Essay Marketing Plan

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:

Political/Government activities

Incentives such as government grants given to school to promote media and communication studies

Economic changes

Trading agreements to ease shipment cost and taxes on importing DSLR cameras will reduce cost for consumers

Sociological changes

Singaporean youth are opened to more media communication study opportunities, such as audio and video studies and photography in schools.

Technology changes

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.

Questions:

Common Response:

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

you choose?

Digital camera

What is the reason for your choice above?

Smaller size

What kind of camera will be most suitable for a short holiday?

Digital camera

What kind of camera will be most suitable for social/family events?

Digital camera

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?

Yes

Would you be interested to own a DSLR camera if it was affordable?

Yes

Are the quality of pictures taken from a DSLR superior to that of a digital camera?

Yes

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.

4.3 Competition

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).

  1. 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.)
  2. Substitutes: availability and competition from substitute products. (Example: Mobile phones and video cameras which can match the DSLR technology in photography.)
  3. 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.)
  4. Suppliers: bargaining power of suppliers. (Example: Trained specialist and advance equipment required by Nikon Corporation to meet increasing demands.)
  5. 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)

Fiscal Year-End

2005/3

2006/3

2007/3

2008/3

2009/3

Net Sales in Japan and Export Sales by Region

Japan

156,713

173,144

207,699

258,994

163,682

Overseas

481,755

557,799

615,114

696,797

716,037

North America

160,840

209,675

207,845

229,826

261,368

Europe

138,792

166,127

176,261

208,915

208,957

Asia & Oceania *

175,193

173,307

217,939

244,736

232,034

Other Areas

6,928

8,688

13,068

13,318

13,677

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)
Shipment amounts=domestic shipment amounts+export amounts (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.

Product

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.

Price

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.

Place

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.

Promotion

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:

  1. 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.
  2. 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

Strengths

  • 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.

Weaknesses

  • Nikons marketing campaigns focuses on compact digital cameras rather than DSLR

Opportunity

  • 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.

Threats

  • 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

9.1 Product

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.

9.2 Promotion

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.

9.3 Price

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.

9.4 Place

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.

9.5 People

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.

10. Budget

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.

Source: Essay UK - http://www.essay.uk.com/free-essays/marketing/marketing-plan.php


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Marketing plan
A marketing plan is a detailed, researched and written report that a business uses in order to outline the actions that should be taken to customers and clients and measures taken to persuade them to purchase the product. It communicates to the customers on the value of goods and services. Marketing personnel evaluate the results marketing decisions made in previous years and the market in which a business operates in order to make the right decisions .They also set goals that provide direction on how marketing should be carried out. Coca-Cola Company success has been attributed by a well structured marketing plan. Marketing plan prepared by the management determines how well it will exist in the market.

Product identification
A brief discussion is made concerning an existing or new product of a business in the marketing plan. Product identification involves knowing the identity of a product from its source of production, raw materials used in production, work –in- progress, finished product storage and the delivery of the products to the customers. Identification of a product can be controlled through electronic and physical methods. Product decisions should include products brand name, quality, and scope of the product line, warranty and its mode of packaging. (Derek 45).

Coca-Cola Company sells soft drinks and beverages to the customers. Its management takes into consideration the advantages of selling a product and how it’s leveraged in the market so as to maximize on its profits. The branding and packaging of its products unique thus has a higher competitive advantage as opposed to that of its competitors.

Marketing objective
The basic strategy of a business is to determine a business objective .Some non-financial market metrics can be used to measure the success of a business. These include target market objectives and market shares- total number of new or retained customers and rate and size of purchases made in a business. These metrics show the conditions and a circumstance facing a company that cannot be solved through using financial methods (Baker 19).Coca Cola Company overall objective has been to meet the needs of its customers, to penetrate the market through providing high quality products and having a big market share through distributing its products to all parts of the world.

Market
The size and mark up of a market is determined by the products being sold in a business. It is also indicated by the environment in which it’s conducting its business. In the marketing there should be a mission statement that identifies a businesses long-run goal, market it serves incentives and products and services given to customers. Coca-Cola Company’s markets it products through producing concentrate syrup that is fit for consumption to all its franchise shops in the world, this increases the sale returns of the company.

Competition
When preparing marketing plan one should take into consideration the reasons that make a customer prefer a product from one business as opposed from its competitor. According to Porter, he stated that it is important to prepare a detailed competitive summary of the products and services variables and be ranked in comparison to those of its competitors so as to prepare the right plan for a business. The variables include; pricing, sales, trends, positioning, clarity, quality, target market focus, packaging, advertising and customer service. The management of a company should know it competitors so as to understand its strengths and weaknesess.These can be achieved through evaluating the competitors experience in business, purchasing power, market position, strength predictability and the freedom to abandon the market. The Coca Cola Company produces different kinds of products which increases of its sale turnover and makes it to have a higher competitive advantage as opposed to its competitors. It sometimes gives free samples and incentives to its customers.

Pricing
A price is determined by the net income and the objective that a company have for the market of its product. The pricing decisions can be determined by knowing the market, competitors, the economic condition of a country and the customers. Tables and graphs can be used to show the pricing trends and decisions of different products of a company. The main factors that an organization should take into account while setting up its prices is that of pricing stategy,the expected volume and decision for following a pricing variable for instance; list price, discounts, payment terms and financing options. Coca Cola company pricing is friendly as its products are recyclable therefore minimizing on the cost of producing the empty bottles used to pack its products.

Promotion
A product should be advertised and promoted in the market so that the customer can get to know about its existence in the market. A business should determine how much and which media should be used in advertising a product. Kotler, et.al stated there are factors that should be taken into account when promoting a product that include; public relations, promotional programs, projected results for promotional programs and budget that determines the break-even point for making a sale of a product. Coca-Cola Company has been using the fat and jolly Santa Claus in advertising of its products, this has enabled it to increase on its sales and production for its products.

Distribution
This process involves ensuring the products reach the customers on time. In marketing plan, distribution is an important element that consists of decision variables such as; distribution channels as direct, retail and intermediate channels; criteria for evaluating distributions ;locations; motivators of channels such as distributor margins and logistics such as transportation ,warehousing and order fulfillment . An organization should choose the best channel that can enable it maximize on its profits (Porter 34).Coca-Cola company produces syrups fit for consumption thus reducing the cost of transporting products from one place to another.

Sales forecast
Sales forecast is derived through understanding a product, market for a product, price, promotional methods used, and types of distribution a channel for a product .Sales forecast is the driving force of all financial forecasts. It is required to give a brief summary of current sales, identify changes, summarize changes in the forecast, and justify a forecast so as to determine the right information concerning about a product and who well it can fair in the market. The sales forecast helps the management of an organization to determine the kind of resources that should be implemented in an organization in order to maximize on its profits .In this case, factors such as political, environmental, technological and competitive factors are evaluated so as to determine whether the business operates in a good environment. Coca-Cola sales team derives the sales turnover on different intervals in the year to evaluate the position of the company in the beverage industry.

Sales forecast review by management
Sales forecast review by management can be achieved through using the sales manager who can understand the contacts in the industry, can familiarize themselves with advertising and promotion techniques that will increase sales revenue for an organization. The qualification of the sales personnel to generate sales leads, their relationship with the distributors and location of their sales outlets in order to increase the revenue of an organization is taken into consideration .These mechanisms can ensure the management reviews it sales forecast with the actual sales so as to understand the position of business in the market. Coca-Cola company employees prepare financial reports on an annual basis to inform the customers at its existence and production of high quality products.

Conclusion
Marketing plans should be reviewed on an annual basis so as to determine how a business is performing in the industry. The management of business should use the marketing plan to determine the environment in which a business can flourish in the industry. These are prepared in relation to the products and services that are sold that result from marketing strategy implemented through marketing programs. Coca-Cola company success has been contributed by well structured strategy and market penetration and production of a variety of products that are suitable for its customers.

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