Archived posting to the Leica Users Group, 2000/01/26

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Subject: [Leica] RE: The World-Wide Value of the Leica Name
From: Andre Jean Quintal <megamax@abacom.com>
Date: Wed, 26 Jan 2000 08:14:24 -0500

Leica's best bet for a fast turnaround is to recapture market share in the
camera business.  Price, product and promotion are the only cures.

They have, for the most part, the product.  Now they need the price and
promotion to fall into line.  It is becomming harder and harder to be a high
margin manufacturer.  Leica needs to move toward higher volume
manufacturing/sales.  I believe this is where they are headed, and I am
hopeful for their future.

	--> One problem is that the people who make it happen, the dealers,
	have a lot of other options that bring in just the same profits
	and, most probably, more, as they switch entry level customers
	to higher level models of competing brands that are far easier to
	sell, from a sales floor perspective.

	What factors make such easier to sell ? Antbody reading
	this has a personal opinion that would tend to go the same
	direction.

	Market responsiveness and appropriate reaction time
	are two of the less obvious factors.

	While Nikon designs, markets and SELLS containers full of wonderful
	Nikon EF400sv, while Konica designs "tomorrow's" point and shoot,
	design wise, the Konica Z-up 120VP, meeting enough world demand
	to be taken off the corporate website for now,
	and it probably shifted sales from more expensive models,

	Leica comes out with a Leica C1 "interesting collectible",
	that has very little to offer to a would be photographer
	looking for a simple dependable camera that makes "clear photos":
	the World is NOT a museum, especially not at retail sales !
	Just the Leica C1's ludicrous micro-viewfinder, even worse
	than the Minilux's, is cause enough for concern about
	the sanity of the product managers at Leica !
	Then they ask twice what it's really worth, market wise,
	with laughable specs, actual performances notwithstanding !

	Where's the meat, Mr Leica ? Where's the meat ?

	What about a world-class Z3X -- three -- ... that banks on
	Leica optics' technology and newer manufacturing technologies
	and INSTANTLY gets ANY salesperson to propose it
	as an obvious "top dog" option, with some half-decent chance of
	scoring a sale rather than risk letting go of the precious customer
	to the across-the-street gray marketer for some "mystique" ? ! ?

	At times, one would think Leica responds to aristos and wanna-be's
	who need something to show they're still relevant but not to the
	market at large. While the competition drives van loads of new
	and easy-to-sell PROFITABLE models that owe that very "saleable"
	quality to intelligent and strategic product design
	based on marketing and consumers' real PHOTO needs
	rather than some antiquated "classic" worldview, witness
	the bad shape Leica is in just for that. It either sells or doesn't !
	A warehouse full of "the world's best lenses" doesn't pay for the
	workforce's grocery and other bills !

	That's all called "market forces".

	Leica needs a new product manager and a new marketing team
	who can manage to get past the M-line, and yesteryear's glories,
	put it on the line if need be [ ! ], revamp the bread-and-butter
	price points' offerings: Leica COULD make unquestionable winners
	by overcoming just that very "mystique" of past customers
	who simply aren't about to let go of a 5, 10 year old Leica M
	that works just fine to buy enough stuff to make Leica roll
	on its own ... quarter to quarter, or die out !

	As proposed by others, LINE EXTENSION is one approach:
	one other such "factor". Leica slide scanners, Leica VIDEO pro-
	jectors (consumer levels then prosumer) are good ideas.
	How about entering the after-market lens sales with
	Leica "second tier" designs targeted for Nikon, Canon SLR bodies?
	How about Leica competing Sigma on Sigma's turf ?
	Or Cosina? Or Tamron ?
	Less pristine designs that would still make sense
	to the average Joe "checking out neat stuff" for his
	low priced plastic SLR ?

	My final word: V-A-L-U-E to present day shoppers.
	Leica wins a sale or looses a sale: that's as basic as it gets:
	REALITY.

	Let's never forget: incense darkens all idols !

	Andre Jean Quintal