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Darshene Mohan

on 27 April 2016

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Founded in 1937, was known as Precision Optical Instruments Laboratory.
The founders were Takeshi Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda.
The first camera to incorporate NIKKOR lens.
In 1940, the company created Japan's first indirect X-ray camera.
In 1947, become Canon Camera Inc.
In 1976, Canon introduced the world's first camera with an imbedded micro-computer
In 1992, Canon launched the first-ever camera with eye-controlled auto-focus, and released its first digital camera

Corporate Head Office, Showroom & Service Centre,
Block D, Peremba Square, Saujana Resort,
Off Jalan Lapangan Terbang Subang, Section U2,
40150 Shah Alam,
Selangor Darul Ehsan
The Modern Day Canon
The HISTORY of Canon
Canon has grown from a small company in Imperial Japan, to a global industry leader with a global market capitalization of US$ 49.8 billion, as at May 2015

In 2015, Canon became the most succesful interchangable lens producer consecutively, for the past 13 years.

With that, Canon now has control of over 54% of the global market share of DSLR cameras for the year of 2015.
Canon's HQ in Malaysia is located in a newly developed business park in the midst of industrial Shah Alam. This location is easily accessible to many people and provides a strong base for Canon to expand in the Klang Valley, which is the most densely populated area in Malaysia.
The place relates to how the products reach the customers and is also known as a company's distribution strategy.
Through these two platforms, the public can easily get access to the variety of products that Canon is offering
Canon has two major platforms to distribute and promote their products, one of which is through
retail outlets
and the other is through Canon's
well-designed website
Retail Outlets:
Canon has over 500 dealers to sell and distribute their products and spare parts all over Malaysia.
In this modern era, shopping malls are a common meet and greet location and hence it is easy to locate a Canon store in malls .
Well-designed websites:
Canon has designed a website that is user friendly and can be easily assessed by customers.
Product details, specifications, prices and the best deals available at the moment can be found.
Easy for customers to decide on which product to purchase.

Includes advertising, discounts on products or services, workshops,etc..
One of the most vital component in the marketing mix of a company.
There are many mediums in which companies can use to promote their products, ie. social media, newspapers.
Purpose is to create awareness to the public about the existence of a product and to change the perception of customers towards a particular product.
How much a customer would pay for a particular product.
Affects sales of the company if the product is not priced reasonably.
Canon operates in a competitive market and hence has many competitors.
Important for Canon to set prices that are not too high when compared to their main competitors,eg. Nikon.
Canons camera price ranges are determined by the targeted users of the specific camera. There are different camera levels :-
Entry level ( Canon EOS 750D )
Semi-professional ( Canon EOS 80D )
Professional ( Canon EOS 1DX Mk II )
The price range for the camera levels from Canon:-
Entry level ( RM 1800 - RM 4900)
Semi-professional ( RM 4500 - RM 10800)
Professional ( RM 12100 - RM 22600)


When comparing cameras of similar levels from Canon's main competitor (ie: Nikon), the prices are similar when viewed from the perspestive of the targeted users :-

Entry level: (RM 1700 - RM 4000)
Semi Professional : ( RM 4600 - RM 10600)
Professional : ( RM 12500 - RM 27900)

Based on the above prices from Canon's nearest competitors, it can be said that the price ranges for the respective levels are SIMILAR to each other.
However, Canon's professional levels of camera are cheaper than the competitors, which justifies the better sales performance of professional Canon cameras in the global market.
Canon Inc. uses an active marketing communication strategy and it includes public relations, advertising and trade shows. Detailed information of the product is available to the potential customers through websites, social media and printed articles.

Canon's workshops are particularly effective as it reaches out to potential customers at an early stage, to become loyal customers of Canon. Canon also holds events such as Canon EXPO and Canon Photo Marathon with an aim to promote the culture of photography.

Canon also provides attractive offers with free gifts and promotional discounts for services to attract customers, especially during peak festive seasons in Malaysia.

Lastly, Canon also uses famous international celebrities for the advertisements and promotional events, such as Bollywood actor Anushka Sharma, their brand ambassadors.
Canon places a high emphasis on product quality, hence does not compromise product quality. Canon therefore uses a competitive pricing strategy to keep up and stay ahead of the competition.

Canon has always maintained affordable prices for its product so that they are easily accessible to the consumers. Canon's products are priced based on the range of targeted users and according to the latest demands of the respective markets.

Hence, Canon has always strived to strike a balance between the quality of its products and lowest price possible, which increases its value-for-money in the eyes of consumers.
Product is the item that is refined for sale, to satisfy the needs and wanting of customers.
It is important to produce a product that is attractive to customers and at the same time to ensure it suits their specifications.
As with all analysis, there should be a comparison made with relevant sector. Canon's biggest competitor in the DSLR sector is Nikon.
The 4P's of Nikon are as follows:-


The direct competitor to the Canon Eos 80D is the Nikon D7200.

-A non-exhaustive feature-by-feature comparison:-
Nikon has a higher maximum ISO of 102400 compared to Canon 25600
Canon uses the DIGIC 6 processor, which has a higher image processing capability then the Nikon EXPEED 4.
The Nikon has a screen that is 0.2" larger than the Canon.
Canon also has a 1fps higher shooting rate then Nikon.
The Canon is also 35g lighter than the Nikon.
Both camera's offer built-in Wi-Fi and the same resolution of 24.0 megapixels.

-Nikon's HQ is also located in a strategic area with a large population density, which is in Section 51A, Petaling Jaya .

-Nikon also has a comprehensive website which is easily accessible to customers and contains all the necessary product and service information that would be required by the consumers.

-However, when it comes to the retail outlets, Nikon has only approximately 200 dealers and retailers in Malaysia, which is far short of Canon.

Based on the comparison, even though Nikon are in a competitive position, Canon still surpasses Nikon in terms of brand presence in Malaysia with more dealers of Canon products.


Both Nikon and Canon adopt similar promotion strategies:-

-For example, their website is also used to keep consumers well informed and updated on new products and promotions
-Nikon also organizes workshops and competitions to stimulate the interest in the brand
-As far as discounts and promotions goes, both Nikon and Canon offer attractive promo prices and free gifts, especially during festive seasons in Malaysia
-Nikon also has a brand ambassador, in the form of world renowned photojournalist Ami Vitale.

It can be said that both Canon and Nikon are on equal terms when it comes to the promotions of their products and services.

The best selling Canon DSLR for 2016 so far has been the Canon EOS 80D . Some of the key features for this camera is:-

24.2MP - APS-C CMOS Sensor
ISO 100 - 25600
Canon EF/EF-S Mount
3″ Fully Articulated TouchScreen
Optical (pentaprism) viewfinder
7.0 fps continuous shooting
45 cross-type AF-points
1920 x 1080 video resolution
Built-in Wi-Fi and NFC
730g. 139 x 105 x 79 mm
Weather Sealed Body
RM 5500 (with standard kit lens)
From the begining, Canon has always emphasized on the value adding features to the consumer, which involves 3 key features of its corporate DNA, which is the respect for humanity, enterprising spirit and the emphasis on technology.
Canon also uses the 3 San-ji ( 3 selfs) spirit as a guide for their future developments and business strategies.

However, based on CameraDecisions overall ranking, the Canon scored 88, and ranked the 29th best camera of all time.

The Nikon on the other hand scored an overall of 91, and ranked 18th best camera of all time.

This is due to the fact that the Nikon has slighty better imaging and better finished image. Hence, it can be said that the Nikon D7200 is a better product than he Canon EOS 80D.

However, the preference of the advantages of each camera depends on the photography and using styes of the consumer, and this is when the Canon can hold its own against the Nikon.
Canon also has implemented the Excellent Global Corporation Plan, which is a series of 5 year phases starting in 1996 , that sets key targets to be achieved. These targets are key in guiding Canon's overall marketing strategy. For the year ended 2015, Canon completed the Phase IV of its plan.

In the year 2015, Canon's global sales increased by 2% (to 3.8 trillion). The sales attributable to imaging products (ie: DSLR) was 33.3 %. Unfortunately, the sales of this segment suffered a drop 5.9%.

The overall net income attributable to Canon Inc. has also dropped significantly by 13.6% (to 220.2 million)

The drop in sales and net profit can be narrowed down to the slow-down of the Chinese economy, which represents a large portion of Canon's Asian market, and also adverse currency fluctuations
As part of their comeback strategy, Canon is implementing the Phase V of the Excellent Global Corporation Plan ( 2016-2020) with the following key strategies:-
On top of Phase V, Canon has increased the focus of B2B model business and marketing, as it was deemed lucrative during the initial entrance into this market in Phase IV. Canon wishes to focus its sales of network cameras for these businesses, and also enhance its current product range, with the expertise of its subsidiary, Axis Communications.
Canon should focus more on value for money products by including more advance features, as the competitors have already adopted this method.

Canon must also focus on the needs of the future customers, such as portablity and higher quality images. This is to counter the problem of the 'good enough' mentality of the marketplace, which is the value for money mindset.

Moreover, Canon must continue to maintain market share by continuing to innovate their products, and developing more revolutionary technology. An example of this would be, to create cameras and camera parts that are eco-friendly and uses less harmful chemicals.

The above recommendations should help Canon stay abreast with future
developments, and allow Canon Inc. to strengthen its current status as the
market leader. This can also help Canon prevent any possibilities of a future


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