In this situation, I am a marketing executive in Canon, Vietnam. I have been approached by my Sales Director and requested to write a detail report on marketing programme which covers all the elements of marketing mix to help successfully launch these exc

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Canon Marketing Mix Programme

Transmitted to: Canon

Prepared for: Ms. Doti Chee (Lecturer)

    Ms. Pham Thu Thuy (Tutor)

Unit 1: Marketing

Banking Academy, Hanoi

BTEC HND in Business (Finance)

Prepared by: Vu Hong Minh (Owen)

Registration No: A970629


Submitted: February 22
nd, 2010

Contents Page

Cover Page………………………………………………………………………………..1

Contents Page…………………………………………………………………………….2

Executive Summary……………………………………………………………………...4

Introduction……………………………………………………………………………....5

3a. Describe how products (both SELPHY and LASER PRINTER) are developed to sustain competitive advantage in Vietnam………………………………………………..6

3a.1. Definition of competitive advantage………………………………………………...6

3a.2. Total product………………………………………………………………………...6

3a.3. Product life cycle (PLC) …………………………………………………………...10

3a.4. Porter’s generic competitive strategies…………………………………………….10

3a.5. Branding……………………………………………………………………………11

3a.6. Ansoff Growth Matrix……………………………………………………………...12

3a.7. New product development…………………………………………………………13

3b. Explain how distribution of products is arranged to provide optimum customer convenience……………………………………………………………………………...13

3b.1. The Five Right of Distribution…………………………………………………….13

3b.2. Canon’s Distribution Channel……………………………………………………..15

3b.3. Selection of distribution Channel Selphy and laser printer………………………..16

3b.4. Physical Distribution……………………………………………………………….17

3c. The price of the product in the light of the ‘Canon’ objectives and market conditions exist in Vietnam………………………………………………………………………….17

3c.1. Vietnam market condition in relation to pricing…………………………………...17

3c.2. Cost and profit……………………………………………………………………...18

3c.3. Pricing policy and the marketing mix……………………………………………...19

3c.4. Price strategy……………………………………………………………………….19

3c.5. Approach to Pricing ……………………………………………………………….21

3d. Illustrate how promotional activities integrated to achieve marketing objectives of Canon…………………………………………………………………………………….22

3d.1. Promotion strategy…………………………………………………………………22

3d.2. Integrated Marketing Communications……………………………………………23

3d.3. Elements of Promotion Mix………………………………………………………..23

3e. The additional elements of the extended marketing mix…………………………….24

3e.1. People……………………………………………………….……………………...24

3e.2. Process……………………………………………………….……………………..25

3e.3. Physical evidence…………………………………………………………………..25

3e.4. Suggest Ways on How Canon Use the Extended Marketing Mix for SELPHY and LASER PRINTER……………………………………………………………………….25
4a. Marketing mixes for two different segments in consumer markets………………….26

4a.1. Elements should be considered in order to develop an effective marketing mix…..26

4a.2. Recommendation of marketing mix for SELPHY and LASER PRINTER………..27

4a.3. Pros and cons of the recommended Mix…………………………………………...28

4b. The differences in marketing products and services to organisations rather than consumers………………………………………………………………………………..29

4b.1. Consumer market………………………………………………………………….29

4b.2. Organizational market……………………………………………………………..30

4b.3. Differences between business to business and consumer…………………………32

4c. Explain how and why international marketing differs from domestic marketing…...33

4c.1. Benefits and risks of entering into international marketing……………………….33

4c.2. The differences in International marketing environment………………………….34

4c.3. The differences in elements of Marketing mix in International marketing………..37

Conclusion……………………………………………………………………………….39

References……………………………………………………………………………….40

Appendix…………………………………………………………………………………43


Executive Summary

In this situation, I am a marketing executive in Canon, Vietnam. I have been approached by my Sales Director and requested to write a detail report on marketing programme which covers all the elements of marketing mix to help successfully launch these exciting new products in Vietnam.

First of all, I will describe how products (both SELPHY and LASER PRINTER) are developed to sustain competitive advantage in Vietnam. Secondly, I shall explain how distribution of products is arranged to provide optimum customer convenience. Thirdly, I must explain how to set the price(s) of the product in the light of the ‘Canon’ objectives and market conditions exist in Vietnam. Then, I will illustrate how promotional activities integrated to achieve marketing objectives of Canon, and analyse the additional elements of the extended marketing mix. What’s more, I shall recommend marketing mixes for two different segments in consumer markets. Furthermore, I will explain the differences in marketing products and services to organisations rather than consumers. Finally, I will explain how and why international marketing differs from domestic marketing.


Introduction

A world-renowned camera maker, Canon has, over the last 60 years ventured into new grounds of product development. With its commitment in Research and Technology, Canon products today include personal products, business equipment and industrial products. Canon products are aimed at improving the lives of people at work and at play. The company operates through three product segments: business machines, cameras and optical and other products.

If businesses want to succeed, they must understand about marketing mix strategy (4Ps) and oriented to the customer. In general, there are four basic and important elements in marketing mix that business cannot ignore when developing marketing strategies to bring any type of products and services to the market includes: Product, place, price and promotion. Recently, the professionals have added three elements to make extended marketing mix (7Ps) include: People, process and physical evidence, to increase the strength of marketing activities. However, this strategy can only bring success if the business does it based on looking objectively from customers, not from the subjective perspective of the business. On the other hand, the feedback from customers will help businesses to market products that meet the demand of customers, selling at acceptable price to customers, distributors in the place that convenient for customers and mass communication in the way that customers like.

What’s more, Canon must segment the product suitable with consumer and organizational market. Because, there are many differences marketing for each market, at the same time, the international marketing differs from domestic marketing.


3a. Describe how products (both SELPHY and LASER PRINTER) are developed to sustain competitive advantage in Vietnam

3a.1. Definition of competitive advantage

        There are many definitions about competitive advantage, however, the best definition is concentrating on the customers, help customer understand about product and orienting them to your company. Competitive advantage is very important to the success of business. In Canon Ltd, company tried to create the new product better than other competitors with new design, new technology and suitable with the need and want of customer. For example, perfect for home and small offices, Canon introduced the Laser Printer LBP3250 and the colour laser printer LBP5050 lead the market with latest USB2.0 Hi-Speed connectivity and lighting fast print out.

3a.2. Total product

“Product is something that satisfies a set of wants that customers have. When you buy a set of win and you prefer not to do so straight from the bottle. You may also want to impress your dinner guests with your taste and choose to do so by possessing a particularly fine set of wine glasses” (BPP, 2004, p.195). There are three levels of products, it can be described below:

  • The core product is not the tangible, physical product. You can't touch it. That's because the core product is the benefit of the product that makes it valuable to you.
  • The actual product is the tangible, physical product.
  • The augmented product is the non-physical part of the product. It usually consists of lots of added value, for which you may or may not pay a premium.

(Executive Marketing, 2009)

With Canon, the position of total product in a competitive environment is very important. Because, when Canon applies total product, they must understand the customer, same product can bring the different benefits of the different customers. For example, customers didn’t know that when they buy SEPHY, this product possessing amazingly intelligent functions and attractive looking figures, the new products offer users not only convenience, quality and versatility but also a unique lifestyle. Furthermore, it can be the decoration in the house with good looking shapes. Alternatively, Canon has good customer services with more than 300 authorized service partners and over the last 60 years ventured into new grounds of product development. This is why Canon has belief of customer better than competitors.

        

In the table of analysis, SELPHY has many strong points, it has new technology, high quality, new style and great feature. It looks like a candid briefcase equipped with a handle to make portability easier. On the face of the printer, a 3.5 inch 230K dot LCD screen is featured with 4 large buttons on its either sides to perform easy one touch operations. Besides, the after sales services and warranty of Canon is very good. However, Canon still has the weakness than competitors. Because of new technology and multi function, so the installation of SELPHY is complicated than HP and Epson product. Canon should be improved to be better than competitors.

Canon’ Laser printer has more strength in comparison to the competitors. Laser Printer LBP3250 and the colour laser printer LBP5050 lead the market with latest USB2.0 Hi-Speed connectivity and lighting fast print out. With better features and quicker printouts while assuring both quality and quantity, the two economical laser printers have met the printing needs of SOHO users. However, the designs of these machines are very boring, and similarity than other competitor’s product. Besides the function isn’t new, the technology follows the old generation. Canon should improve it to get higher compete with competitors.

3a.3. Product life cycle (PLC)

The product life cycle is an attempt to recognize distinct stages in a production’s sales history (BPP, 2004, p.202). The current stage of SELPHY and laser printer is introduce, because in Vietnam the product line of SELPHY and laser printer has been appeared recently. Therefore, these products will bring to Canon both advantages and disadvantages like reduction in cost through large production, besides the amount of product sales increased significantly. However, the challenge of this period is Canon product must face with many competitors in the market. Therefore, the price of SEPHY and laser printer should be low at this stage to attract customers and continue to next stage.

3a.4. Porter’s generic competitive strategies

Differentiation strategy involves selecting one or more criteria used by buyers in a market and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product-often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products (tutor2u, n.d.). Different with other competitors, Canon has many lines of product to suit with the need and want of customers. For example, the target customers of SELPHY are individual customers with high income and the demand is working or using at home. On the other hand, Laser printer focuses on small office, home, the target is organisations. Besides, to reduce the impact of declining printer prices and strengthen Canon’s presence in the global market, it will further strengthen sales structure. Moreover, it will further differentiate products by enhancing imagine quality and speed through FINE technology as well as by improving operability and design (scenario)

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3a.5. Branding

Brand leadership

Brand leader is the brand which consistently holds the largest market share when measured by brand sales. There are some manufactures who make a number of brands and therefore may be said to hold a large share of the product market than the brand leader (BPP, 2004, p.210). The brand leader is the result of continually defending the quality of their output and its relevance to the consumer over along time (BPP, 2004, p.211). Brand has invisible power in marketing. When people think of Canon, they will remember to the slogan ...

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