lexmark confidential until announce. x502n and x500n big functionality for a small budget eric...

Lexmark Confidential Until Announce


X502n and X500nBig Functionality for a Small Budget

Eric WallinColor Product Line StrategistWorldwide Marketing PS&SD

WW T3 – Lexington, KYFebruary 9, 2007


Agenda•Product Objective•Market Opportunity•Product Overview

–Improvements from C500–Print, scan, copy and fax features–Get the Most with Host–PrestoPage Manager–New Adjustable legal tray

•Table Exercise•Product Positioning•Supplies Positioning•Warranty Positioning and TCO•Product Messaging

–Tag Line & Positioning Statement–Key Pillars and support points–Superlative Claims

•Things to Know•Marketing Plan•Summary


X502n/X500n Objectives

• Participate in fastest growing segment of the MFP market

• Complete our MFP product line with an entry color laser MFP offering

• Low development and capital spend

• Leverage C500n print engine and supplies volumes for lower cost from vendor

• Fast time to market

• Establish market position and gain customer experience in entry color laser MFP.


Market Opportunity


WWxJ Color MFP Price Segment Growth

Source: IDC, Sell-In 2Q06

WW excluding Japan

•Total Color MFP Growth 68%

•A4 Color MFP Growth 128%

•$500 -$1000 A4 MFP Growth 128%

•Color Laser MFP unit volume is now 10% of Mono Laser MFP70%

60%

40%30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1Q-3Q05 1Q-3Q06

A4

A3

Price Band 1Q-3Q05 1Q-3Q06 % Change<$500 - 2,784 N/A$500-$999 102,894 235,073 128%$1000-$3000 10,450 17,620 69%$3000+ 4,752 14,072 196%Total 118,096 269,549 128%

A4


Asia Pacific10%

Middle East and Africa

2%

US39%

Central and Eastern Europe

2%

Latin America1%

Western Europe

43%

Canada3%

Asia Pacific10%

US36%

Central and Eastern Europe

3%

Middle East and Africa

3%

Latin America2% Western

Europe43%

Canada3%

WWxJ Total Color MFP Market By Region

1Q-3Q05

TOTAL: 398K

Units 1Q-3Q06

Market Volumes

68% TOTAL: 671K

Source: IDC, Sell-In 3Q06

WW excluding Japan

AP excludes Japan

EMEA 47% EMEA 48%


WWxJ Top Color Laser MFP Vendors

0

10

20

30

40

50

60

% M

ark

et

Sh

are HP

Brother

Epson

Canon

Minolta

Oki

Others

WWxJ $500-$999 A4 Color Laser MFP 1Q06-3Q06


Product Overview


U.S., Canada, and LAD Announcement April 24, 2007

EMEA and AP Announcement May 29, 2007

X502n GA 5/5/07, X500n GA 6/25/07

Print Speed - 31 ppm mono and 8 ppm color

Copy Speed – 21 ppm mono and 7 ppm color

Network ready

2400x1200 dpi 48 bit scan resolution

X500n Pricing 100% HP CM1015 ($499)

X502n Pricing 100% HP CM1017 ($699)

Host Based Controller for fast job processing

Uses same Supplies as C500n

Lexmark C502n/X500n Overview

10


•MFP Derivative of C500 - 31/8 pm•Same core engine as C500

•MFP integration

•Scanner hardware (New CCD design)

•Controller, firmware and drivers (host based)

•3rd party fax card

•About 30 new & improved parts added versus C500

X502n Vs. C500n

Scanner

Fax Card Controller+ =

C500n Print Engine

•Improved GUI versus C500

•Lexmark had very little input into C500 GUI / drivers

•Lexmark provided direction for X500n design

•New op panel (wording / button layout)

•New menu structure

•New driver

•Lexmark driver installer

•New Color Science

X502n


Save Money and Space• Finally! One device that does it ALL

$2200 worth of capability for $699 in a

compact size.

31 ppm Network Ready Mono Laser

Workhorse

$499

$569

21 ppm digital color scanner with ADF

$349

High Quality Color Laser Printer

$399

31 ppm Mono Laser Fax Machine

$399

31 ppm Analog Mono Copier


X500n / X502n Features

Front Loading Toner Cartridges

Optional 550 Sheet Drawer $199.00

Scanner cover remains open when

lifted

Standard 250 Sheet Drawer Adjustable to

Legal size

Robust Hand Holds

Easy Front Access for Output

35 Sheet ADF with Reliable

C-Path

Book Hinges for Scanner Cover


X500n / X502n Op Panel

Easy One Touch Black

or Color Copies

Large Buttons on

Number PadEasy and

Intuitive Menu Navigation

Easy One Touch Access to common functions like

Enlarge & Reduce

10 Speed buttons for over 20 preset phone numbers or Email addresses

Illuminated Copy/Scan/Fax

Function Buttons

Easy to See Backlit LCD

Display

Easy One Touch Job

Cancel


X502/X500 – Print

• Color Laser Print Technology• 31 ppm mono and 8 ppm color• 400 MHz processor with 128 MB memory• 1200x600 dpi enhance print quality• Network Ready• 250 sheets of input• 530 sheet optional drawer• Small Footprint• TTFP from Ready 19 seconds color 13 seconds mono• TTFP from cold start less than 56 seconds• Automatic Color Calibration• Simple design with front access toner replacement• Maximum Monthly duty cycle of 35,000 prints• Toner Saver – up to 50%• Host Based Print Driver


X502/X500 – Copy & Scan

• 21 cpm mono and 7 cpm color – copies or scans• TTFC from ready – 30 sec. mono and 35 sec. color• TTFC from cold start – less than 56 seconds mono or color• Scanner Technology – Charged Coupled Device (CCD)• 2400x1200 dpi optical resolution with 48 bits of scan depth• 35 sheet Auto Document Feeder (ADF) Simplex C-Path• Scanner maximum duty cycle 17,500 scans per month ADF or

flatbed • Copy 1-99, Scale 25% to 400%, Lighter/Darker• Paper Saver Copy Menu Selection - 2 up or 4 up• Network Twain Scan Driver• Scan to Email – PDF, jpg, or TIFF• Scan to FTP


X502 – Fax

• Super G3 33600 bps Fax modem• 3 second transmission speed• MH, MR, and MMR compression coding

supported• PSTN and PABX fax network supported• 100 pages memory back up• Mono only• 20 hard button speed dials/emails on

operator panel• 50 additional speed dials/emails in

directory

–Note * X500n does not support Fax


Get the Most with Host

• Advantages–Much Faster Performance–New Smaller files sizes–Easy Network Installation–Great solution for any user of Windows Vista, XP, 2000, NT,

Server 2003 or Mac OS9.x and OSX

• Disadvantages–Cannot be used with legacy or minority operating systems

• Linux, Unix, Citrix, DOS, OS2, Win 3.1, Win 95, 98, Me, Mac OS8 or earlier

–Cannot be used with applications that generate PS or PCL print files

–Cannot be used with mainframe or AS400 systems outputting ASCI text



• Much Faster Performance–X502n and X500n utilize the power of the host PC processor and

memory to RIP jobs extremely fast–The engine runs at rated speed for almost any job: text, graphic

or high resolution photo

0

1000

2000

3000

4000

5000

6000

7000

8000

To

tal P

rin

t T

ime

(s

ec

on

ds

)

X502n (HBP) HP 3800 (PS3) Brother 9420(PCL)

HP CM1017(PCL)


Get the Most with Host– Older Host systems created print files which were very large and did

not pass over the network well.– C500 and X500/X502 have a new host print architecture that reduces

file size on the network.– 1 MB vs 0.5 MB average file size on a 100 Megabits per second

Ethernet network is insignificant.

0

500

1000

1500

2000

2500

3000

3500

4000

LXK PS3

X502n

Ave. Print File Size 500K for LXK PS3

Ave. Print File Size 1000K for

X502n

Pri

nt

Fil

e S

ize

(K

B)



• Easy network Installation–X500/X502 use a Lexmark developed network installer– It has auto IP discovery and auto loading of network addresses–X500/X502 is network ready and can be network installed in 4

mouse clicks–“Network setup was no problem at all.” on C500n

Click 1 – Install Printer and Software

Click 3 – Next

Click 2 – Agree

Click 4 – Finish


X502/X500 – Presto PageManager

• Free Presto PageManager 7.12.03 Deluxe– Share Documents

• Scan Direct with Twain Express– Scans directly to your PC, Fax, email or

application• Scan to network• Supports Microsoft SharePoint on Server

2003• Built in FTP and Web Browser

– Manage and Find Documents• File Stacking – Open multiple files with one

click• OCR with HTML format for instant web

publishing• De-skew• Annotation – add highlighting, notes, audio,

and photo’s to scanned documents• Advanced Search and Thumbnails


New Universal Paper Cassette

• One standard tray accommodates A5 to U.S. legal size–LV only

• Backward compatible to C500n


Table Exercise

• Each table pick a leader who’s home telephone number ends in 4 or is closest to 4

• Thinking of your customer - List the 5 most important features, their function, and their benefit–Example:

• Feature - Extendable Paper Tray• Function – Extends the tray for larger paper sizes• Benefit – Customers can now print legal size with the standard tray

• You have 5 minutes


Product Positioning


2007 Color MFP Product Line

X782e$4499

40/35 ppm

Pri

ce

FunctionLDSS

eTask Interface

A3

Duplex Scan

Solution Card Support

Duplex Output

X930e$10,499

40/30 ppm

X945e$12,499

45/40 ppm

New

New

New

New

New

X500n$499

31 ppm mono8 ppm color

Network Ready

X502n$599

31 ppm mono8 ppm color

Network ReadyFax Ready


X502n/X500n Market Positioning

Target Market– Small to Medium Businesses <500 Employees– Department Managers, Business Owners– Small to medium workgroups (3-15)

Product Positioning– General office printing, copying, and faxing– Average usage: 850 pgs/mo, 600 print, 250 copy & fax – Color in memos, letters, reports, forms, spreadsheets, correspondence, marketing

materials,– technical docs, & presentations– Printing high quality electronic documents through intranets & the Internet– Print on demand collaterals, brochures, and newsletters

C500n Customer Testimonial - Small Business BrochuresThe Spa at Nicholas Michaels – “I was immediately amazed At how fast it prints our brochures. The output is pristine. The red in our logo is incredibly bright and distinct. We printed 300 brochures and inserts in one hour without a jam.”

Marianne Lapomardo – Office Manager


X500n & X502n Competitive Positioning

Lexmark X500n HP CM1015 Lexmark X502n HP CM1017Price $499 $499 $699 $699Speed Mono/Color

31/8 8/8 31/8 8/8

Print Engine C500n, rotary, $349

HP1600, tandem,

$299

C500n, rotary, $349

HP 2600n tandem,

$399

Functions PCS 35 Sheet ADF

PCSPlaten

PCSF 35 sheet ADF

PCSPlaten

Controller HBP PCL6/PS3 HBP PCL6/PS3Network Standard Optional

ENAStandard Standard

Std Sheets In/out/MPF

250/150/no 125/125/no 250/150/no 125/125/no

Resolution 2400x600 600x600 2400x600 600x600

Opt Input 530 250 530 250Color/Mono CPP

$0.118/$0.0217

$0.118 / $0.0232

$0.118/$0.0217

$0.118 / $0.0232

Much More for

Same

Much More for

Same


X502n/X500n Supplies

• X502n and X500n share all supplies with C500n

• HY Black toner cartridge – 5K pages $134.70• HY CMY toner cartridge – 3K pages $119.70• SY Black toner cartridge – 2.5K $90.00• SY CMY toner cartridge – 1.5K $98.45• Waste toner bottle – 30K images - $7.00• Ship with Toner 2.5K mono and 1.5 K CMY

• Not on ISO yield standard

• HY Black CPP = 94% CM1017 – 2.17 cents BDP• HY Color CPP = 100% CM1017 – 11.8 cents BDP

• SY Black CPP – 2.9 cents BDP• SY Color CPP – 18.7 cents BDP

• Photodeveloper 120K images – Lifetime Component• Fuser 60K pages - Lifetime Component

• No Return Program 29


Warranty Positioning & TCO• 1 yr standard Onsite warranty Vs Depot for HP CM1017

–X502n/X500n 2 yr extended warranty Onsite - $259–HP CM1017 2 yr extended NBD replacement - $239

TCO to Print 1000 pages/month 50/50 Mono/Color for 36 months

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

LexmarkX502n

HP CM1017 EpsonCX11NF

BrotherMFC9420cn

Minolta 2490 Xerox 6110 Samsung3110

2 yr. ExtendedWarranty

Other Supplies

Toner

Hardware


Product Messaging


C502n/X500n Messaging

Positioning Statement

The business class color laser AIO with high speed printing, scanning, copying, and faxing.

Product Tag Line

Big Functionality for a Small Budget

32 Lexmark Confidential Until Announce


Messaging Pillars•Versatile to Meet Your Business Needs

- Consolidate multiple functions into one reliable device

- Manage, search and edit documents with ease

- Increase productivity of your office by creating documents with little time and effort

•Professional Results in Color

- Print, copy and scan in brilliant color

- Impress customers with superior print quality, rivaling professional printing companies

- Create unique collateral such as brochures and mailers on a wide range of media

•Business-Class Performance

- Prints fast! Up to 31 ppm in black and up to 8 ppm in color

- Network ready- easy to set up and share among multiple users

- Supports output for heavy workloads

Key Selling Points


Superlative Best in Class Claims

• Fastest printing color laser AIO under $500• Fastest copying color laser AIO under $500• Fastest time to first print or copy for color laser

AIO’s under $500• Highest input and output paper capacity of any

color laser AIO under $500• Fastest processor for any color laser AIO under

$500• Highest Yield supplies and best intervention rate

for any color laser AIO under $500• Lowest cost per page for any color laser AIO

under $500• Highest scan depth for any color laser AIO under

$500• Highest scanner and ADF maximum duty cycle

of any color laser AIO under $500


Things to Know

• TAA models available 6/25/07• Supports USB capable Lexmark and 3rd party ENA’s• Supports Lexmark N4050e wireless ENA• Does not support Lexmark Solutions such as:

–DLE’s, Font Cards, Forms Cards, Internal Network Cards, Hard Drives, Flash Memory, ImageQuick, Confidential Print, or Doc Portal

• C500n 530 sheet drawer option will work with X500n/X502n

• When adjusted for Legal the universal cassette will not close flush with the front of the printer

• Does not support PCL6 or PS3• Does not have a duplex option


More Things to Know

• Will support MarkVision via plug-in for 3rd party• Does not support Color Care Technology• No color samples page for color matching, no

resident help pages, and no Pantone• Cannot upgrade X500n to X502n• Not IPv6 complaint• Not Blue Angel Complaint – Yes for everything

but duplex• Not Energy Star Complaint – Yes for everything

but duplex• C500 drivers will not work with X500 or X502• Driver to Fax function will not be available until

10/07


Marketing Plan

• T3– WW: February 7-9, 2007– EMEA: March 21-23, 2007

• Beta Units– Available 2/12/07 for US, 3/26/07 for EMEA

• Eval Units– U.S., LAD, and Canada Evals to be air shipped and arrive

3/26/07– EMEA and AP Evals to be boat shipped and arrive 4/23/07

• Announce & GA– X502n and X500n to Announce in the U.S., Canada, and

LAD on 4/24/07– X502n GA for US, Canada and LAD is two weeks delayed

• 648 units 4/29/07, then 432 5/5/07– X502n and X500n to Announce in EMEA and AP 5/29/07– X502 will have full GA for EMEA and AP on 5/29/07– X500n will have full WW GA 6/25/07


X502 Product Lab

• Un-boxing video• Change supplies• Adjust new universal tray• Pull scanning from PC• Up-load fax numbers and email addresses• Explore operator panel function• Explore driver function• Learn jam clearance• Make prints and copies• Scan to email and network


X502 Competitive Lab

• 10 New sub $1000 color laser AIO models announced and shipping in the last 3 months

• Learn their weaknesses• Print and copy samples with originals available.


Summary

• Extreme versatility in business environments–One device does it ALL

• Professional “copy shop” quality and reliability.– Impress clients with brilliant color

• Blazing performance for mono and color: print and copy.– Networked and ready for heavy print/copy demands

Lexmark Confidential Until AnnounceThank You