Xerox ColorQube Attack Plan Created By: RCL Marketing RAC Competitive Testing Lab November 2015 1

FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH The Concept RCL and RCL collaboration to help identify opportunities within the market to replace or convert Xerox ColorQube devices. Below are some key findings: Ricoh’s 03’ series has high potential to knock out higher model Xerox ColorQube devices Xerox ColorQube MIF is on the decline but there are still many devices that can be replaced. It is a good time to attack Xerox ColorQube weaknesses put the competition at a disadvantage FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH

FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH Key Focus Areas Energy Consumption and TCO ColorQube devices tend to have very high TEC values Xerox marketing makes ColorQube look very environmentally when in fact, the TEC values and TCO can be abnormally high when compared to laser-based devices Three tiered pricing plan can leave the customer with many surprises when their bill arrives Productivity ColorQube productivity is rarely acceptable when trying to print at resolutions that are comparable to laser devices In order to yield acceptable productivity, the user must sacrifice image quality Image Quality Can look good on various types of paper Small gamut yields fewer printable colors Durability issues with wax-based ink FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH

Environment / TCO Slides provided by RCL Marketing - some modifications by the CTL

Xerox ColorQube Marketing Strategy Selling Point 1: Eco-friendly Selling Point 2: Low CPP Color coverage :~1.2% Color coverage :1.2~8% Color coverage :8%~

Xerox ColorQube Marketing Strategy Most of the “waste” shown in this image is recyclable. This image is deceiving. Selling Point 1: Eco-friendly Many documents will be charged at a higher tier than expected. Use Xerox’s document analyzer to check. Lower CPP and TCO only works if the majority of prints have little / no color. Selling Point 2: Low CPP Color coverage :~1.2% Color coverage :1.2~8% Color coverage :8%~ http://xerox.preton.com/DocumentAnalyzer/X3T.aspx

(1062 color characters are included) True cost savings with ColorQube? Sample1 – Company logo & partial color characters 3387 characters (1062 color characters are included) Sample2 – Company logo 3387 black characters and small “RICOH” logo make this document as “Expressive Color” http://xerox.preton.com/DocumentAnalyzer/X3T.aspx

True cost savings with ColorQube? Sample 3 – NO company logo & partial color characters 3387 characters (1062 color characters are included) Sample 4 – Partial color characters (less than sample 3) 3387 characters (472 color characters are included)

TCO Comparison: Ricoh vs. 93** series Color Qube 03’ series CPP for “Expressive Color” is lower with Ricoh; thus, Ricoh is able to provide lower CPP for most customers. eg. TCO for Ricoh is lower than ColorQube if color ratio is 30% and color output ratio of 8% color coverage is less than 70%. *based on pricing listed on Xerox website Color Qube 03’ series Confidential

Facts about ColorQube….. http://www.office.xerox.com/multifunction-printer/color-multifunction/colorqube-9300-series/enus.html ColorQube devices have 4 speed ranges depending on image resolution. To make resolution equivalent to Ricoh, ColorQube is able to perform at only…. Confidential

Productivity Key Points Provided by the CTL

FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH Productivity Issues Xerox ColorQube devices rely heavily on resolution selections – this is confusing to the customer Productivity MUST be sacrificed to gain Image Quality. In some cases, Xerox devices will print as slow as 6 pages per minute Cold boot can take nearly 20 minutes to achieve a ready state on some devices PCL drivers for ColorQube typically offer only 2 settings which do not allow the device to print at it’s “up to” rating. FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH

Productivity Confusion: Example Due to the many print quality settings offered on the Xerox CQ 8700, a productivity comparison can be complicated. Let me explain: The Xerox CQ 8700’s Specifications are listed on its brochure as: SPEED - Fast : Up to 44 ppm - Standard : Up to 30 ppm - Enhanced (default) : Up to 19 ppm - High Resolution : Up to 6 ppm These listed specs are based off of the engine speeds for the PostScript driver only. The 30 and 44 ppm speeds can be achieved by adjusting print quality settings within the driver, but users will sacrifice quality for speed. High quality output can also be achieved but speed will be greatly sacrificed. Due to faster ppm speeds when compared to default settings, we tested the Xerox CQ 8700 in Enhanced (default), Standard and Fast Color print quality settings. The PCL driver has two print quality speeds: -Enhanced : Up to 11 ppm -Standard (default) : Up to 19 ppm PostScript driver High Resolution 5 ppm Enhanced (default) 19 ppm Standard 30 ppm Fast Color 45 ppm PCL driver Enhanced 11 ppm Standard (default) 19 ppm

Image Quality Key Points Provided by the CTL

Image Quality Issues Higher resolution prints require large productivity losses Durability of wax-based ink prints can be an issue. Prints can crack and scratch fairly easily Lower resolution print quality can be very poor. Especially with smaller fonts ColorQube gamuts are typically smaller than laser-based devices

High Resolution Setting Print Quality Example High Resolution Setting

Enhanced Setting (default) Print Quality Example Enhanced Setting (default)

Print Quality Example Standard Setting

Print Quality Example Fast Color Setting

Summary

FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH Wrap-Up As you can see, Xerox ColorQube technology has many inherent weaknesses and should be fairly easy to target and replace. Use this information as a starting point. Combine your services and solutions with this competitive hardware information and you should have a winning combination. Search for more competitive information on specific ColorQube devices on the RWORLD and InfoCenter sites. FOR INTERNAL USE ONLY - DO NOT DISTRIBUTE OUTSIDE OF RICOH

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