Re: [Leica] Re: Leica's Development and Management

[HFHUBER@t-online.de (HFHUBER)]

Hi Alan and Bill,

Leica is a relative small company. A few weeks ago I´ve been in Solms to a 
Leica-Card-Member meeting. They presented their turnover values of 1997. It was 
about 260 Mio. DM (approx. 150 Mio US$). Compare this count with Nikon or Canon! 
I was also very surprised of the allocation of this turnover, US about 30%, 
Germany more then 30% and the rest for outside Europe and Asia. These values 
give an impression of the market rank of Leica in comparison to the big ones 
Nikon and Canon. I was also wondering about the slight market penetration of 
Leica in the US compared to the huge marketsize.

I think, for this size of that company they do a lot of marketing reputation and 
development.

regards 
Hans-Ferdinand
HFHUBER@t-online.de


Alan Ball schrieb:
> Bill, 
>
> Analogies are always risky. From cars to shoes ;-)
>
> I buy my shoes in a well supplied shoe shop. But I also buy my Leica
> equipment from a well supplied camera shop. I usually buy from that well
> supplied shoe shop a brand of shoes that is marginal, offers very few
> choices and is relatively expensive. I do more or less the same in my
> camera shop, despite all the competitive offers on sale there.
>
> So, I feel your analogy is not working in this case... ;-)
>
> I find that the "Leica's development & management" question looks like a
> business model question rather than a 'pure' marketing deficiency.
> 'Small (and expensive) is beautiful'  seems to be the moto, and
> expansion oriented investments seem to be considered too much of a risk.
> So, we are stuck with 'given' production lines and capacities, which
> entail a narrow assortment of products at exorbitant prices. Adding or
> reintroducing products in that situation implies either stopping the
> production of other models either outsourcing to other companies either
> investing massively in new lines.
>
> As in any line of business, the market decides if the management
> strategy is sound or not: turnover figures, profitability and return on
> share are the decisive factors. And they have not been looking so good
> lately, have they ? 
>
> Alan
>
> Bill Erfurth wrote:
> > 
> > Arturo wrote:
> > 
> > >>>Ultimately, despite our constant
> > comparisons, Leica products do not compete with Canon, Nikon, Minolta,
> > etc.;<<<
> > 
> > Hello Arturo,
> > 
> > I must respectfully disagree with your statement.  My question is, "
> > If Leica is doing so well and has all of these great products, why do
> > I see all of those Nikons and Canons and few if any Leicas on the
> > street?"
> > 
> > For the sake of this discussion, let's forget about Point & Shoot
> > cameras and Binoculars. and look at the Ms and Rs.
> > 
> > De facto, Leica has three and only three products to sell.  The M6TTL,
> > the R6.2, and the R8.  Th-the, th-the, th-that's all folks. So if you
> > are looking at getting into the Leica system those are your choices.
> > (I know the M6TTL has two view finders but in fact, it is still one
> > body).  Compare this to number of products offered by Nikon and/or
> > Canon.
> > 
> > Now, if you are shopping for a pair of shoes, where are you most
> > likely to buy those shoes, (a) at the store that has three pair in the
> > window, or (b) the store that has twice as many or three times as many
> > pair in the window (of course, the answer is "b".  The mentality of
> > the marketing department in Solms is, "This is what we have, take it
> > or leave it."  The problem is that most people are leaving it.
> > 
> > The quick solution to Leica's problem is to (a) continue making the
> > regular M6 (and 6HM), and (b) restart manufacturing the R7.  These two
> > quick and easy steps would increase Leica's product line by 66%.
> > 
> > And while we are talking about marketing, Why doesn't Leica introduce
> > a "European delivery program".  All they have to do is put together a
> > package where you can pickup you new M6 or whatever at solms.  The
> > customer would buy the camera and the travel package from the dealer.
> > The travel package would include round-trip airfare, several nights in
> > a hotel, a rental car or a rail pass.  They could co-op the deal with
> > an airline, car rental company, etc.  They would have a great, new,
> > unique, promotion, sell more cameras and make extra profit  by selling
> > the travel package all at one time.
> > Now, if the marketing department in Solms can't put a program like
> > that together and have it out to the dealers in 60 days or less, they
> > need to take a hard look at the people running the marketing department.
> > 
> > If I were a major stock holder in Leica Camera, AG, I would be
> > extremely unhappy.
> > 
> > Kind regards,
> > 
> > Bill Erfurth
> > 
> > 
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