The document discusses key global developments and trends in the print industry. It notes that 2009 was a difficult year with sales down significantly in the US and Australia. While 2010 showed some improvements, it was largely due to industry consolidation rather than increased demand. Key trends highlighted include the migration of print to digital media, explosive growth in color printing, demand for faster turnarounds, and the print industry workforce evolving to provide more non-production services. The document provides several examples of companies innovating through personalized and targeted multi-channel print marketing campaigns. It emphasizes that future profitability for print companies will increasingly come from providing differentiated services and solutions rather than prioritizing production volume.

1. Global Developments in PrintTuesday September 21, 2010

2. AgendaMost recent sales dataKey trends for the futureExample of value added solutionsFinal thoughts on the evolution of the industry

3. 2009, A most unpleasant year.September 2009 US Shipments were down $907,000,000 compared to 2008.In Australia: printing industry gross value added stood at $3,480 million which is 4.1 per cent lower that the previous financial year's outcome, and 20.9 per cent lower than the reported outcome of two years ago.

4. Profit Picture Isn’t Pretty

5. On the Other Hand1st and 2nd quarters of 2010 showing slights improvements in both US and Australia.US increase due to continued downsizing and the departure of weakest printers, not more demand or higher margins.

6. Key TrendsMigration of print communication to digital mediaExplosion of colorInk jet technologies will take volume from both toner based digital devices and offset presses.Faster and faster turnarounds demandedWorkforce evolutionThe revenue mix is changing to include more sales from non production services.

7. Migration to DigitalSlow economies fueled a faster migration to digital methods of messaging.Digital advertising spend will surpass print in 2010.Out of collective spend of $368 Billion, 32.5% will go to digital advertising with 30.3% going to print.

8. Non Local Production 1980, 70% of all printed products were purchased from a company within 100 miles of the customer.Today it’s 45% and dropping.

9. Asia PacificAsia-Pacific is fastest growing marketPublication and commercial printing growth fueled by developing economies in China and India.High-end packaging applications increasing rapidly especially in Vietnam, Philippines, Thailand, and Malaysia.

10. Color ExplodingIn 1970 most pages were black and white.Full color will be 85% of all print volume by 2020.Today, full color represents 59% of print volume.

11. New TechnologiesHalf of all printing will be done digitally by 2020.Inkjet printing promises to take volume from both toner based engines and offset presses.

12. TurnaroundsShort Run classified as under 2,000.Time Sensitive is classified as less than 2 days.In U.S. 8% of work is required in less than 24 hours. That percentage is expected to grow to 30% by 2020.

13. Current Revenue Mix$1.1 Trillion (US dollars) Industry

14. Future Revenue MixAs traditional print volumes decline, revenue will come from new services.Strategic marketing and creative servicesProgrammingDatabase servicesEmail distributionTracking and analysis

15. Watch Out ForBuying equipment, software and people before there is business to justify the expense.Develop partners who can supply critical servicesSqueeze costs out of integration processesConsider new business models for access to services and talent

16. It’s a One to One WorldRun lengths continue to decrease.Getting the right message to the right person at the right time via the right channel is the future of marketing.Customized markets not mass markets.Social media is providing a way for niche businesses of all kinds to reach interested constituents.Presents opportunities for one to one marketing for these new businesses.

17. Direct MailRemains an effective marketing tool when used correctly.Direct mail offset print volume has peaked and is dropping.Growth is in personalized print and shorter run lengths.

18. Encouraging News18 – 34 year olds prefer to learn of marketing offers via direct mail rather than email.

19. Reflection of Email Proliferation and Spam25 percent of respondents perceive they're getting more postal mail compared to a year agoBut…Nearly three times that amount say they're getting more e-mail.

20. Sainsbury – The UKProgram objectives:Engender loyalty among a key segment of customers usingpersonalized messaging and offersSignificant results reported by user:Increased redemption rate to more than 50%Representing a 50% increase over non personalized tactics.Free gift varies according toShopping behaviors

21. Solution DevelopmentAgency for strategy and creativePrinter/MailerDigital PressVariable data softwareDirect Smile for icing fonts

22. Cross Channel AnatomyTrackable Response/Purls Gurls/CurlsMessaging/ChannelsCapture InformationDataNurture ActivitiesRevenueBest Practices

23. Business NeedDeclining donationsNeeded to engage alumni and cultivate new donorsStrategyPersonalized postcards sent to targeted alumni segmented by age groupSecond channel used when email address was known Recipients directed to Personalized URL and encouraged to join Facebook Cause pageGirl Scouts – Arizona, USA

24. Results4.9% unique response rate31% of respondents donatedIncreased average donation amount from $50 to $250Grew Facebook membershipCaptured information on referralsResults – Girl Scouts Arizona

25. Solution DevelopmentFranchise provided marketing understanding to develop a thorough multi-channel solutionSales professional with ability to build a business case for a multi-channel solutionVariable data print, email and purl softwareDigital print engineMailing capabilities

26. QR Codes

27. QR CodesMerge print and digital communication to enhance the recipient experience and drive results.Provides way to integrate video, audio, additional relevant content and e-commerce into print.

28. Augmented Reality

29. Augmented RealityOffers tremendous potential to add value to educational, entertainment and marketing oriented print.

30. TransPromoIncreases effectiveness of the information communicatedProvides a way to easily integrate billing and sales messagesColor and graphics improve responseImproves readability and reduces traffic to call centersTransPromo - Spain

31. TransPromo: More Than a Pretty RedesignAutomobile Finance Lease Statement)BEFORE: Preprinted color (logos & tints) sent through laser printerAFTER: “Full color imaged on white paper. 100% variabledata

32. Solution DevelopmentTransactional print, data and forms design expertiseSales professional who could build a business case for workflow process engineering and combining transactional and marketing documentsPrint Service Provider specializing in transaction statementsHigh volume print engine, GMC softwareDistribute and print capabilities

33. Re-engineering the workflow/value chainBooksEnrollment kitsSpecialty photo productsMagazinesWeb to PrintPrint On DemandCollateral management

34. Short Run Book Publishing20-40% of all books printed by traditional publishers are destroyed.A re-engineered supply chain can reduce waste and associated warehousing, inventory, and shipping costs.The result is more publishing of first run books by digital technology.

35. Advanced and Review CopiesKeeping books in printBacklistsShort runsShort Run Book Printing

36. The Blitzprint Approach

37. Threat of Electronic SubstitutionSales of wholesale e-books for February 2010 were $28,900,000, a 339.3% increase over February 2009 ($6,600,000). Opportunities is in niche markets where hard copy is preferable.

38. Magazines – Hansaprint, FinlandBusiness ObjectivesTest the concept of personalized magazines (Magazine 2.0)Research the brand effects of personalized magazine adsCompare personalized magazine ads to printed direct mailIntroduce Magazine 2.0 concept to potential customers

39. Hansaprint - ResultsPersonalized ads vs. static ads 93% of all responses came those receiving personalized versions.Personalized direct mail vs. personalized adsDirect mail drew higher response rates – 3% vs. 2%.Personalized ads in magazines generated response over longer period of time.

40. Solution DevelopmentPrinting firm specializing in printing, logistics services and e-media solutionsBoth magazine and digital printing capabilitiesVariable data and Direct Smile software

41. MyPhotoFun - NetherlandsProgram ObjectivesOffer amateur digital photographers a convenient method of making quality prints from digital images Print images in book formOffers faster and more convenient production compared to traditional methodsResults Reported by UserSignificant new revenue for TED Gigaprint Print volume doubled during the first few months Number of business partners grewBusiness continues to grow 10% per month

42. Solution DevelopmentManagement team with foresight to develop a business model using other printers as channels and other consumer websites for advertising.Application programming expertise for downloadable end user application.Digital printing capabilities.

43. Business ObjectivesStreamline production of information kits and reports to individualsReduce production costsIncrease participation and investments in plansImprove customer experience by making the document understandableEnrollment Kits – New York, USA

44. Prudential Retirement PlansPlan sponsor name and logo, call out instructions, web links, step by step instructions, retirement income projections MichaelMaria

45. ResultsThe length of the average kit was reduced from 40 pages to 25Production costs were reduced by approximately 30%

46. Solution DevelopmentMarketing agency specializing in highly personalized strategic documents.Size and expertise to go after #66onFortune 500 list of Top American companies. Sale professionals who could position the company as trusted advisor on “mission critical” communication.Database and security expertise.Variable data and design expertise.Digital printing and mailing.

47. Business NeedIncrease brand awareness for Diageo productsIncrease sales of premium spirit brandsStrategyOnline portal where sales representatives create customized drink menus & posters for pubs throughout Ireland and England.Fully automated workflow from order to delivery.Collateral Management - UK

48. ResultsSales of Diageo spirits have risen by 10%Competitive brands have been delisted by some Diageo clients.Diageo Personalized Menus

49. Solution DevelopmentAgency creative.Print service provider designed workflow, web portal and providing programming.Sale professional built business case for a transformed marketing process to improve customer loyalty and drive sales.Variable data and web to print software.Digital printing presses.

50. Opportunity ExistsPersonalized and relevant multi channel campaigns.Short run book publishing.Photo imaging books and products.Trans-promotional documents.Collateral management.

51. As the Print Industry EvolvesDon’t confuse pent up demand with a return to pre downturn levels. The industry has changed forever.Focus on developing differentiation strategies so prospects have a clear understanding of what you do and why they should buy from you.Make strategic decisions that will maintain your differentiation.

52. Differentiation StrategiesNiche manufacturerPrice Performer Most efficient, low cost producer.Supply chain management consultantProviding customer with savings and control of one vendor doing it all.Specific types of business with defined needs.Can’t just execute, must integrate.Marketing services provider – focused on delivering specific results to customers.Does not require ability to produce all aspects of the solution.May also focus on market segments.

53. Your Differentiation StrategyMay also mean changes in your distribution modelInternet sales replacing non value adding sales professionals.Sales professionals who can elevate levels of contact, manage complex sales cycles and develop business cases for their solutions.

54. Workforce EvolutionDepending on the differentiation strategyNew Positions may include:Project managers instead of Customer Service RepresentativesDocument engineersDatabase managersDirect marketing expertsSolution sales professionalsIT SpecialistsNetworking SpecialistsDistribution Specialists

55. ConclusionsFuture profitability may come from not being bigger but better.Profitability from new services with high profit margins, not more production volume.Higher profits come from taking greater responsibility in the business value chain. New businesses targeting smaller niches provide opportunity.Packaging and targeted multi channel marketing solutions.Proliferation of digital content generates new opportunities in photo imaging, short run book publishing and more!

56. SourcesCaslon, the management company of PODiPrinting Industries of America and AustraliaFrank Romano, WhatTheyThink.comNAPL, Strategic Perspective 2010: New Rules of Recovery, Andy Paparozzi