Strategic Marketing PlanStrategic Marketing Management MKTG 479 - Professor D. Brooks Spring 2012 Josh Roush Katie Baldwin Jorge Solorzano Phi Ha Gina Garza Kyoung Kim Table of Contents I. EXECUTIVE SUMMARY MISSION STATEMENT II. SITUATION ANALYSIS A. BUSINESS AND PRODUCT DESCRIPTION 1. OVERVIEW OF COMPANY AND PRODUCT 2. INDUSTRY DESCRIPTION B. ENVIRONMENTAL FACTORS 1. ECONOMIC FORCES AND THEIR IMPACT 2. SOCIAL AND CULTURAL ISSUES 3. POLITICAL, LEGAL, AND REGULATORY FORCES 4. TECHNOLOGICAL ISSUES C. ORGANIZATIONAL ENVIRONMENT AND CAPABILITIES SWOT ANALYSIS D. ANALYSIS OF COMPETITORS PORTER’S FIVE FACTORS MODEL FIVE MAJOR FIRMS IN THE INDUSTRY III. MARKET ANALYSIS A. MARKET SIZE AND POTENTIAL B. MARKET SEGMENTS C. MARKET TRENDS D. TARGET MARKET IV. PLANNING, SEGMENTATION, TARGETING & POSITIONING POSITIONING STATEMENT: V. MARKETING OBJECTIVES A. MARKETING OBJECTIVES BREAKDOWN B. MARKET SHARE C. PRODUCT DEVELOPMENT D. FINANCIAL E. SOCIETAL (KYOSEI) VI. MARKETING STRATEGY AND ACTION PLAN A. PRODUCT STRATEGY B. PRICING STRATEGY C. DISTRIBUTION STRATEGY D. PROMOTIONAL STRATEGY (ADVERTISING, PROMOTION, PUBLICITY/PR, INTERNET) E. CUSTOMER SERVICE VII. BUDGET AND IMPLEMENTATION A. BUDGET (COSTS) B. IMPLEMENTATION (METRICS) 3 3 3 3 4 5 6 6 6 7 7 8 8 9 9 11 15 15 16 17 18 19 19 20 20 20 20 21 22 22 23 24 25 25 30 31 31 35 1 VIII. CONTROLS AND EVALUATION EXHIBIT A: EXHIBIT A (CONT.): EXHIBIT B: EXHIBIT B (CONT.): BIBLIOGRAPHY 36 38 39 40 41 42 2 I. EXECUTIVE SUMMARY The year was 1933, when a small laboratory in Tokyo, Japan decided to infiltrate the heavily European dominated camera industry. With the ambition of producing the world’s best cameras, the early founders of Canon started a camera manufacturing company that now holds the top position in the industry. Currently holding 18.6% of the market share, Canon specializes in the production of imaging and optical products and is a globally respected Fortune 500 listed company. While the company has been in business for the past 75 years, steadily its dominance in the industry has been subtly decreasing. With competing companies such as Nikon and Sony so close behind, Canon’s lead in the future is uncertain. As such, now is the time to invest its interest towards maintaining their lead in the marketplace and further the gap that separates them from their competition. Mission statement “Canon has successfully maintained a healthy business constitution through such efforts as thoroughly strengthening our supply-chain management, enabling us to make great strides towards the realization of a realtime management structure that allows the company to promptly respond to sudden changes in the global economic changes. While working to further raise management quality, Canon will strive to meet new challenges. Canon seeks to grow and prosper over the next 100, or even 200 years, and is committed to becoming a truly excellent global company who's admired and respected by the world. Canon will continue using its technologies to benefit people "as it pursues its objective of becoming a company that is loved by people throughout the world.” Canon’s mission statement not only reflects the key to Canon’s achieved success, but where the company’s continued focus needs to be in order to succeed in the competitive marketplace both today and in the future. In spirit of the mission statement, Canon needs to: 1) promptly respond to sudden changes in the global economy and continuously meet new and upcoming challenges, demands, and trends, 2) continue using its technologies to benefit its consumers and 3) strive to be a brand that is loved by the world, which will provide the company with a healthy longevity. These focal points will be applied specifically to the Canon camera product lines, as they are ultimately the foundational platform that the company has built its business upon. II. SITUATION ANALYSIS A. Business and Product Description 3 1. Overview of Company and Product Canon USA Inc. is a subsidiary of the Japanese global corporation known as Canon Inc., located in Tokyo, Japan. Since its establishment in 1966, Canon USA has been a major player in the production of imaging and optical products such as cameras, camcorders, photocopiers and computer printers. Currently operating out of Lake Success, New York, Canon USA is in the process of building their new headquarters in Melville, New York. Accounting for more than 27.6% of Canon Inc. sales, Canon USA also specializes in office and consumer imaging equipment including copiers, printers, fax machines, and scanners. However, a large portion of their wholesales comes from their extensive line of film and digital cameras, which boasts more than a third of the company’s revenue. Major products and services in this industry: Digital cameras Camera accessories Photographic film Conventional cameras Developing supplies Photofinishing equipment Motion picture equipment Canon’s development and distribution of digital cameras began in 1984 with their RC-701. From the RC series came the PowerShot and Digital IXUS series. Known for their EOS series of digital single-lens reflex camera (DSLR), Canon’s latest product line focus has been on their high-end professional models. While Canon is making headway in their other technological categories and endeavors, one that is significantly falling is its input devices, specifically in the compact digital cameras, SLR Cameras, and digital video camcorders categories. Not only is it the foundational platform that Canon has built its successful empire on, but one that consumers around the world have come to love and respect the brand for. Understandably, Canon’s efforts to improve its B2B relations are respectable and necessary, however it cannot afford to lose its B2C market segment in the process. Over the past several years Canon has been falling behind its competitors in this segment as more and more consumers have begun noticing a lack of improvements in Canon’s older digital camera devices and their newer replacements. As a result, consumers have turned their focus on other brands including, Sony, Nikon, Olympus and Panasonic. Key features such as image sensor performance have been slow to improve since 2008 after their Digic 4. While 4 Canon has released the Digic 5 this year, there has been a significant delay in terms of their image sensor improvement timeline. The time between all Digic predecessors and replacements has been about one year, however it has now taken Canon four years to finally release its newest Digic 5. Although its picture quality has vastly improved, the cameras that use this new image processor lack in design (looks exactly the same as its previous model), functionality, features, and shooting performance, as compared to its competitors. Another key issue that Canon faces is a lack of connection with its consumers. While other brands (specifically Nikon and Sony) within the industry have made an effort to engage and connect with their consumer base through various communication and media venues, including social networking (Facebook, Twitter, etc.), internet communities, advertisement (television, web, and etc.), Canon’s marketing efforts toward the present generation is missing. In addition, with camera phones increasingly cannibalizing the consumer digital camera industry, Canon must harness this evolving social and technological trend and utilize it to market and gain consumer support for its products. 2. Industry Description Segmentation of Camera and Film Industry Canon is part of the wholesale trade industry, which involves wholesale digital cameras, photofinishing equipment, photographic film, television cameras, and projection equipment. This industry does not involve wholesale photocopying, microfilm equipment, or household video cameras. Presently the camera industry is in its maturity stage and faces: 5 Lower costs due to increased production volumes and product experience High sales volumes and market saturation Increase in competitors entering the market An abundance of competing products decreasing in price Maintenance of market share achieved through brand differentiation and product divergence Decrease in industrial profits B. Environmental Factors 1. Economic forces and their impact The industry has recently faced slow growth, which can be attributed to: Recession has brought decreased employment rates and household incomes, which has caused consumers to spend less on cameras Reduction in families who are willing to spend on portraits as disposable income has significantly decreased Couples are putting off marriage until the job market regains stability and need a longer time to save for a wedding While the current economic environment is negatively impacting the industry, the future predictions for the industry look much more promising. The economy is expected to improve this year, there are forecasts of rising business confidence, and expectations of increased competitiveness of US exports that factor in aiding the manufacturing sector are support for the future of this industry. Economic recovery can: Boost demand for photographic services, as well as for cameras and photographic equipment With income rising, credit availability slowly increasing, and debt ratios decreasing, consumers can afford to spend more on photographic services (wedding, school, and family portraits), personal camera use, and photographic equipment replacements. Increase travel and tourism, which encourages camera use 2. Social and cultural issues Profound changes in consumer lifestyle and social trends have also affected the camera industry. These changes include: 6 Fewer people taking vacations during the current economic downturn has resulted in decline of vacation photography, which is a vital in consumer camera demand Popularity of social networking (i.e. Facebook) has stimulated an increase to take and share photographs online The Internet is also allowing consumers to deal directly with wholesalers rather than purchasing cameras through a retailer Adaptation of a cellphone/smartphone culture High consumer involvement in product development Increased environmental awareness in consumers 3. Political, legal, and regulatory forces There are presently no significant licensing requirements, governmental regulations, or resource constraints that prevent firms from entering the industry and therefore the constant risk of new competitors exists. Additionally the gradual winding back of government stimulus programs has reduced the pace of economic recovery, which affects most, if not all, industries negatively. Wireless carriers prevent many camera companies from entering the phone market, and while several companies have tried to enter this segment by developing cameras with cellphone capabilities, they have been met with little enthusiasm and success. 4. Technological issues In the upcoming five years, increased demand will be driven by price and advancements in technology. One of the most important factors to picture quality is the amount of megapixels a camera contains. In previous years, megapixel count and price have been positively correlated, but today it has shown to be falling, while the price of cameras has remained steady. DSLR’s are predicted to be the fasted growing segment in the next five years, and a high megapixel count on camera price will adversely decline. With cameras already on the market shooting 8 megapixels, replacement product sales will also decline as a result of user satisfaction with their current products Camera technology in cell phones has been present for several years, but has not been a real competitor for companies like Canon. However, cell phone picture quality is up to 8 megapixels, and will continue to rise in the near future. This will result in a cannibalization of sales while the gap continues to decrease between quality of cell phone cameras, and digital cameras themselves. Image sensors, flash, and processors are likely to continue that cannibalization and slowly draw out the need for entry-level digital cameras. Editing applications are also available to increase perceived quality, or add a touch of personalization to pictures. This eliminates the need for camera users to learn computer software editing programs, and instead, immediately edit pictures on their cell phones. Consumers who prefer using an all-in-one device love these technology advancements and will continue to use camera phones. 7 C. Organizational Environment and Capabilities SWOT Analysis Strengths: Brand Recognition Leading Market Share High amount of Capital - leads to more opportunities Loyal customer base High quality products - correlates with retention of customers Prices of the products are competitive Weaknesses: Expensive (DSLRs) Appeal to specific niche market (professionals), while other markets somewhat neglected Lack of innovation in the recent years (design, performance, and functionality) Non-diverse line of products Complacent (delay in adopting popular trends) Marketing (last minute product launch/release) Opportunities: Changes in technology (internet, smartphone) Product offerings to new/different markets Canon is financially strong enough explore with new ideas and investments Ability to merge or acquire smaller companies ($$$) Camera industry is expanding in various ways (medical and security applications) Engage and connect with its consumer base through various communication and media venues such as social networking (Facebook, Twitter, etc.), Internet communities, advertising (television, web, and etc.) Threats: Consumer lifestyle (cellphone, internet use, and tourism) Substitute products (competitor products and camera phone) Cell phones producing high quality cameras (smaller difference gap) Competitors (constantly releasing newer and better products, design) Economy (recession) Recent natural disaster and recovery (earthquake and tsunami in Japan) 8 D. Analysis of competitors Porter’s Five Factors Model Threat of Entrants Low Supplier Power Med Competitive Rivalry High Buyer Power Med Threat of Substitutes Med - High Threat of New Entry: Low Threat of new entrants is low, which is favorable for current companies in the camera industry. Due to the rapid pace of technological change, new entrants will need large amounts of financial support for research and development. Low barriers to entry: not many regulations, licensing requirements, and no resource limitations, making it easy to enter the industry Digitalization of photography has attracted firms from other industries (cellphones) Substitution of digital for traditional photographic imagery in recent years has caused firms from other industries to enter the Camera and Film Wholesaling industry, increasing the level of competition between firms Many wholesalers and manufacturers should deter some new firms from entering the industry Requirements for large investments in production facilities, distribution networks, and research and development (R&D) 9 High-technology industry that often incorporates patented intellectual property Requires high initial investment in machinery, product specifications and testing Competitive Rivalry: High Rivalry is high because many well-known brands such as Canon, Sony, and Nikon are currently the dominant players of the industry. These competitors are continuously trying to differentiate their products through new features, functions, and through large investments towards advertising and marketing. With these factors in mind, the camera industry is highly unfavorable at this moment. Medium-to-low concentration of firms increases competition Regularly make significant investments in R&D to continue to create innovative products Established brands and economies of scale can offer large incumbents a competitive advantage Strong brand recognition can increase demand for a certain companies’ products Shifting production capacity to other parts of the world, particularly to Asian countries such as China, to take advantage of lower production costs and to serve growing Asian markets Operators also compete based on brand recognition Wholesaling of recognized brands increases the wholesaler's throughput and reduces marketing and customer information costs Compete on product range (professional vs. non-professional) Four largest major players collectively account for an estimated 39.5% of revenue Little product differentiation between firms High level of advertising expenditure has the potential to increase competition Manufacturers, in particular, spend a significant portion of revenues on advertising campaigns to increase market share Supplier Power: Medium Supplier power is medium in the camera industry because of the number of suppliers being limited due to the fulfillment of government requirements for electronic products (patents and testing). Under these forces, the camera industry is moderately unfavorable. Large-scale operations can have significant leverage over suppliers Existing contracts Many large firms are manufacturing their own supplies Threat of Substitution: Medium - High 10 Threat of substitutes in the camera industry is moderately unfavorable. Many people use cell-phones as a camera device because the photography functions and capabilities of cell-phones are becoming comparable to a digital camera. Ease of substitution: many competing companies with similar products (little differentiation) Competing firms have similar quality products Technology in digital cameras is near its peak, allowing for more substitute products Buyer Power: Medium Buyer power is medium, which makes the camera industry moderately unfavorable. Customers have many choices to choose from, so they can easily change their mind and buy a camera from other competitors. Consumers are price sensitive/conscientious Internet has allowed consumers to have more shopping/bargaining power Overall Analysis: Not Attractive and Highly Competitive Environment Due to technology improvements and increased competition between different competitors in the industry, four out of five forces of the digital camera industry are unfavorable. Therefore, the digital camera industry is not attractive at this time. The medium-to-low concentration of firms in this industry increases competition. With that being said, Canon is not only one of the four major market shareholders, but is the leader in its market, and all these major market shareholders are responsible for an estimated 39.5% of the industry’s revenue. As mentioned in the political and legal environmental section, low barriers to entry creates an increase in the threat of competition from firms not presently in the industry. Due to little product differentiation between firms, high levels of advertising expenditure have the potential to increase competition in the industry, and manufacturers have been known to spend a significant portion of their revenue on advertising campaigns to maintain or increase market share. Five Major Firms in the Industry Current Market Share (2011): 11 Of the five major players, only Kodak is based in the United States. Fuji Film, Canon, Sony and Nikon are all based in Tokyo, and with the exception of Nikon, all are listed on US stock exchanges. Sony Corporation (9.4% market share) Digital photography sales in the US make up about 3% of total Sony revenue Responsible for PlayStation & Walkman (gaming, music, entertainment) Consumer, Professional & Devices 50.8% of revenue Networked Products & Services 21.8% of revenue Pictures 9.3% of revenue Music 4.7% of revenue Financial Services (6.8%) Other- 6.6% of revenue. 30% of revenue=Japan, 20.1% =United States, 21.4%=Europe, 28.5%=other Nikon Corporation (7.9% market share) Successful “Coolpix” brand Makes compact cameras, digital cameras, and SLR’s 12 Also produces binoculars, eyewear, surveying instruments, microscopes, industrial equipment, and electronic imaging equipment Concentrate efforts on the digital camera market Choosing to stay in the film camera market Appeals to younger generation and average consumers Eastman Kodak Company (6.6% market share) Produces digital still cameras, digital video cameras, photo kiosks, home photo printing systems, images sensors, and provides photo storage services through Kodak Gallery, one-time use cameras, photographic papers, photographic chemicals, and provides photofinishing services Over the five years to 2011, Kodak's revenue is expected to decrease 14.1% per year to $6.2 billion, with revenue forecast to fall 13.5% in 2011. Kodak's US revenue is expected in fall at a rate of 16.3% per year, with US revenue expected to fall 41.4% to $1.8 billion in 2011 Kodak has restructured to focus on the production and sale of digital products in the presence of strong competition from overseas firms such as Canon and Nikon by settling in low wage-cost countries Revenue has been declining in both the Consumer Digital Imaging Group and the Film Products Group, reflecting intense competition from other camera manufactures, and falling film camera and film sales 13 Other Companies (57.5% market share): Fujifilm, Minolta, Olympus, Panasonic, Samsung Fujifilm is the leader in this group, but 3 of the past 5 years, they have had negative growth Fujifilm is concentrating on the creation of infrastructure for printing digital photos Fujifilm’s persistent involvement in photographic film has produced a niche market (acquisition of Polaroid’s instant film and cameras) Panasonic is the first to try a camera with a cellphone, however domination of smartphones and difficulties of entering a deal with cellphone carriers has prevented success Olympus currently has a high focus on developing lenses and has recently purchased a cellphone store chain in Japan Competitive Landscape Overview Canon USA Inc. leads the digital cameras category, with volume sales of 6.6 million units in 2010. This places the company ahead of Eastman Kodak Co, Nikon Americas Inc. and Sony Corp of America. Together, the four leading operators account for a 74% share of total volume sales. Nikon Americas Inc. made substantial share gains within digital cameras over the review period, increasing from a 6% volume share in 2005 to a third-placed 18% share in 2010. Nikon, along with first-placed Canon, have established itself as a leader in high-end DSLR cameras. Advertising campaigns for point-and-shoot digital cameras are typically dependent on celebrity endorsement. Prominent television campaigns include the Nikon COOLPIX line of point-and-shoot cameras featuring actor Ashton Kutcher. Furthermore, the re-launched Polaroid brand instant analogue camera enlisted the pop star Lady Gaga, taking the concept of celebrity sponsorship a step further by appointing the musician creative director of the brand. This partnership has led to cross-promotional opportunities for the brand, which plans to extend its Polaroid line of instant analogue products in 2011. 14 Relatively high cash reserves at several leading electronics manufacturers with digital imaging departments (Sony, FujiFilm, Canon) have led financial analysts to speculate that the industry could be restructured through mergers or acquisitions over the forecast period, with a likely impact on digital camera business segments. One potential target could be Eastman Kodak, which industry insiders have speculated remains undervalued by investors. III. MARKET ANALYSIS A. Market size and potential Potential Market: • Any and all consumers in need of a digital camera Available and Qualified Market: • • • About 20 million potential customers Lives in the United States Income: $40,000+ Target and Penetrated Market: • • • • • About 2.5 million target/penetrated consumers Available/qualified market attributes Households with children Photography Interest Travel Interest Basic Needs: • • • • • • • • • • • Easy to use (short learning curve) Durability Efficient menu system View finder option Large and high resolution LCD screen High megapixel Cameras of various sizes and weights High ISO performance (capability in low-light settings) HD video Accurate color and saturation Design (colors, ergonomic, sleek, etc.) 15 • Good battery life Additional/Related Needs: • • • • Editing capabilities Cameras for extreme conditions (ex. waterproof camera bodies) Speed (ex. shutter speed for action shots in sports) Accessories (ex. camera bags, lens, etc.) Changing/Varying Needs: • • • • The needs of the market are constantly changing The industry must recognize new and unexplored needs Prepare for needs that are not yet present New technology in cameras become consumer wants that eventually turn into needs B. Market Segments Demographic: Age: 25-45 years old Gender: Men and Women (however more women have been purchasing digital cameras in the recent years) Occupation: Professional (photographers) Education: Some college or higher Income: $45,000+ Household: Families with children Psychographic: Personality: Loves to travel, outgoing, loves the outdoors, emotional attachment to memories, enjoys life and creating memories Attitudes/Beliefs: Optimistic, enthusiastic, artistic, creative VALS (Lifestyle): Achievers and Strivers Adopter Category: Innovators, Early Majority Behavioristic: Volume usage: lifetime camera purchases End use: Professional photography, hobby, family (capturing events and memories) Benefit expectations: High Brand loyalty: High 16 Price sensitivity: Low to Medium Geographic: Region: United States - West (California, Nevada), South Central (Texas), Southeast (Florida), Northeast (New York) Market density: Urban, suburban Climate: Temperate, sunny and warm City size: Major metropolitan areas, small cities, small towns C. Market Trends 1. High-end DSLR cameras drive growth a. Needing feature-intensive and high-resolution cameras 2. Overall camera prices increase by 27% over the year a. b. Decline in volume sales Emerging preference for high-end digital models 3. Sales are expected to decline a. b. c. Mobile phones Saturated market Technology at its peak 4. As more US consumers own a digital camera… a. b. c. d. Promoting features (ex. megapixels and touchscreens) Upgrade trend in point-and-shoot settled (past 2 years) Consumers bought upgrades Discounted price for low end cameras 5. Camera sales rise by 8% in 2010 to reach US$8.6 billion 6. Social media platforms (ex. Facebook and Twitter) a. b. c. Share personal pictures with friends (increasing important feature) Smartphones allow photographing and sharing capabilities Mobile phones popular with low-end users (ease and convenience) 7. Niche interest 17 a. b. c. d. Traditional analogue cameras Polaroid instant camera and other “retro” brands from FujiFilm Polaroid partnered with a series of celebrity endorsers including Lady Gaga Portraying instant camera as a fashionable, artistic alternative 8. Analogue cameras continued their decline (by 75% many buying low-price disposable cameras instead) Market Growth: Much of the industry's slow growth can be attributed to its performance in 2008 and 2009, which was a particularly challenging year for camera and film wholesalers That year, the US economy contracted sharply as the housing downturn and global financial crisis took their toll Revenue growth was -2.6% in 2008 and -7.8% in 2009 but it slowly beginning to increase Market Forecast: After minimal growth in 2010 and 2011, the Camera and Film Wholesaling industry will experience moderate growth over the five years to 2016 Revenues projected to grow at an average annual rate of 2.5% to $30.2 billion In 2012, revenue is projected to grow 2.0% to $27.3 billion A slow recovery from the recession combined with a slowdown in sales of digital products will keep revenue growth and profitability at modest levels D. Target Market Advanced Users (Highly Skilled Amateurs) Age: 35-50 Gender: Male/Female Occupation: Employed/Retired, Professional Income: $50,000+ Social Class: Upper middle class, wealthy, affluent Adopter Category: Late Majority Objectives/Benefits: Quality, Service, Convenience User Status: Regular User o o Where they purchase: In-Store, Online How often they purchase: Infrequently (Varies) Brand Loyalty: Medium 18 Professional Users Age: 30-50 Gender: Male/Female Occupation: Professional Photographer Income: $35,000+ Social Class: Middle Class, Working Class Adopter Category: Innovators, Early Adopters Objectives/Benefits: High-Quality, Service User Status: Regular User o o Where they purchase: In-Store, Online How often they purchase: Frequently (Varies) Brand Loyalty: High IV. PLANNING, SEGMENTATION, TARGETING & POSITIONING Differentiated Marketing: 1. 2. Professional users Advanced users Positioning: Differentiate by fulfilling our target market’s (professional and advanced users) needs Use the strength of Canon’s brand to build consumer loyalty High quality service Utilize the latest technology to provide high quality DSLRs that satisfy the needs of professional photographers Forecast and follow current consumer trends to manufacture an innovative product that advanced users will appreciate Apply popular social media developments in new camera products Move away from simple point and shoot camera products and develop camera products that feature benefits unmatched by cell phone cameras Continue environmental, conservation, recycling and sustainability initiatives in the spirit of the corporate philosophy: Kyosei Positioning Statement: 19 For highly skilled photographers, Canon is the intuitive, innovative digital camera company that offers extraordinary image quality and superb performance because of its high pixel count CMOS sensors and advanced imaging technologies. V. MARKETING OBJECTIVES In order to manage key relationships and activities, Canon will attempt to achieve several marketing objectives. Expanding the customer base by adding one hundred new customers each month for the next year will ensure that customer acquisition remains steady. Canon aims to achieve a customer satisfaction score of ninety-five percent or higher for target consumers. The company plans to develop and introduce three new products by December 31, 2012, which will assist in capturing twenty-five percent of the US market by the same date, up from over eighteen percent. Canon will strengthen channel relationships with current stores and on-line distributors by selling new mirror-less cameras through these outlets. A. Marketing Objectives Breakdown 1. Customer Acquisition: Expand the customer base by adding 100 new customers each month for the next year 2. 3. Customer Satisfaction: Achieve a customer satisfaction score of 95% or higher for target consumers Channel Relationships: Use current stores/on-line distributors to sell new mirror-less cameras B. Market Share 1. 2. Capture 25% percent of the US market by December 31, 2012 Current Market Share: 18.6% C. Product Development Develop and introduce 3 new products by December 31, 2012 Idea generation Identified consumer wants and needs Current need for Mirror-less cameras Mirror-less cameras are not in Canon’s camera portfolio 20 Initial concept testing Research value of the product Consumers want to have this product Consumers wondering why Canon has not fulfilled this need Refine based on research Size and design are to be determined Business analyst Cost estimates: Development- 2 million Production- 3 million Marketing mix cost- 5 million Design prototype Produce working prototype of three variations of mirror-less cameras Market testing Market trials in the United States Test consumer reaction to all variations of mirrorless cameras Marketing mix combination trials to implement the most effective route Commercialization Plan timing and launch according to marketing schedule D. Financial Canon has aimed to attain certain financial results through the use of marketing, all of which are forecasted with the consideration of foreign exchange rate assumptions and current economic forecasts. Canon’s forecasted sales revenue is forty-eight billion yearly sales by December 31, 2012 with product sales revenue estimated at fourteen point six billion. Return on invested capital is expected to rise to eleven percent return on funds invested, up from nine point four percent. Canon’s profitability is expected to grow, increasing the gross profit margin to fifty point three percent by the end of the year. Financial Breakdown: Sales Revenue: Achieve $48 billion yearly sales by December 31, 2012 Current Sales Revenue: $45 billion Product Sales Revenue: Achieve $14.6 billion by December 31, 2012 21 Current Product Sales Revenue: $12 billion Return on Invested Capital: Achieve 11% percent ROIC on funds invested Current ROIC: 9.4% Profitability: Increase the gross profit margin to 50.3% percent by end of year Current gross profit margin: 48.8% E. Societal (Kyosei) Canon Environmental EPA-high standards, Energy Star Program, Energy Waste wise, Smart Way Transport Generation Green (energy, recycle) Energy Conservation Community Involvement Local communities, education and science, art, culture, and sports (very involved) VI. MARKETING STRATEGY AND ACTION PLAN MARKET PENETRATION: Canon needs to further its marketing efforts to target professional photographers who are looking for high quality DSLRs and other camera products needed in their profession. By gaining a thorough understanding of the needs and requirements of professional photographers, Canon can focus its marketing and distribution channels to attract and serve high quality DSLRs to this segment. Sell more existing products to customers in existing markets or segments. DSLRs Aimed at Professional Photographers PRODUCT DEVELOPMENT: The current Canon product lines of DSLRs and point and shoot cameras are not sufficient in terms of capability and performance to truly satisfy the advanced camera user. The advanced camera user may be a hobbyist, highly skilled amateur, or a consumer that is looking for entry-level DSLR capabilities without the hefty price tag and high learning curve. With the rise in demand for mirror-less cameras, Canon’s competitors are claiming more and more market share with this new camera technology. For the past two years, mirror-less cameras are continuously gaining more and more popularity overseas and this trend is starting to catch on in the United States. With that being said, it is only logical for Canon to step in and release its own high quality mirror-les camera. By utilizing strong brand 22 recognition and reputation, Canon’s mirror-less cameras are sure to be a success. However, waiting too long can pose a missed opportunity. Sell new products to customers in existing markets or segments. Mirror-less cameras Aimed at Advanced Camera Users (hobbyists, highly skilled amateur, or a consumer that is looking for an entry-level DSLR capabilities without the hefty price tag and high learning curve) A. Product Strategy Tangible goods -DSLRs -Mirror-less camera Features and benefits Product DSLR (EOS & Rebel) Target Segment Professional Photographers Need Professional quality photographs Advanced imaging capabilities without the bulkiness Feature High pixel count CMOS sensors Entry level DSLR features and options in a compact camera Benefit A camera that produces professional quality photographs A lightweight camera that produces high quality photographs Mirror-less camera Advanced Users Quality: According to consumer reports and product review websites like CNET, Canon’s DSLRs are at the top of the list. While Canon already has a reputation of building high quality camera products, in recent years many professional users in various online communities are complaining about the quality control in regards to their lenses. This needs to be further examined and quality control must be tightened to produce lenses at constant level of high quality. Canon has built a reputation of producing high quality camera products over the past 75 years. Continued diligence in quality control (DSLRs) In-depth look at current consumer complaints and recent problems (ex. lenses failing to focus properly or are not calibrated correctly) Design: An area that Canon needs to invest in to successfully market new and current products to both target market segments. Mirror-less cameras: aesthetics (ex. various color offerings, “personality”, accessories) DSLRs: utilitarian (ex. functionality and performance) Trends that the competition is following 23 Target market’s psychographics analyzed for tastes and preferences B. Pricing Strategy Value-Based Pricing Customers – value – price – cost – product Professionals, high quality value, long term investment, dependable (higher because of Canon) Mirror-less Camera: $400-$800 Digital DSLRs: $1000-$7000 Pricing Objectives Financial: For profitability, set prices to achieve gross profit margin of 48% Marketing: For higher market share by offering new mirror-less camera products and increase 3% of market share Set competitive prices to gain higher market share for the DSLRs (professional) Societal: Donate around 5% External Pricing Influences Competitors: (mirror-less and DSLRs) Nikon, Panasonic, and Sony - very similar Olympus--cheapest Channel Members: Producer (Canon) Wholesaler-40% mark up Retailer-18% mark Up Internal Pricing Influences Targeting and Positioning: 1. Canon targets the advanced camera user segment by offering mirror-less cameras at competitive prices with entry level DSLR capabilities 2. Canon will increase marketing efforts geared towards professional photographers by utilizing the highest available technology in developing DSLRs with competitive prices, however, not so low that it affects the consumers perception of high quality Product Strategy: Maturity Adapting Prices: offer discounts, allowances (retailers and wholesalers) 24 C. Distribution Strategy DISTRIBUTION: Producer - Retailer - Consumer (Use current connections with retailers to distribute products) 1. Advanced Users: Mirror-less Camera All electronics and camera stores: Best Buy, Fry’s, Ritz, Sears, Target, Radio Shack, Calumet, etc. Online electronic stores: B&H (www.bhphotovideo.com), Adorama (www.adorama.com), Cameta (www.cameta.com) etc. 2. Professional Users: DSLRs All electronics and camera stores: Best Buy, Fry’s, Ritz, Sears, Target, Radio Shack, Calumet, etc. Online electronic stores: B&H (www.bhphotovideo.com), Adorama (www.adorama.com), Cameta (www.cameta.com) etc. D. Promotional Strategy (advertising, promotion, publicity/PR, internet) PROMOTION: Have a 12-month time frame and apply the Task and Objective budget method (a budget for a specific objective and the cost of the task to reach it) TIMING: Ideally, a good timeframe for a Canon promotional mix is in the beginning of spring, from March to March. Tourism and good weather are at their peak and consumers are most likely in the market for cameras at this time. STRATEGIES: Two separate promotional strategies will be implemented as we are promoting two different products, each one targeting separate market segments. 1. 2. Advanced Users (mirror-less camera, AE-D): Introduction, Awareness, and Confidence in Product Professional Photographers (DSLRs): Awareness, Encourage to buy, and Increase Brand Loyalty 1. Advanced Users: Mirror-less Camera Months 1-4: First Objective: Introduce the product and elect a spokesperson or representative for the product First Task: o o Television ad - a commercial during prime time television broadcasting Magazine ad - create an ad and advertise in today’s most popular travel and photography magazines Method: 25 Television ad: o o A commercial of real life usage and demonstration of a regular person being able to take professional looking photos using this camera. Begin the commercial by showing amazing pictures/videos and then surprise the viewer at the end by showing that a little kid took the pictures. Explain how easy the camera is to use, but that it is still very capable. Magazine ad: o o o Magazines (find top 10 magazines to advertise in) Product photo and features Sample photographs from product (nature/landscape/people) Details: A 30 second commercial spot during prime time television (7-10pm). Show the commercial during shows that families gather around and watch together such as American Idol, Modern Family, X Factor, etc. The main networks to focus on are ABC, NBC, Travel Channel, Fox, E!, and MTV. Months 5-8: Second Objective: Create awareness for product and target consumers through social media that are interested in photography and involved in photography activities, groups, and clubs. Second Task: Facebook page/ad (allows the advertiser to target specific interests and people that use Facebook) Method: Social networking website - Facebook page and ad (http://www.facebook.com/business) Details: A Facebook ad for Canon’s new mirror-less camera, the AE-D model, will not only create awareness and target consumers through this popular social media platform, but also revamp and gain more followers for Canon’s Facebook page. Additional photographs from the AE-D will help consumers see the high quality and almost professional-like photos that the AE-D can produce. Facebook Targeting 26 Facebook Ad Months 9-12: Third Objective: Display superiority of the product and gain a competitive edge to capture consumers that are in the market for a digital camera. Third Task: Internet - CNET and other tech/electronics review sites Method: Online review sites (CNET and find other popular tech/electronics review sites) o Contact many online review sites to publish reviews of Canon’s mirror-less cameras. CNET Other sites of interest: Digital Photography Review (Advertising on their site is available) 27 o Digital Camera Resource Page (Advertising on their site is available) Digital Camera Info (Advertising on their site is available) Digital Camera Review (Advertising on their site is available) Details: Find out what needs to be done to get a product to be reviewed by CNET In order to have a review of mirror-less camera’s published, a CNET editor must first be contacted. When pitching the product, include information regarding availability status (launch date), price, carrier, status of review models, product photos, and basic specs. If the product is approved for review, send it to a CNET Review editor in New York, where digital cameras are tested. In this package, include: product specifications, manuals, documentation, drivers, software, and accessories. Along with this information, include: a press kit, PR contact information, technical specifications, technical contacts, as well as return shipping information with shipping labels and RMA information. The product will be held for 60 days during which it will go through a rigorous, impartial, review process overseen by the CNET expert Reviews staff. After the review process is completed, the product will be returned. If the product review is posted on CNET, it may come in the form of a mention in the “gadget blog, Crave” a First Look video, or a full review. Most reviews on CNET will include photographs of the product or a product video featuring the product, which is presented by a CNET editor. 2. Professional Users: DSLRs Months 1-4: First Objective: Create awareness through traditional, yet popular resources for professional photographers, magazines. First Task: Create an ad and advertise in today’s most popular travel and photography magazines used by professionals (ex: http://www.lightstalking.com/photography-magazines) Method: o o o Magazines (find top 10 magazines to advertise in) Product photo and features Sample photographs from product (nature/landscape/people) Details: Canon has wide variety of users in their various market segments. One segment that will be pursued in a 12-month print ad campaign is digital single lens reflex cameras for advanced users. These users are well adapted to camera technology, and purchase various accessories with their cameras. First and foremost, begin with awareness. Photographers stay in the loop with extremely popular magazines for amateurs and professionals. These titles vary from American photo, Shutterbug, Aperture, National geographic, and popular photography. Brand advertisements will depict professional photographers using Canon cameras in settings such as 28 action sports, in the water, at professional sports events, and during on edge nature travels. Headlines and copy will be similar to athletic pro endorsers with headlines such as “Official camera of photographer…” giving the camera an image of professionalism and celebrity. These ads will depict the same photographers in similar settings, however they will include the technological aspects possessed by the camera that helped get the job done. Thus, educating the consumers on the product and enticing a purchase. Months 5-8: Second Objective: Encourage DSLR and lens purchases through trial use and making camera and accessories more affordable. Second Task: Develop a “trial/rental program to professionals before buying” program and create affordable payment plans for higher priced DSLRs Method: Trial/rental program and financing options (affordable payment plans) Details: o Rental Program (Try And Buy): The pricing for the SLR cameras range from $700.00 to $6800.00 and the lenses range from $200.00 to $14,000.00 making this profession or hobby an expensive option. A rental program would be a great option to make these cameras and lenses more feasible. This program would be called the “Try and Buy” or TAB for short. This TAB program would allow professional photographers to rent the equipment at a reasonable cost along with the lenses of choice. The rental locations would be at available at locations specified in our online, direct marketing and retail locations. The rental fee for the service would be charged at a daily rate of 10 percent of the retail cost per day for the camera and lenses. Example a 1500.00 SLR camera would cost 15.00 per day. The length of time would not exceed 30 days. At the end of the trial period if the customer would like to purchase the product the cost spent during the rental duration would be applied towards the cost of the new equipment. The item returned would need to be in good to fair condition at the time of return. Condition will be at the employee’s digression. o Financing (Canon Credit): Canon credit would be available to professional photographers as a financing option. A credit form would be filled out at the point of sale or online and depending on the credit score, the interest rate, term, and payment would be calculated for the purchase. The term would not exceed 3 years for the cameras and lenses. As an introductory promotion the 1 st year would be interest free and this cost would be deferred until the second year if the product has not been paid in full. There would be no limitations of the model or price of the product. As long as the consumer qualifies, the finance option will be available as an option for purchase. Months 9-12: 29 Third Objective: Increase brand loyalty and create an engaging atmosphere between Canon and professional photographers. Thirds Task: Photography contest for professional photographers with rewards/prizes that are highly desirable for professional photographers (***camera used for the contest must be a Canon). Method: A contest called, „Day in the life of…‟, which will capture unique and creative pictures of individuals depicting their daily life. o This goes with one of Canon’s core statements of "digital imaging enriches and expands the ways and means of communication in daily life.” Details: o o o o o The contest will be rewarded to three winners. Participants submit up to three photographs and must use a Canon camera. Contest announced at the beginning of month seven (September). Top 10 most Facebook “likes” Final Round - Top 10 gets judged by Canon (Select 3) Time/Promotion: Promote throughout September and October via banner ads on niche websites, social media, email, and website. Winners: Winner will be announced and showcased on the Facebook page and given the awards. They will also have their photograph showcased on Canon.com for a month. Rewards/Prizes: 1st place: Canon DSLR and 5-day Costa Rica Vacation ($7,000) 2nd place: Canon DSLR ($3,000) 3rd place: $1,000 Canon Gift Certificate E. Customer Service In continuance of Canon’s existing customer service strategy, all Canon camera products carry a one-year limited warranty. This limited warranty ensures the end-user (purchaser) that the product will be free of defects in materials and workmanship under normal use and will be covered for a length of one year from the purchase date. The new mirror-less cameras (AE-D) and DSLRs will have the same warranty and be covered under the same terms. All repairs will be done in the United States and handled by trained technicians who have extensive knowledge of the various Canon camera products. However, since the AE-D is a new product and unforeseen problems can arise so a special team that focuses on that specific product will be created. As such, this specific team of technicians will handle all AE-D camera issues and repairs. Canon will also provide training for all distributing partners and receive service support through its website, toll-free hotline, and via email. To keep its award winning service status, Canon will monitor the service that’s provided to 30 customers through monthly and annual surveys, along with tracking satisfaction ratings that are given to the service department by customers at the end of every service call. Additionally, monthly staff meetings and weekly bulletins will further ensure the coordination of the marketing and production crew in reaching crucial decisions and goals. This is where recognition rewards for meeting sales and customer satisfaction objectives will be announced to encourage staff in their efforts to properly serve Canon customers and assist in helping the company reach its financial goals. VII. BUDGET and IMPLEMENTATION A. Budget (Costs) This budget is for a 12-month time frame and applies the Task and Objective budget method (a budget for a specific objective and the cost of the task to reach it) Advanced Users (mirror-less camera, AE-D): Introduction, Awareness, and Confidence in product 1. 2. 3. Advertising: Television and Magazine Facebook Ad CNET Online Product Review Professional Photographers (DSLRs): Awareness, Encourage to buy, and Increase Brand Loyalty 1. 2. 3. Advertising: Magazine Only Rental/Trial and Buy Programs Photography Contest 1. Advertising: Television and Magazine TV Commercial: a. Cost to Produce Ad: $1.5 million b. Cost to Air: Run the commercial once during each prime time show. The show airs 4-8 times a month. And the commercial is run for 4 months. Total number of runs = 1 ad slot for each show x 4 air times per month (choose 3 shows for each month) Shows and their ad rates: o o American Idol: $502,000 The X-Factor: $321,000 31 o o o o o o o Glee: $267,000 Modern Family: $249,000 Dancing with the Stars: $233,500 Happy Endings: $130,000 Extreme Makeover: $73,000 Gossip Girl: $50,000 Travel Channel: $3,000 c. Runtime: 4 months d. Total Cost for Television Ad: $2,008,000 + $1,284,000 + 1,068,000 = $4,360,000 x 4 months = $17,440,000 Magazine Ad: a. Cost to Produce Ad: $100,000 b. Types of Magazines and Costs to Advertise: Photo Magazines: o o o o Outdoor Photographer Cost: $31,780 for 4-color 1 full-page ad Aperture Cost: $9,100 for 4-color 1 full-page ad Popular Photography Cost: $66,000 for 4-color 1 full-page ad Shutterbug Cost: $9,093 for 4-color 1 full-page ad Travel Magazines: o o o o o Via Magazine (AAA) Cost: $41,200 for 4-color 1 full-page ad National Geographic Traveler Cost: $84,020 for 4-color 1 full-page ad Sunset Cost: $118,200 for 4-color 1 full-page ad Where Magazine Cost: $1,000 - $10,000 for 4-color 1 full-page ad depending on location Travel + Leisure Cost: $124,350 for 4-color 1 full-page ad c. Runtime: 4 months d. Total Cost for Magazine Ad: $1,436,767 – $1,463,767 depending on Where Magazine locations 32 2. Facebook Ad While it costs no money to build and promote through a Facebook page, there are advertising costs that Facebook charges with its ad campaigns. It follows a similar format as Google Ads. For Canon’s campaign a CPC (cost per click) method will be chosen. This means Canon will be paying only for clicks that its ad gets when displayed to the targeted users that I has specified during the ad’s design. A budget of $1000 a day at the suggested bid rate of $0.24 will allow for about 4,166 clicks per day and ultimately 125,000 clicks in a month. The entire budget of $1000 a day does not have to be met so the actual costs may be less, but with this budget Canon is allowed 125,000 clicks, which is equivalent to 125,000 people seeing and engaging themselves with the ad. It is important to remember that this does not include the number of people that the original 125,000 people from the ad will reach out or share the ad information with. So in other words, the potential to reach out far beyond the set amount of people is tremendous. The first, second, and third months will all have different ad campaigns. While the costs for each month will remain the same the appearance of the ad will differ for every month with different ad campaigns. In total the Facebook ad campaigns will cost approximately $120,000 at the end of its four-month run. This is if the total amount of $1000 is spent per day. a. Suggested CPC Rate: $0.24 b. Budget: $1000 per day c. Runtime: 4 months d. Total Cost for Facebook Ad: $120,000 ($1000.00 x 30 days x 4 months) 3. CNET Online Product Review a. CNET Review: free b. Process and Shipping Costs: $150 (estimated shipping, delivery confirmation, insurance, and return shipping label costs) c. Cost of reviewed unit: $700 + $300 (zoom/macro lens) = $1000 d. Advertising Costs on CNET: contingent upon the review DSLRs for Professional Photographers 1. Advertising: Only Magazines Magazine Ad: a. Cost to Produce Ad: $100,000 b. Types of Magazines and Costs to Advertise: Photo Magazines: o Outdoor Photographer 33 Cost: $31,780 for 4-color 1 full-page ad o o o Aperture Cost: $9,100 for 4-color 1 full-page ad Popular Photography Cost: $66,000 for 4-color 1 full-page ad Shutterbug Cost: $9,093 for 4-color 1 full-page ad Travel Magazines: o o o o o Via Magazine (AAA) Cost: $41,200 for 4-color 1 full-page ad National Geographic Traveler Cost: $84,020 for 4-color 1 full-page ad Sunset Cost: $118,200 for 4-color 1 full-page ad Where Magazine Cost: $1,000 - $10,000 for 4-color 1 full-page ad depending on location Travel + Leisure Cost: $124,350 for 4-color 1 full-page ad c. Runtime: 4 months d. Total Cost for Magazine Ad: $1,436,767 – $1,463,767 depending on Where Magazine locations 2. Rental/Trial and Buy Programs (exact cost unavailable due to insufficient data at this time) a. Advertising Costs: more research and info needed b. Cost of Currently Available DSLR units (x3 for availability) c. Cost of Insurance for Each Unit d. Financial Processing and Other Banking Fees 3. Photography Contest a. Advertising Costs: more research and info needed b. Costs of Prizes: $7,000 (1st), $3,000 (2nd), and $1,000 (3rd) = $11,000 Mirror-less Camera Promotional/Marketing Mix Cost/Budget: $20.5 million DSLR Camera Promotional/Marketing Mix Cost/Budget: $1.5 million TOTAL Promotional/Marketing Mix Cost/Budget: $22 million 34 B. Implementation (Metrics) Mirror-less Cameras for Advanced Users: Introduction, Awareness, Confidence and Satisfaction 1. Advertising (Introduction): Television and Magazine Metric: Call to action (website/phone/coupon) Bingo cards Survey (ex. ask during product registration how they became aware of the camera) 2. Facebook Ad (Awareness) Metric: PPC Impressions Hits to landing page Facebook metrics (insights and likes) 3. CNET Online Product Review (Confidence and Satisfaction) Metric: Reviews Level of satisfaction Hits to landing page Ad to purchase ratio Survey (ex. ask whether CNET review was a source used to review camera prior to purchase) AE-D Timeline of Implementation: See Exhibit A DSLRs for Professional Photographers: Awareness, Encourage to buy, and Increase Brand Loyalty 1. Advertising (Awareness): Only Magazines Metric: Call to action Bingo cards Survey (ex. ask during product registration how they became aware of the camera) 2. Rental/Trial and Buy/Financing Programs (Encourage to buy) Metric: 35 Trial to purchase conversion rate Survey at end of trial or rental program (ex. ask whether trial or rental had ultimately encouraged or discourage consumer to purchase the camera. Why or why not?) Amount of consumers buying cameras with credit Purchasing behavior prior to program and after program introduction 3. Photography Contest (Increase Brand Loyalty) Metric: Number of contestants/participants Open forum, and number of votes each participant gained during the contest Advocates assisting their friends Creating own page-"like" Top 10 (most "likes") Final Round-Gets Judged by Canon (Select 3) DSLRs Timeline of Implementation: See Exhibit B VIII. CONTROLS and EVALUATION Through continued monitoring of: 1. Sales and Revenue: Weekly and monthly sales to gauge progress toward revenue and unit sales objectives Weekly and monthly costs to gauge progress toward break-even point (mirror-less AE-D) Weekly/monthly sales, specifying from which channel ROI: the contribution attributable to marketing (net of marketing spending), divided by the marketing investment 2. Quality: Quality control through Six Sigma process: lens calibration TQM: Ensure Total Quality Management is met within the company in accordance with all regulations and standards Audits: team leaders and management staff will document progress in order to improve quality of all production Consumer reports Rate of returns and exchanges that are due to defective products per month Investigate technical support department records and see whether there is a pattern or reoccurrence of a specific issue or problem 36 Product concerns or complaints from consumers and distributors Make improvements in employee training if necessary 3. Customer Satisfaction: Customer reviews: online (distributor's websites and company's ecommerce website) Surveys and Industry/Consumer reviews: Qualtrics and Consumer Reports Recording and reviewing random service calls Rate of returns and exchanges that are not to defective products per month (survey or reason for return to be submitted by the customer at the time of the return or exchange transaction) 4. Brand and product awareness: Quarterly awareness levels to gauge progress toward brand awareness targets Number of repeat customers Evaluation of current loyalty programs (if any, if none exist future plans to develop and implement one) Nielsen ratings Creating incentives and community events to encourage the use of Canon products 37 Exhibit A: 38 Exhibit A (cont.): 39 Exhibit B: 40 Exhibit B (cont.): 41 Bibliography 42 1. IBISWorld Industry Report 42341, Camera & Film Wholesaling in the US, by Nima Samadi, December 2011 (http://clients.ibisworld.com/industryus/default.aspx?indid=926) 2. InfoUSA from InfoGroup, Mailing lists and sales leads, (http://leads.infousa.com/USConsumers.aspx) 3. CES 2012: Digital camera makers struggle to keep pace, by Terry Sullivan, Jan 11, 2012 (http://news.consumerreports.org/electronics/2012/01/ces-2012-digital-camera-makers-struggle-to-keep-pace.html) 4. Death-by-Smartphone Threat Drives Samsung to Spruce Up Camera Line: Tech, by Cliff Edwards, January 08, 2012 (http://mobile.bloomberg.com/news/2012-01-08/death-by-smartphone-threat-drives-samsung-to-spruce-upcamera-line-tech) 5. Canon Offers Cameras for Professionals, Tweens, by PJ Jacobowitz, August 26, 2008 (http://www.pcmag.com/article2/0,2817,2328818,00.asp) 6. PMA Foresight web log (http://pmaforesight.com/?category_name=digital-cameras) 7. Nielsen Identifies Key Market Segments To Target, Twice, by Twice Staff, January 10, 2012 (http://www.twice.com/article/478921-Nielsen_Identifies_Key_Market_Segments_To_Target.php) 8. Photographer job/career description, March 19, 2010 (http://www.bls.gov/k12/music02.htm) 9. Canon Inc. 100 web log, by Tiffanie Nichole Torres, 2011 (http://canoninc100.blogspot.com/2011/05/wk13segmenting-and-targeting-markets.html) 10. Consumer Media Advertising Source (http://www.srds.com.libproxy.sdsu.edu/cmas/main) 11. Canon USA website (http://www.usa.canon.com) 12. Canon Global Corporation website (www.canon.com) 13. The Marketing Plan Handbook, 3rd Edition, by Marian Burk Wood, Pearson Prentice Hall, 2008 43