Research analysis for Canon Camera
The product name under analysis and research is Canon camera. It lies under the photography product category. Relevant information about Canon cameras can be found on various sources including www.canon.co.uk and www.theverge.com websites. I am studying this brand with an aim of identifying its equity. This study entails various consequences on brand equity, for example, consumer preference biasness. The purpose of the study is to find out the styles used by consumers to make decisions using consumer inventory, investigate the comparison between styles of decision making, and consumer purchasing effort of the digital cameras. This study will also entail the product life cycle with regard to the consumer behavior. This will entail promotional methods for the product that will enhance the marketing plan.
In 1933, Canon established an optical instrument laboratory. Later on in 1962, it built a five year plan preparation to enter into the business market fully. In 1967, the management opened a new headquarter in Kosugi office, which acted as a business solution and provided activities on information technology. Opening the branch had a great impact as it boosted the camera production to one hundred million units. Production of the digital camera reaches two hundred and fifty million units in 2014, after Canon signed its global partnership with Volkswagen with a task of managing print services. Later on, Canon entered industrial markets for cameras by launching M15P-CL camera for devices inspection. In 2016, Canon appointed a new corporate structure(“Canon CR6–45NMf Retinal Camera Adds Digital and Fluorescein Capabilities”, 1999). It then launchees the EOS-1D X Mark II camera.
The demand and demand trends of a product entail availability of a product, that is, where consumers can buy it from, the mode of payment to be used, either cash or by cards, and seasonality of the product’s life period. One will ask themselves what is the current demand for the product and how it is changing. If there is a possibility of future enhancements of the product that can enhance profitability then action is taken to use the advantage. Segmentation, positioning, and targeting are the ways of improving a products demand in regard to consumer behavior. Segmentation is a process whereby markets are divided into smaller portions of consumers with same needs. Market segmentation involves four major steps: identifying sets of product related needs, grouping consumers with the same needs together, defining each group and choosing a correct segment to serve (Scott et al., 1981). This is a formula which all organizations need to embrace in improving the marketing of their products. They have to note all the needs that could be served by their product, and more importantly, identify the consumers that could be highlighted to be having the same needs that can be addressed at the same level.
Targeting is the process of selecting one or more portions of the segmented consumers and pursuing it (Lin, 2002). By choosing a particular segment, research is carried out to determine the demands of the consumers, but thereafter, production process takes place to provide goods and services for the consumers. Positioning, on the other hand, is a way through which producers develop an accurate image of their product in consumer’s mind. Successful positioning entails communication of a unique proposition for the selling of the product and communicating the advantages of the product rather than its characteristics. When these three ways: segmentation, positioning, and targeting are put in practice, they provide some insights which will later motivate customers to buy the canon camera (Scott et al., 1981). The canon camera is a great product, the developer took time for its innovation and development, thus, it would be a huge blow if inappropriate marketing strategies will be employed that yields no fruits.
Potential users of the Canon camera had various views of this product with regard to its utility. Many people think that there is no difference between Canon and Nikon cameras, which is untrue since there are a number of differences between these two products. My research covered two different groups, which had different opinions. The first group thought there is no difference between Canon and Nikon camera, while the second group highlighted various differences. They clearly stated that Canon had a clear video performance than Nikon. Moreover, Canon lenses and cameras are cheaper as compared to Nikon. Canon’s ability to outperform Nikon in terms of pixel count and Canon’s camera availability in the market was also noted.
A primary market segment for a particular product is the part of the market place where an enterprise believes that it will get the bestselling chance (Doyle & Stern, 2006).This entails the group of consumers a company wants to convince to buy its product alone. This is determined by analysis to determine whether customers have something in common and analyzing competitors in the market to find out if their customers have something in common. The primary market segments for Canon camera will rely mostly on film industries and social media such as television channels and online websites and blogs. Due to this fact, social media is the main primary target for Canon cameras, while other primary targets are for personal use at home or by photographers (Pandey, n.d.). In most instances, the cameras are utilized by celebrities for social media purposes and the media houses for recording and collection of data. These two are the main influencers of the market ability of the cameras.
Demand for cameras has been decreasing abundantly due to threat from the photo function installed in various smartphones. Canon looks forward to develop a new market segment for IXUS, which will extend into the kids segment. Canon is doing this by targeting parents with kids between five and nine years. The managers noticed that parents can easily buy DC for their kids rather than smartphones. The first phase to enhance this will be through raising awareness on photography for kids, while the second phase is the implantation of photographical ideas deeply into the children’s minds. This will mainly target the families with a middle income. Canon always has the objective of finding out new markets so as to remain competitive. For example, in female photo shooting Canon explored the realm with a number of television commercials. They are also opening new markets targeting the youths who are about to be parents, because of saturation in the youth segment (Roberts, 1986). The youths have embraced the digital world more explicitly than the ageing. From this fact, canon is thus on the right track to target and introduce them to the new canon experience.
Targeting and positioning chooses the segment for a business then later on develops a marketing mix and position strategy for the product in each segment. In market targeting, one will consider the size of the market. The market is supposed to be large enough to enhance the segmentation process. If the market is too small it will lead to smaller segments, thereby not enhancing profitability. There should be differences between various market segments. The anticipated profits should be more than the costs of marketing planning. Accessibility must be enhanced to ensure that each segment can be reached by members of your team for purposes of receiving marketing messages. Different benefits are the core point to focus on the various segments need different benefits. Under market positioning, opportunities in the market for cheap cameras to be bought by low families are identified.
The first concept of the estimation of the market size is an understanding of the problems hindering customers and solving them, and the amount of utility driven from the product by consumers (Li & Calantone, 1998). The first step in determining the size of the market is determining the target customer. An estimation of the targeted consumers can then be done. Bwide public research revealed that the target group in the United States is 1300 for companies that are making cameras. The third step is the determination of the penetration rate into the market. This is done by creating a way of penetrating the product category. The nature of the product is the function of the penetrating rate. It is required to take a low penetration rate when dealing with specialized products. There is a seventy percent penetration rate into new technology. The forth step is calculating the market size, that is its volume and value. Market volume is calculated by multiplying the number of targeted consumers by the rate of penetration of the product. Our target customers are one thousand three hundred and rate of penetration is assumed to be seventy percent. The potential volume of the market is nine hundred and ten companies. Market value of the market is calculated by multiplying the average value by the market volume. We assume that each company sells an average value of USD two million five hundred thousand. So we take the nine hundred and ten companies multiply by USD two million five hundred thousand. We get USD two billion two hundred and seventy five million. The final step is to apply the data of the market size. This exercise has an assumption of obtaining the market potential for a particular product (Scott et al., 1981). An organization has to have relative information of the market climate and magnitude to determine how it will set its product or rather how the product will be released to the market.
Consumers purchase Canon camera online through need recognition. Most producers stimulate their customers to realize they have a need for a particular product. Companies can help customers access their products through search of information. This is done by the consumers searching the product in various websites. Internet shopping sites for example Amazon has become a helpful tool of information about various products. It is also important since it provides product reviews, which are written by consumers. Here, a consumer can find all brands of Canon cameras he or she desires. Another way is by searching using Epinions.com. This is a site that offers products and their ratings, tips of buying, and information on the prices of various products (Scott et al., 1981). It is renowned and more importantly, credible,which is key especially in the emergence of many scum websites on the internet.
The major challenge hindering products is how to connect with the potential customers through social media (Shankar et al., 2010). Understanding consumers’ needs is a key point to marketing, abd managers are trying to create online campaigns with the aim of encouraging consumers to buy from them alone. The main marketing areas which have been turned around by digital migration are products relevance, campaigns and speed. This is enhanced whereby text messages are sent to specific groups offering them relevant content. With so many ways through which potential customers access media either through WhatsApp, Facebook, YouTube or other social networks via a mobile phone, computer or tablet companies reach a large number of people (Scott et al., 1981). Many sales and marketing services have been taken online, because most buyers spend more time online on social media platforms than they spend on actual shops.
The competitive brand for Canon is Nikon cameras. In the beginning, Canon used Nikon lenses, but later on it developed x-ray indirect camera. Canon enhances this by using the product mix. It believes that the only way to success is through the provision of quality products. To attract more buyers, the company has maintained a balance between the cost and selling prices. Its pricing policy has encouraged customers to buy from it, since it is selling its product at the minimum amount possible. However, due to external forces such as competition, Canon is facing a competitive pricing mentality. It is seen that competition is high and to avoid this, Canon is using competitive pricing to keep its customers (Scott et al., 1981). Reduction of the cost is an attraction for all customers; customers will always go for the cheaper product regardless of the quality.
The company has enabled increased purchase from its customers through its affordable pricing policy. It concludes by quoting that if a certain price of a product seems convenient to a product then they will have no option rather than buying it. The company looks at the trends in demand of its product and comes up with pricing policies. By doing this, it has tried to keep its prices lower than that of the competitors, so as to satisfy consumer needs. In place distribution, Canon has partnered with transportation agencies to enhance full distribution of their goods to retailers and consumers at a minimum cost. Warehouses are evenly distributed so that the products are safe and at an available distance. From here, all the products are supplied to the various shops with ease. There are also many other retail shops where Canon products can be bought from.
Canon has a well and planned and designed website where purchases can be made. Every detail is handled efficiency. Information about camera specification, latest models, and updates are provided in this website in a professional way. Consumers have an ease of looking at the products and making proper decisions without interference from other people. This helps greatly in making satisfying choices. E commerce retailers have greatly influenced the distribution of Canon products. On Amazon, for instance, cameras and accessories are available at fair prices. The rate of turnover has increased further as a result. On the other hand, Canon has several plans for the distribution of its products. Promotion in the marketing mix is another aspect of marketing. Canon, in order to sell its products, uses trade shows, advertising and public relations. Canon maximally employs advertising as it is a significant tool. All the detailed description about a particular product is available through websites, Facebook, television, radio, and other social media platforms (Scott et al., 1981). It is the responsibility of the marketing team to identify the websites with the most products, and try to in incorporate their product in the site for advertisement, and canon has done remarkably well in this way.
The knowledge helps in building awareness about the brand and its ability to satisfy human wants. In other cases, Canon conducts promotional displays on malls exhibiting its product and advantages. Promotion is evidently the most successful tool for selling a brand (Scott et al., 1981).Canon also provides workshops for interested individuals. Information, and lessons about photography are provided thereby proving benefits to the individuals in the long run. Most of the people who attend these workshops are armatures, they are taught concepts of photography and later on they become the potential buyers. They have promoted their sales by offering gifts upon buying canon products; also provided discounts for their services and lucky coupons for those who win.
Canons’ target market can be categorized into two major groups. These groups will take into consideration the age, gender, income level, and education of its customers. The two segments are those who buy camera for personal and family use, while the other segment is for professional and armature use in art. A secondary consumer is a student in college of any race and gender. An average student has a social media account, which largely involves sharing of pictures in their daily livelihood. Since Canon has a wide range of camera prices, there is one that fits a college student. As Canon develops cheap cameras, its target market will be the middle class, which entails individuals between thirty and forty years of age. Nevertheless, the target markets for Canon have been noted to be Similar to those for Nikon (“Canon CR6–45NMf Retinal Camera Adds Digital and Fluorescein Capabilities”, 1999). These are the parents who want to keep records of their children’s lives. Evidently, this has become a trend for most parents, to keep record of their children’s childhood life for later references.
The marketing strategies for Canon include the establishment of a new production system to achieve a cost of sales ratio of forty five percent and expansion of new business (“Canon CR6–45NMf Retinal Camera Adds Digital and Fluorescein Capabilities”, 1999. Additional marketing strategies include creating future businesses, restructuring network in global sales, and enhancing proper R&D capabilities by opening new innovations worldwide (“Canon CR6–45NMf Retinal Camera Adds Digital and Fluorescein Capabilities”, 1999).This is meant to make sure that the three regional headquarters management system is competed, thus capturing the worlds dynamism and re-instillation of the Canon spirit.
Nikon, on the hand, has contrasting strategies for its products. It has set an e-business strategy via the website based in USA, Europe, and Japan. This website will provide a platform for users, which will take place seven days a week. Nikon will also provide a wide range of information about its products on this website. Using the marketing mix, the 4Ps will be the product, pricing, place, and promotion. Consumers will access information about the specifications of the camera online, unlike previously when they obtained it from shops. Each product will be categorized with the aim of satisfying the market segment demands. Nikon will make prices more competitive for new cameras, as it will not incur costs of storage. Under the place, the main area of making purchases will be through the internet. Nikon will make sure that once a product has been bought, it will reach the customer in the least time possible. The promotion strategy will include banner and web promotions. All these are provided in detail on the Nikon website.
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