Canon Marketing Project Essay

Introduction: About Canon Incorporation Canon Incorporation is a Japanese multinational company that specializes in manufacturing imaging and optical products worldwide. The company manufactures many products like cameras, lenses, camcorders, photo printers, office network multifunction devices, laser printers, laser multifunction devices, solution soft wares and many more Industry & Business products. Canon`s headquarters is situated in Ohtaku, Tokyo, Japan. The company was founded on 10th of August in the year of 1937. The company was founded by Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda in Tokyo, Japan. When the company was founded its name in 1934 was Kwanon named by Goro Yoshida and later in 1947 the name had changed to Canon Inc. The present Chairman and CEO of Canon Inc. is Fujio Mitarai. The company`s first product was Kwanon (1934) the Japan` First 35 mm focal-plane-shutter camera produced in prototype form. The company has three divisions; Consumer Business Unit, Office Business Unit and Industry & Others Business Unit. The divisions have spread their products in the following manner; Consumer Business Unit: Digital SLR Cameras, Compact Digital Cameras, Digital Camcorders, Lenses for SLR Cameras, Compact Photo Printers, Multifunction Inkjet Printers, Inkjet Printers, Commercial Photo Printers, Multimedia Projectors, Image Scanners, Network Cameras and Broadcast Equipment. Office Business Unit: Office Network Multifunction Devices, Laser Printers, Lase Multifunction Devices and Solution Software, Toner Cartridges, Digital Production Printers and Large-Format Inkjet printers. Industry & Others Business Unit: LCD Lithography Systems, Semiconductor Lithography Systems, Ophthalmic Equipment, Digital Radiography Systems, Document Scanners, Color Label/ Card printers, Personal Information Products, Handy Terminals, Components, Die Bonders, Organic LED Panel Manufacturing Equipment and Vacuum T hin-Film Deposition Equipment. The company`s foundation rise from guiding principles of San-Ji (Three selfs) that have been passed down since Canon was founded they are; Self-motivation, Self-management, Self-awareness. These Three Selfs continue to serve as the company`s most important guiding principles. Vision & Mission (2011-2015): Canon Inc. VISION Simple advanced solutions freeing people to live their dreams and lead enriched lives at home and at work. & to be a group of service creation companies that practices the principle of customer focus with a global perspective. MISSION To provide optimal value through marketing innovation that enhances security and peace of mind and supports creativity in all areas of life, work and society. Canon Incorporation has a DNA. It`s called Canon`s Corporate DNA: Canon had been developing Excellent Global Corporation Plan since 1996 when Fujio Mitarai became the Canon`s 6th company president. as three Phases till now Phase I (1996 – 2000), II (2001 – 2005), and III (2006 – 2010) which led the company to aim to the world`s No.1. Now the company is ready with its Excellent Global Corporation Plan Phase IV for the next 5 fiscal years 2011 – 2015. The history of the company started with the enterprising spirit to make the world`s best camera. THE TIMELINE OF HIGHLIGHTS & MILESTONES 1933: Precision Optical Instruments Laboratory was established. 1934: Kwanon Camera prototype developed. 1936: Hansa Canon Camera Introduced. 1937: Precision Optical industry, Co., Ltd. was founded. 1941: Japan`s first Indirect X-ray Camera Introduced. 1947: The company name changed to Canon Camera Co., Inc. 1955: New York branch office opened. 1957: Sole European distributor, Canon Europa, established. 1961: Canonet Camera Introduced. 1964: Canola 130 Calculator Introduced. 1967: Cameras in the right hand, business machines in the left. 1969: Company name changed to Canon Inc. 1970: PPC-1 mask aligner introduced. 1976: Premier Company Plan Launched. 1976: AE-1 SLR camera introduced. â€Å"The world’s first SLR camera with a built in microcomputer† 1979: LBP-10 Laser printer introduced. 1982: PC-10/20 personal copying machine introduced. 1985: BJ-80 Inkjet printer introduced. 1987: CLC-1 digital full-color copying machine introduced. 1987: EOS 650 AF SLR camera introduced. â€Å"EOS AF cameras & lens are one of the best ever produced† 1988: Corporate philosophy of Kyosei introduced with the company`s second inauguration. 1990: Toner cartridge collection &recycling program launched. 1996: Excellent global corporation plan launched. 2000: Canon Inc. ADRs listed on the New York Stock Exchange. 2000: PowerShot S100 DIGITA ELPH (DIGITAL IXUS) compact digital camera launched. â€Å"Canon`s PowerShot is one of the bestselling camera brand in the world.† 2002: EOS-1Ds Digital SLR camera launched. 2006: Image PROGRAF IPF9000 printer launched. 2007: ImagePRESS C7000VP digital press introduced. 2009: ImageRUNNER ADVANCE network multifunction device introduced. 2011: Excellent Global Plan Phase IV launched. 2012 – : â€Å"striving to create the best products possible†¦Ã¢â‚¬ ¦.† â€Å"Canon`s EOS cameras have the photographic power to break into the world of movie and television.† Even in the Hollywood the film makers use these camera functions for best results. Through new inventions, Canon is committed to meeting the ever-growing expectations for digital camera. In 2010, Canon has welcomed Oce N. V. of Netherlands into its group which helped canon to be the one in worlds best printers manufacturers. Canons equipment is also used widely in the Medical treatments in Japan and United States which led to many successful surgeries. In these ways, Canon is applying leading-edge imaging technology toward making people`s lives healthier. The company has an ample amount of production units around the world in the most optimum locations worldwide. Knowing that earth-friendly production is vital for the future, Canon relentlessly continues its focus on globally optimized production. The Company`s all Corporate Activities include; Research & Development (R&D), Design, Procurement, Production, Distribution, Sales & Marketing, Post-Purchase Services, Recycling, Environment, Quality. Corporate Social Responsibility (CSR). Business Highlights & Global ranking 2010 Canon was ranked in 216th for Net Sales Globally by FORTUNE Global 500 (Fortune, June26 2010 Issue). It was ranked in 190th in 2009. Canon was ranked in 202nd for Net Income Globally by FORTUNE Global 500 (Fortune, June26 2010 Issue). It was ranked in 131st in 2009. Canon Inc. was ranked in 93rd for Market Capitalization by FINANCIAL TIMES Global 500. It was ranked 104th in 2009.* Canon Inc. was ranked 7th in Technology Hardware & Equipment sector by FT Global 500.* *[Financial Times, May 29/30 2010 Issue] Canon Inc. was ranked 4th in the TOP TEN U.S. patent holders. i.e. 2,543 in No. of Patents. *Based on weekly patent counts issued by the United States Patent and Trademark Office. â€Å"Canon`s EOS cameras have the photographic power to break into the world of movie and television.† Even in the Hollywood the film makers use these camera functions for best results. Through new inventions, Canon is committed to meeting the ever-growing expectations for digital camera. In 2010, Canon has welcomed Oce N. V. of Netherlands into its group which helped canon to be the one in worlds best printers manufacturers. Canons equipment is also used widely in the Medical treatments in Japan and United States which led to many successful surgeries. In these ways, Canon is applying leading-edge imaging technology toward making people`s lives healthier. The company has an ample amount of production units around the world in the most optimum locations worldwide. Knowing that earth-friendly production is vital for the future, Canon relentlessly continues its focus on globally optimized production. The Michael Porter`s five competitive forces: Canon Inc. 1. Threat from potential new entrants: The Canon Incorporation now in the imaging industry has an ample amount of considerable standard as well as many competitors at the same time. But the company always needs to be deliberately awake to have a look at new entrants ready to break into the industry. It does have a threat from the new companies. The Canon Inc. has to be concerning about the important factors like price they throw newly into the market and product range they throw in the market. Bigger the new entrant, the more severe the competitive effect would be. If any new companies who come into the industry of imaging and printing will have the ability that can shift the interest of canon customers towards their brand then, the company will surely have to take care of the existing standards, as to how did the new company tried to take the minds off from the Canon. The company shall take up the strategies to avoid that situation with hitting promotions that will never turn up the customers towards other companies and brands. 2. Bargaining power of customers: Like it happens in the small scale companies the users of industrial products come never together exert pressure on the producer directly. The company receives the competition in this aspect indirectly may be not because of the direct bargaining of customers but, the willingness of the customers to pay such price for the product is all that matters and concerns. The Canon Inc. shall keenly receive the proper feedback about the price and willingness of customers to pay the price for their products from all the parts of the world. Through this measure the company can not only avoid the pressure upon the prices that the company charges but also upon the costs and investments. 3. Bargaining power of suppliers: The company will also have the pressure from the supplier’s side in bargaining. Suppose the Canon Inc. needs the plastic material to assemble their products, if the suppliers for the plastic i.e. the raw material to the company are very limited and the company have the situation only to depend upon them, they supplier will obviously have the chance and opportunity on the price they were paid. The company has to look at this important force. 4. Rivalry among the current players: The three important things to be kept in concern for Canon to overcome a lot of heavy competition from the already existing companies and brands are; (I) Prices that keeps on changing (II) Advertising and (III) Pressures on Costs, Product and so on. Mainly a heavy competition often imposed in the same industry in the market are from Nikon, Olympus, Sony, Fujifilm, Panasonic, Kodak, Samsung in the industry of camera (SLR and Compact) manufacturing. Nikkor AF from Nikon, Carl Ziess, Olympus Zuiko/ M Zuiko, Sigma, Tamron, Tokina in the industry of lens manufacturing. Nikon, Metz, Olympus in the industry of camera accessories manufacturing. Hewlett-Packard, Xerox, Ricoh, Samsung, IBM, NEC, Panasonic, Sony, Benq, LG etc. in the industry of office equipment, heavy printer, scanner, projector etc. manufacturing. Therefore because of such a heavy competition from many companies Canon Inc. has to be awake all the time with regard to the strategies, policies, promotions and prices of its competitors and plan the strategies accordingly. 5. Threats from substitutes: The threat from the substitutes is in fact most unsafe threat unlike others. Here it would be very severe because the product itself is getting substituted. For example, the mobile phone with a good camera facility to some extent substitutes the cameras at times. Therefore the target people has to be educated about the advantages of the company`s products and services properly. If the new product in the market substitutes the trend of the product then, the company has to care about their new products which would substitute the competitor`s products or at least competes with them. Corporate Social Responsibility (CSR) Policy Canon expresses its appreciation through its CSR (Corporate Social Responsibility) activities. In Vietnam, the focus is on the younger generations. Canon CSR activities also include support for the building of schools, volunteer projects in which the company`s employees help repair school facilities and plant trees, and donations of school supplies. At the heart of Canon CSR is the hope that the company`s ongoing efforts may help nurture the next generation of leaders. Marketing Policy of Canon Inc. Canon Inc. prefers to always take effort to achieve success in marketing unlike the product, sales & production fields. The marketing concept of Canon Inc. holds that consumers prefer to buy a product that best satisfies their needs. The main focus of the company is to know and understand the consumer needs and then produce products that satisfy their needs. According to Philip Kotler (One of the world`s most leading authorities in marketing management), Canon is one of very few handful number of companies which actually practice the marketing concept. Canon Inc. focuses on the customer and is organized to respond effectively to changing customer needs. The company has well-staffed marketing departments. Canon Inc. manufactures fax machines, printers, network devices, projectors etc. and sells them to various consumer, business and government markets. It makes the company benefited selling its goods to diverse set of markets. (As according to the statement given in the company`s official corporate profile) â€Å"[Canon companies worldwide do more than ordinary conventional sales and marketing. The thing that makes that more relevant is its one of its kind & unique customer services. They use leading-edge information and communication technology to connect consumers to the latest products, services and tailored solutions. Canon Inc. is a big family, which has spread to about 180 countries and regions. They develop trust and reputation for strength and reliability.]† The main step of Canon Inc. that really makes its marketing policies efficient is its GLOBAL SALES & MARKETING FRAMEWORK. This enables Canon Inc. have Regional Marketing Headquarters like Canon U.S.A, Canon Europe, Canon China, Canon Australia and Canon Marketing Japan. They make marketing policies not globally but all according to the region`s local market. This step was taken to improve the quality of marketing policies suitably according to the regions. Not all the regions would have the same kind of market; every region would have a different market. These regional heads make the policies individually suitable to different markets. Heavy number of staff like marketing managers etc. researches the local market and makes policies accordingly to the local market. This helps the company in a very effective way because of its one of its kind planning of marketing policies individually through regional marketing head offices. ——————————————– [ 1 ]. (Page 13, Philip Kotler, Marketing Management, Millennium Edn., Tenth Edition: Pearson Publishing, US. ISBN: 0-536-63099-2).