Heidelberg Digital Making its Mark in Digital High-Volume Market Through Multi-Channel Strategy

Canon, Danka, Heidelberg and IBM target different market segments

How can a newcomer in the well-established digital high-volume printing market build a solid presence in less than a year? For Heidelberg Digital, the answer was not to go it alone.

At drupa 2000, the company is showcasing the success of its multi-channel strategy to sell the Digimaster print engine - the flagship of Heidelberg's black-and-white electrophotography business.

Heidelberg Digital partnered with Canon, Danka and IBM to sell its print engine to the world's print-on-demand customers, in addition to Heidelberg's own sales and support unit.

• Canon offers the imageRUNNER 110
• Danka and Heidelberg sell the Digimaster 9110
• IBM employs the engine in its Infoprint 2000 RP1, NP1 and DP1 solutions
• The four channels combine to provide Heidelberg a powerful sales and support foundation. There are currently hundreds of sales staff selling the high-volume print engine in the marketplace.

The channel partners are helping the Digimaster engine make a name for itself in the industry, with some high-profile placements worldwide. This month, Heidelberg shipped its 1,000th engine. Customers around the world are profiting from the product, including shops in Western Europe, the U.S., Iceland and South Africa. Egyptian President Mubarak was given a product demonstration earlier this year, and Heidelberg Digital expects to secure placements in the Middle East, Australia and Eastern Europe by the end of this year.

"Along with our outstanding product, a key to our early success has been a strong sales and channel force - the number of feet on the street," said Dave Erne, vice president of channel marketing, NexPress B&W, which provides marketing support to Heidelberg Digital. "Partnering with highly respected names in document imaging gave us a jump start in the market. We now have hundreds of sales and service staff working to reach all types of print-on-demand customers quickly and efficiently." "Success helps breed success," Erne added. "As each channel achieves results, it helps the other partners leverage the value of the Digimaster system across all market segments."

Multiple-channel approach
Danka was Heidelberg Digital's original channel partner, and began selling the engine in May 1999. IBM started its channel activity in June 1999, and Canon and Heidelberg began ramping up their operations in fall 1999.

Heidelberg Digital chose multiple channel partners because of their ability to target specific market segments.

Each partner offers its own value proposition and expertise, which benefit different market segments. Canon and Danka target traditional corporate reprographic centers and quick printers. IBM focuses on data centers and large corporate in-plant operations. Heidelberg is primarily targeting commercial and quick print shops.

The multiple channels give Heidelberg Digital the ability to build relationships with new customers and to cultivate well-established customer bases as well, which translate into enormous growth potential. Based on the first-year results, the company is confident in its strategy. In less than a year with all four channels, the company has already exceeded its sales goals by 25 percent.

"We've been successful in building market awareness around the world," Erne said. "Now, each channel is dedicated to keeping the momentum going. Heidelberg Digital will support the channels by constantly building on the product's capabilities to meet the needs of every on-demand customer," Erne said.

For further information:
Heidelberger Druckmaschinen AG
Corporate Communications
Thomas Fichtl
Tel.: +49 (0)6221 92 47 47
Fax: +49 (0)6221 92 50 69
E-mail: thomas.fichtl@heidelberg.com

Doug Sprei
Heidelberg Digital, L.L.C.
Tel.: +1 (0)716 726 3894
E-mail: doug.sprei@heidelberg.com

Timothy Cook
Saphar & Associates, Inc.
Tel.: +1 (0)716 325 7624, ext. 39
E-mail: cook@saphar.com