Life Cycle Management

Client / Profile:

Canon Australia – Printer Consumables

Issue:

Ink cartridges are generally specific to an individual printer.

As a new printer is introduced sales of replacement cartridges are slow or negligible, pick up over time, sell strongly, before dropping away to nothing as the printer reaches the end of its life and is replaced.

The issue was, as the ramp up occurred retailers were not adequately stocked.

Cause (Benefit):

Retailers unable to forecast the scale and timing of the sales growth, causing lost sales. Also of concern was brand damage, from end users being unable to find a replacement cartridge.

Response:

Mapped past sales profiles with the volume of new printers sold in the market to provide a forecast of the timing and scale of the lift of the new product.

Outcome:

Retailers had excellent in-stock availability as the product boomed, without sacrificing stock turns.

Learning:

Life cycle built into sales forecasts prevents significant stock outs (lost sales on product introduction) and redundant stock write-offs at senescence.