Canon's realigned channel policy reaping good results

The realigned channel strategy of Canon India Pvt Ltd is proving to be a successful move. Sun has been shining brightly on Canon after the dealer's meet held at Jodhpur on October 31. The channel partners are very happy on the company's plan for quality and focus sales. Realigning its distribution mode to a regional distribution model, the responses so far have been assertive for Canon.

The Northern Region's distributor, Compro Computer's Pankaj Bandlish was contented on the impetus and support given to them from this principal. "Qualitative incentives for quantity sales is the order for most of the principals, but Canon is trying to build its channel through personal development of its partners. It is also giving them a fair chance of making quality profits--the most important aspect of a business."

The same perception was shared by Ankur Bansal, CEO, Pulse Systems, "The most comforting fact is that Canon is interested in final sales of its products. It is not interested in just dumping its products to resellers, unlike some other principals."

Alok Bharadwaj, GM (Systems Products Division), Canon India, enumerated the three rules of engagement with Canon and its plans to make the channel partners more strong; and in turn enhance Canon's market share.

Canon is targeting those distribution partners who can provide at least 51 percent of their mindshare to Canon products.

Bharadwaj attributed these changes to the three basic impediments being faced by the company for the last couple of years. First, the negligible consumer pull in the market, which is now being taken care of by its neoteric advertising and brand building exercises. Second, the responses to channel requirement, which were not at all organized. Third was the absence of Canon representatives in the market.

All these factors were kept in mind while formulating the channel policies. Foremost was to build am emotional appeal to the brand involving more people in the buying process of an inkjet printer. Canon is trying to project inkjet printer as a multi utility printer. 'Use it the way you like' is the punchline for its printers.

Earlier the channel was in touch with Canon on a need basis. Now the focus is on building long-term relations with the channel partners. Focus is also on providing higher profits to the resellers, curbing the over distribution and no fluctuation in incentive schemes. Bulk deals are a complete no-no to keep price variation in control, instead retail sales are welcome. The strategy is to keep away from #1 and #2 distributors and concentrate on the smaller players that can give considerable time to its products.

To provide a support to its regional channels, Bharadwaj has also increased the total manpower of his division to render its representatives across the nation.

To build further the brand recall, Canon has divided its channel partners in four categories as brand ambassadors, brand bearers, brand custodians and brand carriers. It has already appointed 30 premium partners for the distribution of its consumables in 14 cities across the country. The channel partners are finding these moves lucrative and are planning to cash on the Canon's offerings. In the process, Canon has been able to increase its revenues tremendously in last two months.