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Marketing Project Nikon COOLPIX P80 [pic][pic] Product Line Nikon have a wide range of cameras ranging from compact cameras to Professional cameras. Compact cameras are the point and shoot camera where you do not have the function of setting your camera the way you want it. Everything is automatic. Examples of compact cameras are the L16, S210 Professional cameras are the based where Nikon build up their reputation are one of the top camera makers. Their professional cameras are excellent in performance and quality and they have a wide range of lens to choose from for their DSLR (digital Single Lens Reflect) cameras.
Example of DSLR cameras are the D40, D300, D3 Lastly, Nikon has recently produce an in between from compact cameras to professional cameras, the semi professional cameras. The semi professional cameras have both the automatic function as well as the manual function where you can play around with the camera settings. However you do not have the full customisation available as compared with the professional camera. Competitors Specification Major competitors for Nikon will be brands that produces semi professional camera such as Olympus, Sony and Canon. SP570- the Olympus camera is a 10. mega pixel camera that has a zoom of up to 20X times together with the build in image stabilizer. It has a wide angle of up to 26mm and can take as fast as 15 fps (frame per seconds). However it has one weak point whereby it is using XD memory card which is not compatible with other brand and they are running on a double A battery. Sony- the Sony H50 is a 10. 0 mega pixel camera with a 15X zoom and packed with a build in image stabilizer. It has a large LCD screen size (3. 0 inch) that is tillable. Picture that is taken will be recorded in high definition when viewing on a HD television.
The Sony cameras are also using their own memory card memory stick therefore it is not compatible with other cameras too. Canon- the Canon S5IS is an 8. 0 mega pixel camera with a 12X zoom and also with the build in image stabilizer. It can take close up shot of up to 1cm and the LCD screen is also tillable. Additional flash could be added in to the camera. The camera itself is also running on double A battery and does not have an internal memory to store its photo. Product Specification The Nikon P80 is the latest camera that is produce by Nikon. It has already been released into the market to all Nikon retailers since 25 April 2008.
The Nikon P80 is a semi professional camera that comes with a 10. 1 MP sensor and a whopping 18x zoom (27-486mm equiv) which should hardly ever let you run out of focal length. It also comes with a 2. 7″ LCD screen and a CCD-shift image stabilization system. Live view mode is pack into this camera for amateurs that is not familiar or used to the viewfinder when taking photos. This is one of the most compact and friendly using camera in the market and it is also equipped with a zoom lens that ranges from wide-angle to super telephoto (27-486mm equivalent in 35mm [135] format).
In addition to this, the camera also offers manual control of exposure (shutter and aperture) and a high sensitivity rating of up to ISO 6400 for use in low light conditions and you can go as low as ISO 100 with this camera too. The exceptionally Macro mode of the camera is capable of focusing on subjects that are as close as 1 cm, and image-shift Vibration Reduction technology stabilizes the image sensor against camera shake. If you are looking to capture some motion pictures, the camera allows you to do that with no limitation on the length of the movie (dependable on memory card) with clear and vivid sound captured.
Latest technology in the market such as (face-detection, In-Camera Red-Eye Fix and D-Lighting) are supported by the addition of high ISO sensitivity for situations when lighting levels are low. The COOLPIX P80 has everything that you are looking for in a camera. It has a powerful lens, manual and automatic modes and advanced technology in a compact and ergonomically-designed body. On top of that, it is a very versatile, high quality camera that is easy to carry around that can snap wonderful pictures. 1. Core product Core benefits that consumers are really buying.
In this case, consumers are looking for a semi-professional camera that can serve their purpose of not only using for normal activities, but shooting far object. But in actual fact, they are buying the photo quality that the camera can produce. The product which is the camera, serves that purpose as it can capture beautiful photos. Product attributes also include Quality, features and style and design. Actual Product The actual product’s quality, features, design, brand name, packaging and other characteristics 1) Quality
The quality of the P80 is one of the best semi professional camera is the market currently. It produces fine and natural colors in the photo captured. With the new Nikon system (eXpeed) engine and a mega pixel as 10. 1, you can expect a faster processing and clearer image for your photo. You can be rest assured that the camera will produce much lesser noise in low light conditions giving out a more beautiful picture. 2) Features What the Nikon P80 has to offer and one of its main features is the 18 times optical zoom. The 18 times optical zoom can capture even the furthest object with superior clarity.
To boost the clarity of the image, Nikon adds in the VR (vibration reduction) technology into the camera to stabilize the camera even at 18 time’s optical zoom. This way, the photo produce will have no issue of being blurring. Other than taking far distance object, the camera can also take a wider view with the 28mm wide angle lens. With the wide angle lens, you can take scenery photos at ease with no fear of leaving out any details. If you also want to take very close up object even as close as 1cm, the super macro in the camera also allows you to do that.
The camera also comes with a 2. 7 inch LCD screen that blocks out glare from the sun for ease of view. As this is a semi professional camera, it will come with a viewfinder in the camera. However the Nikon P80 promotes itself as an easy to use camera that has the ability to go professional. That’s why it comes with both a viewfinder and LCD screen so beginners will find it handier. It comes with the latest technology in the form of the face detection where the camera will automatically detect a face and comes out with a square box around the face. The camera can detect up to nine faces.
Besides capturing still images, the camera allows you to capture motion images with sound too with the video function. The highest quality for video is 640 *480 and the video recording time limit depends on your memory card. 3) Design Speaking of handy, the P80 is currently one of the slimmest semi professional cameras in the market. It fits in nicely into your hand and with a weight that is so light; you hardly even noticed the camera. The grip of the camera is also designed in a way that you will not be able to drop the camera easily and it also adds as a stabilizing effect for the camera.
Although the Nikon P80 is not the coolest in design, but the outlook is very much better compare with other competitors semi professional camera in terms of outlook, design and weight. 4) Brand name Many people associate the item that they want to buy with brands. Such as, if you were to buy a handphone, would you go for Nokia or would you go for Hp? Therefore branding also plays an important part in influencing the consumers to buy the product. The branding of Nikon is very famous in the world of cameras and many people who know a bit about camera will consider Nikon brand if they are to get one.
Nikon is one of the few camera makers in the market along side with Canon and Olympus. They have a very rich history up to 70 years in the camera market since developing the SLR (Single lens reflect) cameras in film. They are also the first camera that goes on moon. Augmented Product Additional consumer services and benefits 1) Warranty Nikon always standby their policy that product should be build to last, therefore they standby this with a warranty that covers one year locally. This includes parts and labels and other service charges.
Alternatively, the consumer may purchase extended warranty with the retailer shops provided by them. Nikon will take full responsibility over the camera as the retailer shop will be providing the cost of the repair when you purchase the extended warranty from them. 2) After sales service Nikon have always felt that the customer determines their survival in the camera industry. That’s why they always feel that the best after service should be given to customers should they have any problem with their camera. Nikon technician will take a maximum of three working days to repair any unit send in for repair.
Nikon will contact the consumer should there be any complications and consult whether they still want to repair the unit if the model becomes obsolete. 2. Pricing To begin with, pricing is the amount of money charged for a product or service, and a firm has to consider the internal & external factors before setting its prices. Out of all the 4Ps (that is promotion, product, place and pricing); Pricing is essentially the only component that produces revenue. It is also the number 1 problem that firms contemplate most about, as price is the key factor that affects market demand & determines consumer choice.
In accordance with “The Great Nikon Sale” promotion from 29 May 08 to 30 June 08, Nikon has offered the COOLPIX P80 semi-professional compact camera for S$699. (You may refer to Figure 1 below for reference for the promotion poster. ) Internal factor 1: Marketing Objective From the promotion poster, we can see that Nikon is offering extremely low prices for its COOLPIX collection of compact cameras; the Nikon COOLPIX L16 alone with freebies is only retailing for S$199. The Nikon P80 is a part of the whole COOLPIX series.
In addition, they are practising product mix-pricing strategy by offering the DSLR with dual lens as a bundle package, with free gifts at below usual retail price. From this, we can infer that Nikon marketing objective is to obtain a market share leadership, which is setting prices as low as possible to become the market share leader. Additionally, there may be a bit of current profit maximization objective involved, as at these promotional prices; Nikon may be selling at prices that will produce the maximum current profit, cash flow or return on investment (ROI) by making inventory flow out faster. Internal factor 2: Marketing Mix Strategy
Moving on, pricing decisions must be coordinated with product design, distribution and promotion decisions to form a consistent & effective marketing program. In this aspect, we feel that Nikon has done well. Besides cooperating with intermediaries such as wholesales & retailers to distribute its line of products, it has designed the promotion to coincide with the PC fair at Suntec in June. Looking at the product itself ( figure 2), the P80 is designed for active photo enthusiasts with an interest in fine detail; this camera features a class-leading compact body size and a zoom lens that ranges from wide-angle to super telephoto.
In addition, it is an ideal camera for the photo enthusiast, who wants to have the convenience of a point-and-shoot camera with full manual control, and all possible options in-between. From our personal point of view, we feel that the P80 will also appeal to a niche market of consumers who are seeking to “upgrade” from the basic compact camera, learn more advanced photography skills & functions, before proceeding on to own one of the more expensive DSLRs (professional cameras). Internal factor 3: Costs
Since its founding in 1917, Nikon has secured its pace as a pioneer of optical glass technology in Japan. The company has gained global acclaim for the manufacture and sale of camera-related products, such as digital cameras, as well as binoculars and other optical products for consumers. With its strong reputation for making cameras, we believe that the Nikon P80 is definitely not selling at a loss (it has no reason to do so), and is actually selling at a relatively high margin.
From our team’s personal experience as sales promoters for cameras, we know that even if the retailer sells the P80 at a discount of S$599 with freebies included, it is still making a healthy profit on the product. Therefore, we can say for sure that Nikon is definitely charging a price that both covers all its costs for producing, distributing, advertising (refer to figure 3 & 4) & selling the product, and at the same time delivers a fair rate of return for its effort & risk. Internal factor 4: Organisational Considerations
In Singapore, Nikon has a company division over here that assumes the marketing and distribution responsibilities of its products. Hence, the pricing decision is mostly likely made by the divisional, product-line manager or marketing department. A point to note is that the price of the P80 must still be within a certain fixed margin of difference with the prices in other countries, as to make sure the price of the P80 is relatively consistent; not too expensive or too cheap in Singapore as compared to other Asian countries in the region.
External factor 1: The Market & Demand Looking externally, the price of the P80 is also largely determined by the market it is in. Currently, the camera market still belongs to an oligopolistic market nature. Despite the inflow of a number of new camera sellers in the market, such as Casio, Lumix (Panasonic) & Samsung, camera sellers are still considered relatively few, especially when compared to other products line such as food & clothes. Furthermore, they are highly sensitive to each other’s pricing/marketing strategy.
This is evident as during the period from May to July, almost all camera sellers had promotion sales for their products. Similarly, they all included freebies to be given alongside when customers buy their cameras. Using the price elasticity of demand concept, we learn that demand changes greatly with a small change in price, particularly for luxury items such as cameras. Hence, this reflects the delicacy needed, when setting prices in such a complex external environment. External factor 2: Competition
Currently, we have Olympus Sp-570UZ priced at $799, Canon S5 IS priced at $699 and Sony H10 priced at $799 that is in the same semi-pro camera performance class with the Nikon P80. As stated earlier, the Nikon P80 is selling for S$699; as such the price remains largely competitive. In truth, there are more than 70 different brands of cameras in the market. However, not all of the brands are found & sold in Singapore. Even if they do, they lack the marketing strength and reputation of the more well-known brands. Presently, the more common brands of cameras in the market right now are as follows, they are: . Nikon 2. Sony (taken over Konica Minolta) 3. Canon 4. Olympus 5. Lumix (Panasonic) 6. Casio 7. Samsung 8. Pentax 9. Fujifilm However, not all the brands above specialise in making cameras. Unlike Nikon which core business & skills lies in the manufacture of cameras, brands such as Samsung & Sony makes more and are more well-known for making TV sets & hand phones than they do for cameras. Hence, Nikon knows this and taps on this aspect to tell the mass market with its slogan: “At the heart of the image” and to distinct it with the colour yellow.
External factor 3: Others Currently, the economic situation in Singapore is that inflation is rising, and yet there is still economic growth, but an uncertainty of the future still looms in the horizon, due to high oil prices, possible US recession, global inflation & the war in Iraq and other parts of the world. Hence, Nikon must have taken note of this external factor and considered the above into consideration before setting the price of the P80 at S$699. Pricing Approaches Generally, there are 3 basic pricing approaches: Cost-based, Value-based & Competition-based.
From our analysis, we believe that Nikon’s pricing of the P80 is more inclined towards competition-based pricing, which is setting a price based on how one thinks competitors will price similar products, and valued-based pricing, that is using buyer’s perception of Nikon’s products value to set price. This is apparent when we see Nikon’s competitors, such as Olympus position their semi-professional camera with 10 mega pixels & 20X optical zoom at a price of S$799; the price difference is not that great. Being in the business for over 90 years, Nikon has a strong base of customers who feel that Nikon delivers quality cameras.
Hence, the price of the P80 is unlikely to be based on simple cost-based pricing (i. e. adding a standard mark-up to cost of the product), but setting a price that meets buyer’s perception of the product value. New-Product Pricing strategies From our observation, we see that Nikon does not practise marketing-skimming or market-penetration for the P80. However, we do note the possibility of market-penetration with the Nikon COOLPIX L16 instead. Product Mix-pricing strategies Referring back to the promotion poster (figure 1), we can see that Nikon is using product-bundle pricing by giving away: 1.
Nikon Umbrella 2. Mini Tripod 3. LCD Cleaning Pad 4. 4GB SD Card 5. Card Reader This is essentially combing several products together and offering it as a bundle at a reduced price. Price-Adjustment Strategies To allow for greater flexibility in promoting the P80 and the rest of the cameras on promotion, Nikon has allowed retailers discretion to give a cash discount off the price of S$699, if customers bargain for it. This gives a certain advantage over brands like Sony, whose products can only be sold at the controlled/fixed price. Moving on, location pricing is being practiced by the different retailers arrying Nikon’s products. For instance, Harvey Norman cannot give clients a cash discount off the promotion price of S$699, but can give additional freebies to them. On the other hand, camera outlets like Cathay Photo at Marina Square can give customers both cash discount and additional freebies, such as a spare battery on top of those which are already given. To add on, a certain level of promotional pricing is also being carried out. Referring back to figure 1, we can see that if customers buy the P80, they can also attend a product-shooting workshop at just S$30 (Usual: $150), and get a free pro shooting tent too.
Moreover, customers can also purchase on purchase an EPSON photo printer at just $98 (Usual: $268) with the original receipt and warranty card of the P80. 3. Place 1. Types of Retailers – Departmental Stores A departmental store is a retail establishment which specializes in selling a wide range of products without a single predominant merchandise line. This means that they usually carry a wide variety of products at a single point in time. One example will be Best Denki Digital Pte Ltd, Courts, and Harvey Norman Pte Ltd. They carry several product lines from Nikon and operated as departmental stores.
This means that these stores sell a variety of products across different brands in the same industry, such as gadgets and technology. – Specialty Stores Specialty stores are stores that are much smaller in size and specialize in a range of products and related merchandise. These will include stores like Alan Photo Trading, Cathay Photo Store Pte Ltd, Deluxe Cameras Pte Ltd and Song Brothers Marketing. These stores are considered specialty stores as they are located at the heartland areas in Singapore. They have a narrow product line, with deep assortment.
Furthermore, many specialty stores are located near one another, such as specialty stores in Sim Lim Square. Customers may be able to compare prices and the promotional packages across different shops and thereby make a purchase from them. – Off Prices Retailers For off prices retailers, it would be a distribution channel that sells at a relatively lower price than the usual fix and rigid retail prices in the shopping centres. These retailers are of an independent entity which has a seasonal life span. They will be around 4 times a year.
Examples will be The Annual IT Showfair in March, the Great Singapore Sales in June, the PC Showfair in July and The End of Year sales in December. These retailers may hold at venues such as Suntec City Convention Hall, where most of the time many promotional packages are being introduced. These retailers are being well received all the times, where a large number of crowd will be anticipated by the retailers. From there, due to the lower prices of the products being offered, and the range of promotional packages which they have devised, are probably the main reasons to account for the large number of crowd. . Service Levels From the camera product lines, we have analyse 2 types of service levels depending of the type of retailers. – Self selection retailing For departmental stores, self selection retailing is one of the most frequently adopted approach to the service level. Due to the fact that a service is intangible and is being created and consumed simultaneously, a retail staff could not possibly be able to handle many interested buyers at one go.
Furthermore, due to the fact that departmental stores which carry Nikon P80, also carry a variety of product lines, making it hard for staffs to fully utilize their capacity for a particular brand model of a product. Hence, a self selction retailing is frequently used at departmental stores, where customers can ask for assistance. – Full service retailing This will be applicable to specialty stores, where these stores carry a more specific range of product lines. Staffs are able to focus and fully utilize their capacity to interested buyers. Specialty stores also carry more products, many of which may be high end models.
As such, full service retailing is needed to assist the customers for any enquires or any product examination. 3. Functions of Middleman The main functions of middleman or intermediaries include matching of demand and supply of products, information flow, payment or title flow, negotiation and promotions. – Gathering and Distribution Information Middleman have to gather essential information about Nikon P80, such as the product information, the specifications of the model, the price range of P80, the functions of P80 and the expected amount of inventory that they would be carrying.
A good facilitation of information is crucial and vital for middleman to coordinate with Nikon, the supplier. – Promotion of Offer Next, the middleman will have to decide on the various promotion offers that they have decided to undertake. Most of the time, the promotion of offer is pre determined by: – The financial conditions of Nikon, the producers If Nikon’s financial conditions were to be generally good, they will be more willing and able to support the various promotional packages and offers being proposed. This would increase the number of promotional offers available to the members of the public. The general economical conditions in Singapore Similar to the point above, the general economical conditions are actually facing cyclical periods throughout the whole year. The middleman will have to anticipate the economical conditions in advance before deciding to propose the various promotional plans. – Time span of the allocation of the promotions Certain promotional packages only affect new range of camera models, while other promotional packages arises due to the need of clearing older inventory in order to allow new ranges of camera models in.
Due to different periods of interval, most promotional packages are needed to be planned ahead by the middleman so as to avoid collision of various promotional packages. – Contact with Potential Customers Generally, resellers are the middleman who will be in contact with the buyers most of the time. From time to time, resellers will be in charge of contacting potential customers for a particular model. Resellers are able to identify the ‘regulars’ who will be patronizing their camera shop often, hence increasing the chance to contact potential customers. Matching Buyers’ Needs In order to promote, sell and distribute the cameras effectively and efficiently, resellers have to analyze buyers’ needs’ and wants accordingly and promote them appropriately. Matching buyers’ needs is one of the important functions for middleman as it is versely related to the sales of the inventory (cameras) – Physical Distribution Physical distribution films, such as warehousing or factory outlets, will be one of the vital channels for the facilitation of cameras.
One of the critical point is to ensure that the middleman takes charge of the amount of goods that are being ordered and coincides with the amount of goods that are being delivered to them correctly. After which, they are also responsible to see that the delivery of the goods to the various stores are being carried out smoothly. – Negotiation with Buyer Effective communication, trust and coordination are some of the essential factors when the middleman negotiates with a potential buyer in order to close the sales. As such, the buyer may take into the account of the level of creditworthiness of the middleman during the transaction. Financing Financial intermediaries, such as a financial institution, are mainly the middleman who is in charge of it. – Risk taking One of the main responsibilities of all the middleman is to ensure that they are able to account for the goods that are being channel to them. They are to ensure the total inventory of the goods is safe in their hands. As such, stock take for middleman are one of the routine steps that they will be facing every day. Channel Strategy – Selective Distribution Nikon P80’s channel strategy is selective distribution.
This is the use of more than one, but fewer than all, of the intermediaries who are willing to carry Nikon P80. By doing so, they do not have to spread their effort over many outlets, including many marginal ones. Additionally, they are able to focus to develop good working relationships with selected channel members and expect a relatively better selling effort, due to their close proximity. In all, selective distribution gives P80 a better market coverage with more control and less cost as compared to intensive distribution 4. Promotion -Promotion Mix Strategies
Nikon uses a combination of a push strategy and a pull strategy, as it is one of the world’s largest manufacturers of steppers and currently holds 44% share of the market. To remain strong in the market, they have used mass-media advertising and strong consumer promotions to pull its customers into electronic stores to search for its brand and “incentivize” them to buy. This is evidential from the recently held Great Nikon Sale promotion from 29 May 2008 to 30 June 2008, where “freebies” were offered for free to customers when they purchase its products.
They also frequently advertise its brand and products through various advertising channels, such as in the form of television ads and bus ads. At the same time, Nikon will deploy a large sales force and trade promotions to push its products through the channels. The large sales force comprises mainly of trained sales promoters located at various retailers to push the products to consumers directly. -Promotional Tools Nikon uses two different types of promotional tools, advertising and sales promotion. – Advertising
Most of Nikon’s advertisements come in the form of informative advertising and persuasive advertising. As Nikon constantly introduces new products into the market, they will have to tell the market more about the new product. This is evidential from its recent Coolpix advertisement, where the advertisement introduces the new S series cameras to the Singapore market. During the Great Nikon Sale promotion held between 29 May 2008 and 30 June 2008, Nikon have been strongly advertising its promotional activity to the mass public to persuade customers to purchase its products immediately.
This comes in a form of persuasive advertising. Nikon usually adopts a Mood or Image and Endorsement kind of message execution style. The S series camera advertisement below is an example of a Mood or Image. This style builds an image of quality in the product to the audience. This quality is build by conveying the message of “invisible assistance with every picture”, which tells the audience that the product is able to deliver perfect and quality shots with every take. This S series camera advertisement below is an example of an Endorsement.
It uses celebrities to present the product to the audience. Nikon has used quite a number of celebrities so far, such as Korean singer-actor Rain, Hollywood star Ashton Kutcher and Chinese singer-actor Wang Lee Hom (below). Nikon always uses a positive tone and attention-getting words in their advertisements when they promote their products. Some interesting headlines they have used in the advertisements are listed below. – “Invisible assistance with every picture” – “Stunning is brilliant” – “Bringing the world to you, one picture at a time”
Nikon advertises its brand and product through a wide range of media, such as through newspapers, magazines and the television. Recently, they have also competitively advertised its products as bus ads and bus stop ads. – Sales Promotion The major sales promotion tools that Nikon engage in would be the main consumer, trade, and business promotion tools. Nikon uses consumer promotions to increase short-term sales and also to help build long-term market share. It usually comes in the form of Price packs, Premiums, Advertising specialties and Point-of-purchase (POP) promotions.
Price packs (also called cents-off deals) offer consumers savings off the regular price of the product. It usually comes in the form of single packages sold at a reduced price, or two related products banded together. During the Great Nikon Sale, the Coolpix P80 semi-professional camera product bundle includes the camera itself with a 4GB SanDisk (SD) card, a mini-tripod, a cleaning pad for the LCD screen of the camera and its lens and other accessories, all at a discounted product bundle price of $699. Premiums are goods offered either free or at low cost as an incentive to buy a product.
A premium may come inside the package (in-pack), outside the package (on-pack), or through the mail. The in-pack premium of purchasing a Coolpix P80 camera would be the freebies that were offered for free during the Great Nikon Sale such as the mentioned mini-tripod and many more. The on-pack premium of purchasing a Coolpix P80 camera would be that consumers are also entitled to attend the Nikon Product-Shooting Workshop (worth 150 dollars) for just thirty dollars. Consumers will also receive a free Pro Shooting Tent, which is easy to set up and foldable, after attending the workshop.
Another on-pack premium would be that consumers can get an Epson Stylus Photo R290 at a discounted price of just $98 (usual price: $268) when they purchase the P80 camera at the Nikon Showroom. Advertising specialties, also called promotional products, are useful articles imprinted with an advertiser’s name that are given as gifts to consumers. Advertising specialties that were given for free when consumers purchase the P80 camera during the Great Nikon Sale were its mini-tripod, cleaning pad and an original Nikon umbrella.
All of these accessories bare the Nikon brand name and its signature colours of yellow and black. Point-of-purchase (POP) promotions include displays and demonstrations that take place at the point of purchase or sale. During the Great Nikon Sale, big poster advertisements, signage, brochures and pamphlets were provided Nikon to the dealers to promote the event’s promotional products, including the P80 camera. Nikon uses trade promotion to persuade resellers to carry its brand, give it shelf-space, promote it in advertising, and push it to customers.
As known, there are around 60 resellers carrying the Nikon brand and its products in Singapore. Many of the tools used for consumer promotions by Nikon were also used as trade promotions, such as the freebies and displays. Free specialty advertising items were also given for free to the resellers during the Great Nikon Sale. An advertising allowance may also be given to the dealers as the Nikon logo is usually specially displayed in the reseller’s shop. Lastly, Nikon also offer their sales forces to “push” their products through the various resellers to the mass public.
Part of their sales forces comes from well-trained promoters from companies which specialize in manpower managing services. An example of such a company would be Digital Force Networking. They help to attain certain level of product targeting and market positioning of the Nikon brand. Nikon uses business promotion to generate business leads, stimulate purchases, reward customers, and motivate salespeople. As known, Nikon did not participate in the latest PC show held at the Suntec City Convention Centre from the 12th to 15th June 2008.
This is to due to the fact that the Great Nikon Sale was ongoing at that time. However, they did participate at the PC show held at the Suntec City Convention Centre in March. Recommendations/improvements suggested to the existing marketing mix. Product: Nikon P80 Current Specifications: 18X zoom, VR (Vibration reduction), 28mm wide angle, 2. 7 inch LCD, 10. 1 MP, CCD sensor, ISO up to 6400, Video recording with sound (640*480) and Manual settings. Improvement
There should be an improvement on the VR, LCD screen, sensor, battery, memory card slot and video recording stababilizer is more of an electronic VR and optical VR combining together and not as good as the optimizer. 1) Need for better Image stabilizer rather than VR Although the camera itself comes with an optical VR to capture image more clearly, the VR only works after the camera taken its photo. The Nikon image st cal image stabilizer. Electronic VR uses the system of the camera to reduce blurriness while optical image stabilizer uses the lens to stabilize the fast moving object.
Hence with both the electronic and optical implanted into the camera, you get double stability even if your hand or object moves. However the stabilizing effect is only half of both electronic and optical. Therefore I recommend that Nikon change their current VR technology to a full optical image stabilizer for better quality photo taking even if subject is moving or your hand is shaking. 2) LCD screen The LCD screen size is considered relatively smaller with a size of 2. 7 inch compare to other brands such as Sony H50.
Other than the screen size, the P80 LCD screen appears to be much darker and more yellowish compared to other brands too. In low light conditions, the LCD screen seems to have too much noise when viewing in live view mode and insufficient brightness in the LCD causes the subject to be darker. Therefore I recommend that Nikon changed their LCD screen from 2. 7 inch to 3. 0 inch for better viewing. The LCD screen brightness also should increase by changing the current 230,000 dots to higher dots such as 400,000 so that even in low light conditions picture will still be visible. ) Sensor A good camera often depends on 2 things. The two criteria are that there should be a big enough sensor size and the type of sensor. The Nikon P80 is using a CCD sensor which most of their other SLR cameras are using. It can produce image at a more natural color than a cmos sensor but the counter-part will be that the noise control will not be as good as the cmos sensor. Therefore my recommendation to Nikon is to change the current CCD sensor to a Cmos sensor. Although CCD produce more natural color than cmos sensor, the different is insignificant.
However the amount of noise that is produce by CCD sensor is very much more significant than Cmos. Most of the higher range professional camera of Nikon such as D3 also uses cmos sensor because of the excellent noise control. 4) Battery The Nikon P80 is currently using lithium recharger battery with a voltage of 1100amph. The rough estimation of the number of shots that the camera is capable of taking with a fully rechargeable battery with the viewfinder is 300 while using the live view mode will allows the camera to take about 250 shots.
The battery has a very long lasting life, however providing it with the option of using a double A battery along with the lithium battery would be better? I would recommend Nikon that they have either an extra battery slot so consumers need not worry about the battery life spend or a special slot that can enable the camera to take in double A battery. This way even if battery life were to run out, the double A battery which is easily available would be a perfect addition to the camera. 5) Memory card slot After using a semi professional camera, the next step up would of course be the SLR cameras.
Most of the cameras nowadays are using CF (Compact flash) card and the processing speed for this type of card is faster than the SDHC (SanDisk High Speed) card. When taking raw file for SLR cameras, the processing of the image to store into the memory card will also be faster. I would recommend that Nikon have an additional slot for CF card. By having a dual memory slot, not only can the camera is able to store even more photos they can also out beat their rival with this special design. The only dual card slot camera in the market is the Olympus SLR camera. 6) Video recording
While the Nikon P80 can take wonderful still images, it offers the option of capturing motion pictures too. With an unlimited length of movie recording (depending on memory card) with sound, it appears that the P80 has it all in its small body. With a quality size of 640*480, it can capture good motion videos in AVI format or TV quality movie. Nikon could increase the quality of the camera video recording function. The format for the video taking could increase from 640*480 to a full HD video quality. The sound recording could also be improved so as to get sharper and crisper sound. ) Need for more intensive advertising on the product As known, there are no signs of the Nikon P80 model being introduced intensively to the Singapore Market, except from a few digital-related websites whereby this model is being advertised. So far, the model has only been advertised through the internet. Therefore, to increase its public awareness, Nikon will have to individually advertise this model through a few major media. Alternatively, they can advertise the model through ads displayed on buses and at bus stops to save costs. 8) Improve on its promotion product bundle
During the Great Nikon Sale, the Coolpix P80 semi-professional camera product bundle includes the camera itself with a 4GB SanDisk (SD) card, a mini-tripod, a cleaning pad for the LCD screen of the camera and its lens and an original Nikon umbrella, all at a discounted product bundle price of $699. We recommend that the product bundle include a casing for the camera, as it is essential and convenient for the consumer. Without a camera casing, many consumers decline to buy, since the camera is not protected from scratches, spillage and other miscellaneous problems.
To add on, the casing for this model is also not available in the market. Therefore, consumers will have to look for alternatives, which prove to be a hassle to many. 9) Offer premium product commission rates to promoters As known, promoters are paid on a basic pay level plus commission. The commission is based on the number of sets of cameras being sold by the promoter. Each set of camera has a given commission value. Therefore, by increasing the commission value of the Nikon Coolpix P80 model, promoters are driven to promote this model first before the other models as the commission rate is higher.
This will improve on the product’s selling. 10. Need to evaluate present channel members Nikon May have to evaluate present channel members based on sales quota every month, the amount of inventory that each channel member have sold for the past one month, the average time that took each channel member to deliver the goods to customer, and as well as how each channel member approach to the treatment of defective goods. In regular intervals, Nikon may change their requirements, and appoint better distribution channel members appropriately and accordingly. 11.
Need to increase the number of distribution channels To increase the number of cameras being sold, Nikon may consider increasing the number of their distributors. There will be a higher number of distributors that will be present, and this may lead to the increase in their sale of cameras. To do so, Nikon may have to be more lenient with their criteria. Based on economic and control criteria, Nikon may be able to compare likely sales, cost, profitability of different channels and also keep as much as control as possible in the meantime. Other factors include: Need to increase the number of distribution channel to areas that Nikon cameras are well received ??? Need to do more road shows at well populated areas and not to restrict to the space limitations and boundaries. At first glance, we can see that the Nikon P80 is selling at $699. Compared to other models with similar specifications, such as the Olympus Sp-570UZ at $799 or Canon S5 IS at $699, the price is largely competitive. Hence, if Nikon wishes to go in the direction of being the market price leader in this segment, we would recommend that Nikon lowers its price of the P80 further to about $599.
Alternatively, Nikon would wish to maintain the current price level of $699, even after the promotion ends at 30 June 2008. It could chose to carry on with the promotion with freebies given if there are still any left. As newer models of cameras were being launched in the foreseeable future, we strongly suggest that the price of P80 does not increase. Others From our personal experience, the inventory levels kept by retailers for the P80 are too low. Stock outs commonly occur. Therefore, we would encourage Nikon to give incentives to the retailers to obtain more stock, perhaps at a discounted price.
Our other recommendations are: ??? Conduct more road shows to increase publicity about the camera ??? Advertise on the newspaper that the promotion (The Great Nikon Sale) is being extended for 2 more weeks ??? Provide additional free training to sales personnel in the functions and use of P80 ??? Give more commission to salespeople who sell the P80 ??? Print out more flyers and distribute to mailboxes of potential customers (those who have bought a Nikon camera before; based on information given on warranty cards) ??? Upgrade the internal software of the P80 to make it process pictures faster
Appendix Figure 1 [pic] Figure 2 [pic] Figure 3 [pic] Figure 4 [pic]