Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

Market Research

Document Sample
Market Research Powered By Docstoc
					Market Research…. Digital Imaging




Market Research
On the Digital Imaging Market: Adobe CS




TandemSolutions                     4/23/2006   1-1
Market Research…. Digital Imaging

Contents Page
Executive Summary ................................................................................................................. 1-3
       Market Summary .......................................................................................................................................... 1-3
       Revenue ........................................................................................................................................................ 1-3
       Trend ............................................................................................................................................................ 1-3
1.     The Adobe Market............................................................................................................ 1-4
2.     Adobe DI Products ........................................................................................................... 2-4
     2.1.       Adobe Imaging Products ....................................................................................................2-4
       Digital Video ................................................................................................................................................ 2-5
     2.2.       Creative Design and Publishing .........................................................................................2-5
       Adobe in Design CS ..................................................................................................................................... 2-5
       Adobe Go live .............................................................................................................................................. 2-5
3.     Adobe Revenue Generation ............................................................................................. 3-6
     3.1.       Product Revenue .................................................................................................................3-6
     3.2.       Revenue Share by Geography ............................................................................................3-7
4.     Target Customers: Adobe ................................................................................................ 4-8
5.     Digital Imaging Market ................................................................................................... 5-9
     5.1.       Digital Tools .........................................................................................................................5-9
     5.2.       Digital Software Usage......................................................................................................5-10
     5.3.       The Trend...........................................................................................................................5-12
6.     Competitors..................................................................................................................... 6-13
       Corel ........................................................................................................................................................... 6-13
       Quark Express ............................................................................................................................................ 6-13
       Microsoft Picture It! ................................................................................................................................... 6-13
       Ulead Photo Impact .................................................................................................................................... 6-14
     6.1.       Product Review..................................................................................................................6-14
7.     Adobe’s Competitive Environment................................................................................ 7-15
     7.1.       At Home Market Penetration...........................................................................................7-15
     7.2.       At Work- Market Penetration..........................................................................................7-16
8.     End User Market Needs................................................................................................. 8-16




TandemSolutions                                                         4/23/2006                                                                                      1-2
Market Research…. Digital Imaging



Executive Summary
    Billion dollar software company Adobe Systems Incorporated (NASDAQ: ADBE) has helped people
    and businesses communicate images, information and ideas better and more cost effectively for
    more than 20 years. Adobe’s Products range from the intelligent document systems to Its
    innovations in digital imaging, design and document technologies have set the standards for
    excellence in these markets and enabled millions of people to leverage the power of visual
    communications.


     Market Summary
    Adobe is a market leader with its product for the creative professionals. Adobe has positioned a
    software product as against each of its competitors. Quark against InDesign; CorelDraw is still alive
    against Illustrator; Global Graphics against PostScript; Macromedia Dreamweaver against GoLive.
    Though it is head on in competition with Microsoft, the product which Microsoft offers in the DI
    category has not been very successful.

    The competition is from Corel, Quark express, Microsoft Picture It, U lead Photo impact and many
    others which have arrived new in the market. However it is difficult to displace Adobe since it
    continuously adapts its products to the market needs and is a step ahead of the competition.


     Revenue
    Adobe has been growing and its growth in revenue has been supplemented by all its categories of
    products. Over the past two years however the growth has been largely due to the growth in the
    intelligent document management systems.


     Trend
    The growth in the DI market has been explosive. The growth has been not only due to the
    professional market adaptation to the digital format, but also due to a large number of customers
    adapting to the digital format. The ongoing reduction in price and simple products- an increase in
    customer demand can be foretold.




TandemSolutions                              4/23/2006                                               1-3
Market Research…. Digital Imaging


    1.     The Adobe Market
           Adobe makes nearly $1.3B annually, about 1/30th of what Microsoft makes in annual revenues. Yet
           Adobe's impact on the PC market is proportionately much greater than its revenues show. Adobe
           has provided the Postscript high quality print drivers and font technology that has been essential for
           PC GUI interfaces, with their multiple, sizable fonts. Adobe's Acrobat and PDF file format has
           become both the leading delivery vehicle for finished documents on the desktop and across the
           Web. Adobe is also the leading provider of both bitmap and vector graphics software with Adobe
           Photoshop and Adobe Illustrator having commanding positions in both design studios and print
           shops.

           Adobe's leadership in the graphics editing market was initially with Illustrator on the vector graphics
           side. Illustrator was able to handle many color modes plus offer more and finer print control with
           Postscript as well as standard output options. Photoshop's entry into the bitmap paint market was
           marked by its ability to deliver more popular color standards and output linked to Adobe's utilities for
           high quality color separations and print plate enabling software. Adobe tools won favor in design
           and art shops as much for their ability to deliver color standards and post-processing professional
           printing features as for their on the desktop image manipulation features.

           The bottom line is that Photoshop leads because with every edition Adobe has added substantial
           and timely new features ranging from improved layering/blending and web output in 5.x to vector
           shapes, masks and styles plus docking interface improvements in 6.x to rewriting the paint engine
           and offering vastly improved brush creations and control features in 7.x. A quick review of what's
           new in the latest Photoshop CS shows the competitive and innovative thrust of Photoshop1.


    2.     Adobe DI Products
           Adobe is primarily designed for professionals. The products and their features from the digital
           Imaging department have been mentioned below.


    2.1.     Adobe Imaging Products
           Adobe Photoshop remains the industry standard image editing software for imaging and video
           professionals worldwide. Photoshop Elements for easy-to-use image editing, Photoshop Album for
           managing and sharing images and Photoshop Album Starter Edition for basic organizing, fixing and
           sharing of digital photos have extended Adobe’s leadership to the mainstream consumer category
           by bringing Photoshop-quality tools to hobbyists and casual picture takers. Adobe digital imaging
           products and services all leverage core Adobe PDF technology and Adobe Reader software, for
           easy sharing and preserving of digital images.



1
    An Adobe tools overview. An article on adobe tools; at: http://www.thephotofinishes.com/adobeover.htm.



TandemSolutions                                         4/23/2006                                              2-4
Market Research…. Digital Imaging

         Digital Video
        Adobe is also a leader in the digital video space with its Adobe Video Collection, an integrated
        solution for professional videographers. Anchored by Premiere Pro and Photoshop, the most
        popular application used in video production, the Video Collection also includes category-leading
        Adobe Encore DVD software for DVD authoring, Adobe After Effects and Adobe Audition.
        Customers can thus utilize a single integrated solution across the entire video workflow—from video
        and audio editing to compositing, effects and authoring.


 2.2.       Creative Design and Publishing
        Designed to enhance the productivity and creativity of graphic artists, Web designers, layout
        designers, photographers and other creative professionals, the Adobe Creative Suite is a platform
        for the future of design and publishing. CreativeSuite combines the best available digital imaging,
        vector graphics, Web publishing, page layout and PDF creation software—Photoshop CS, Adobe
        Illustrator CS, Adobe InDesign CS, Adobe GoLive CS and Adobe Acrobat 6.0 Professional.


        Adobe in Design CS
        Adobe InDesign CS software combines extraordinary production power and creative freedom to
        take page design to a new level. InDesign is a high-end, professional application used for layout
        and design of all sorts of projects. Microsoft's Publisher represents desktop software that novices
        will appreciate, while Adobe's InDesign CS is targeted toward the professional market. At the high
        end of the design and layout software market, InDesign mainly competes with QuarkXPress, and
        both are not for novices. However, InDesign CS will most definitely appeal to these highly skilled
        and trained professionals, providing tools and features that go beyond the more limited tools found
        in entry level applications2.


        Adobe Go live
        Adobe Systems announced Adobe GoLive CS2, a powerful authoring tool for Web and mobile
        content. Available as a stand-alone software application or as a component of the Adobe Creative
        Suite 2, also announced today (see separate press release), GoLive CS2 introduces innovative
        new CSS layout tools, a rich environment for mobile content development based on open standards
        and tight integration with Adobe Creative Suite 2 software applications. With GoLive CS2, Web
        designers and developers can create, publish, manage, and update content that adapts gracefully
        to the latest generation of handheld devices3.

        The features Include

                •       Tight Integration with Adobe Creative Suite 2


2 An Article. An article on Adobe In design CS, by Dale Farris, Vice President Golden Triangle PC Club; Dated July 2004. At: http://www.gtpcc.org/gtpcc/indesigncs.htm
3 A Press release. Adobe Introduces Next Generation Authoring for Web and Mobile Platforms with GoLive CS2; April 4, 2005 ; at:
http://www.adobe.com/aboutadobe/pressroom/pressreleases/200504/040405GoLive.html




TandemSolutions                                                                        4/23/2006                                                                         2-5
Market Research…. Digital Imaging

                •       Standards-based Mobile Authoring

                •       Innovative Visual CSS Authoring


 3.      Adobe Revenue Generation
        In the first quarter of fiscal 2005, Adobe achieved record revenue of $472.9 million, compared to
        $423.3 million reported for the first quarter of fiscal 2004, and $429.5 million reported in the fourth
        quarter of fiscal 2004. Adobe’s first quarter revenue target range, revised upward on February 1,
        2005, was $450 to $470 million. This demand is particularly evident in the Intelligent Documents
        business, where there is an increasing adoption of Adobe PDF-based document workflows in
        organizations and governments worldwide. For the second quarter of fiscal 2005, Adobe
        announced it is targeting revenue of $475 to $495 million, a gross margin of approximately 94
        percent4.


 3.1.       Product Revenue
        The revenue generated from the
        products has been changing over
        time. The strategy developed by
        adobe can be summarized as follows.

        •       Enhance and extend the design
                platform                       for                 Creative
                Professionals.

        •       Expand the Photoshop platform to
                capitalize on adoption of digital
                photography.

        •       Enable organizations to migrate to
                intelligent document workflows




4 Adobe Press Release. A press release to announce the financial achievements in the first quarter titled, “Adobe Systems Reports Record Revenue in First Quarter of Fiscal 2005; Dated Marcf 17th 2005 at:
http://www.adobe.com/aboutadobe/invrelations/pdfs/Q105Earnings.pdf




TandemSolutions                                                                        4/23/2006                                                                                                    3-6
Market Research…. Digital Imaging

       The     average           revenue for      the
                                                             700
       company            has    been     constantly                                                  Segment Growth                                   6 13 . 1
                                                                    Digital Imaging & Video                                 Creative Professional
       increasing. The growth percentage                     600                                                                                             5 4 1. 8

                                                                    Intelligent Documents                                   OEM PostScript & Other
       of revenue over since FY 2000 has                     500
                                                                   476.7
                                                                                       439.7                                                444.1
                                                                                                                                                     430.2
                                                                     450.6                                    4 11. 9
       been different. The growth over                                                   393.3                                      392.4
                                                             400                                                 3 5 1. 3
                                                                                                                                      368.5
       the past year in FY 2001, is almost                                                                              3 12 . 5
                                                                                               2 9 1. 9

       stagnant with -2.90 % decrease;                       300

                                                                           207.6
       followed by almost similar results                    200
                                                                             13 1. 5
       in 2002 with a -5.28% decrease                                                              10 4 . 8
                                                                                                                              89              89.7                8 1. 5
                                                             100
       over       the       past        year.    The
       momentum picked up in the year                          0
                                                                    FY2000              FY 2001                  FY 02                FY 03            FY 04

       2003, with an 11.15 % increase
       over the past year followed by a 28.72% increase over 2003 in the year 2004. The momentum in
       growth has been largely                  200
       due     to    the        growth    in    180

       intelligent               document       160
                                                140
       systems, which has been
                                                120
       supported by growth in the               100
       creative             professional        80
                                                60
       segment.                    Growth
                                                40
       percentage               share     in    20
       revenue contribution for                  0
                                                        Q1      Q2 Q3 Q4 Q1 Q2                                    Q3           Q4    Q1 Q2 Q3 Q4 Q1
       Adobe         in     the      digital
                                                        02      02    02    02  03   03                           03           03    04    04   04    04  05
       Imaging and video, and                                  Digital Imaging & Video                                              Creative Professional
                                                               Intelligent Documents                                                OEM PostScript & Other
       OEM      Post        script       and
       others segments remains almost constant.


3.2.     Revenue Share by Geography
       Adobe has experienced an increase in revenue from the EMEA (Europe Middle East and Africa).
       The revenue share of America in year 2000 was 52 % of the total revenue, which in 2004 has
       reduced to 46%.

       The revenue share from the EMEA has increased considerably, from 25 % in year 2000 to 32% in
       2004. Revenue share from Asia is also fast picking up, with a 24.7 % increase from Year 2000 to
       2004.




TandemSolutions                                                4/23/2006                                                                                                   3-7
Market Research…. Digital Imaging


 4.      Target Customers: Adobe
       The target professionals for Adobe are creative professionals in the following categories:

               •       Advertising

               •       Book publishing

               •       Graphic design

               •       Magazine publishing

               •       Newspaper publishing

               •       Web design

       Communicators at work, (Science/research, Engineering, Health care) and home users being the
       secondary target customers. There has been an increased effort by Adobe to leverage the brand to
       communicators at work5.




5 A Presentation. A presentation by Adobe for investors at www.adobe.com .




TandemSolutions                                                              4/23/2006              4-8
Market Research…. Digital Imaging


5.     Digital Imaging Market
5.1.       Digital Tools
       Digital imaging has catapulted into the mainstream and continues to expand its reach as it mirrors
       the traditional camera market in user segmentation and behavior patterns. A recovering economy,
       user-friendly features, aggressive manufacturer and retailer promotion and spreading word are
       contributing to digital cameras' quick ascent. Besting predictions, as of March 2004 digital cameras
       now reside in 39 percent of U.S. households, compared with 31 percent a year ago, according to
       CEA Market Research. For 2004, CEA
       projects digital still cameras will reach
       more than 15.2 million factory unit sales,
       with revenues flashing up to $4.2 billion.
       That compares with factory unit sales of
       12.5 million in 2003, a leap of more than
       30 percent over the 9.3 units sold the
       previous year. The following are the
       features of the market for DI tools.

       •    The        digital     imaging     market
            continues to experience explosive
            growth       as      additional   features,
            increased ease-of-use and lower
            prices lure the mainstream.

       •    Manufacturers emphasize soup-to-nuts hardware, software and service solutions to help attract
            mainstream customers.

       •    Camera phones – high-end wireless phones that integrate digital still cameras – are on track to
            surpass digital camera volume.

       •    Consumers will print more digital photos as user demographics shift and retail outlets provide
            more opportunities.

       •    Continued falling prices for flash memory cards give consumers more "digital film" for their
            dollars.

       •    Digital cameras to sell 15.2 million units in 2004.




TandemSolutions                                       4/23/2006                                        5-9
Market Research…. Digital Imaging

        •       Tiny, hard-drive-based video cameras are a developing trend in the camcorder market; the
                camcorder market will decrease slightly in 20046.

        It has been forecasted that by 2006, sales of digital camera will make up 63 percent of the US$9.9
        billion camera market in the world.

        There is growth in the Digital Imaging market due to the low cost of DV camcorders along with
        powerful PCs powerful enough to edit video and DVDs have dropped significantly, making it much
        easier for consumers to get professional quality results with their home videos. There has been
        growth in both the amateur and the home segment in digital imaging. In 2004, a breakaway was
        observed for digital imaging," he said. "We're talking about a digital imaging market of over 20
        million units per year, which is almost an equivalent

        of TV size." Digital cameras, for example, were the second most sought-after item among
        consumers in CEA's 2004 holiday wish-list survey.


 5.2.        Digital Software Usage
        As consumers create more digital images, the more they desire to take those images and other
        digital content with them, Wargo said. In a survey the CEA conducted last year, the average
        consumer maintained a library of 600 photos consuming 1.26GB of storage. In five years, that
        consumer is projected to keep an average of 3,420 images using 7.2GB of storage, Wargo said7.
        According                 to        InfoTrends/CAP
        Ventures, the worldwide market
        for consumer digital cameras is                                                    The U.S. Imaging Market, through 2005 ($ Millions)
                                                                                                                 2000        2005      AAGR %
        expected to expand at a CAGR of                                                                                              2000-2005
        approximately 20%, to over 100                                                          Consumer                                        6.2                  16     20.9
        million units that will ship in 2008,                                                 Professional                                     11.8                  15.8    6
        up from 45 million in 2003. A
                                                                                         Subtotal - digital                                      18                  31.8   12.1
        recent survey by InfoTrends/CAP                                                     imaging *
        Ventures also stated that 55% of                                                  Subtotal -                                           17.3                  22.4   5.3
        owners               of         digital            cameras                  conventional imaging
                                                                                             **
        reported             purchasing                  additional                 Total imaging market                                       35.3                  54.2    9
        software               for        managing                  and
        enhancing digitally captured photos.

        In the table

        * Includes digital cameras and accessories, digital imaging and editing software, scanners,
        scanning software, digital printers and specialty/photo printers.

6 An Article. An overview of the digital imaging trends 2004-2004; at: http://www.ce.org/publications/books_references/digital_america/digital_imaging/default.asp
7 A News Release. Titled, “Growth in Digital Media Offers CES Hints” by Matt Hicks dated: January 2005 At: http://www.eweek.com/article2/0,1759,1748293,00.asp




TandemSolutions                                                                          4/23/2006                                                                               5-10
Market Research…. Digital Imaging

       ** Includes film cameras, photographic film, film camera accessories and attachments, video
       camcorders                  and         accessories,                  revenue             from          photo           processing,                portrait           studio   sales,
       camera/camcorder repair and sales of photo albums and conventional picture frames. The growth
       in the consumer and professional imaging has outgrown the conventional imaging segment and is
       expected to grow at a faster rate with the lowering of prices of these products8.

       According to managing director for the Pacific & South Asia of Adobe, Craig Tegel, the proliferation
       of digital images have caused image management challenges for professionals and non-
       professionals (which consists government, schools and non-publishing or advertising firms). Adobe
       has garnered 90 percent of the DI tool market, with a small amount of competition coming from
       Macromedia Fireworks and a handful of other consumer products such as Picture Painter. In
       addition, Adobe has a four million installed user base worldwide. Out of this, about one million is
       from Asia. Where revenue is concerned, Asia represents about 22 percent of its world wide sales9.




8 A Press Release. A press release on Digital Photography, Old and New companies; at: http://bccresearch.com/press
9 Business News. An article titiled, “Adobe Sets New Digital Imaging Standard”, by Seng Li Peng; Dated March 12th 2002. at: http://news.earthweb.com/bus-news/article.php/989511




TandemSolutions                                                                       4/23/2006                                                                                       5-11
Market Research…. Digital Imaging


 5.3.        The Trend
        The trend is of expansion of the digital market. Increasing sales and customer adaptation to the
        digital format requires graphics editing software in its latest versions in the market. The
        professionals looking for increasing workflow management and productivity would definitely look
        towards such tools which offer such features. Adobe has been working on integration of
        applications and is in the forefront fulfilling the requirement of the market. The Digital market in
        terms of the software and tools is under continuous change and the customers will look to adapt to
        the digital format. While the professional market will tend to stabilize in its growth pattern, the
        customer (home/amateur) segment will continuously expand. Though many consumers are aware
        of the digital market, simply, too many consumers say that “I didn’t know I could so that”
        Conversely, many consumers are aware of digital video say or “I knew I COULD do that but thought
        it was too hard for me
        to       do”.         Some              new
        products are coming to
        market               to         address
        these very issues but
        for       the         time          being,
        consumers are a lot
        more             interested                  in
        digital still photography
        than in digital video
        recorders.                              The
        possible              reasons               of
        non          purchase                of       a
        particular format can be the following.

        Don’t have the right software, Costs too much (see picture) and too complicated etc10. The market
        is continually absorbing the needs of the customers and is creating products which are easy and
        simple to use. While the Professional market for digital software is something which is stable and
        growing, the consumer market is in a state of boom.




10 A News Release. An article titled, “Entelligence: Digital video is still just too hard” by Peter Rojas; Dated 11th November 2004.




TandemSolutions                                                                           4/23/2006                                    5-12
Market Research…. Digital Imaging


 6.      Competitors
        Adobe has a lot of “point product” competitors: Quark against InDesign; CorelDraw is still alive
        against Illustrator; Global Graphics against PostScript; Macromedia Dreamweaver against GoLive.
        While Freehand is not considered as giving Illustrator competition any longer, Adobe has changed
        its has refocused its brand from the warm and fuzzy creative pro’s best friend, to a repositioned
        network publishing and document systems giant11. While the Head on competition is from Microsoft,
        the competitors of Microsoft form partners to Adobe. The target segments for both Adobe and
        Microsoft are different.


         Corel
        Corel Corporation provides innovative software solutions that help millions of value-conscious
        businesses and consumers in over 75 countries improve their productivity. The Company is
        renowned for its powerful software portfolio that combines innovative photo editing and graphics
        creation, vector-illustration, and technical-graphics applications along with office and personal
        productivity solutions. Corel Corporation acquired Jasc Software, Inc., an award-winning developer
        of the Paint Shop™ family of digital photography and image editing software. A critical milestone of
        Corel’s ongoing growth strategy, this acquisition follows four consecutive quarters of profitability
        and a successfully completed turnaround since Corel was taken private in August 2003. The
        acquisition further extends Corel’s position as a powerful force in the packaged software industry
        providing office and personal productivity and graphics products. Corel serves a combined base of
        more than 60 million customers worldwide.

        In August 2003, Corel was acquired by Vector Capital Group, a San Francisco-based venture
        capital concern which currently manages over $500 million dollars in capital12.


         Quark Express
        Quark, a privately held company, is a worldwide organization. When Adobe first introduced
        InDesign a few years ago, it prematurely was nicknamed the "Quark killer." Quark express was the
        market leader till Adobe InDesign was introduced. Quark is user-friendly, intuitive, reliable, proven
        and extremely capable. It can be easily learned with the help of tutorials, which are logical and
        sequential. Quark express is still used in a large number of establishments. Quark is user friendly
        and can be easily converted to PDF format13.


         Microsoft Picture It!
        Editors like its many easy-to-use wizards and one-click color adjustments. Experts view Picture It!
        Premium as a competent tool for the beginning photo editor. It is robust enough to handle the
11 A design Blog. A blog titled, “Adobe’s Microsoft Strategy” posted April, 2004 At: http://design.weblogsinc.com/entry/2623065652806164/
12 A Press Release. Release, “COREL CORPORATION ACQUIRES JASC TO EXTEND GRAPHICS SOFTWARE PORTFOLIO” Dated October, 2004. at:
http://www.corel.co.uk/uk/pdfs/press/Corel_Jasc_Press_Release.pdf
13 An Article. An article titled, “QuarkXPress versus Adobe InDesign”, by Gretchen Peck; Dated Sept 2004 at: http://www.digitaloutput.net/content/ContentCT.asp?P=547




TandemSolutions                                                                        4/23/2006                                                                        6-13
Market Research…. Digital Imaging

        majority of fixes needed. In reviews of version 9, reviewers note that the program is lacking an
        organization features. The new release, version 10, does come with Picture It! Library, which helps
        users create a file system for organizing photos. Also new to version 10 are several auto-fix
        features to improve the quality of photos taken with lower quality digital cameras, such as those
        found on PDA’s and cell phones. Picture It! Premium also comes loaded with templates for cards,
        posters and the like.


         Ulead Photo Impact
        It is missing a background eraser, and it takes a significant amount of resources—up to 700MB of
        hard drive space for installation. Experts say Photo Impact 8 is a good program for animating GIF
        files, and it comes packed with many add-ins and tools. However, it has not cracked the number
        one spot in any reviews we have found, and falls behind Adobe, Microsoft and Jasc in most
        reviews.



 6.1.       Product Review                                                                         Model*14                                        (Shopping.com Retailer**
        In a consensus report, by                                     # of Picks                   (With Retailer Links)                           Links)
        professional                                                                               Adobe Photoshop                                 Adobe Photoshop
        photographers/editors,                                                 5                   Elements                                        Elements

        Reviewers agree that Paint
                                                                               5                   Jasc Paint Shop Pro                             Jasc Paint Shop Pro
        Shop Pro and Photoshop
                                                                                                   Microsoft Digital
        Elements are tied as the                                               2                   Image Pro                                       Microsoft Digital Image Pro
        best                       photo-editing                                                   Microsoft Picture It!                           Microsoft Picture It! Photo
                                                                               2                   Photo Premium                                   Premium
        software.             In       the         most
                                                                                                   Roxio PhotoSuite
        recent             reviews,                Jasc                        2                   Platinum                                        Roxio PhotoSuite Platinum
        appears to have the edge,                                                                  Ulead PhotoImpact,                              Ulead PhotoImpact, Adobe
        but since Paint Shop Pro                                          1 each                   Adobe Photoshop CS                              Photoshop CS

        isn’t Mac compatible, Adobe Photoshop Elements is the best choice for Mac users. Some reviewers
        also like Microsoft Digital Image Pro.

        ** The Consensus Report shows how many times products are top-ranked by reviewers included in
        the Reviews Reviewed chart.

        Other Products In the market Include:

        1. ACDSee

        2. AlgoLab Photo Vector (Architectural/Mechanical)

        3. Amazing Graphic Editor at: http://www.share2.com/graphic-editor/


14 A Review. A review titled, “photo editing software review dated September 2004; At: http://www.consumersearch.com/www/software/photo_editing_software/fullstory.html




TandemSolutions                                                                      4/23/2006                                                                            6-14
Market Research…. Digital Imaging

       4. Ameri Imager at http://www.thethinktanksoftware.com/

       5. Image Explorer Pro at: http://www.cdhnow.com/iep.asp

       6. FxFoto for Windows 98/ME/2000/XP

       7. Noise Ninja 2.0 for Windows and Mac OS X

       And others


7.     Adobe’s Competitive Environment

7.1.     At Home Market Penetration                           January 2001 – October 2001 At Home Only
       The    most      popular     photo-editing          Unique Users (000) Among Internet-Using PC Users
                                                                                                  Reach %
       applications at home in October 2001                                                    Among Total
       are: Image View, with 5.5 million users;                                                   Users of
                                                                                               Photo-Editing
       Photo Editor with 4.1 million; and MGI                                                   Applications
                                                                                                Jan      Oct
       Photosuite with 3.7 million. The fastest                                                 '01      '01
       growing      photo-editing    applications            All Photo-Editing Software Titles
                                                       1     IMAGE VIEW                          22.6    25.5
       according to their percent-growth in
                                                       2     PHOTO EDITOR                        18.6    19
       unique users at home between January            3     MGI PHOTOSUITE                      15.7    17.2
       2001 and October 2001 are: Microsoft            4     ADOBE PHOTODELUXE                   19      15.6
                                                       5     PICTURE IT!                         9.2     12.6
       Picture It!, which increased 74 percent
                                                       6     ADOBE PHOTOSHOP                     9.5     9.8
       to 2.7 million; Image View, which               7     EASYPHOTO                           11.7    8.9
       increased 43 percent to 5.5 million; and        8     COREL PHOTO HOUSE                   3.9     3.7

       MGI Photosuite, which increased 39              9     ULEAD IPHOTO PLUS                   6.2     3.3
                                                      10     PHOTOMAX                            n/a     2.7
       percent to 3.7 million.

       The table describes the photo- editing software titles. Adobe ranks 4 as against competition for the
       home users segment. The top scoring is the Image View with 25.5% of the population. Image view
       is followed by Photo editor, MGI Photo suite. Principally the home segment is based on image
       sharing, storage and printing, whereas the market positioning by adobe has been for the
       professional segment. However even in this segment Adobe’s products feature in the top 10 list.




TandemSolutions                                     4/23/2006                                            7-15
Market Research…. Digital Imaging


 7.2.        At Work- Market Penetration                                                                 January 2001 – October 2001 At Work Only
        The             most               popular                photo-editing                         Total Users of Photo-Editing       Reach %
                                                                                                                Applications                Among
        applications at work in October 2001 are:                                                                                       Jan      Oct
        Photo Editor with 6.9 million users; Image                                                      Total Internet-Using PC Users   '01      '01
                                                                                                        Unduplicated Total of
        View          with          3.3        million;           and         Adobe                     All Photo-Editing Software
                                                                                                        Titles                          100      100
        Photoshop with 1.3 million. The fastest                                                  1      PHOTO EDITOR                     52      57.4
        growing                  photo-editing                      applications                 2      IMAGE VIEW                      22.1     27.6
                                                                                                 3      ADOBE PHOTOSHOP                   9      10.6
        according to their percent-growth in unique                                              4      ADOBE PHOTODELUXE                9.2      6.6
        users at work between January 2001 and                                                   5      PICTURE IT!                      4.1      4.9
                                                                                                 6      MGI PHOTOSUITE                    6       4.2
        October are: Image View, which increased                                                 7      EASYPHOTO                        5.7      3.5
        71 percent to 3.3 million; Picture It! which increased 63 percent to 590,000; and Adobe Photoshop,
        which increased 61 percent to 1.3 million15.

        Adobe has a good market share in the photo services at work. The target market for adobe being
        the creative professionals, it has a large market share within the particular segment.

               •       Over 90 percent of creative professionals have Adobe Photoshop on their desktops

               •       More than 75 percent of creative pros own at least two Adobe products

               •       Approximately 2,400 government agencies have standardized on the PDF format

               •       IRS uses Adobe PDF technology to distribute millions of digital tax forms each year

               •       Adobe Photoshop has an installed base of 4 million users

               •       Market-leading:

               •       Adobe holds more than 250 patents

               •       Adobe markets more than 40 products, many of which are market leaders in their
                       categories

               •       Adobe has garnered industry awards around the world for its feature-rich products16


 8.      End User Market Needs
        The end user markets are the professional photographers, graphic designers, web designers,
        amateur segment along with a growing home market. The digital Imaging or editing software is
        used by these markets

        The market is characterized by an intensive need for integration and management, which is not
        available with the present day software. Adobe Creative Suite has offered and integrated

15 A Press release. A Press release titled, “Say Cheese: Photo-Editing Software And Photo-Services Web Sites Catching On With Consumers, Reports Jupiter Media Metrix, Dated January 2002. at:
http://www.comscore.com/press/release.asp?press=267
16 A corporate report. A corporate report at www.adobe.com .




TandemSolutions                                                                      4/23/2006                                                                                               8-16
Market Research…. Digital Imaging

       application which holds the promise of system integration and management. The current needs of
       the creative professionals is characterized by

       1. Despite a mature application platform, the design and publishing industry is moving towards
               profound changes in the creative work flows.

       2. Creative workflows that integrate multiple media have a strong need for optimized application
               integration. In the global research project about creative professionals the need for better ways
               of managing elements in creative work flows is apparent, 48% said “tools for management” are
               missing” and 38% cited, “tools for making things easier17”.

       3. Despite the considerable evolution of individual creative tools, the way creative professionals
               organize their work has not changed much.

       4. The number or the volume of the files produced during creative workflow has created the need
               to manage the creative workflow.

       5. Creative professionals have complex needs and thereby need integration of different
               applications in the work flow.

       6. The ability to share native file formats between applications can result in productivity gains.

       7. Workflow management and versioning is an important development for the creative market.

       8. Media diversity is a key factor in modern communication and publishing.

       9. The future of workflow integration is about integrating creativity not only data. Every medium
               needs a particular creative thrust.

       The dynamic change in the needs of the creative environment and workflow integration has been
       addressed by the Adobe CS. The process of continuous improvement which the company has
       undertaken has taken a new direction by adopting work flow integration and inclusion of
       management tools18.




17 Source: “Creative markets research projects”, Pfeiffer consulting 2003-2004
18 The Adobe Creative Suite; Technology analysis and strategic perspectives by Pfeiffer consulting 2003-2004




TandemSolutions                                                                       4/23/2006                8-17

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:10
posted:7/29/2011
language:English
pages:17