Epson America to go for brand-name status.

PC printer firm hires ad agency to promote image

Epson America Inc., the high-tech company based in Torrance, has taken a new tactic and started to market its name direct to consumers.

In the past two weeks, the company - which makes personal computer printers and computer components and which boasts annual revenues of more than $1 billion - has hired a new advertising agency to formulate a consumer-oriented campaign.

"We have always banked on the credibility of our individual products and our technology," said spokeswoman Kathleen Buczko. "What we have learned though is that increasingly consumers just don't buy technology, they are buying brand names."

Company officials said Epson's desire is for consumers to recognize its name just like they do competitors' like Hewlett-Packard Co., Apple Computer, Compaq Computer Corp. and IBM.

Epson's primary consumer product is printers that are used with desktop PCs. In addition, Epson, a private company owned by Japan-based Seiko Epson Corp., makes component parts for computers as a "original equipment manufacturer."

Working anonymously

An OEM is a supplier of custom-made parts or devices that are bought by other companies that in turn put their name on the products.

Epson makes several products that consumers know but its name is not on the devices. For instance, it makes the devices that spin out cash register receipts in grocery stores, handheld computers used by overnight delivery people and the screens on the small television sets built into some airline seats.

None of those products carries the Epson name, however.

An industry analyst said Epson is being forced into the consumer advertising campaign because it has to play catch-up in the computer printer business.

He said the company has been slow to introduce new "ink jet" technology for printers and has held on too long to the "dot matrix" printers.

"Ink jet printers are now the printers of choice among users," said Michael Zeis, the editor and publisher of the Color Business Report, a Boston-based newsletter about the printer business. "People who buy printers either for home or office use are now buying ink jet printers and what Epson has to do is let people know that they too make ink jet printers."

Accent on ink jet

"Epson's biggest challenge now is to get into and stay in the printer business using ink jet technology," said Zeis.

The difference between ink jet and dot matrix has to do with the mechanics of printing. To consumers, a dot matrix printer is noisier but some people believe it produces better quality printing. The basic difference is that a jet ink printer is more modern and uses up-to-date technology.

Epson currently is heavily promoting its new Stylus Color Ink Jet Printer, which the company boasts just recently won an industry award as the "product of the year."

In addition, Epson is also promoting its new CARDIO-486, which is a credit card-sized computer motherboard. A motherboard is the pan that actually runs a computer.

Epson is promoting the CARDIO-486 as the winner of the "innovation of the year" award from an industry publication.

Evolving with time

Epson was established in 1975 as the marketing and customer unit of Seiko Epson. Over the years, the company became more of a manufacturer and currently has about 700 employees, mostly in Torrance but also at other offices throughout North America. Employment has been steady over the past few years, with no layoffs or major staff additions, said company officials.

Because it is a private company, Epson is not required to release financial information but officials said it has been profitable and last year was the company's "best year," said Buczko.

To get its name out to consumers, Epson recently hired Ammirati & Puris/Lintas, an advertising agency in New York. Buczko said the agency was retained after an extensive search that included a competition among several agencies and four finalists. She would not say how much Epson has budgeted for its consumer advertising campaign.

"All I can tell you is that it is going to be very consumer-driven. It's safe to say it's going to be a multimillion-dollar campaign," said Buczko.