichannel or cross media campaigns has increased from 58% in 2012 to 68% in 2014, highlighting a growing requirement for these services, with buyers commonly seeking help in designing and delivering effective multi-channel campaigns. 55% of print buyers ask their print provider for advice on multi-channel communications Print buyers tell us they are looking not only for high quality and professional services at the right price from their multi-channel providers, but also for creative guidance and collaboration too. 20% 68% 58% The proportion of print service providers offering cross-media or multi-channel campaign co-ordination. The proportion of print customers commissioning multi-channel or cross-media communications campaigns in 2014. The proportion of print buyers in our 2012 research using multi-channel communications. Reasons for expected increase in the use of print Print communicates quality Print is seen as a way of differentiating from competitors The most effective way to reach specialist or older audiences is through print 4 Insight Report 2014 Insight Report 2014 5

THE NEED TO CHANGE PLANNING FOR THE FUTURE In a challenging, constantly changing environment, print providers have long been aware of the need to adapt and modernise, but few have been able to transform their businesses. 84% of Print Service Providers see costs rising faster than revenues. In our 2008 insight report Digital Printing Directions, 72% of Print Service Providers agreed that they can no longer do things as they always have, and need to change. Today, this has risen to 80%. 80% of Print Service Providers state they can no longer do things as they always have. Considering the number of PSPs who believe they cannot continue to do things the same way, it is perhaps surprising that less than half have a formal marketing or business development plan. Only around half of those with a marketing plan review it quarterly or more often. Typically, their marketing plans incorporate data from a range of sources, most commonly including customer feedback, SWOT and financial analysis, views of current industry trends and competitor activity. However, the effectiveness of these plans is rarely measured formally. Often, providers are using only indirect, anecdotal evidence such as customer comments, gut feel and general sales and enquiry counts to gauge their performance against their plans. Creating a formal business or marketing plan for your print operation is another clear opportunity to drive future success. 48% of commercial printers and 32% of CRDs have a formal marketing or business development plan. Of those who agree change is necessary, most trust their ability to change and adapt, they just need a further motivation to do so. Buyers tell us they want their print providers to capitalise on the latest technology and applications, offer a wider range of services and to communicate more effectively. Yet the proportion of print providers considering themselves as communications service providers has actually fallen from 54% in 2008 to 46% this year. HOW TO BUILD YOUR FUTURE WITH PRINT Building your future with print makes some clear recommendations based on its findings, enabling you to drive future success in your print operation: Things have not changed an awful lot really. The customers we ve got on board keep coming back... maybe they might have wanted something else if their eyes had been opened to it? We re not pushing anything else and so not generating any new different work because of it. UK Print Provider 1. Create a marketing and business plan and review it regularly 2. Use your supplier as a source of help for business development support 3. Market your services, particularly the opportunities delivered with digital applications 4. Decide how you can be part of the multi-channel communication opportunity 5. Invest and promote Web- 2-print. Buyers understand and appreciate the benefits 6. Promote the return on investment that print delivers to your customers This executive summary highlights just some of the findings and opportunities detailed within the insight report, Building your future with print. To receive your copy of the full and detailed report, please contact your local Canon Account Manager who will be pleased to take you through the findings and discuss future recommendations that can aid your print operation. 6 Insight Report 2014 Insight Report 2014 7

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