Essay Marketing Audit
1. Terms of Reference
In 2001, Nikon assumed the marketing and distribution responsibilities for the photographic and electronic imaging products and binoculars as well as the microscopes and measuring instruments in Singapore. They also provide repairservice, ensuring that their customers do not encounter any problems.
As the marketing consultants for Nikon Singapore Pte Ltd, we shall focus our marketing plan on Nikon's latest entry level Digital Single Lens Reflex (DSLR) camera, the D3000. As an entry level DSLR camera, Nikon tried to make the interface simpler for D3000 users, including a new Guide mode that will make the “setting up” photographic features of D3000 activity easier. In the entry level DSLR camera market, Nikon D3000 is rivalled by Canon 1000D with the same price range.
2. Executive Summary
This is a marketing plan to assist Nikon Singapore Private Limited to create awareness and interest of DSLR photography among students in tertiary institutions. By capitalising on the younger generation's technological knowledge and creative potential, Nikon hopes to increase its market share in the DSLR photography sector in Singapore.
The DSLR market is known to attract a slightly more matured and affluent crowd and the camera are usually perceived as complicated and difficult to use. To engage the younger audience and debunk the misconceptions, Nikon has produced a guide menu to teaches consumers to take great pictures quickly.A new Nikon icon made up of a series of colourful squares are used to communicate its message in a fun and fresh manner.
The advantages marketing the DSLR photography interest to the youth in Singapore:
- Debunk the misconception of DLSR photography is only for the older generation
- Increase market share in the DSLR photography sector
- Promote creative photography among students
- Build brand image among the youth
Nikon's main competitor would be Canon Singapore. Nikon's D3000 model is rivalled by Canon‘s 1000D model, with the same price range.
In Singapore, we would be working closely with educational institutions, event exhibitors and media channels to create awareness and interest in DSLR photography by using the D3000
3. Business Mission
Become a recognised branding for DSLR photography among the youth by promoting affordable, user friendly and creative DSLR photography in Singapore.
4. External Marketing Audit
4.1 Macro environment
In this section we shall analyse the macro environment of Singapore in order for Nikon to penetrate the DSLR market. Wilson (2002) has suggested that “what is frequently lacking is an understanding of what might be termed the ‘outer environment', where four major forces of change are at work.” These are namely the political/government activities, economic change, sociological change and technological change (illustrated in Figure 1). The acronym ‘PEST' is fondly used to describe these factors.
Figure 1: The “PEST” Diagram (Adapted from Wilson, 2002)
We shall now look at how the macro environment might affect Nikon's marketing plan for the D3000 among the youth:
Incentives such as government grants given to school to promote media and communication studies
Trading agreements to ease shipment cost and taxes on importing DSLR cameras will reduce cost for consumers
Singaporean youth are opened to more media communication study opportunities, such as audio and video studies and photography in schools.
Introduction of user friendly tools/guides in electronics will enable both young and older generation consumers to handle electronics with ease, previously deemed to be complicated to function.
4.2 Market analysis
We conducted a marketing survey with a pool of 50 tertiary students from various institutions, such as SMU and Nanyang Poly, using marketing questionnaires (Appendix A). This was to analyze their understanding of the DSLR camera and their perceptions on using one.
The results we obtained were as follows.
What does “DSLR” stand for?
Majority knew what it meant
How much do you think an entry level DSLR camera would cost?
Majority chose above S$1000
If both digital compact camera and a DSLR camera cost the same, which would
What is the reason for your choice above?
What kind of camera will be most suitable for a short holiday?
What kind of camera will be most suitable for social/family events?
If given a choice to own a DSLR camera, which brand would you choose?
Sony and Canon were [referred choice
Do you understand what is meant by Aperture and Shutter speed?
Majority were not aware of these terms
Would it be helpful if a DSLR camera had an inbuilt “guide mode” to help you navigate around operations?
Would you be interested to own a DSLR camera if it was affordable?
Are the quality of pictures taken from a DSLR superior to that of a digital camera?
What would build interest in you to own a DSLR?
Photography trips by school
Would complementary training provided with the purchase of a DSLR camera be deemed useful in using the product?
Majority felt there was a need for training
What would be the best bundled item for DSLR camera?
Discounts was the preferred choice
How important is the video function in a digital camera?
Majority felt this is not a necessary feature
From the outcome of our survey, we realised that majority of the students knew that DSLR cameras produced better quality pictures, but they were deterred from exploring one due to lack of exposure and pricing restraints. Hence, creating awareness of Nikon's D3000 models easy to use features and affordable pricing structure to the students would built their interest in DSLR photography
Fifield (2007) has stated that “there are four recognized stages to the life cycle as the product or service or category proceeds from introduction through growth into maturity and eventually into decline and death.” This is illustrated in Figure 2 by Fifield (2007).
For the purpose of our discussion, we shall assume that we are entering the product lifecycle of the D3000 when it is transitioning from the Introduction stage to the Growth stage (refer to Figure 2).
Stage 1: Introduction - The Nikon D3000 was launched in August 2009. Since its launch, the camera has been featured on websites, overseas billboards, popular photography and technology magazines, in the Straits Times and promoted during the recent IT Show 2010 (11th March 2010). This is the period “immediately following the launch when, if all goes according to plan, sales will grow slowly but steadily as the product is progressively introduced to the market (Armstrong 2006)”. Profits which Nikon makes are non-existent at this stage because of the costs of introducing the product; promotional costs are high in proportion to sales, and costs per unit of output are high because of low volume.
Stage 2: Growth. After more than 6 months in the DSLR market in Singapore, we will now market the D3000 to the younger generation at affordable prices. We have to capitalize on our new marketing strategy by catering to the youth and promoting the user friendly concept of the D3000 before” the expansion of the market attracts new competitors who have various market-penetration strategies such as adding new functions, creating new market segments, and capitalizing on distribution channels, the price down, and so on (Toru , 2008). Profits may increase in this stage in accordance with the expansion of sales volume.
Porter's (1985) ‘Five Forces' model has been most widely used in the strategic analysis of competition. We shall use this model for Nikon's D3000 competitive analysis relating to the five different forces (Figure 3).
- New entrants: threat of entry from other organizations. (Example: Samsung and Sanyo entering the DSLR market. They currently have a share in the compact digital camera markets only.)
- Substitutes: availability and competition from substitute products. (Example: Mobile phones and video cameras which can match the DSLR technology in photography.)
- Buyers: bargaining power of buyers. (Example: Distributors are able to increase sales by providing convenient and reliable services, built on Nikon's marketing of the D3000.)
- Suppliers: bargaining power of suppliers. (Example: Trained specialist and advance equipment required by Nikon Corporation to meet increasing demands.)
- Existing competitors: rivalry among existing competitors. (Example: Canon, Sony and Olympus jockeying for position in the youth DSLR market.)
5. Internal Marketing Audit
5.1 Operating Results
Net Sales in Japan and Export Sales by Region
(Millions of Yen)
Net Sales in Japan and Export Sales by Region
Asia & Oceania *
From for the year ended March 2008, Oceania is rearranged from Other Areas to Asia & Oceania.
(adapted from www.nikon.com)
Shipments of Digital SLR Cameras
Shipment UnitsShipment Amounts(adapted from www.nikon.com)
Source: Camera & Imaging Products Association
Shipment units=domestic shipment units+export units (member manufacturers only)
Nikon's share is not calculated in 2008 since officially announced figures by the Company are consolidated sales units.
5.2 Strategic Issues Analysis
Nikon's current marketing objectives are illustrated in the figure 4 below
Figure 4: Nikon's current marketing strategies (adapted from www.nikon.com)
Despite there being no anticipation of any significant decline in consumption in the digital camera market, Nikon expects consumer behavior and exchange rates to remain unclear in future and that intensification of competition with their competitors and downward product price trend will continue (Figure 4).
The Nikon Group is committed to strengthening its manufacturing competitiveness constantly to meet the expectations of its customers. This involves a wide variety of production methods for different products, ranging from cutting-edge IC steppers and scanners demanding ultra-high precisions to consumer products that require enhanced efficiency. While giving careful consideration to the characteristics of each product, they are working to both strengthen and make more efficient their manufacturing capabilities in all production processes. The entire Group is thus striving to improve competitiveness in terms of speed and cost as well as quality.
In digital SLR cameras and interchangeable lenses, sales were down due to deterioration of product prices brought about by the effects of a strong yen and changes to the sales composition ratio by price range (www.nikon.com). The Company was, however, able to maintain its sales volume at the same level as for the first half of the year ended March 2009, led by sales of their new D5000, D3000, and D300S models, together with their existing medium/high-end models as D90 and D700, as well as digital SLR camera kits and FX format lenses performed well. They further enhanced the product line-up with the launch of their flagship model D3S at the end of November 2009.
5.3 Marketing Mix Effectiveness
We shall use the 4Ps Marketing Mix to analyze Nikon's D3000 current marketing effectiveness.
Nikon's DSLR D3000 currently features a new “guide mode” and scene recognition system which enables newcomers to grasp the concept of DSLR photography with ease. The EXPEED image processor and 11-point Autofocus system ensures that crisp and clear photographs are produced. An additional “In-camera” photo editing features allows consumer to edit pictures conveniently while traveling or on the move.
Currently the D3000 is priced at an affordable SGD$888. In comparison to other models from competitors in the DSLR market, such as Canon's 1000D (SGD$999)and Sony's A330 (SGD$900), the D3000 provides a rich array of features which are value for money.
Consumers need not go far to pick up a D3000. Many authorized Nikon dealers are available island wide at all major electronics stores such as , BEST Denki, Challenger, Harvey Norman, COURTS, Parisilk, Audio House, Alan Photo, etc. for convenience.
The launch of the D3000 was communicated to people via various marketing events. Two of the major marketing communication events held in Singapore would be as follows:
- Mens Health Urbanathlon 2010 (31st January 2010), where participants and supporters at the event were able to take free pictures using different models of DSLR's at the Nikon booth.
- IT Show 2010 (11 to 14 March 2010), where consumers got hands on experience of the D3000. The camera was also sold at promotional price of SGD$799 together with freebies such as free Lowepro camera bags, tripods and 8GBmemory cards.
5.4 Marketing structures and systems
Over the past decade Nikon has continued to improve its corporate makeup, with a balanced increase to high dimensions for all corporate functions, including marketing, development and design, production, and sales. They currently employ a structure that allows them to modify production on a weekly basis to reflect the latest market data. When market conditions began to deteriorate in the fall of 2008, they decided quickly to adjust production at the end of 2008-making them the first in the industry to do so-and were one of the first to complete those adjustments. All of Nikon's corporate functions operating simultaneously at high levels provide a true collective strength that can be leveraged in a short period of time.
6. SWOT Analysis
- Increasing profits Nikon's camera business seems to have racked up an operating profit of about 23.5 billion yen in the half, compared with a 1.9 billion loss in the year-ago period. Sales of digital SLR cameras rose more than 10% to break above 1.9 million units thanks to the popularity of the entry-level D3000 and D5000.
- Able to provide good customer service and support due to local service centre.
- World known and recognized brand for photography equipment.
- Nikons marketing campaigns focuses on compact digital cameras rather than DSLR
- Current economic upswing would encourage consumers to spend more on lifestyle luxury products such as DSLR cameras
- Room for market growth as the untapped source of potential youth market with the development of media communications studies available.
- Entry of new market players in the DSLR market such as, Samsung and Sanyo
- Canon realizing the potential of the youth market and introduces new models with user friendly technology for newcomers to DSLR photography.
7. Marketing Objectives
Nikon Corp. (7731) is expected to post an operating profit of some 4 billion yen for the
second half of fiscal 2009, clambering into the black for the first time in three halves, thanks largely to robust sales of digital SLR (single-lens reflex) cameras.
7.1 Strategic Thrust
McDonald (2007) has stated that “Marketing objectives consider the two main dimensions of commercial growth: product development and market development.” We shall use the Ansoff matrix(Figure 5) to analyze how Nikon can decide which product to focus on.
Figure 5: The Ansoff's Matrix (adapted from McDonald, 2007)
For the purpose of this report, we shall assune that Nikon is focusing on increasing sales and popularity of the D3000 among its current DSLR users (market penetration) and extednign its existing product (D3000) to new markets (market extension), such as the youth in Singapore.
- Selling existing products to existing markets/ segments (market penetration).
- Extending existing products to new markets/ segments (market extension).
7.2 Strategic objectives
Performance levels to be achieved on priority issues, such as cost reduction
Measures of success in fulfilling critical mission statement elements, such as "delivering superior customer service"
Expected performance in key result areas (those additional areas in which you must get measurable results if you are to succeed), including:
Expected financial performance standards such as profitability, sales revenue, growth, and cost/expense levels
Targets for performance on strategic measures that drive future financial performance, such as market share, customer-perceived quality and service, employee satisfaction, organization skills and succession, and innovation
8. Core Strategy
8.1 Target Markets
We have stated at the start of this report that Nikon's D3000 will be focused at the youth sector in Singapore. Marketing and promotional campaigns will be targeting the younger generation of Singapore's populations. To woo a younger oriented segment for its latest DSLR camera, Nikon will be launching a 'fun' campaign aimed at promoting its D3000 model.
The DSLR market is known to attract a slightly more matured and affluent crowd and the camera are usually perceived as complicated and difficult to use. To engage the younger audience and debunk the misconceptions, Nikon has produced a guide menu to teach consumers to take great pictures quickly.
8.2 Competitor Targets
Currently entry level camera models from Sony, Olympus and Canon are not promoted widely in the DSLR market segment. Canon often focuses marketing campaigns mainly on their professional models, such as, 7D and 50D, and overlooking their entry level model, such as the 1000D. A new comer to DSLR will be keen to start of his/her experience with an entry level model rather than a professional kit in order to get a strong grasp of the technology of a DSLR camera. Nikon ;launching a marketing campaign for their entry level 3000D, will gain popularity over the masses of new DSLR users by creating product awareness.
8.3 Competitor Advantage
Nikon's D3000 is priced at a much affordable price, SGD$888, compared to its rival Canon 1000D, SGD$999. This better price point compared to Canon's 1000D gives consumers of the D3000 value for money with features which are so similar that it will be indiscernible for entry level users
The D3000's “Guide Mode” is an easy-to-use interface to help new photographers build confidence in using a D-SLR with step-by-step instruction and inspiration. The Guide Mode, easily accessed by the Mode dial on the top of the camera, displays a variety of shooting situations via the LCD screen, indicating the most appropriate settings for a particular scenario. This feature is not available in similar entry level cameras such as Canon's 1000D and Sony's A330.
9. Marketing Mix Decisions
We will look into providing complementary 3hr training for consumers to gain an understanding of the D3000 and its features. This will enable them to have confidence in handling the equipment.
As our key target audience are the youth sector, we will hold road shows in tertiary institutions such as NUS, NTU, SMU, SIM and Polytechnics, where courses for media communications are currently being taught. This will engage students' interests in Nikon's latest entry level offering, the D3000.
Furthermore, social network advertising will definitely give the D3000 some attention, as the younger generation are constantly on popular sites, such as, Facebook and Twitter. This would be a low cost means of spreading promotional campaigns and contest features relating to Nikon's D3000, to build awareness.
The D3000 has been marketing at SGD$888 since its launch in August 2009. At the recent IT Show 2010, we witnessed price drops to SGD$799. We will reduce cost of the D3000 to SGD$799 for students with tertiary concession cards, so that the D3000 becomes closely affordable to a compact digital camera. With the assumption of increased interest in the DSLR photography via the promotion campaigns among the youth sector, we can expect sales for dealers to increase steadily as Nikon penetrates the market.
As Nikon's dealers are available island wide, purchasing the D3000 will not be a hassle. However, we are keen to provide an additional after sales service, which basically is a drop off service. Student, who have problems with their camera or requires servicing support, can drop their cameras off at any Nikon dealers. We will collect from the dealers, repair or service the product and drop the cameras off at their tertiary institution. This is in view of providing the students with convenience and time saving.
DSLR training staff will have to be recruited to provide the complementary training for consumers who purchase the D3000. Additional marketing staff will also be required to hold the Nikon road shows at campus venues.
The Percentage of Sales or Profit is the chosen approach for our budgeting. With this widely used approach, advertising will be consistent with the budgeted or prior years' revenue (e.g., Nikon's last year profit from imaging products). Advertising also may be based on a percent of prior years' net profit or gross margin. As we assume Nikon D3000 is moving into the growth stage, we can allocate smaller percentage for promotion and creating awareness. We shall use 5% of last year's profits from imaging products in Singapore.
Our world is becoming less dependent on print media and more dependent electronic media
Most people get their news today from TV or online. In this environment it is necessary to have an online presence. Using popular social networks like Twitter and Facebook, our younger generations' youths will be able to discover Nikon's D3000 offerings with a simple click on the camera picture. There will be a small charge, even with the free sites, to reserve a domain name. It's possible to put together a nice looking site for less than S$500. The web site will let you control the content and provide potential customers with pictures of features and photographs of the D3000.
Setting up a Nikon booth on school campus will cost about S$500 to S$800, as the school will be most probably enthusiastic to the idea of developing DSLR photography interest among their students. Renting a small space around the atrium or cafeteria area, where there is the presence of heavy student traffic, will help grab their attention by campaigners to have hands on experience of the D3000 model among other DSLR models as well. Our budget will also cater to recruiting sales and training personals.
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Essay on Marketing Audit Lite N' Easy
10626 WordsAug 29th, 201143 Pages
Marketing Audit: Lite n’ Easy
Table of Contents
1. Executive Summary 4
2. Introduction 5
3. Relevant Environments 5
4. Competitive Situation Analysis 7
5. SWOT Analysis 8
6. Position on the GE (General Electric) Grid 9
7. Market Research Needs 10
8. Consumer Behaviour Issues Relevant To The Purchase And Consumption Of Product 12
9. Target Segments and Core Benefits 14
10. Positioning Strategy 16
11. Product and Branding Strategy 18
12. Pricing Strategy 20
13. Distribution Strategy 21
14. Promotion Strategy 22
15. Customer service and relationship activities 24
16. Implementation Issues 25
17. Conclusion 29
18. Bibliography 30
A. Interest rate table
B. Petrol and crude oil prices
C. Malow’s hierarchy of…show more content…
Discretionary income is “what is left of disposable income after paying for necessities” (Quester et al, 2007, p. 744). Because of the characteristics of the services provided such as comfort level offered (i.e. home delivery), customers tend to be loyal and stay longer with the program.
Company: Lite n’ Easy, an Australian-owned company, has been providing their services for over
15 years. Owner, Graham Mitchell designed a weight-loss program in which customers have the conveniences of healthy, home-delivered meals. As part of the weight-loss program, Lite n’ Easy offers personal fitness and dietician counselling to their customers. According to Lite n’ Easy, “the combination of superb quality food, great value for money and the convenience of having everything done for you and delivered to your door” (Lite n’ Easy, 2007) is the source of their success. Competitors: Competitors are “other organizations either offering or with considerable potential for offering rival products or services” (Bartol, Tein, Matthews, Ritson, Scott-Ladd, 2006, p. 496). The weight-loss industry is competitive, however only Lite n’ Easy offers home-delivery, which differentiates it from other leading competitors. Of the many competitors, Jenny Craig is the main market competitor due to their similarities in weight-loss program and limited delivery areas.
3.2 External Marketing Environment
Lite n’ Easy’s