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
1
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

2
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.
3
 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
4
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.

5
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.

6
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

7
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
8
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.

9
CUSTOMER VALUE:
Our premise is that customers will buy from the form that
they perceive offers the highest customer delivered value.

Customer delivered value

Total Customer Value Total Customer Cost

Product Value Monetary Cost

Service Value Time Cost

Personnel Value Energy Cost

Psychic Cost

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

10
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
11
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.

12
  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.

13
 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

14
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.

15
 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.

16
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

17
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.

18
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.

19
 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

20
to apply electrostatic charge and transfer the powder from the plate to
the paper. Also, toner was introduced for image clarity.

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.
21
 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
22
tilted the balance earlier in favor of the unorganized market, are now
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.

23
• 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

24
 market in India is expected to grow by more than 15 per cent
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.

25
 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
26
were only two choices at the time to get more copies: either send the
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

27
light hit upon. The print areas would be dark and not allow any
current to flow.
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

28
and the sulfur surface was covered with lycopodium powder (the
waxy spores from clubmoss).
Drum roll, please...
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

29
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
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.)

30
 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
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
31
 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

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

32
the industry's broadest range of document products, services and
solutions. It includes dozens of digital imaging devices: printing and
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

33
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
$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."

34
 Haloid coined the word "Xerox" for the new copiers, and in
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.
Caucus groups are another piece of the diversity story at Xerox.
36
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.
The Xerox Community Involvement Program helps fund teams

37
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
issues.

38
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
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
39
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
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
40
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.

Xerox At Glance
Chairman and Chief Executive Officer

Anne M. Mulch

Xerox Mission Statement

41
 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

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 --
42
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
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.

43
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.

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

44
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

• 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.

45
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:

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 :-

46
 • 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?

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

47
• 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

SUSPECTING

PROSPECTING

APPROACHING

NEGOTIATING

CLOSING

ORDERING

49
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.

WC 428
DC 12
1025

5223

Phaser 6200

(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.

50
 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.

51
 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.

Patents
Strong Brand
Name
Strong sales
network
High cost structure
Networking
company
Quick development
Huge potential
High Quality
market Shift in customer’s
product
New technologies taste
Loosening of Jobbers
regulations Low prices
Exports to products of
neighboring competitors
countries

52
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 ON
PHOTO COPIER
OWNING OF PHOTOCOPIER

TABLE 4.1

Option No of respondents Percentage

Yes 100 88%

No 20 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
 O W N IN G O F P H O T O C O P IE R

100%
NO.OF RESPONDENTS (%)

80%

60%

40%

20%

0%
Y es No

Graph - 1

57
 PERCENTAGE OF MARKET SHARE

TABLE 4.2
PERCENTAGE OF
PARTICULAS NO. OF RESPONDANTS
MARKET SHARE

62
XEROX 62%
16
CANON 18%
12
HCL TOSHIBA 10%
10
OTHERS 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
 PER C EN TATAGE OF M AR K ET
S H AR E

80%
RESPONDENTS (%)

60%
NO.OF

40%
20%
0%
XE R O X C A N O N H C L O T H E R S
TO S H IB A

Graph - 2

59
 SOURCES OF INFORMATION FOR PURCHASING
PHOTO COPIER

TABLE 4.3

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

ADVERTISEMENTS 15 24

SALES PERSON 40 65

MAILERS 3 5

REFERENCE 2 3

OTHERS 2 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

NO.OF RESPONDENTS (%)

70%
60%
50%
40%
30%
20%
10%
0%
S RS E S
NT ON NC HE
R
ME RS ILE RE
E E MA E OT
IS SP RE
F
RT LE
DVE SA
A

Graph - 3

61
 TYPE OF SERVICE CONTRACT

TABLE 4.4
SERVICE
NO. OF RESPONDATS PERCENTAGE (%)
CONTRACT

FSMA 55 89

AMC 3 5

THIRD PARTY 4 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
 T Y P E O F S E R V IC E C O N T R A C T

100%
80%
NO.OF RESPONDENTS 60%
(%)
40%
20%
0%
FSM A AMC T H IR D
P A R TY

Graph - 4

63
 QUALITY OF CUSTOMER SERVICE

TABLE 4.5

OPTION NO.OF RESPONDANTS PERCENTATE (%)

EXCELLENT 63 28

GOOD 141 63

POOR 21 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
 Q U AL IT Y O F C U S T O M E R S E R V IC E

70%
NO.OF RESPONDENTS (%) 60%
50%
40%
30%
20%
10%
0%
E XCE LLE NT GOOD POOR

Graph – 5

65
 AFTER SALES SERVICE SUPPORT

TABLE 4.6

OPTION NO.OF RESPONDENTS PERCENTAGE(%)

VERY MUCH SATISFIED 70 31

SATISFIED 123 55

DIS SATISFIED 25 11

VERY MUCH 7 3

DISSATISFIED

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
 A F T E R S A L E S S E R V IC E S U P P O R T

60%
NO.OF RESPONDENTS (%) 50%
40%
30%
20%
10%
0%
V ER Y M U CH S A TIS FIED D IS S A TIS F IED V ERY M UC H
S A TIS FIED D IS S A TIS FIED

Graph – 6

67
 WILLING TO USE/ PURCHASE

TABLE 4.7
PERCENTAGE(%)
OPTION NO.OF RESPONDENTS

47
DEFINITLY WILL 106

32
PROBABLY WILL 72

13
MIGHT/MITHT NOT 29

6
PROBABLY WILL NOT 13
2
DEFINITLY WILL NOT 5

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
 W IL L IN G T O U S E / P U R C H A S E

50%

40%
NO.OF RESPONDENTS(%)

30%

20%

10%

0%
D e fin itly W illP ro b a b ly M ig h t/M ig h P
t r o b a b lyD e fin itly W ill
W ill No t W ill No t No t

Graph – 7

69
 WILLILNG TO RECOMMEND

TABLE 4.8

OPTION NO.OF RESPONDENTS PERCENTAGE (%)

DEFINITLY WILL 65 29

PROBABLY WILL 110 49

MIGHT/MITHT NOT 25 11

PROBABLY WILL NOT 14 6

DEFINTLY WILL NOT 11 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
 W IL L IN G T O R E C O M M E N D

60%
50%
NO.OF RESPONDENTS(%)

40%
30%
20%
10%
0%
D e fin itly W illP r o b a b lyM ig h t/M ig h Pt r o b a b lyD e fin itly W ill
W ill No t W ill No t No t

Graph – 8

71
 CUSTOMER SATISFACTION WITH RESPECT TO
FEATURES

TABLE 4.9

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH 9 15
SATISFIED

36 58
SATISFIED

12 19
NEUTRAL

3 5
DISSATISFIED

VERY MUCH 2 3
DISSATISFIED

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
respondents are very much dissatisfied with the features of Xerox
photocopier.

72
 C U S T O M E R S A T IS F A C T IO N W IT H
RE S PEC T TO FE A TUR E S

80%
60%
NO.RESPONDENTS

40%
20%
0%
V e r y m u c Sh a tis fie d N e u tr a l d is s a t is fieVde r y m u c h
S a tis fie d D is s a tis f ie d

Graph – 9

73
 CUSTOMER SATISFACTION WITH
RESPECT TO PRICE

TABLE 4.10

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH 2 3
SATISFIED

23 37
SATISFIED

27 44
NEUTRAL

9 15
DISSATISFIED

VERY MUCH DIS 1 1

SATISFIED

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
 C U S T O M E R S A T IS F A C T IO N W IT H
R E S P E C T T O P R IC E

50%
40%
NO.RESPONDENTS

30%
20%
10%
0%
V e r y m u c Sh a t is f ie d N e u tr a l d is s a t is fieVde r y m u c h
S a t is fie d D is s a tis fie d

Graph – 10

75
 CUSTOMER SATISFACTION WITH
RESPECT TO QUALITY

TABLE 4.11

OPTION NO.OF RESPONDANTS PERCENTAGE (%)

VERY MUCH
SATISFIED 7 11

SATISFIED 39 63

NEUTRAL 14 22

DISDATISFIED 2 4

VERY MUCH DIS

SATISFIED - -

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
 C U S T O M E R S A T IS F A C T IO N W IT H
R E S P E C T T O Q U A L IT Y

80%
60%
RESPONDENTS

40%
NO.OF

20%
0%
V e ry m u cSh a ti s fi e d N e u tra l D i s s a ti s fi e d
S a ti s fie d

Graph – 11

77
 CUSTOMER REQUIREMENTS

TABLE 4.12

OPTION NO.OF RESPONDENTS PERCENTAGE (%)

YES 32 14

NO 193 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
 C U S T O M E R R E Q U IR E M E N T S

100%
NO.OF RESPONDENTS (%)

80%

60%

40%

20%

0%
Y es No

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:
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.

80
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.

81
 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 ------------------------
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.

84
 ( ) 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

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

( ) Very much satisfied ( ) Satisfied ( ) Neutral

85
 ( ) 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

87