Archived posting to the Leica Users Group, 1998/11/27

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Subject: Re: [Leica] Re: Leica's Development and Management
From: Alan Ball <AlanBall@csi.com>
Date: Fri, 27 Nov 1998 10:42:01 +0100

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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