Canon Ixus

INTRODUCTION
It is becoming increasingly difficult to ignore the fact that cameras are integrated into our daily life. However, these rapid changes are having a serious effect on the stages of an organisation‟s marketing planning process.
This report critically examines Canon Ixus 110IS and Nikon Coolpix S620 in terms of market share, target market and their marketing strategies. It will then go onto the external and internal influences that could possibly persuade consumers in the decision-making process.
Finally, this report evaluates both brands‟ marketing strategies using buyer behaviour theories and provides recommendations and applications on how to increase the effectiveness of those strategies.
1. MARKET
1.1 SIZE OF MARKET
The camera market in Singapore has grown year-on-year to a total retail value of S$276.4 million in 2008 with retail volume of 445,100 units. Digital cameras are the largest product category and they make up 96.2% of the entire market volume in 2008. (Appendix A-1) The average number of household who possess cameras also increased from 2006‟s 88.0% to 2007‟s 88.7% (Appendix A-2) (Euromonitor 2009).
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1.2 MARKET SHARE
Canon – under Canon Inc – founded in 1937 in Japan was the market leader for cameras for Singapore in 2007. Canon‟s overall market share has grown steadily over the years and had captured 19.3% of the market in 2007. Sony, Olympus and Nikon were the next three largest players in the market, holding 17.7%, 13% and 12.7% respectively (Euromonitor 2009). With more than 60 years of experience in this industry, Canon‟s products not only include cameras it also diversifies to products such as printers and scanners for both business and personal use (Canon Inc 2009).
1.3 COMPANY‟S PRINCIPAL PRODUCT
Canon digital cameras combine a DIGIC imaging processor that brings together camera technology with face detection and optical image stabilizer, in a stylish, sophisticated package that fits nicely in the hand. (Canon 2009a)
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2. COMPETITORS
According to Euromonitor (2009), there are 8 key major players in the camera industry which include Canon, Sony, Olympus, Nikon, Samsung, Panasonic, Fujiflim and Casio. The table below shows the brand shares of these companies.

Source: Trade associations, trade press, company research, trade
interviews, Euromonitor International estimates
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From the table above, we can analyse that Nikon‟s brand share has been growing slowly and it stagnated in 2007 whereas Canon‟s brand share has grown by 0.8% within the same period. Another worthy competitor will be Sony, whose brand share has grown on an average of 1% since 2006. This clearly indicates that Sony‟s market share is catching up with Canon with its wide range of camera products.
The new Nikon Coolpix S620 compact digital camera has an inbuilt custom-optimised auto white balance, which is a DSLR technology integrated to deliver a better overall colour (Nikon 2009a).
Canon, on the other hand, launched the Ixus 110IS, which has new features such as HD movie recording and scene detection technology (Canon 2009e).
According to Euromonitor (2009), Canon also faces indirect competition from the mobile phone industry. Despite constant improvements in their in-build camera technology for the past 12 years, they still cannot take away sales from the medium and high-end digital cameras, which is where the bulk of market growth comes from (Euromonitor 2009).
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3. IDENTIFICATION OF TARGET MARKET
3.1 PRIMARY TARGET MARKET
3.1.1 DEMOGRAPHICS
The average household income (combined) of Singaporeans has increased to $4950 per month in 2008 (Singstats 2009). Generation Y (Age between 15 to 32 in 2009) are interested in style, trend and are in constant search of new technology (Tulgan & Martin 2001).
According to our observations, Canon‟s target segment is young single women between 20 to 32 years old (Generation Y) while Nikon‟s is young married women.
3.1.2 PSYCHOGRAPHICS
A target market segment can be analysed using the AIO inventory which helps identify relevant aspects of a consumer‟s personality based on activities, interests and opinions that exposes the consumer‟s buying motives, believes and values (Schiffman & Kanuk 2007).
Although both target segments come from the same primary target market, both brands differ in target segments. Based on our observations, Canon recognises young single women with active lifestyles often enjoy taking photos mostly with compact digital cameras. Whereas Nikon recognises young married women prefer capturing moments of their family.
Sivulka (2009) stated that manufacturers had started emphasizing on colour, fashion, and style, aimed at women consumers because marketers recognise women as the primary consumers of compact digital cameras.
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Therefore, both Nikon and Canon are targeting young women with flashy and funky designs of digital cameras.
3.1.3 BEHAVIOURAL
The purchase of compact digital cameras is an extended decision making process as consumers do not purchase cameras often. Canon‟s efficient after-sales service and knowledgeable sales staff will positively influence the purchase of cameras (Pappu, Quester & Cooksay 2007).
Consumers are deal-prone as illustrated by the recent PC show held at Suntec City, where it attracted over 1.16 million visitors and gathering an estimated sales revenue of $52.1 million, which Canon and Nikon participated actively (Thepcshow.com 2009).
3.2 POTENTIAL MARKET SEGMENTS
It can be clearly seen that travels have been peaking during the recent NATAS travel fair with a record of 14% increase and a 10% increase in total departures from Singapore in 2008 from previous year (Euromonitor 2008). Brown and Orsborn (2006) stated that the behavioural aspects of the baby boomers consist of high purchasing power and influences of overall household spending, which ideally situates a potential market segment. Taken together, we envisage the recommendation by targeting the baby boomers (34 years old to 53 years old) and integrate the behavioural aspect to motivate purchases.
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According to a blog posted by Nick Burcher, in July 2009, the users of Facebook in Singapore was ranked 29 globally totalling of 1,384,760, which was a 198% increase compared to July 2008.
Aside from the vast array of age groups using Facebook, we recommend a specific segment (female age below 20) that seeks vibrant and funky designs (psychographic aspect) of cameras as they constantly upload images of themselves onto Facebook. Baron (2008) highlighted that research shown the female users uses Facebook more intensively in comparison to male and as users of Facebook, we observed an exponential increase of the social networking website as a medium to share photographs online, which supports our recommendation for potential market segment.
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4. EXTERNAL INFLUENCES
4.1 CULTURE AND SUBCULTURE
Women in our target segment are mostly working or schooling and always on the go, thus valuing convenience. Both Canon and Nikon are able to deliver attributes such as user-friendliness, compatibility and mobility that consumers look for when buying digital cameras (Streetdirectory 2009a). However, Canon compact digital cameras seem to cater to young single females whereas Nikon's seem to attract young married women. The value behind both Canon and Nikon shows collectiveness. Canon shows collectiveness in terms of friendship whereas Nikon portrays family collectiveness. From the print advertisements, Canon translates fun with friends (I-weekly 2009a) whereas Nikon translates capturing precious family moments (I-weekly 2009b). Cultures or subcultures have little influence on the purchase of compact digital cameras, however, in Singapore; we value collectivism and as such align the theoretical concept of other-oriented values depicted as a methodology for guidance during purchase (Quester et al. 2007).
The two brands aim in satisfying the dominant culture within Generation Y females in terms of performance and immediate gratification (Johnsons & Learned 2004). Users can immediately view their captured image, delete unsatisfactory photos, transfer them onto computers to share with friends or print using a portable printer. The compact digital camera is hassle free with an extended battery life and expandable memory (Streetdirectory 2009b). As such, their advertisements therefore focus on user-friendliness as well as attractive specifications to adhere towards the target segment.
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4.2 DEMOGRAPHICS
The following demographics are influential towards consumption of
compact digital cameras.
4.2.1 AGE
Age plays a role as the target users are mainly from younger generation who are tech-savvy. These products primarily target the Singaporean Generation Y market that are seen as more confident, Internet-savvy and are more affluent than their Asian counterparts. They are also interested in the latest technologies and frequently upgrade to the latest IT gadgets (Seah 2004, p. 1).
4.2.2 GENDER
Females value style, colour and compactness of the camera that can be conveniently carried around. When purchasing electronic gadgets, they prioritise outlook and convenience whereas men focus on specifications (Ganapati 2009). Canon features more females in their advertisements enjoying using Canon's products. Hence, female audiences can relate to the advertisement and change their perception that cameras are a men‟s products.
4.2.3 SOCIOECONOMIC
Socioeconomic factor is influential as this product involves extended decision-making. In Singapore, the target market comprising of young single females with purchasing power and young married females from dual income families is generally affluent. According to Singstats (2009), the percentage of females in the workforce increased steadily over the past decades, implying that more women possess purchasing power to obtain goods.
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Computer and Internet usage is also common with over 60% of the population owning a personal computer and over 50% with access to the Internet (IDA Singapore 2009).
4.3 GROUP INFLUENCES
Group influence is associated with reference groups. A reference group is a group that an individual uses to guide their behaviour. A reference group can influence an individual in three ways. They are normative, informational and identification influence. Group influence is very strong for digital cameras as it is a highly conspicuous product (Blythe 2008).
4.3.1 NORMATIVE INFLUENCE
There is a fundamental human need to belong to social groups. Thus, people tend to follow the suit of others within the group when they see them behaving in a certain way or making a particular decision (Wren 1999). For example, if a woman sees that all her friends carry a compact digital camera in their handbags and snapping photos everywhere they go, she would feel left out if she does not possess her own digital camera.
4.3.2 INFORMATIONAL INFLUENCE
When an individual copies other peoples‟ behaviour or decision and assumes they know what the others are doing(Quester et al. 2007). For example, a woman may purchase a Canon compact digital camera because she remembers her friends saying how user-friendly it was without even doing research on the user-friendliness of Nikon compact digital cameras.
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4.3.3 IDENTIFICATION INFLUENCE
This type of influence involves what a particular image the person identifies certain objects with (Blythe 2008). For example, if a female sees herself and friends having many photos on a social network website such as Facebook would mean that she is a well-liked person with an active social life, she would start taking more photos during social gatherings and upload more photos on such websites.
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5. INTERNAL INFLUENCES
5.1 NEEDS AND MOTIVES
According to Hutchison, Allen and Macy (2006), consumers make purchases when they sense a need or want. Although the actual state and desirability changes constantly, its motives will continue to drive consumers toward the objective.
In addition, Reid and Bojanic (2009) stated the importance of feedback as it allows the consumers to remain loyal to a certain brand or product.
Product positioning is established to identify the needs and wants of consumers, which will be discussed using two of Maslow‟s hierarchy of needs namely, social and esteem needs.
5.1.1 PRODUCT POSITIONING
Canon uses the IXUS slogan „Where style meets substance‟ to market their position (I-weekly 2009a). The following two sections will address how Canon position it‟s product to satisfy different needs or motives.
5.1.2 SOCIAL NEEDS
The need for love, belonging and acceptance by friends drive purchases as people feel the need to enter and be accepted in a group (Kurtz 2008). The purchase of a camera serves as a basic functional need whereas the type of camera purchased satisfies a social need (Mooij 2003). Hence, the target segment will be able to correlate the brand image as a perceptual way to satisfy their social needs.
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5.1.3 ESTEEM NEEDS
Esteem needs focus on individual desire for self-attainment (Quester et al. 2007). It includes recognition and prestige (Michman, Mazze & Greco 2003). Canon taps on the validation amongst friends as a strategy to motivate consumers to purchase, hence satisfying their self-esteem.
5.2 PERCEPTION
5.2.1 EXPOSURE
Exposure happens when people experience stimuli with their senses, such as sight, smell, touch, hear and taste. However, selective exposure occurs when people find out what they do not desire and only accept certain stimuli (Botha, Strydom & Brink 2004). Marketers are required to use big, loud, colourful and many other stimulus for advertisement to increase the chance of exposure. The perception begins with exposure then attention, interpretation and memory (Quester et al. 2007).
5.2.2. ATTENTION
Attention begins when triggered senses transferred to the brain, which sift out stimuli that the person is not interested and focuses on preferred messages and advertisement (Botha, Strydom & Brink 2004). In order for marketers to strategically plan for the next advertisement, there are areas in which they should consider.
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5.2.2.1 SIZE AND INTENSITY
The impact with big advertisement is much greater than a smaller scale one; furthermore, the intensity of the stimulus being attractive by being loud or colourful will yield higher attention (Quester et al. 2007). Some examples include soothing music followed by a loud interception, a black and white advertisement transforming into colours.
However, Botha, Strydom and Brink (2004) mentioned if someone is looking for a need, the attention given to the stimulus would be greater when he is interested. Hence, marketers have to try overcoming selective attention by increasing size, intensity and having more colours, including movements instead of still images.
5.2.3 NIKON/CANON ADVERTISEMENT
The Canon advertisement depicted a group of happy youngsters, focusing on fun (I-weekly 2009a). However, Nikon positioned its product using toys and kids as their main aspect to reach out to consumers (I-weekly 2009b).
Both advertisements employed bright colours to gain attention and adopted a funky theme to reduce selective attention.
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5.2.4 INTERPRETATION
Interpretation refers to what people believe in and is subjected to the objects, messages and meaning of the stimuli (Quester et al. 2007). In light of globalisation, different cultures affect the focus of advertisements as culture reinforces our beliefs and determines our perceptions. Mooji (2003) supported that a successful advertisement in one country may not succeed in other. In addition, Quester et al. (2007) mentioned that such interpretation falls under affective interpretation, which is normative within culture as it is affected by stimulus of an advertisement.
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5.3 LEARNING
There are different types of learning theories. However, the most appropriate learning theory to use in promotion lies under classical conditioning.
Classical conditioning theory depicts a methodology in relation between a stimulus and response. The unconditioned stimulus includes music, images of love and care, which brings unconditioned response (Quester et al. 2007). Furthermore, Canon uses additional slogans like „fun with Canon‟s wide-angled IXUS 110 IS‟ and „your shot is a brilliant one every time‟, which connects conditioned stimulus to conditioned response.
Consumers learn about the attached emotion conveyed in advertisements. An association will formed when repeated exposure occurs as it bridges the emotion to the advertisement (Quester et al. 2007). A promotion on media gadgets further allows our potential target segment to use their newfound „concept‟ to make a purchase decision based on the perception they have learnt. Therefore, to satisfy various needs, as mentioned earlier, marketers use advertisement to „educate‟ their potential target segment and align their product to suit the consumers need. Canon uses fun loving advertisement images to attract and educate its potential target segment of female below 20s as this segment values „funkiness‟. This will ensure that our potential target segment will correlate fun with Canon cameras in future.
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5.4 LIFESTYLE
Singapore is rated by fortune magazine as one of the best cities with excellent lifestyles to reside in (Focussingapore 2009).
There are 8 different categories of lifestyle under VALS; they include innovators, thinkers, achievers, experiencers, believers, strivers, makers and survivors.
Both Canon and Nikon products appeal to the innovators, achievers and experiencers.
5.4.1 INNOVATORS
Innovators believe in self-dependency and have a high level of esteem and resources. They stretch their interest widely and are receptive to new products in the market (Quester et al. 2007; Kerin, Hartley & Rudelius 2003). Therefore, Canon, having the latest technology, is appropriate for innovators as a cultivated way of life.
5.4.2 ACHIEVERS
Achievers aim to join a group by purchasing established brands. Achievers are the marketer‟s main targets as they value image and regard prestige (Kerin, Hartley & Rudelius 2003). Hence, Canon attracts achievers who are interested in „purchasing‟ an entrance to a group by being fashionable to reflect their status.
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5.4.3 EXPERIENCERS
Experiencers are young, rebellious and impulsive and their purchases include the latest fashion and gadgets. Furthermore, they thrive well without political involvement and have contradictory beliefs (Quester et al. 2007). For this reason, Canon, which explore new experiences, is able to engage experiencers who display impulsive buying behaviours.
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6. CONSUMER DECISION MAKING PROCESS
6.1 INFORMATION FOR DECISION-MAKING
According to Howard and Sheth (1969), consumers learn from their actual experience and information obtained from commercial or social surroundings. They establish evaluative criteria, search for alternative solutions and compare the performance of each alternative solution based on their evaluative criteria (Quester et al. 2007). Our target segment is highly involved in purchase as they believe that having a camera is both a social and esteem need as explained under the internal influence section. They engage in extended decision making as they rely more on external information such as opinions of friends or professional information (Quester et al. 2007). Canon is part of our target segment‟s evoked set because they view Canon as a substitute brand that meets their evaluative criteria (Howard & Sheth 1969; Quester et al. 2007).
6.2 CONSUMER EVALUATION
Evaluative criteria are the necessary features a consumer looks for. Our target segment focuses on style and user-friendliness as the determinants of their buying decision. They adopted the lexicographic model, comparing the evaluative criteria of different brands and selecting the brand that best fit the criteria (Angelmar & Pras 1977).
6.3 CONSUMER SHOPPING ORIENTATION
Since our target segment practice extended decision-making and have knowledge of the product, base on our observations, they select the brand first before deciding on the outlet (Quester et al. 2007; Clubsnap 2009).
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6.4 POST-PURCHASE BEHAVIOUR
Our target segment undergone extended decision-making and is highly involved in their purchase, thus post-purchase dissonance is more likely to occur (Dawes & Rowley 1999). Dissonance tends to be higher when there is a low level of satisfaction (O‟Neill & Palmer 2004). The greater the effort in researching about the product, the higher the consumer is likely to face dissonance (Quester et al. 2007). According to Mitchell and Boustani (1994), before sales purchase such as description on packaging, unbiased information of the product, the store image, advice from family and friends and obtaining information from professionals to confirm its credibility, reduce the possibilities of post-purchase dissonance. In addition, after sales service also minimizes post-purchase dissonance by making purchase decisions revocable and introducing questionnaires to collect feedback (Quester et al. 2007; Canon 2009d).
6.5 DISPOSAL OF PRODUCT
Consumers tend to dispose the camera due to product obsolescence. This disposal could be in the way of selling privately as second hand, dispose off as waste, recycling, or giving it away (Mayers et al. 2002). As every product life cycle ends ultimately, the marketers should be socially responsible to our environment by producing packaging that gives the least impact to our environment (Quester et al. 2007). Canon provides a platform for consumers to dispose off their old cameras through their canon buyback program. From our observation, „trade-in items need not be in working condition‟. This is beneficial to both the consumers and the society as consumers have a proper channel to dispose their unwanted products without harming the environment.
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6.6 CONSUMER LOYALTY
Under comparison, one of our potential target segments does not differ in their loyalty towards Canon. However, Moschis (1992) stated that baby boomers tend to switch brand when monetary incentives are given. Brand loyalty refers to the psychological attachment of a consumer towards the brand (Quester et al.2007). Brand loyalty can be encouraged through product bundling to induce purchase, creating a correlation of the core product with the consumer to establish a relationship among them (Quester et al. 2007). Canon‟s “buy back” program is an example of encouraging brand loyalty. Consumers gain monetary incentives when they trade in old canon cameras and purchase their next product with the brand.
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7. MARKETING STRATEGY
Flickr, a popular online image and video hosting website, compares statistics of cameras and tabulates which are the more popular choices. Evidently, Canon was a prevalent choice among the point-and-shoot camera categories as shown below (Nudjit 2008).
Based on most online forums, Canon and Nikon are the closest competitors with regard to their brand choice (KenRockwell 2006; Clubsnap 2009; Dpreview 2009; Deviantart 2009).
Mr. Ogawa, chief executive of Canon Singapore, revealed Canon‟s newly developed strategy which compromises of three inter-linked strategies:
Ensuring that we refresh our products regularly. Developing a new strategy for selling to corporate customers - „Business can be Simple‟. Finally, having a corporate philosophy to customer service - Delighting You Always (Keshvani 2006, pp. 10 - 11).
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7.1 POSITIONING STATEMENT
Positioning statement specifies the unique selling point of the company‟s product. It identifies the company‟s target market, what the product is used for and why should the company‟s product be consumer‟s choice (Silk 2006).
Nikon Coolpix – „Every precious moment, perfectly captured.‟ (I-weekly 2009b).
Canon Ixus – „Where style meets substance.‟ (I-weekly 2009a).
The positioning statements of both companies will be supported by the marketing mix approach discussed below.
7.2 MARKETING MIX
7.2.1 PROMOTION
The promotional strategy of Nikon Coolpix S620 uses emotional appeal by evoking strong feelings to reach out to the target segment (Quester et al. 2007; I-weekly 2009). The slogan, „At the heart of the image‟, taps into the emotional aspect of photo taking by featuring parents and their children (I-weekly 2009b). In addition, Nikon sponsors photo-taking competitions that are family oriented, such as the National Day Parade 2009 photo-taking competition (PhotoFrenz 2009; Nikon 2009c).
Similarly, Canon IXUS 110IS uses emotional appeal by evoking young consumers oriented magazines, emphasizing on the product outlook and associating it with „fun‟ (Canon 2009f; I-Weekly 2009a). Both Canon and Nikon advertise in print medias, internet and broadcast media. We believe these are very effective forms of communicating strategy as it reaches out to the specific target market. For example, Canon print advertisements can be found in
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magazines catered for the young females, this would seem more exclusive to the specific target market (Peter & Donnelly 2003).
7.2.2 PRODUCT
Innovation is the birth of a new product or service and their rate of diffusion is denoted by their speed of penetration in the market (Schiffman & Kanuk 2007).
Digital cameras could be either a continuous innovation, which is often a modification of an existing product, or a discontinuous innovation (Quester et al. 2007). Our target segment perceives digital cameras as a continuous innovation as Canon often modifies its product to be more customize towards satisfy consumers.
The rate of diffusion of products into the target market is determined by factors such as types of decision and fulfillment of need by consumers, marketing effort by the companies, complexity and observability of the products (Quester et al. 2007). Observability can be done by allowing trial of the products at their showrooms (service) and offering photography training (service), hence facilitating a faster diffusion rate (Canon 2009c).
Based on our observation, Canon Ixus 110 IS comes in 4 colours and includes the latest technology. It appeals to their target segment as it is small and handy with nice curvatures on the exterior. On the other hand, Nikon Coolpix S620 also comes in 4 colours and is slightly lighter in comparison to Ixus 110 IS. However, It appeals to their target segment as it brings back nostalgic moments with a classical and sleek design.
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7.2.3 PRICE
Canon- S$549 (Canon 2009b).
Nikon- S$529 (Nikon 2009a).
The price would be perceptible to consumers as an indicator of a product‟s quality in relation to its brand, if the consumer is not knowledgeable on the product and its brand name (Schiffman & Kanuk 2007).
Both Canon and Nikon prices are differentiated by a slight margin, which might not pose any competition amongst the target segments.
However, price is an evaluative criterion that consumers consider before making a purchase. As supported by Quester et al. (2007), surrogate indicator such as price could be either predictive or confidence value. Price as a predictive value could be an indicator to assess the product quality (IXUS 110IS & Coolpix S620) as opposed to consumers who are able to distinguish between brands.
Canon‟s target segment would likely respond to price reductions readily as generally, sales increase when prices are reduced before returning to original sales figures when price reductions cease (Hanssen 2001).
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7.2.4 PLACE
Both Canon and Nikon products are available at retail stores and online purchasing platforms. They adopt similar distribution system and are accessible to the target market. Young females may fall under the categories of three of the VALS segments mentioned in sections 5.4.1 - 5.4.3. Innovators and Achievers, being more image-conscious, would most likely purchase products online as the process is quick and easy. Furthermore, Achievers are career and work-oriented, so online platforms act as ideal distribution channel for them as they are hassle-free comparatively to buying from retail stores. Experiencers, on the contrary, would respond more readily if tangibly exposed to the products. They would most likely purchase the products from more prestigious retail stores where products are perceived to be more desired in addition to test-try the products (Peter & Donnelly 2003).
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8. EVALUATION AND RECOMMENDATION
We consider Canon‟s advertisement more effective in terms of reach and rate of exposure as compared to Nikon. Canon uses both high reach and frequency to continuously enhance their brand image and positioning statement. However, both Canon‟s and Nikon‟s print advertisement are targeting at almost the same segment in terms of age but certainly different in household life cycle. Aside from the household life cycle difference, Nikon incorporates a „warm‟ feeling for the Coolpix series that allow consumers to be attached emotionally while Canon integrates the theme of being „funky‟ to their line of Ixus product.
The advertising campaign, which encompasses the message, comprises of the strategy as the crux for marketing and it is base on the target segment stated. The positioning statement allows consumers to believe that Canon or Nikon will empower them with their needs, however, we believe that Canon injects a strong sense of emotion as oppose to Nikon.
The role of communication for Canon and Nikon is to let consumers consider our chosen product as an option when selecting a new camera. The single most important point for Canon is the ability to capture „fun‟ while Nikon captures the „moment‟.
One significant finding between both the print advertisements is that Nikon advertises four different cameras in one print advertisement while Canon‟s advertisement focuses only on Ixus 110 IS. The advantage of displaying a wider range of product line in the advertisement is for comparison. However, consumers might be confused when learning about a new product. Hence, Canon strategy narrows down the choice to deliver a simpler message to the targeted audiences.
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Furthermore, Canon‟s advertisement uses iconic symbols to ease the understanding of technical jargons, which enhances product differentiation that Nikon fails to deliver. Additionally, Canon includes price and promotion that are vital information to reinforce consumer-purchasing decision. Aside from technical jargons, the Ixus advertisement provides the available camera colours for consumers to consider, which Nikon omitted. Hence, the justification of why Canon‟s Ixus advertisement outreaches target consumers over Nikon are clearly defined.
Although both brands have eye catching print advertisements, Canon does a better job at explaining the product features in a way that first time camera users can understand.
With the success of Canon Photo Marathon last year, Canon is introducing Canon Photo Marathon Asia which is a large scale photo competition involving 6000 participants from 6 countries travelling across Asia. It is one of the region‟s largest and most recognised photo competitions. Such events not only draw attention to Canon but it is an avenue for Canon to build relationships with new and existing customers (Canon 2009g).
From our research, Canon has satisfactory after sales services that can be further improved. Currently, Canon only has one customer service center located at HabourFront, which is only open during office hours on weekdays. This makes it difficult for working adults to send their cameras for servicing. Canon can open more customer service outlets located islandwide for easy access and to have these outlets open during weekends as well.
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Since Canon Ixus‟s positioning statement is „Where style meets substance‟, Canon should focus on how to accentuate style as a selling point. One way to do this is by introducing interchangeable skin for the cameras. Canon has done a good job in the product itself but it can enhance the product‟s package by selling the interchangeable camera skins as accessories. In that way, consumers have more choice then to stick to the limited colours offered and they can switch designs according to their mood and preference.
Canon can improve their marketing communication by increasing the level of exposure of their print advertisement to facilitate the learning process especially when introducing a new product. While putting the company‟s website is a good way for consumers to learn more about the product, Canon can increase the likelihood of visits to their website by including a quiz about the camera in their advertisement. Consumers can submit answers online and can stand a chance to win the camera. This method not only encourages learning of the product but also creates a desire for the product.
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9. CONCLUSION
This report has given an account of and the reasons for the widespread use of digital compact cameras and given understanding of consumers' behaviour through thorough analysis and synthesis in terms of demographics, psychographics and behaviour, which aids in the recognition of market trends.
Returning to the question posed at the beginning of this report, it is now possible to state that both external (culture and group influences) and internal influences (people‟s differing needs, motives, perception, learning and lifestyle) are contributing factors to consumers‟ purchase decision.
One of the more significant findings to emerge from this report is that Canon‟s target segment engages in extended decision-making. Thus, before and after sales service is vital to reduce the impact of post-purchase dissonance. It was also shown that marketers should also be socially responsible to the environment and promotes brand loyalty through product bundling.
Taken together, these results suggest that as consumers are constantly learning from their actual purchase experience and information retrieved from the commercial or social surroundings, Canon and Nikon‟s marketing strategy must be competitive so as to attract more consumers as well as retain their current market share. (5169 words)
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10. GROUP PERFORMANCE REPORT
Name
Performance
Level of participation
Section done
Luo Yan Fang
Outstanding
Intense
(6) Consumer decision process & (9) Referencing
Benedict Tay
Outstanding
Intense
(5) Internal influences (8) evaluation and recommendation
Isa Abu Samah
Outstanding
Intense
(4) External influences (8) evaluation and recommendation
Kelvin Seah
Excellent
Intense
(1-3) Market, competitors, identification of target market
Kareen Lee
Excellent
Intense
(7) Marketing strategy
Group performance:
Relatively this report was done with minimum hiccups, however, it would be better if some group members seek clarification of their part before attempting. It will firstly reduce the amount of time to go over the section and try troubleshooting. Aside from that, we are all well aware of the criticality of the report‟s requirements and we started as early as possible to prevent last minute work. Those that finished their sections early were then tasked to oversee and edit the rest of the sections. 2 parts that were reevaluated was section 3 (identification of target market) and 7 (marketing strategy), which needed the most amendment. Overall, the balance of the group‟s performance aids to augment the criticality of this report.
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11. REFERENCES
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Kerin, RA, Hartley, SW & Rudelius, W 2003, Marketing: the core, McGraw-Hill, New York.
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APPENDIX A1
Extracted from www.euromonitor.com
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APPENDIX A2
Extracted from Euromonitor.com
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