VISION & MISSION STATEMENTVISIONTo aim to be the leading digital imaging company through the creation of innovative marketing activities and excellent service. We aim to develop profitable and lasting relationships.
We want to build on what we do well and to innovate to meet changing customers needs. Speaking by Canon Marketing president (Ian,2016) “It’s more about taking the brand forward and to reinforce it as the full imaging solution provider, whether it’s for the B2B or consumer business.” MISSION To inspire and empower people to realise their aspirations.
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We aim to achieve this by providing our customers with outstanding solutions, hence delighting them. We will also play our part to contribute to the economy and lend our expertise in imaging to enhance the quality of people’s lives.SITUATIONAL ANALYSIS/ ENVIRONMENTAL ANALYSISThere are two kinds of external marketing environments; micro and macro.
The macro and micro environmental factors which are considered by Canon in the marketing process are economic, political, technology, customer etc.2.1 INTERNAL ENVIRONMENT2.1.1 Company AnalysisThe company started in 1930’s. Now this company is one of the worldwide market leaders which leading the top technology such as camera, printers camcorders and etc to this new era. Before that, this company was named Seikikogaku Kenkyasho, meaning precision optical industry which are founded by Takeshi Mitharai, Goro Yoshida, Saburo Uchida and Takeo Maeda.
In Malaysia, Canon Marketing Sdn Berhad is lowering its sales turnover target to 3 % growth in 2016 from 10 % in 2015 (the sun daily,2016). But this year, Canon is ready to take their lead in the market for coming year by targeting a 5 % revenue growth, investing in better understanding of market demands.(Malaymail, 2016). Canon marketing president Andrew Koh told to Malaymail that the brand are aiming for the growth on the back of deeper and wider understanding in the market.
2 Customer AnalysisCanon uses different segmentation strategy such as demographic, geographic, psychographic strategy. It segments based on factors such as income, occupations,social class etc to lock their customer basically corporate and individual customer (Hitesh Bhasin, 2018). So far, Canon had two business segment. Consumer business that the composition of compact digital, SLR cameras and copier business which are mainly targeting the office segment. Kobayashi (2013) told “Now we are introducing a new segment. It’s always better to have a third wing to ensure sustainability.
“2.1.3 Competitor AnalysisSmartphone and digital camera had became an inevitable part of our life that causes the competitive scenario is changing for Canon nowadays that the digital imaging market is not only crowded by these companies like Kotak or Nikon but also became the target segment for the companies like Sony, Olympus, Samsung, etc.2.2 External Envirionment2.2.1 Politicial/ Legal FactorSustainability is important for Canon. It also involves focusing on reducing environmental impact; engaging with community; supporting wider economic growth.
Canon also take Risk of military invasion and also give risk to insecurity for business. In Malaysia, Canon originally influences government with 6% tax, but the tax have been removed in 2018(Dr.eng.Dan, 2012). Canon start a program which call Green Procurement in Europe in 2008 to make sure they produce with safe materials and components. This is including some areas where consumers speaks to a wider offer of the market (Cristine, 2013). Also, consumer protection legislation covering labeling and packaging.2.
2.2 Economic FactorThe economic factor could affect the firm economically mainly include interest rates and effect rates.With the development of the Single European Market, you may face increasing competition from firms within Europe. It is evident to know Canon could be vulnerable to financial crisis.
This due to weaking the euro and causes the profits in Europe falls. 2.2.3 Social/ Culture FactorAs for the Social factor, nowadays many people are not high income or different age still can afford buy for the smartphone and a lot of smartphone can easily to take a high quality picture. It causes the cultural changes and demographic changes.
(Farhad and Azhdar ,2003). Canon makes a large expenditure on its marketing efforts. From market to market and region to region, it has crafted different strategies which suit the local cultures and taste.2.2.4 Technology FactorCanon gives out a professional imaging products including photographic equipment, printers, office equipment, as well as their advanced range of digital camera and SLR camera. So to increase the opportunity, Canon must entering the new technology into the market such as smartphone.
2.3 SWOT ANALYSISStrengthCanon is a well known brand image around the world.It give high and strong reputation which mean people view it respect and believe in it High quality products/services is a vital strength, helping to ensure customers return to Canon.Canon has a high percentage of market share.High quality servicesCanon worldwide operation have a strong and wider customer base.Canon itself have higher and stronger position in this global market.
Weakness Defects in product affect image because canon known for professional performance has also faced difficulties in product detect. For example, T6I DSLRs in 2015.Brand only promoted by imaging products. Canon has been famous in global for its imaging products such as camera etc. But, other products are not so popular such as projectors and also lack of recognition and awareness.Fake imitation products cause loss and hurts the brand image.Opportunity Growth in Universal Consumer Electronics markets. They expect their market grow more than 2.
5% during 2015-2020.Coorperate with leading mobile companies which their products can be integrated.Global expansion into emerging economies can boost Canon business.Threat Can see more cheaper brands or technologies in local market.High competition can decline Canon market shareBeing a global brand, economic and currency fluctuations affect margins.Marketing ObjectiveMaintain the marketTo increase market share by 5% in one yearTo increase sales and profit margin.The main objective for launching a new product such as digital camera is to strengthen the current market share of Malaysia to its competitor.
Secondly this product helps increasing the market share by 5 % and increase sales in one year.Marketing strategyThe actual name for Canon is Pricision Optical Industry Ltd in 1937 in Japan. The world leading manufacturer of office multifunction devices such as camera, ink-jet printer, copying machine and projector which the canon has operated over the past few years. According BCG growth and share matrix (Table 3), Canon company which produced digital camera can be classified as a star that going to the edge of cash cow, as the market growth rate is high 61.
1% but slightly drop from previous 63.3% share. Canon is one of market leaders in digital cameras, even so the market is getting saturated, the number of consumer that already have a digital camera is high.
Although the market growth rate is decreasing (Table 4), but canon is still one of the market leaders with a significantly market share. So, to inspired and empower people to realize their aspiration, Canon company management push some developed ways to cope with increasing complexity, new and unpredictable situation (Dr.eng.Dan, 2012). We analyse the marketing objective strategically with market situation we see that the company is going to offer new product in current market to sustain its market share (Table 2) , to capture competitor share and to activate in-active user so the product offered has new improved quality and features.
Markets Product / ServicesExisting Products New productExisting Markets Active Customers.Competitor Customers Change.New Market Segment.New Distribritution.
New geographical Area.New Markets Latest characteristic.Latest qualities height.Latest products.
Tactical AgreementMerger.Acquisitions.Table 2 : Product/ Marketing Expansion Grid (ANSOFF) INCLUDEPICTURE “http://www.coursework4you.co.uk/images/bcg.gif” * MERGEFORMATINET Table 3: BCG growth and share matrixTable 4: DSLR Market share By Years TACTICS- MARKETING MIX5.
1 Product StrategyCanon not only produce office multifunction device such as camera, projector, printer and etc, but Canon have produce a new product which are smartcamera Canon Smartshot which have excellent designed with less weight and size as compared with other smartphone that have approximately 150g including Memory card, a lens with more capability of supporting wide range and include auto or manual focus. Face Detection, Automatic colour change effect, selfie mode function, capture high quality image even under water, waterproof, auto day mode detection, solar battery, touchscreen are also included. Use the digital camera smartphone app , it will automatic connect to the sprocket pocket mobile photo printer which need to buy separately to print pictures from your digital camera smartphone by choosing them from the camera roll or a social media website. Its give out a high performance and quality has been tested and found more then other smartphone from other company. The product have good looking style, available in 5 colours ( Black, White, Phantom Blue, Aurora Red and Soft Pink). This product offer full warranty, after sales service and online support for trouble shooting and software as per Canon policy.
Pricing StrategyThe purpose of launching this product is to help Canon Malaysia to improve its profit margin, sustain its market share and to increase its market share in Malaysia. Some Companies set a low starting price to promote into the market quickly and deeply to attract a large number of buyer in sense of get a large market share and this called as Market Penetration Pricing ( Kotler. P. , Armstrong.G.
, Ang. S., Leong.S.M., Tan.C.
T., Tse, D.K. , 2005).
Digital company such as Casio has traditionally enjoyed a low price advantages over Canon which Canon had to paid high human resource cost. However, Canon break in Casio Sales by introduce their Canon Smartshot model which price just slightly higher than the Casio EX- TR15 and giving consumer a viable alternative on smartcamera. The price slightly high will due to Canon company which increase their own human resource costing by manufacture from Japan. Place / Distribution StrategyPlace is concerned with the distribution of firm’s products and services and the distribution channel is the route through which products are send from manufactures to the end user (Analoui and Karami, 2003). Distribution process depicts the strategy and the mechanism for marketing to reach a maximum depth of the consumer community. (Polkowski.
Z. , Dutta.N. , Savulescu.C. , 2017). Malaysia has Lazada as the fastest distribution channel.
Canon new product distribution will be according to the existing network and procedure. Another then this, Canon PartnerNet dedicates IT reseller website which provide Canon reseller access the sales and marketing tools to be used for distribution. The product will be sold through online store such as Lazada, Ebay, shoppee and etc and also local distribution. In return the product will be shipped in Bulk to all different distribution and reseller. To put Canon products within easy reach, Canon has over 8000 authorised dealers and distributors in Malaysia.
Customers can easily locate an authorised Canon dealer in their neighbourhood no matter where they are based (Canon Corporate Profile, 2012).5.4 Promotion StrategyThe main focus on the promotion strategy for this product is including public relations, advertising, exhibition shows, sponsorship, digital billboard, newspaper and consumer magazine. The purpose of this promotion is to increase the declining sale, profit margin and to sustain market share. Canon will use its website for promotion, its products will be mainly promoted and sold n website or social media like Facebook, YouTube, Google, newsletter, direct email and product review blog.
The company will use push strategy and will give sponsorship (may be for running man show or singing competition show)