Brother Refresh EZ Print Subscription Service: Difference between revisions
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*monochrome printing now makes '''up to 80% of total print jobs''' in a home or small office environment. <ref name=":0" /> | *monochrome printing now makes '''up to 80% of total print jobs''' in a home or small office environment. <ref name=":0" /> | ||
*color printing has '''decreased in use by 34%''' over the 3 year period measured. <ref name=":0" /> | *color printing has '''decreased in use by 34%''' over the 3 year period measured. <ref name=":0" /> | ||
By comparing the user data against the claim of cost-savings and stipulations in methodology from Brother, it is clear the scenario is one in which the choice given by Brother in '''no way matches a real-world situation or printing habits of the user'''.<ref>[https://wiki.rossmanngroup.com/images/0/0a/Brother_FY2012_New_Product_Lines.png]</ref> Furthermore, Brother engages in a purposefully misleading comparison when they state that the saving is based upon ''"average cost per page of eligible like standard capacity cartridge"'' for they must compare identical products as only genuine Brother cartridges are supplied in the program. | By comparing the user data against the claim of cost-savings and stipulations in methodology from Brother, it is clear the scenario is one in which the choice given by Brother in '''no way matches a real-world situation or printing habits of the user'''.<ref>[https://wiki.rossmanngroup.com/images/0/0a/Brother_FY2012_New_Product_Lines.png Brother FY2012 NPD]</ref> Furthermore, Brother engages in a purposefully misleading comparison when they state that the saving is based upon ''"average cost per page of eligible like standard capacity cartridge"'' for they must compare identical products as only genuine Brother cartridges are supplied in the program. | ||
======Assumptions====== | ======Assumptions====== | ||
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======Brother Industries, Ltd.====== | ======Brother Industries, Ltd.====== | ||
Brother was established in Japan in '''1908''' <ref>[https://wiki.rossmanngroup.com/images/a/a9/Brother_Sales_Revenue_1928-2020.png Brother Sales Revenue (1928-2020).png]</ref> primarily as an industrial manufacturer of machine tools and parts. It was not until 1928 that Brother launched its first mainline product: head-wear specific industrial sewing machine. Owing to their history in manufacturing, Brother's machines were good quality and highly regarded. They sold well and prior to the second-world war, Japanese companies like Brother had access to a | Brother was established in Japan in '''1908''' <ref>[https://wiki.rossmanngroup.com/images/a/a9/Brother_Sales_Revenue_1928-2020.png Brother Sales Revenue (1928-2020).png]</ref> primarily as an industrial manufacturer of machine tools and parts. It was not until 1928 that Brother launched its first mainline product: a head-wear specific industrial sewing machine. Owing to their history in manufacturing, Brother's machines were good quality and highly regarded. They sold well and prior to the second-world war, Japanese companies like Brother had access to a productive and low-cost labor force. This allowed Brother to expand its product line and to firmly capture a share of the industrial sewing category; a market in which they still operate today. | ||
The post war years saw significant Japanese government focus on industrialization.<ref>Mosk, Carl (August 12, 2023) [https://eh.net/encyclopedia/japanese-industrialization-and-economic-growth/ "Japanese Industrialization and Economic Growth"] Economic History Association. Retrieved February 8, 2025</ref> And by the early '''1960's''' and '''1970's''', Japan's electronics manufacturing sector was not only mature but had rapidly expanded. Facts such as a large national labor pool, new access to western technology and the skill-to-cost benefits from earlier government investment, quickly made Japanese manufacturers the leaders in high-quality, low-cost electronic products. Brother too, benefited from this economic environment. It invested heavily in the technology sector and by '''1971''', released a product that would change the company direction and growth into the foreseeable future: a high-speed, '''dot-matrix printer'''. | The post war years saw significant Japanese government focus on industrialization.<ref>Mosk, Carl (August 12, 2023) [https://eh.net/encyclopedia/japanese-industrialization-and-economic-growth/ "Japanese Industrialization and Economic Growth"] Economic History Association. Retrieved February 8, 2025</ref> And by the early '''1960's''' and '''1970's''', Japan's electronics manufacturing sector was not only mature but had rapidly expanded. Facts such as a large national labor pool, new access to western technology and the skill-to-cost benefits from earlier government investment, quickly made Japanese manufacturers the leaders in high-quality, low-cost electronic products. Brother too, benefited from this economic environment. It invested heavily in the technology sector and by '''1971''', released a product that would change the company direction and growth into the foreseeable future: a high-speed, '''dot-matrix printer'''. | ||
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Throughout the late 1990's and early '''2000's''' the company continued to focus within the P&S segment and invested in long-term channel relationships. Now an establish brand, Brother's sales and profitability were firmly tied to the '''parts and consumables''' market. Brother understood that its clients such as OEM, vendors, distributors and large retailers were key to maintaining a strong brand affiliation and to further create an ongoing demand. To acquire new industrial and SOHO buyers, Brother engaged in heavy promotional schedules and further product offerings. It introduced high-end, all-in-one laser printers and high-speed inkjet printers, all at price points not before seen in the market. Brother also sought growth in emerging countries. The company invested aggressively in Asia by promoting and selling low-cost '''monochrome laser printers''', which by now had became their strength and specialty. | Throughout the late 1990's and early '''2000's''' the company continued to focus within the P&S segment and invested in long-term channel relationships. Now an establish brand, Brother's sales and profitability were firmly tied to the '''parts and consumables''' market. Brother understood that its clients such as OEM, vendors, distributors and large retailers were key to maintaining a strong brand affiliation and to further create an ongoing demand. To acquire new industrial and SOHO buyers, Brother engaged in heavy promotional schedules and further product offerings. It introduced high-end, all-in-one laser printers and high-speed inkjet printers, all at price points not before seen in the market. Brother also sought growth in emerging countries. The company invested aggressively in Asia by promoting and selling low-cost '''monochrome laser printers''', which by now had became their strength and specialty. | ||
[[File:Brother_FY2012_New_Product_Lines.png|thumb|504x504px]] | |||
Then into the '''2010's''' Brother's previously positive financial results started to plateau. Its operating income and profits fell, and net sales, though marginally up, had failed to meet forecast. Furthermore, its Printing & Solutions ('''P&S''') segment had not shown the growth expected, especially in Asia where they had invested heavily. | |||
Despite these poor results Brother's strategy remained largely the same: '''grow in all business and all regions'''. It continued to push forward with its aggressive emerging market expansion and it increased mass advertising throughout Japan. Further products and solutions were added to the P&S portfolio including web-conferencing and greeting card software. Brother continued to focus on: | |||
#Maintaining its US and EU presence through retail channels and to '''seek growth through''' '''new SOHO''' & '''SMB''' customers. | |||
#Increasing sales staff, sales channels and supporting promotions to '''expand sales of mono laser printers''' in emerging markets. | |||
But by '''2015''' investors and shareholders had started to ask some tough questions. Despite meeting net sales forecast targets in some segments, company wide income and profit were in significant decline, The previously stable Machinery & Solution division was in free-fall and the anchor for sales and growth, Printing & Solutions (P&S), suffered a 4.3% profit contraction. | |||
In Brother's EOY financial briefing the company acknowledged the stagnation in the P&S market and offered the following insights: | |||
#Global profitability in Laser Business Printers ('''LBP''') was declining due to competitor entry and generic consumables availability. | |||
#The printer hardware market was now very mature and the targeted growth by new product releases was not returning profit. | |||
#Laser | |||
#The printer hardware | |||
#Digitization of documents and images, smartphone uptake and affordability continued to shrink the printing market by 5% YOY. | #Digitization of documents and images, smartphone uptake and affordability continued to shrink the printing market by 5% YOY. | ||
#Multi-function Center ('''MFC''') and All-in-One ('''AIO''') machines were eroding sales growth of use-specific product lines. | #Multi-function Center ('''MFC''') and All-in-One ('''AIO''') machines were eroding sales growth of use-specific product lines. | ||