Archived posting to the Leica Users Group, 1998/02/14

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Subject: [Leica] Saving Leica (from Solms)
From: Stephen <cameras@jetlink.net>
Date: Sat, 14 Feb 1998 09:53:30 -0800

OK folks, if Leica sales are on the decline, can the LUG make meaningful

suggestions to increase sales and marketability and so save the company?

I think we can.  Whether Solms is willing to act on them is entirely a
different
matter.   Although I am sure many of you will come up with better
ideas,  these are mine:

1)  Produce Leica R lenses in Canon EOS and Nikon manual focus mounts.

As I understand it, Leica makes more profit in lenses than bodies.
Leica glass on Nikon and Canon would increase lens production at least
10 fold IMHO, probably  a great deal more.   This one change could
easily bring Leica back to flourishing  profitability all by itself.

No doubt there is probably some sort of license fee involved.  Whatever
the obstacles, they  need to be overcome and the new mounts need to be
in production to quickly get Leica back on a profitable track.

While other mounts like Minolta and Pentax might be added later, it
makes no sense to produce Leica lenses in mounts with relatively small
customer bases  such as Olympus or Contax.  Besides, Contax already has
Zeiss lenses.

It isn't something new for a major manufacturer to produce lenses for
other mounts.  Zeiss also makes Hassy and Rollei lenses.    Nikon made
Bronica and LTM lenses.   If Pride is a factor to not making Canon and
Nikon mount lenses, it needs to be put aside for Leica to survive and
flourish.

While it might be argued that this move could mean the end of the R
system, that really wouldn't be much of a loss if you have  the same
optics on Canon or Nikon bodies.

2)  Completely revamp the dealer sales rep network, while at the same
time giving them the support and backup they need to do absolutely the
best job.

I've been told  that something like 60% of US Leica sales come
from only two dealers, B&H in NY and Camera World in Oregon.  While they

get great service from Leica,  many other Leica dealers  I have talked
to feel
pretty much left out of the loop.   They are afraid to complain
because then it might even get worse.     Presumably if Solms would
allow this to happen in a large market like the US,  other dealer
networks are getting less than stellar service as well.

Recently a Leica dealer told me that the new M6 HM would arrive in
"Leica Time."  "Like A Week, Like a Month, Like a Year."   Confidence in
whatever the sales reps say is pretty much nil because the dealers have
been let down so much.  He added "Sometimes the truth hurts."

ALL Leica dealers need to be given the same, GREAT service by their
sales reps.   This alone could double US  sales as dealers start pushing

a product that they are more confident will be backed up.


3)  New Advertising Campaign

In the US Leica is suffering an identity crises among the rank and file
photog.  Say "Leica" and many will give you a blank look and reply "Like

a what?"

Running ads about  the new improved R8 or M6 HP will not get many new
converts because they don't know what a Leica is to begin with.   They
have probably never seen one, much less held one.

I suggest a three pronged ad campaign needs to replace the standard
ineffective
"New & Improved" ads Leica has run for so long.

The First is a "Leica Challenge" where photogs take their favorite
camera into the camera shop.  The Leica Salesman gives them a 24
exposure roll of  BLACK & WHITE 400 ASA  film.   12 shots are taken
inside the shop with the Leica, the film rewound leader out, and then
the remaining shots with the photogs camera.   The film is processed on
the spot.   People will be amazed at the difference.

The Second is a "Hall of Fame" endorsement by the legends of
photography.  HCB, Eisenstaedt (he will probably come back for this
campaign, but if not it could be handled by his estate), Capa etc.  The
best of the best.   A recommendation by anything less than a super star
is useless.   Reading  "Joe Smoe" that you have never heard of  likes
Leica,   is a complete waste of advertising dollars, regardless of how
good they are.   This will also build upon the romance and interest of
photo journalism.   Remember how Ansel Adams increased interest in Large

Format?  Super star photogs can do it for Leica too.

The Third is a slogan campaign that is repeated so often it becomes part

of Leica.   One possibility is "Leica, when you demand  the best."   OK,
so perhaps I am exaggerating, but hopefully it will be true again.

4)  Double funding for Quality Control.

Someplace in Solms is a bean counter (s) who believes it more cost
effective to cut costs in quality control and inspection and then deal
with the inevitable returns, than to do it right the first time.   That
SOB (s) badly needs to be FIRED.

It's a joke, and a bad one at that, for Leica to pretend it's the best
when it's turning out shoddy quality control.  Enough said.

5) Double the size of the repair staff and its competency.

Horror stories of four to six week repairs are common.  There is really
no reason why a world class camera company should be run this way--into
the ground.    Maximum turn around should be two weeks, with a one week
not unusual.

Then there is the question of competency.  A friend of mine bought a
black M2.  It was his first, and he was very proud of it.  It needed a
shutter overhaul, so he asked me who to send it to.  I recommended  a
local repairman who would have done a great job within two weeks.  Well,

he wanted it done "right" and was willing to pay the bill.  So off to
Leica's repairmen in NY.  8 weeks later he gets it back, at over double
the price he could have paid locally.  There was just one small
problem.  The elves in NY had substituted nice new shiny chrome screws
for the ugly old black enamel screws  his M2 should have.  No prob he
thought,  just send it back and get the right ones.  Surprise!  They
don't have them.    If you are no familiar with it, chrome screws on a
black enamel camera greatly lower it's value and salability, as well as
looking like hell.    And to think he paid Leica to screw up his
camera.   That was several months ago, and he has still not been able to
resolve the problem.  As far as I am concerned, the proper screws should
be taken out of display models in the Leica museum and his repair bill
should be refunded for his trouble.

6) Lower the price of R8 and M6 bodies to sell the lenses and
accessories.

Sell the bodies at cost to get people into the system.   It keeps your
factory employed and will pay off in the long run.

7)  Move back into a restored Wetzlar factory and change the company
name back to Leitz.

The phrase "Leitz Wetzlar" is worth hundreds of millions in product
recognition, tradition, and trust.  That it was thrown away uselessly is

one of  the greatest all time mistakes in marketing and trademark
value.    OK, so Leitz sold the business.  Bring one or more back on the

Board.  Give them stock.  Do whatever is necessary to bring back the
Leitz name in the old Wetzlar factory.   It's the greatest tradition in
photography.
WHATEVER THE COST, it will be  a great bargain.

The company that became Exxon spent something like $10,000,000 just to
CHOOSE the name, and then another $50,000,000 to make the changeover.
My recollection of the figures probably aren't right, but it was a HUGE
sum just for a name
change.   Product identification and trust is all important.  That the
phrase "Leitz Wetzlar" would be thrown away just points out the bad
management of the present company.

8) Stop prostituting the Leica name with meaningless commemoratives  and

"Leica" souvenir products.

Leica is about excellence, not suspenders or gimmicks or "Royal Danish
Weddings."  It's
embarrassing to many Leica lovers that the present Solms regime would be

so out of touch with their product, their tradition,  and their
customers that they would stoop to this.

9)  Return tradition to the M line with  engraved top plates and black
enamel finishes.

These features make for a BEAUTIFUL camera, and that is also a lot of
what Leica is about, though the thought has certainly been lost at
Solms.    This might seem like a simple thing, but it is VERY important
to many customers, especially in the Asian marketplace where sales are
lagging now.

BTW more people should consider the titanium body IMHO.  Much better
finish than the current black or chrome.

10) Considering  past history,  even if the absolute best suggestions
(whatever they are)  to increase Leica market share and profits  were
posted on the LUG,  I really doubt if any of them would be adapted by
the Solm elves.

Unfortunately,  it is more likely Solms will stay the present course and

keep Leica  floundering with more of the same old problems,  wondering
what is wrong, until they eventually run out of money and are bought
out.

The up side is that  new management and ownership might improve things a
lot.

Regards,

Stephen Gandy