Home > Documents > Nikon CoolPix Communication Plan

Nikon CoolPix Communication Plan

Date post: 18-Nov-2014
Category:
Author: api-26094307
View: 129 times
Download: 7 times
Share this document with a friend
Embed Size (px)
Popular Tags:
of 38 /38
Nikon CoolPix Communication Plan Advertising and Marketing Communication Fall 2009 Erin Moller Kelli Wynia
Transcript

Nikon CoolPix Communication PlanAdvertising and Marketing Communication Fall 2009Erin Moller Kelli Wynia

Table of ContentsSituation Analysis Current Promotions Relative Strengths and Weaknesses of Nikon Coolpix 2 Customer Analysis Competitive Analysis Business Objectives Business Strategies Key Drivers Strengths of Nikon Weaknesses of Nikon Opportunities in the Market Threats in the Market Brand Character/Tone Personality Positioning Target Audience Demographics Psychographics Millennials Key Customer Insights Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Behavior Competition Key Messages Communication Objectives Communication Strategies Tactics Budget Estimates Measurement, Evaluation, and Control Sources 25 12 13 13 14 15 18 19 20 21 23 23 10 11 12 12 7 8 8 9 10 5 5 6 6 7 2 3 4 5 2 2

2

Situation Analysis Current Promotions Currently Nikon is using Ashton Kutcher as their spokesperson for the Coolpix digital cameras. They are focusing on the ability to take pictures quickly and with little complexity. The commercials target young adults ages 18-25. Nikon also created a website, www.ashtonscoolpix.com, where customers can go to learn more about the cameras, view the television commercials featuring Ashton Kutcher, read about the features the Coolpix cameras offer, and locate a store where you can purchase your Coolpix. Their current revenues are $9,042.6, with a decrease in the Imaging Products Business of 18.4% in 2009 (Nikon Annual Reports). Relative Strengths and Weaknesses of the Nikon Coolpix One of the major strengths the Nikon Coolpix has is its spokesperson, Ashton Kutcher. Having celebrity endorsers can help gain brand image more than just traditional advertising. Consumers are looking for someone to relate to when buying a product, and being comparable to the success of Ashton Kutcher can help boost sales among a younger audience. A weakness with the Coolpix camera is the similarity to products in the market. Between Nikon, Canon, and Sony, there are many options to choose from. Some consumers do more research on their electronic purchases than others, but the less educated may choose a camera for the lowest price or other add-on sales offered like camera cases or memory cards. Millennials are also more apt to make quick decisions rather than take time to research products. Nikon needs to establish a quick way of getting into the minds of the consumers, creating a product that will be considered a must-have. Customer Analysis Nikon products are purchased by photographers for both professional and recreational purposes, companies looking for 3

steppers/scanners, and people who use sports optics such as telescopes and binoculars. Nikon offers professional digital SLR cameras along with their digital point and shoot cameras that appeal to a younger target market. Their current customers for the Coolpix series are young adults looking to capture their memories and make them their own. The Coolpix cameras offer features to appeal to this generation such as an LCD touch screen and the ability to draw, write and paint on their pictures to personalize them. The decision to purchase the product is done by the consumer after they have become aware of a need, gathered information, and evaluated their alternatives. Influences in purchasing this product come from previous experience with cameras, knowledge of brands, recommendations of friends and family, and awareness of camera brands through advertisements. The decision is made after all information has been gathered and evaluated. Digital cameras are a higher priced item ranging from $150-$400 for the Coolpix, depending on which model. Consumers then go to a retailer and test the physical product. At many retailers, customers are allowed to take pictures with the Coolpix and view all of its features. The Nikon brand is currently perceived as producing high quality products with a major emphasis on their lenses and optics segment. The Nikon Coolpix camera is viewed as a combination of Nikons high quality technology with a trendy new edge. Customers can find retailers through the Nikon website and can search for the retailer nearest to them that has the exact camera they are looking for. Competitive Analysis Current Direct Competitors Sony Fujifilm Canon Kodak Panasonic 4

Current Indirect Competitors Cell Phones Film Cameras Video Cameras

The direct competitors for Nikon are using similar techniques in advertising to a younger audience. Sonys tagline is Ready when you are, which show the feature of a quick to start camera, ready to take pictures the moment the customer is ready. Canon used the famous tennis star Maria Sharapova to advertise their PowerShot camera. They are using television as their main media strategy and enforcing the message of capturing memories. Relative to the competition Nikon is currently seeing an overall growth of approximately 11% per year, higher than its competitors. Business Objectives Nikons current revenues have reached $9,042.6 million for the year, with one-year growth of 6.1%(Hoovers). Brand share in the retail market is 0.9%. Their three-year revenue growth is expected to be 6.4%, along with 2.4% sustainable growth rate. Nikon plans to eliminate more than 1,000 jobs by March 2010 to reorganize due to current economic conditions. In October this year, Nikon also cut from four to two subsidiaries that make LCD displays and streamlined sales in Japan and abroad. The company hopes to save nearly $225 million in savings by 2012 as a result of these cuts. The slowdown of the economy has lead to a decrease in demand for their products, especially digital cameras and components used in LCD TVs. Nikon is attempting to recapture consumer interest by putting extra money towards next-generation productions, such as the Coolpix line of cameras. The company is setting aside about $1.8 billion for investments and $2.5 billion for research and development by the year 2011. Increase net sales by 7% in 2010. 5

Increase net income at year-end March 2010. Increase sales of imaging products in North America.

Business Strategies At market pricing to compete with products that have similar technology. Ensure high quality pictures with remarkable color and the highest degree of sharpness. Continue distributing the Nikon Coolpix line of cameras throughout retailers within the United States. Due to the hurting economy, Nikon has been forced to cut back on production of high-end cameras (in the $2000 range) and begin producing simpler and less expensive compact cameras. People today are all about convenience, which is what the Coolpix can provide. Nikon has used hardware found in their high-end cameras in the new Coolpix cameras, but with much more simplicity. Compact cameras are cheaper to manufacture, which leads to lower costs for consumers and higher rate of purchase. Key Drivers Strengths of Nikon Nikon offers four different segments of products: imaging products (56.9% of revenues), precision equipment (33.2%), instruments (7.3%), and other (2.7%). Imaging products, which make up over half of total revenues, provides digital cameras, interchangeable lenses, and other accessories. Due to the wide fluctuation of services, and the many years theyve been in the industry, Nikon is less vulnerable to price fluctuations or other severe factors affecting the digital camera product market. 6

Along with a wide product portfolio, Nikon also has strong financial performance. The companys revenue has grown at a constant rate of 11% since 2003, and their 5-year average revenue growth rate until 2006 was 8.6%, compared to the industry average of 4.1%. Constantly rising revenues and unbeatable growth has helped Nikon stay at the top of the market.

Weaknesses of Nikon Growth in other segments of the business besides imaging products has shown weak growth over the past few years. The point of focus for the Nikon Coolpix cameras falls within this category, but the company relies on other sectors of the business to keep up with production and marketing costs. With a decrease of 7.1% in all other sectors of the business, stronger revenue growth is being affected by todays hurting economy. Weak performance of other sectors can ultimately affect profitability in the long run. Along with weak performance in certain sectors, Nikon also holds a weakness in the affordable compact camera segment. Digital cameras have become increasingly popular in recent years due to the convenience and portability compared to larger professional cameras, especially among Millennials. Compact cameras are beginning to be seen as a fashion statement and Millennials are always looking for the next hottest electronic on the market. Nikon has a brand image of being for professional photographers and only making expensive products, but Nikon has recently come out with many new styles, sizes, and colors of compact cameras to change their image among young adults today. Opportunities in the Market Nikon creates LCD displays used in TVs and in camera screens, and the market for liquid crystal displays has been growing at a rate of 7

over 80% per year, mostly in the large screen TV sector. Sales of large LCD TV panels has risen 60% in the past couple years and has led to improvements in resolution and power consumption. Growth has been constant within the company, but with the increasingly popular LCD flat-panel TVs and cameras with full displays on the back Nikon can expect to see much higher revenues in the next few years. With the increasing innovations in the photography market, first time and current purchasers are leaning towards cameras with higher megapixels and more innovative features. Digital camera revenue has risen 77% in the past five years up to $31 billion in 2009 (Nikon Corporation Analysis). Nikon offers a wide range of digital cameras for any age or style. The ever-growing trend of digital photography provides Nikon with an opportunity to expand sales now more than ever. Threats in the Market Although the digital camera market is expanding, they are also facing competition from mobile phones with built-in cameras. New digital cameras are becoming more and more compact, but having a camera built into a phone that many people carry everywhere creates some issues with sales. Consumers have been pushed away from affordable compact cameras by rationalizing spending hundreds of dollars on a phone that also has picture-taking abilities. Higher resolution camera phones could possibly reduce the demand for Nikons digital cameras and affect their revenues in the long run. The main threat to any electronics manufacturer is the constantly changing technology market. Product life cycles are continuing to get shorter, and customers are constantly changing what they are looking for in an electronic device. Combining fashion and technology has been a major driving force in the field of compact cameras and future product offerings need to know their customers in order to gain adoption. Nikon has been in the business of electronics for decades, which is helpful in developing new technologies, but there 8

will always be a new niche that appears in the market and creates new competition. Brand Character/Tone Nikon Corporation is a worldwide provider of cameras, along with many other products including precision equipment, microscopes and measuring instruments, binoculars, telescopes, and single vision and progressive addition lenses (Nikon.com). The organization has six regions: The Americas, Africa, Europe, Middle East, Oceania, and Asia. Nikon mainly focuses on optics and lenses in their products. Three optical manufacturers in Japan created the company in 1917 upon merger to gain higher brand recognition (Nikon.com).

Personality The personality of the Nikon Coolpix camera is young, hip, adventurous, and fun. This differs from the personality of Nikon Corporation. The personality of Nikon Corporation is reflected in their tagline At the Heart of the Image, which reflects a serious side of the company offering customers high quality products that provide excellent results. The Coolpix cameras tagline is Look Good in Pictures, which portrays the more adventurous and outgoing side of the new line of compact cameras. The spokesperson, Ashton Kutcher, has transformed the way we view the Nikon Coolpix. He has become the face of the product and has brought its personality to life.

9

Positioning Nikon has positioned themselves as a hybrid of Canon and Sony, combining high-performance photography with a fun-loving side (mintel.com). They offer high quality products that appeal to a range of consumers. The Nikon Coolpix cameras have been positioned on a different scale then the digital SLR cameras. The Coolpix has been positioned to appeal to a younger crowd of adults ages 18-25. While the digital SLR cameras are more expensive and designed for more professional photographers, the commercials for the Coolpix are set at parties of a younger crowd. Using Ashton Kutcher as a spokesperson has positioned them to appeal to those who value his opinion and are a part of his fan base. The Nikon Corporation wants to be seen as a global company that provides high quality products in the optics and lenses industry. They strive to reach different segments of the market by offering products that appeal to a wide variety of people and cater their products to certain age groups. The company also wants their products to be priced reasonably to compete with competitors. They distributed their products all over the world and allow for convenience in purchasing their products. 10

People view the Nikon Coolpix as a fun, cool camera that is easy to use and offers new technology. The corporation is viewed as a high quality brand that offers cameras with outstanding capabilities and allows the consumer to take pictures that look professional. A consumer review said the SLR cameras have wowed a number of longtime pros (photographyboard.net). Target Audience Nikon users have traditionally been professional photographers with cameras from the Nikon D80 to the Nikon D700, ranging in price from $500 to $2500. These cameras have typically been targeted towards more mature adults with income over $40,000 per year. Nikon decided to change their image and release a line of cameras more price friendly and stylish for the younger, tech savvy generation. The primary audience of the Nikon Coolpix collection of cameras is young women, mainly between the ages of 18-25. College students and young professionals dont have as much income as Nikons traditional audience, so they kept that in mind by creating a camera for young adults with incomes right around $20,000 per year. Nikon has priced their Coolpix cameras at a cheaper price than their other professional cameras, ranging from $150 to $250 through BestBuy.com. Cameras with the entire back being a touch screen are in the higher price range around $300. Coolpix cameras are compact and can easily be thrown in your purse or backpack. With the stylish design, bright colors, and large touch screen for picture editing, younger generations are sure to be attracted. Ashton Kutcher is the face of Nikon Coolpix, bringing in a younger, stylish female crowd. Every commercial shows Ashton at parties surrounded by young and trendy women who cant wait to get a hand on his camera. The target audience for the Nikon Coolpix camera is a young female between the ages of 18-25. She is looking for a camera that is easy to use, quick to start, and can capture unforgettable memories. 11

This girl is typically either in college or high school, or starting a career. The camera is made to fit easily in a purse or backpack for a woman on the go. Commercials show that the camera is ready to use at the blink of an eye, with quick start up letting her take pictures instantly to capture her memories. The personality of this girl is fun, adventurous, and knowledgeable. She likes to go out and have fun while still being responsible. She is a tech savvy person who researches before making a big decision since high price purchases are not to be taken lightly. Demographics: Female Between the ages of 18-25 Under $20,000 per year Student or starting a career Single or in a relationship (typically not married)

Psychographics: The target audience for the Nikon Coolpix values her family and friends. Their opinions are important and help aid her in the decision making process. She values high quality products and new technology. She is in the generation of the Millennials, which means she is very tech savvy and does thorough information search online before making a decision. This person has strong opinions toward different brand names. Quality of the products is directly correlated to the brand name. This woman lives either on her own or with roommates in a well-populated area. She is adventurous and likes to travel. The write, draw, and paint feature on the Coolpix allows her to personalize all of her memories. Nikon also has Coolpix cameras that are at the lower end of the price scale. These cameras target teenagers who do not need a camera with a lot of features. They are looking for a camera that takes pictures quickly and captures their memories. This target audience is more likely to drop, break, or lose the camera. The lower priced 12

cameras make good gifts for this age group because they are still high quality cameras but not as expensive as the Coolpix cameras with all the extra features. Millennials The Nikon Coolpix camera targets Millennials. Millennials are between the ages of 18-25 and they are an extremely tech savvy generation. They are more likely to do their information searching online then anywhere else. Millennials 18-25 in 2007 communicated more by text messaging, MSN Messenger and online through Facebook and MySpace than 18-25 year olds in 1995 (Belch). Technology has been growing incredibly fast and this generation has jumped on board learning as much as possible. Millennials are less likely to go to the library to do their research then they did in 1995. Today they use the Internet and search engines such as Google and Yahoo. The advantage of this type of search is that marketers can expose them to more advertisements through the Internet versus in a library (Belch). Interactive media has been gaining popularity especially among Millennials. They are targeted because of their wide knowledge and use of technology. This generation has different media consumption habits than previous generations. Millennials spend a fair amount of time online for many reasons including, researching, for leisure, or socializing. The shear size of this generation is transforming the way they are exposed to media. This generation is similar in size to the Baby Boomers. In order to target such a large audience, mass media must be used. With the expansion of the Internet and interactive media, marketers are finding ways to target specific market segments online. This means marketers can gather information based on Millennials interests and choose which advertisements would have the largest impact on them. Nikon has jumped on board with this and created www.ashtonscoolpix.com. This website targets 18-25 year olds through an interactive website allowing you to experience all the 13

features the Coolpix has to offer. The target audience can view their commercials featuring Ashton Kutcher and locate a retailer that carries the Coolpix they are looking for. This generation has been the target audience for many new electronics due to their size and knowledge. Key Customer Insights Problem Recognition A need may be triggered within a consumer by being at an important event and wanting to capture memories. Most people buy cameras when big events happen, such as having a child, holidays, or going on a big vacation. Marketing strategies are beginning to focus on emotions to grab customer attention. Advertisements on TV and in magazines show cameras as catching lifes precious moments, which triggers an emotional response within consumers to buy a camera in order to capture their life and family memories. Another need may be triggered within consumers because of new technologies. New innovation features, such as a full touch screen on the back of the Coolpix cameras, along with new stylish designs are being released to capture the attention of consumers. Cameras have come along way just in the past few years, converting from film to nearly all digital. Information Search Searching for information begins internally. People look within themselves to determine their need, then to find information within themselves for previous brand experience and what they currently know about new technologies. When it comes to high price electronics people tend to stick with a brand they know and one that has been around for a long time. Brands such as Sony, Canon, and Nikon are brands that many people have heard of, and are the first brands that come to mind when searching for a new camera. A problem with using internal research is that consumers may not be getting the best product for their money. Brands that have been 14

around for many years may have a higher price tag with less quality because they know theyll have the loyal customers to continuously purchase. The next part of information search involves doing external research. When making decisions, especially among young adults, they tend to turn to friends and family for insight into which brand is best. Once personal sources have been explored, public sources like consumer reports are used. ConsumerReports.org is a popular website for consumers to visit and compare ratings and reviews of many popular products, including digital cameras. Evaluation of Alternatives Once consumers have done adequate research on the features and benefits of the product, the next step is to evaluate alternatives. Nikon is a recognizable brand name, along with Sony and Canon, which are both manufacturers of the compact, colorful cameras. Consumers today have many more choices than just a few years ago so its natural for them to want to see what other options are available. Some people may not see it necessary to compare other brands because they have their own evoked set of brands. Millenials may be more apt to alternative research because they have less expendable income and want to get the most out of their money. Purchase Decision If no clear decision can be made from the information search and evaluation of alternatives, such as Canon and Sony, one of the purchase decisions may be to not purchase at all. With the large purchase of a camera being anywhere between $150 to $1000, consumers need to be sure they are making the right decision, which may be holding off on their purchase. Cameras are a more complicated purchase than toilet paper and groceries. Brand history and recognition play a large part in the purchase of high priced electronics 15

and if the reputation doesnt match the product it may turn away customers. The most obvious decision consumers can make after research would be to purchase the camera. Once the decision to purchase has been made they must decide how to go about purchasing, whether it be in a store or online. Many different stores have different prices for electronics leading to more research for consumers. A popular solution to this is price matching. If customers bring an ad to Best Buy from Target showing they have the same camera at a lower price, Best Buy, along with many other competitors, will match prices to keep their customers. Online purchasing has definitely grown in popularity, especially with all the great deals and free shipping offers year-round. With eBay releasing a slogan of same stuff at a better price, retail stores are finding it harder to compete because websites are able to find the lowest price faster and give customers the best deal in the market. Another influencing factor to consider when purchasing cameras is what time of year to purchase. Black Friday sales and Christmas shopping creates a mass frenzy for consumers because of all the one day sales and power hours at stores like Target, Wal-Mart, and Best Buy. On Black Friday 2009, Target had Nikon Coolpix S203 as low as $88. Purchasing compact cameras during the holiday season can save consumers as much as one hundred dollars or more. Everyone is looking for the best deals, and the key is knowing when to buy and what sales are really worth the purchase. Post-Purchase Behavior After buying the camera, the consumer compares it with expectations and decides whether they are satisfied or dissatisfied with the purchase. If the consumer decides they are unhappy with the Coolpix camera, the value perceptions of the Nikon brand can be affected. And as with any other bad experience, customers are going to share their feelings with others. Word of mouth can be the best form 16

of advertising or the worst. Good purchase decisions are usually recommended, but opinions of bad experiences travel much faster. Nikon offers a wide array of products, and if the purchase of the Coolpix camera is a positive one they may be influenced to buy additional cameras, maybe as gifts for others. Repeat purchases with cameras isnt a large issue because cameras are an expensive purchase that is only done once every few years. New technologies are influencing more frequent purchases of electronics, and the new technologies need to coordinate with price and placement in order to create repeat future purchases. Firms such as Nikon and Canon often use ads to help consumers feel confident in their purchases. Nikon uses celebrities to endorse their product and place their ads in multiple medias so customers are constantly reminded of how great their purchase decision was. When making large purchases its important to make customers feel like they chose the right product for the right reasons. If customers dont believe their purchase was smart they may return the product or not refer back to the same brand for later compact camera purchases. Competition Nikons major direct competitors are Canon and Sony, which both offer products similar to Nikons Coolpix camera. The two competitors were founded in Japan within 30 years of each other. They have all grown to be well known companies with high quality products. With the exception of Sony, the competitors focus on the photography industry. Canon has the digital ELPH PowerShot that is similar in size to the Coolpix. Canon was founded in 1937 aslo in Japan. The new PowerShot offers many of the same features as the Nikon including the touch screen feature.

17

Features of the Canon Digital ELPH SD980 IS Touch Panel Technology 3.0-inch LCD screen 5x optical zoom Optical Image Stabilizer Video recording capabilities

There are few differences between the Canon and the Nikon cameras. The Canon offers slightly higher megapixels, but this feature depends on the exact camera purchased. There are many different models of the PowerShot just like the Coolpix and each company offers their camera in multiple colors to appeal to a younger market. One of the major differences between the two cameras is how the camera is operated. The Coolpix allows the person to work the entire camera from the touch screen; the camera only has two buttons on the control panel and then the button on top to take the picture. The PowerShot is slightly different because it has the option to use more then just the touch screen technology. The Coolpix also has a feature to write, draw, and paint on the pictures to make them your own. This is an appeal to a younger generation to let them personalize their pictures and express themselves. The cameras are both distributed throughout the world. They are sold in retail stores and online. Sony offers a camera that directly competes with the Nikon Coolpix. These cameras are compact point and shoot cameras. They are meant 18

to be used on the go and to take pictures quickly. Unlike the digital SLR cameras they are smaller and easier to use.

Features of Sony Cybershot T700 3 -inch LCD touch screen Image stabilization 4x optical zoom Microphone/Speaker Video recording capabilities

The Sony camera is similar in size to the Nikon but offers a slightly different look and features. The zoom on the camera is digital, making the camera as slim as possible and also has a slide open feature that eliminates the need for any buttons on the camera, which is a big difference from the Coolpix. The Sony LCD screen is also larger offering a larger viewing area. Sony also offers many different colors similar to the Nikon Coolpix line. This company is very focused on the style of the camera. They offer a variety of products including computers, televisions, MP3 players and headphones. This gives them extensive knowledge in the technology industry. Sony is known for their highquality products that appeal to many market segments. This differs from the other Canon and Nikon because they have stayed within the photography market. Canon offers printers and scanners that are compatible to their cameras. Sony has a strong retailer network with

19

salespeople trained in their products. The company was founded in Japan in 1946. There are many other competitors in the photography industry that offer point and shoot digital cameras. The new feature in this industry is the LCD touch screen. More Competitors: Fujifilm Kodak Olympus HP Panasonic

Indirect competitors in the photography industry are cell phones, film cameras, and video cameras. Cell phones are similar to digital cameras in the sense that they are portable, easy to operate, they are a point and shoot camera, and they can sometimes offer zoom like a digital camera. Film cameras are not as widespread as cell phones and digital cameras, but are still in use by professional photographers. They do not give the option to view and erase pictures immediately after being taken like digital cameras do. Video cameras compete with point and shoot digital cameras because some have a regular camera feature. Also, some video cameras allow you to take still images from a video, eliminating the need for a digital camera. Key Messages

20

TAKE A PICTURE, MAKE IT LAST LONGER

College years are something to be remembered, and go by faster than anyone realizes. Many people look back and wish they could relive those days. Pictures are the best way to capture those memories to be able to look back and remember all the good times you had. From football games to birthday parties, college and young adulthood is something to be remembered and cherished, which is the key message sent when marketing the Coolpix cameras to Millennials. Traditional marketing strategies such as TV commercials and print ads have been the majority of Nikons advertising attempts, but marketing to the new Millennial generation means finding new, innovative ways to get our product in the mind of consumers. Millennials have grown up on cell phones, email, and Facebook, which means many more avenues to enter into for advertising the Nikon Coolpix line of affordable cameras.

21

Nikon Coolpix has made their mark with the Ashton Kutcher commercials, but their image needs to be brought to the internet through interactive ads exclusively on their website and accessible through Facebook applications. Nikon has already created a page for Ashtons television ads, but creating an interactive site through Facebook would have much more of an impact on young adults. Twitter would also be a site to use for conveying our messages by tweeting new camera features and releases, along with giving access to new exclusive ads only available through Twitter and the Facebook fan page. Communication Objectives Objective 1: Create awareness of the Nikon brand among 85 percent of the target audience in the point and shoot digital camera industry (ages 18-25). Create an image of Nikons high quality and sophisticated cameras with a fun side. Focus on the customers and their ability to personalize their pictures with the Nikon Coolpix. Objective 2: Of the target audience, gain 60% interest in Nikon Coolpix cameras, focusing on the ability to personalize the consumers pictures and making them their own. Objective 3: Create the desire of 50% of customers to further their information search in Coolpix cameras. Show that there is the right Nikon Coolpix for each person. There are many cameras in the line, each offering different features that fit the customers needs. Objective 4: Obtain 30% of the target market in trial of the Coolpix cameras. Objective 5: Retain 10% of the target audience for regular use of Nikon Coolpix cameras.

22

Communication Strategies The best way to get our product known to younger adults would be advertisements through their personal channels on Facebook and other places on the internet. Reaching Millennials is getting harder these days because of how many different technologies they use including cell phones, blogging, and social network sites. An ideal location to get the Nikon noticed to 18-25 year olds would be on college campuses. If we were to try and market the camera to UMD students, a possible traditional media used would be the UMD Statesman newspaper. From visual observation students are always looking through the paper every Wednesday a new one is released, which could give us constant exposure in the eyes of students. A unique feature of the Nikon Coolpix camera is the ability to edit your own pictures on the camera before uploading them to your computer. Another possible ad campaign could involve creating an application on Facebook where Millennials can try out the software through pictures they already have on their computer. Trialability of the camera will help with the rate of adoption among the younger crowd, especially with the ability to edit pictures of your college memories. Communication through the Internet is the most important strategy because more Millennials use the Internet today than any other age group. TV has already been exploited through the ads featuring Ashton Kutcher, and has done an adequate job at getting the name into young consumers minds, but new venues need to be explored in order to increase sales as the company was hoping for in the year 2010. Since Facebook has become so popular among young adults, using Facebook Advertising may be an additional expense to incur in order to get our product matched with the right audience. Using Facebook Advertising allows companies to create simple banner ads for profiles and uses features like designing your ad, targeting, and campaigns and pricing. Through Facebook Ads Nikon would be able to do pay-per-click or a daily budget advertisement to 23

get their name out to a younger audience while keeping their advertising costs to a minimum. Tactics To achieve Nikons objectives and strategies, a strong Internet presence is necessary. The Nikon Coolpix cameras appeal to Millennials, ages 18-25. This generation has a strong connection with the Internet. In 2007, more 18-25 year olds used search engines, text messaging, and Internet to gather information than 18-25 year olds in 1995 (Belch). The Internet has become one of the major ways Millennials find their information, which is why Nikon should take advantage of this by offering deals online to demo the product. The deals/rebates should be directed towards Millennials through sites such as Facebook, MySpace, and Twitter. The advertisements should show the different capabilities these cameras have in personalizing your memories. To obtain trial of the Nikon Coolpix cameras, Nikon must have knowledgeable employees. To do this, there should be a training seminar for all retailers with the Coolpix cameras. If the employees have a full understanding of the products they are better able to sell to customers and answer all questions regarding the product. The short seminar can be online explaining all the different features and attributes of the Coolpix. It should also tell employees to focus on the cameras ability to personalize memories when selling to Millenials. Nikon should continue with their current television advertisements with Ashton Kutcher. Using him as a spokesperson increases the credibility of the brand. The television advertisements should also show a new aspect of the camera, being the personalization of memories. Nikon should increase the use on in-store displays. The Coolpix cameras come in a variety of colors, which should be emphasized in displays. Creating colorful displays is visually appealing to customers. Cameras typically are silver or black so emphasizing the bright colors 24

will attract new customers. Also, using Ashton Kutcher in the displays re-enforces attributing him to the Nikon brand.

Coolpix S220: Being one of the most affordable cameras offered by Nikon (around $150), the S220 is the perfect camera for college students on a budget who want to take great quality pictures of their college Blink Proof keeps the one open. Available in plum, pink, blue, and black. memories. And for the friends who cant that quickly takes two pictures and where everyones eyes are silver, aqua, keep their eyes open during pictures, the S220 has

Coolpix S570: Show consumers the stylish design, which also comes in red, pink, and silver. Set at $200, this is one of Nikons more affordable cameras, and has 12 megapixels along with picture editing software built-in.

Coolpix S630: With a price tag of $250, the S630 has the same 12 megapixel feature, but also includes Nikons Smart Portrait System with a smiles. Available in red, smile mode that automatically releases the shutter when the subject purple, and blue.

Budget Estimates 25

Current estimates of advertising expenses within the Nikon Corporation are estimated to be $762,408 for the year 2009. Training employees will be relatively low cost to do within the organization, with the only expense being to hire someone to create the new training manuals. Creating a fan group on Facebook is free of charge, which may give us the largest exposure to the Millennials. Facebook Advertising, which places ads on members profiles if they state an interest in photography or pictures in their About Me section of their profile, has many opportunities to explore at a cost. With a daily budget set at $25 per day for pay-for-clicks advertising, the budget for Facebook exposure would be around $9,125 in additional advertising costs per year. All in all, our budget for the Millennial advertisements is going to be around $500,000 for the Nikon Coolpix line of cameras. Budgeting has already been cut from other segments such as steppers and LCD components, which means more money can be put towards the market saturation of the Coolpix cameras. Measurement, Evaluation, and Control Evaluating the objectives and strategies can be done through measuring the use of the rebates. Offering rebates online gives consumers the option to save additional money to what may be offered in stores. The rebates can also be used online directly through the Nikon website. This gives Nikon a better understanding of how their advertisements are affecting consumers. It is difficult to determine whether or not an advertisement truly influences a consumer. There are many other factors that must be accounted for such as, price, quality, brand loyalty, and external influences and opinions of others. Evaluation of employees is easier to measure. Employees will be tested on their knowledge of Nikon cameras after their online seminar. This ensures that they are telling consumers the correct information and gives them selling points to better appeal to consumers. When 26

new models are introduced the online process should be repeated to ensure full knowledge. Measuring the effects of the television commercials is near impossible with all the external factors. Even so, Nikon should continue these commercials featuring Ashton Kutcher to create awareness of their brand. These commercials create a connection between Ashton Kutcher and Nikon, which means when consumers see the Nikon brand they think of this influential actor. This also increases the value of the brand since Nikon is seen as having higher quality products. Consumers ability to relate the camera to a famous actor can help portray an image of trendiness and youth.

27

SOURCES Nikon Corporation: Forecasts of Financial Results for year ending March 31, 2010 http://www.nikon.com/about/ir/ir_library/result/pdf/2010/20091029_e.p df Nikon Corporation: Financial Results http://www.nikon.com/about/ir/ir_library/result/pdf/2010/10_2qf_c_e.pdf Ashtons Coolpix. 2008. http://www.ashtonscoolpix.com/ Nikon Official Website. 2009. http://www.nikon.com/ Mintel Reports: Still and Video Cameras March - 2009 http://academic.mintel.com.libpdb.d.umn.edu:2048/sinatra/oxygen_aca demic/search_results/show&/display/id=393596/display/id=189048/dis play/id=393596/display/id=446995#hit1 Photography Board.net 2006-2009 http://www.photographyboard.net/what-do-you-think-about-nikon-d60digital-camera-4062713.html USA Canon.com. 2009. http://www.usa.canon.com/consumer/controller? act=ProductCatIndexAct&fcategoryid=113 Sony USA.com 2009 http://www.sonystyle.com/webapp/wcs/stores/servlet/SearchCatalog? storeId=10151&langId=1&catalogId=10551&in_dim_search=&keyword=cybershot+t700&x=0 &y=0 Belch, George and Michael. Advertising and Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill/Irwin. Copyright 2009. Nikon:Consolidated Financial and Business Data for the First Half ended September 30,2009. http://www.nikon.com/about/ir/ir_library/result/pdf/2010/10_2qf_d_e.pdf Ticker Number TYO:7731 NINOY Focusing on the Future. Long Island Business News. EBSCO MegaFILE. May 2009. (44.8: pg 15) Nikon Corporation Analysis. Nikon Inc. EBSCO MegaFILE. December 2008. 28

Nikon Annual Report 2009. Nikon Corporation. http://www.nikon.com/about/ir/ir_library/ar/pdf/ar2009/09annual_e.pdf Macsai, Dan. Marketing to Millennials. BusinessWeek. 22 August 2008. http://www.businessweek.com/smallbiz/content/aug2008/sb20080822_ 537869.htm Hoovers Company Records-Nikon Corporation. Lexis Nexis. UMD Library Database. 8 December 2009. Portable Consumer Electronics-North America. GMID. UMD Library.

29


Recommended