Consumer Behavior Report
‘Canon’
Jeanette Thong Su-Xian
FT DipCom LM/MM 4
Mahum Jafer
4th June 2012Situational Analysis
Canon 's strategies have been very effective in balancing growth of market share with profitability, with the firm controlling a significant share of focused niche markets in the imaging industry. Canon 's strategic challenges involved identifying the markets in which it intended to compete and developing competitive advantages to allow the firm to balance market share and profitability growth within these markets. In the late 1960s, the firm initially adopted a business-level strategic vision of focusing on the small photocopier niche that was underserved by its
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In effect, Canon would be in the position of a new market entrant with existing firms controlling the market.
Segmentation Methods
Today, segmentation is a crucial marketing strategy for nearly all successful organizations. Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. The target market of Canon 's photography products can be divided into two major segments; Demographic segmentation & Psychographic segmentation.
The core of most almost all segmentation is demographics, this due to the following reasons: demographics are the easiest and most logical way to classify people and can be measured more precisely than the other segmentation bases; demographics offer the most cost effective way to locate and reach specific segments because most of the secondary data compiled about any population is based on demographics; and many consumption behaviours, attitudes, and media exposure patterns are directly related to demographics. Individuals and families using photography to illustrate and capture their important moments are grouped under demographic segmentation; it uses the common bases to age, gender, income, ethnic background, and family life cycle.
On the other hand, professional photographers and highly-skilled amateurs are grouped under Psychographic segmentation. This is because its basis follows the following variables: personality, motives, lifestyles
The problem in this case is concerned with Eastman Kodak losing its market share in film products to lower-priced economy brands. Over the last five years, in addition to being brand-aware, customers have also become price-conscious. This has resulted in the fast paced growth of lower priced segments in which Kodak has no presence.
| According to the text, market segmentation is defined as identifying groups of consumers based on their common needs.Answer
This can also refer to the demographical segmentation, because a person's lifestyle is determined by factors like age, gender and location.
According to Horner and Swarbrooke (2005: 39), Segmentation may be defined as the process of dividing a whole market into subgroups or segments for marketing management purposes. Market segmentation is the division of the overall market for a service into various categories with common characteristics. In response to different segments, organisations facilitate the available resources to achieve greater efficiency, in order to satisfy specific needs of customers.
Market segmentation: The process of dividing a market into distinct groups of buyers who might require separate production or marketing mixes (Wells, Burnett, & Moriarty, 2006).
In order to market the product into the market successfully, marketers need to have some marketing strategy to enter the desired market and make profit. Market segmentation is the process of dividing a market into subsets of consumers with common needs or characteristics (Schiffman et al., 2011). Understanding the market size and segmentation is valuable, but the keys to effective targeting is to know just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends ( Berry, 1999).
Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications
When Kodak began making changes to its organizational architecture in 1984, its current architecture did not fit the business environment for the industry. The largest factor that motivated Kodak to make this change was increased competition and decreased market share. Until the early 1980’s, Kodak owned the film production market with very little competition. This suddenly changed when Fuji Corporation and many other generic store brands began producing high quality film as well (Brickley, 2009, p. 358). Another factor in this change was technology advancements. As technology rapidly expanded in the 1980’s, other
To account for their miscalculation in film sales, Kodak is undergoing a massive digitally based shift. Kodak plans on building a stronger base in its consumer, medical, and profession imaging products. However, this shift does not come without a price tag. Kodak’s projected spending could reach as much as $3 billion in future investments to aid the shift. With these investments Kodak claims a tremendous turnaround in revenue. Kodak anticipates reaching $16 billion in revenue by 2006 and $20 billion by 2010. To pay
While Kodak has historically been a well-established brand name in the marketplace, it struggled to find a niche when the industry morphed from a film-based market to a digital-based market. Kodak has struggled to successfully evolve its film-based business structure to the new structure of digital-based technology, which has allowed for competitors to enter the market, decreasing Kodak’s market share. Competitors (such as Canon Inc., Fuji Photo Film Co., Hewlett Packard Co., Nikon, and Sony Corp.) have posed major threats to Kodak’s livelihood. Kodak faces a 5% drop in film sales (2001-2003) and a 3% reduction in overall revenues over the same time period. In addition, revenues and net income are expected to be fairly flat (or decrease) in future estimates. Kodak faces much pressure to revitalize their business through digital imaging, a radical innovation, or risk being eaten alive in an industry they thought they controlled.
Competition heats up, sales decline, Sony and others move into digital, Kodak panics and thinks it can slow competitive pressures through aggressive marketing.
Market segmentation is an approach used by a company to select their target market and provide data for a marketing plan. “Market segmentation consist of a two-step process; naming broad product markets and segmenting these broad products-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2014, p.97). There are 4 categories pertaining to market segmentation; behavioral, geographic, demographic, and behavioral.
Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first
This report is focusing on the strategies adopted by Canon and the strategies when Canon is facing competitions. This report shows that how Canon survives in the market and keeps its long lasting growth in market and profit.
Protected by patents, the competition for the company in the field of instant photography was low. The attempts to diversify