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X502n and X500n Big Functionality for a Small Budget

X502n and X500n Big Functionality for a Small Budget. Eric Wallin Color Product Line Strategist Worldwide Marketing PS&SD WW T3 – Lexington, KY February 9, 2007. Agenda. Product Objective Market Opportunity Product Overview Improvements from C500 Print, scan, copy and fax features

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X502n and X500n Big Functionality for a Small Budget

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  1. X502n and X500nBig Functionality for a Small Budget Eric Wallin Color Product Line Strategist Worldwide Marketing PS&SD WW T3 – Lexington, KY February 9, 2007

  2. Agenda • Product Objective • Market Opportunity • Product Overview • Improvements from C500 • Print, scan, copy and fax features • Get the Most with Host • PrestoPage Manager • New Adjustable legal tray • Table Exercise • Product Positioning • Supplies Positioning • Warranty Positioning and TCO • Product Messaging • Tag Line & Positioning Statement • Key Pillars and support points • Superlative Claims • Things to Know • Marketing Plan • Summary

  3. X502n/X500nObjectives • Participate in fastest growing segment of the MFP market • Complete our MFP product line with an entry color laser MFP offering • Low development and capital spend • Leverage C500n print engine and supplies volumes for lower cost from vendor • Fast time to market • Establish market position and gain customer experience in entry color laser MFP.

  4. Market Opportunity

  5. WWxJ Color MFP Price Segment Growth • Total Color MFP Growth 68% • A4 Color MFP Growth 128% • $500 -$1000 A4 MFP Growth 128% • Color Laser MFP unit volume is now 10% of Mono Laser MFP Source: IDC, Sell-In 2Q06 WW excluding Japan

  6. 68% Market Volumes WWxJ Total Color MFP Market By Region 1Q-3Q05 1Q-3Q06 Units EMEA 47% EMEA 48% TOTAL: 671K TOTAL: 398K Source: IDC, Sell-In 3Q06 WW excluding Japan AP excludes Japan

  7. WWxJ Top Color Laser MFP Vendors WWxJ $500-$999 A4 Color Laser MFP 1Q06-3Q06

  8. Product Overview

  9. Lexmark C502n/X500n Overview • U.S., Canada, and LAD Announcement April 24, 2007 • EMEA and AP Announcement May 29, 2007 • X502n GA 5/5/07, X500n GA 6/25/07 • Print Speed - 31 ppm mono and 8 ppm color • Copy Speed – 21 ppm mono and 7 ppm color • Network ready • 2400x1200 dpi 48 bit scan resolution • X500n Pricing 100% HP CM1015 ($499) • X502n Pricing 100% HP CM1017 ($699) • Host Based Controller for fast job processing • Uses same Supplies as C500n 10

  10. X502n C500n Print Engine Scanner Fax Card Controller X502n Vs. C500n • MFP Derivative of C500 - 31/8 pm • Same core engine as C500 • MFP integration • Scanner hardware (New CCD design) • Controller, firmware and drivers (host based) • 3rd party fax card • About 30 new & improved parts added versus C500 • Improved GUI versus C500 • Lexmark had very little input into C500 GUI / drivers • Lexmark provided direction for X500n design • New op panel (wording / button layout) • New menu structure • New driver • Lexmark driver installer • New Color Science + =

  11. 31 ppm Mono Laser Fax Machine 21 ppm digital color scanner with ADF 31 ppm Analog Mono Copier $399 $2200 worth of capability for $699 in a compact size. $499 $569 $349 $399 31 ppm Network Ready Mono Laser Workhorse High Quality Color Laser Printer Save Money and Space • Finally! One device that does it ALL

  12. X500n / X502n Features Scanner cover remains open when lifted Book Hinges for Scanner Cover 35 Sheet ADF with Reliable C-Path Easy Front Access for Output Robust Hand Holds Standard 250 Sheet Drawer Adjustable to Legal size Optional 550 Sheet Drawer $199.00 Front Loading Toner Cartridges

  13. X500n / X502n Op Panel Easy to See Backlit LCD Display Easy One Touch Job Cancel 10 Speed buttons for over 20 preset phone numbers or Email addresses Illuminated Copy/Scan/Fax Function Buttons Easy One Touch Black or Color Copies Large Buttons on Number Pad Easy One Touch Access to common functions like Enlarge & Reduce Easy and Intuitive Menu Navigation

  14. X502/X500 – Print • Color Laser Print Technology • 31 ppm mono and 8 ppm color • 400 MHz processor with 128 MB memory • 1200x600 dpi enhance print quality • Network Ready • 250 sheets of input • 530 sheet optional drawer • Small Footprint • TTFP from Ready 19 seconds color 13 seconds mono • TTFP from cold start less than 56 seconds • Automatic Color Calibration • Simple design with front access toner replacement • Maximum Monthly duty cycle of 35,000 prints • Toner Saver – up to 50% • Host Based Print Driver

  15. X502/X500 – Copy & Scan • 21 cpm mono and 7 cpm color – copies or scans • TTFC from ready – 30 sec. mono and 35 sec. color • TTFC from cold start – less than 56 seconds mono or color • Scanner Technology – Charged Coupled Device (CCD) • 2400x1200 dpi optical resolution with 48 bits of scan depth • 35 sheet Auto Document Feeder (ADF) Simplex C-Path • Scanner maximum duty cycle 17,500 scans per month ADF or flatbed • Copy 1-99, Scale 25% to 400%, Lighter/Darker • Paper Saver Copy Menu Selection - 2 up or 4 up • Network Twain Scan Driver • Scan to Email – PDF, jpg, or TIFF • Scan to FTP

  16. X502 – Fax • Super G3 33600 bps Fax modem • 3 second transmission speed • MH, MR, and MMR compression coding supported • PSTN and PABX fax network supported • 100 pages memory back up • Mono only • 20 hard button speed dials/emails on operator panel • 50 additional speed dials/emails in directory • Note * X500n does not support Fax

  17. Get the Most with Host • Advantages • Much Faster Performance • New Smaller files sizes • Easy Network Installation • Great solution for any user of Windows Vista, XP, 2000, NT, Server 2003 or Mac OS9.x and OSX • Disadvantages • Cannot be used with legacy or minority operating systems • Linux, Unix, Citrix, DOS, OS2, Win 3.1, Win 95, 98, Me, Mac OS8 or earlier • Cannot be used with applications that generate PS or PCL print files • Cannot be used with mainframe or AS400 systems outputting ASCI text

  18. Get the Most with Host • Much Faster Performance • X502n and X500n utilize the power of the host PC processor and memory to RIP jobs extremely fast • The engine runs at rated speed for almost any job: text, graphic or high resolution photo

  19. Ave. Print File Size 1000K for X502n Ave. Print File Size 500K for LXK PS3 Get the Most with Host • Older Host systems created print files which were very large and did not pass over the network well. • C500 and X500/X502 have a new host print architecture that reduces file size on the network. • 1 MB vs 0.5 MB average file size on a 100 Megabits per second Ethernet network is insignificant. Print File Size (KB)

  20. Click 1 – Install Printer and Software Click 3 – Next Click 2 – Agree Click 4 – Finish Get the Most with Host • Easy network Installation • X500/X502 use a Lexmark developed network installer • It has auto IP discovery and auto loading of network addresses • X500/X502 is network ready and can be network installed in 4 mouse clicks • “Network setup was no problem at all.” on C500n

  21. X502/X500 – Presto PageManager • Free Presto PageManager 7.12.03 Deluxe • Share Documents • Scan Direct with Twain Express • Scans directly to your PC, Fax, email or application • Scan to network • Supports Microsoft SharePoint on Server 2003 • Built in FTP and Web Browser • Manage and Find Documents • File Stacking – Open multiple files with one click • OCR with HTML format for instant web publishing • De-skew • Annotation – add highlighting, notes, audio, and photo’s to scanned documents • Advanced Search and Thumbnails

  22. New Universal Paper Cassette • One standard tray accommodates A5 to U.S. legal size • LV only • Backward compatible to C500n

  23. Table Exercise • Each table pick a leader who’s home telephone number ends in 4 or is closest to 4 • Thinking of your customer - List the 5 most important features, their function, and their benefit • Example: • Feature - Extendable Paper Tray • Function – Extends the tray for larger paper sizes • Benefit – Customers can now print legal size with the standard tray • You have 5 minutes

  24. Product Positioning

  25. New New New New New 2007 Color MFP Product Line Price X945e$12,499 45/40 ppm X930e$10,499 40/30 ppm X782e$4499 40/35 ppm A3 Duplex Scan X502n $599 31 ppm mono 8 ppm color Network Ready Fax Ready eTask Interface Solution Card Support X500n $499 31 ppm mono 8 ppm color Network Ready Duplex Output LDSS Function

  26. C500n Customer Testimonial - Small Business Brochures • The Spa at Nicholas Michaels – “I was immediately amazed • At how fast it prints our brochures. The output is pristine. • The red in our logo is incredibly bright and distinct. We • printed 300 brochures and inserts in one hour without a jam.” • Marianne Lapomardo – Office Manager X502n/X500n Market Positioning Target Market • Small to Medium Businesses <500 Employees • Department Managers, Business Owners • Small to medium workgroups (3-15) Product Positioning • General office printing, copying, and faxing • Average usage: 850 pgs/mo, 600 print, 250 copy & fax • Color in memos, letters, reports, forms, spreadsheets, correspondence, marketing materials, • technical docs, & presentations • Printing high quality electronic documents through intranets & the Internet • Print on demand collaterals, brochures, and newsletters

  27. X500n & X502n Competitive Positioning Much More for Same Much More for Same

  28. X502n/X500n Supplies • X502n and X500n share all supplies with C500n • HY Black toner cartridge – 5K pages $134.70 • HY CMY toner cartridge – 3K pages $119.70 • SY Black toner cartridge – 2.5K $90.00 • SY CMY toner cartridge – 1.5K $98.45 • Waste toner bottle – 30K images - $7.00 • Ship with Toner 2.5K mono and 1.5 K CMY • Not on ISO yield standard • HY Black CPP = 94% CM1017 – 2.17 cents BDP • HY Color CPP = 100% CM1017 – 11.8 cents BDP • SY Black CPP – 2.9 cents BDP • SY Color CPP – 18.7 cents BDP • Photodeveloper 120K images – Lifetime Component • Fuser 60K pages - Lifetime Component • No Return Program 29

  29. Warranty Positioning & TCO • 1 yr standard Onsite warranty Vs Depot for HP CM1017 • X502n/X500n 2 yr extended warranty Onsite - $259 • HP CM1017 2 yr extended NBD replacement - $239

  30. Product Messaging

  31. C502n/X500n Messaging Positioning Statement The business class color laser AIO with high speed printing, scanning, copying, and faxing. Product Tag Line Big Functionality for a Small Budget 32 Lexmark Confidential Until Announce

  32. Key Selling Points • Messaging Pillars • Versatile to Meet Your Business Needs • - Consolidate multiple functions into one reliable device • - Manage, search and edit documents with ease • - Increase productivity of your office by creating documents with little time and effort • Professional Results in Color • - Print, copy and scan in brilliant color • - Impress customers with superior print quality, rivaling professional printing companies • - Create unique collateral such as brochures and mailers on a wide range of media • Business-Class Performance • - Prints fast! Up to 31 ppm in black and up to 8 ppm in color • - Network ready- easy to set up and share among multiple users • - Supports output for heavy workloads

  33. Superlative Best in Class Claims • Fastest printing color laser AIO under $500 • Fastest copying color laser AIO under $500 • Fastest time to first print or copy for color laser AIO’s under $500 • Highest input and output paper capacity of any color laser AIO under $500 • Fastest processor for any color laser AIO under $500 • Highest Yield supplies and best intervention rate for any color laser AIO under $500 • Lowest cost per page for any color laser AIO under $500 • Highest scan depth for any color laser AIO under $500 • Highest scanner and ADF maximum duty cycle of any color laser AIO under $500

  34. Things to Know • TAA models available 6/25/07 • Supports USB capable Lexmark and 3rd party ENA’s • Supports Lexmark N4050e wireless ENA • Does not support Lexmark Solutions such as: • DLE’s, Font Cards, Forms Cards, Internal Network Cards, Hard Drives, Flash Memory, ImageQuick, Confidential Print, or Doc Portal • C500n 530 sheet drawer option will work with X500n/X502n • When adjusted for Legal the universal cassette will not close flush with the front of the printer • Does not support PCL6 or PS3 • Does not have a duplex option

  35. More Things to Know • Will support MarkVision via plug-in for 3rd party • Does not support Color Care Technology • No color samples page for color matching, no resident help pages, and no Pantone • Cannot upgrade X500n to X502n • Not IPv6 complaint • Not Blue Angel Complaint – Yes for everything but duplex • Not Energy Star Complaint – Yes for everything but duplex • C500 drivers will not work with X500 or X502 • Driver to Fax function will not be available until 10/07

  36. Marketing Plan • T3 • WW: February 7-9, 2007 • EMEA: March 21-23, 2007 • Beta Units • Available 2/12/07 for US, 3/26/07 for EMEA • Eval Units • U.S., LAD, and Canada Evals to be air shipped and arrive 3/26/07 • EMEA and AP Evals to be boat shipped and arrive 4/23/07 • Announce & GA • X502n and X500n to Announce in the U.S., Canada, and LAD on 4/24/07 • X502n GA for US, Canada and LAD is two weeks delayed • 648 units 4/29/07, then 432 5/5/07 • X502n and X500n to Announce in EMEA and AP 5/29/07 • X502 will have full GA for EMEA and AP on 5/29/07 • X500n will have full WW GA 6/25/07

  37. X502 Product Lab • Un-boxing video • Change supplies • Adjust new universal tray • Pull scanning from PC • Up-load fax numbers and email addresses • Explore operator panel function • Explore driver function • Learn jam clearance • Make prints and copies • Scan to email and network

  38. X502 Competitive Lab • 10 New sub $1000 color laser AIO models announced and shipping in the last 3 months • Learn their weaknesses • Print and copy samples with originals available.

  39. Summary • Extreme versatility in business environments • One device does it ALL • Professional “copy shop” quality and reliability. • Impress clients with brilliant color • Blazing performance for mono and color: print and copy. • Networked and ready for heavy print/copy demands

  40. Thank You

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