BY US

1. BY US Camille Szramiak, Taleen, Erick, Nicole

2. Canon’s Culture Canon has a reputation for being the leader in quality and market share for digital point and shoot cameras. Canon already appeals to a wide range of people and has a well established brand image. We suggest that Canon be the first to confidently target the 65 year old plus demographic in a dynamic way and present Canon as an easy to use camera and an excellent way to preserve memories

3. Marketing Problem & Solution • Although Canon excels in their ability to target younger generations they haven’t capitalized on the opportunity to reach the people older than 60 years old who aren’tconfident that they can use a digital camera. • We suggest that Canon tap into this older demographic by portraying their cameras’ simple to use features such as image stabilization, a variety of camera sizes and LCD screens, and bigger, easier to see buttons that will appeal to older people, who aren’t technologically savvy.

4. 3-5 SILDES OF SITUATION ANALYSIS SHOULD INCLUDE Product/service category definition Key category/brand trends Brand assessment (4p’s) Primary competitors

5. Category Overview • Digital point and shoot cameras are still cameras designed mainly for simple operation. They are the most popular type of camera. • Point and shoot cameras have experienced 15% annual growth over the past ten years. An increasing amount of people are adopting point and shoot cameras as penetration into American households has increased by 50% in the past 5 years • Major changes have happened in the digital camera market over the last few years with Canon and Nikon both taking over the former leader Kodak in overall sales to the U.S. market. • Digital camera sales are life cycle driven meaning that as people pass through different phases of their lives they often buy new cameras.

6. Trends and Implications • Cameras are becoming more affordable to a wider range of peopl • Interest of features in digital cameras declines with age. Older audiences look for simplicity and automatic settings. • Lack of interest in cameras in high for people who are 55 years or older but “baby boomer are more open to new technologies” (Mintel) • Innovation is not enough to attract new customers anymore. If companies just focus on feature they will not do as well as if they focus on a specific audience and keep prices low. (Mintel) • People don’t need more than 7 or 8 megapixel cameras and LCD screens are about as big as they are going to get • The financial crisis has made people value time with family and friends more = increased need for camera. • Appearance is sometimes more important than features in a camera. “Companies should go for a ‘love at first sight’ appearance in their cameras.” (Mintel)

7. Product: Canon offers 20 different point and shoot cameras and has the second largest number of patents in the world including image stabilization. Canon offers some of their cameras in multiple colors and is known for their superior quality given their existence since the 1960’s Price: Based on the model and its features, Canon digital point and shoot camera prices range from $119 to $449. Placement: Canon’s have a wide distribution due to their popularity and are sold at large retailers such as Best Buy, Circuit City, Target and Walmart as well as on these stores’ online sites as well sites like Amazon.com Promotion: Canon is currently using tennis player Anna Kournikova to promote their PowerShot model as easy to use and manageable. Kournikova however only seems to appeals to younger more active individuals. Marketing Mix: Canon’s 4 P’s

8. Strengths: 9 out of the top 10 digital cameras are Canons Great reputation Known for superior image quality Has second largest number of patents in the world Ability to spend money on advertising: spent the most on ads in 2006. Canon sponsors the NFL Weaknesses Can be pricey Opportunities The increased emphasis being placed on family and tradition because of financial crisis may increase the need for digital cameras. Threats People have less discretionary income because of financial crisis “the digital camera market may shrink next year…a development that would heighten the risk that Canon's earnings downturn stretches into 2009. “ –Tsuneji Uchida, president of Canon Canon SWOT Analysis

9. Market Share and Sales • Canon experienced the most growth 1.3% growth and olympus second 1.2%. • Sony’s share of the market decreased

10. Popularity of Digital Point and Shoot Cameras According to data collected by the Digital Photography School, Canon digital point and shoot cameras are the most popular out of 11 different brands. http://digital-photography-school.com/blog/top-10-point-and-shoot-digital-cameras-dps-reader-favorites/

11. COMPETITIVE ANALYSIS (3 min.) • Key competitors (chart) with sales and market share over the past 1-2 years • Includes SWOT • Strengths and weaknesses

12. Olympus Brand: Olympus Current slogan: “Your Vision, Our Future” Presented benefit: Olympus provides small and portable digital cameras to ensure convenience. Support for the benefit: The advertisement demonstrates the ultra-portability of the camera as it is so thin that it isn’t even visible in the woman‘s hand. Current positioning: Olympus provides an innovative style with a classic touch. Comparison to Canon: Olympus offers a wider variety of colors that could appeal to certain demographics.

13. Sony Current Slogan: Sony. Like no other. Presented benefit: Support for the benefit: Current positioning: Sony strives to be a leader in the electronic market and produces a wide range of electronics. For this reason, Sony isn’t seen as a prominent camera brand. Comparison to Canon: Sony manufactures CCD chips, the main part of digital camera technology, so many other cameras may include this Sony component. Sony doesn’t have as strong a brand image concerning cameras as Canon which is limited only towards printers and optical products.

14. Kodak • Brand: Kodak • Current Slogan: Make life happen • Presented Benefit: • Support for Benefit: • Current Positioning: Kodak uses mainly sponsorships to promote its cameras and is seen as an older, less innovative brand for people with lower incomes and who want an easy to use, straightforward camera. Kodak appeals to families due to their EasyShare products. They put more emphasis on products related to cameras such as printers and digital frames rather than the cameras themselves. Kodak no longer manufactures its own cameras and is focused more on the printing aspect of photos. • Comparison to Canon: Kodak has a strong brand image just like Canon but is seen as a much easier to use and cheaper camera. Unlike Canon it has a clear target audience of mainly families, whereas Canon has an unclear target and appeals to a wide range of people. In contrast to Canon they have recently displayed weak financial performance.

15. Target Audience Definition • Incl. brands, current audience (MRI+) • Identify lifestyle and attitudes, key characteristics • Category research/psych. can help • Survey (primary research)

16. PRIMARY RESEARCH FINDINGS • Data from Mintel suggests that 55-64 year olds should be a growth arena for digital point and shoot cameras in the next few years • “Targeted campaigns surrounding young retirees, children’s weddings, and young grandchildren might be an appropriate focus for this age group; the kids may have left the house, but there are substantial important life stage developments surrounding this age group that should require higher levels of point and shoot camera ownership. • “As baby boomers enter their retirement years they will be more likely to own and upgrade digital cameras” (Mintel) • MRI+ shows clearly shows that the age groups of 18-24, 55-64, and 65+ have the lowest incidence of digital camera use which were respectively 81, 91 and 45. • Even though most baby boomers are tech savvy there should be an emphasis on ease of use when trying to market cameras to this demographic. • lkdjfaksd

17. SECONDARY RESEARCH FINDINGS • Primary research that including surveys and one on one interviews found that the majority of young people who own digital cameras own a Canon and love them. • One on one interviews found that baby boomers are in a life stage where they want to record a lot of memories (children getting married, grandchildren, graduations etc) but don’t have a way to do it. • We found that older people acknowledge the existence of digital cameras but some will not buy them because they are afraid they won’t be able to use them.

18. ONE ON ONE INTERVIEW FINDING “I got my dad the Canon A570 IS and he loves it. The face detection focusing makes focusing easy for him; the image stabilization helps him keep steady images. Playback is easy--just move the slider switch to play. And the Auto and Program modes are good for any unskilled person of any age.” “I’m no good with technology. There’s too many buttons and instructions i would just mess it up.” “….once I attempted to use my daughters camera I gave up on the idea. I couldn’t see the buttons or the screen. I couldn’t even hold the camera still so the picture came out all blurry.” “On the Canon Powershot A series the shutter button is huge, the settings dial is pretty straightforward, and it primarily uses a 4-point pad on the back for most other stuff. Also, it uses AA batteries, and most old people love hoarding batteries.”

19. PROBLEM TO BE SOLVED/KEY INSIGHTS • The problem to be solved is to make digital cameras appealing to a new demographic to increase sales and market share • The key insight uncovered is that older people are prime candidates for owning cameras but don’t buy them because they are scared they won’t know how to use it. Canon digital cameras have all the features, such as larger sizes and LCD’s, that would make older people more confident in using cameras.

20. Positioning Statement • Position brand will occupy in your category • Combine product strengths and attributes to create a picture of the brand in the consumer’s mind • Things to think about • How do you want consumer to think of your brand based on adv.? • Incl. target audience, frame of reference and point of difference • (use format we used in class; refer to pgs. 202-205)

21. ADVERTISING OBJECTIVE • Goal of adv. Plan • Things that could affect this incl.: changing awareness, knowledge, attitudes, emotions and behavior

22. CREATIVE STRATEGY • Refer to pages 214-215 & 356-357 • THIS IS DOCUMENT WHICH CREATIVE TEAM CREATES ADS NOT DESCRIPTION OF ADV • Outline creative strategy (leads to development creative execution) • REMEMBER: • Who is adv. Talking to? • What single benefit should adv. Promise • Why should consumer believe in you? • What does the consumer think now? • What do you want the consumer to think after seeing the advertising • Brand personality • Then set the guidelines for the tone • Personality • Style • Emotion

23. CREATIVE BRIEF • We suggest that Canon

24. THE MEDIA PLAN (2) Refer to pages 314-332 When during the year is optimal time for ad. To be placed? Recommended medium (singular) or media (plural) Recommended media vehicles

25. 1. Age: 2. Gender: 3. Level of Education: 4. Profession: 5. Any Children?: If yes, how old? 6. Do you own a digital point and shoot camera?: 7. Why did you buy a digital camera?: 8. Are you the primary user of your camera?: 9. What brand do you own?: 10. Why did you choose that particular brand?: 11. What other brands do you know of?: 12. Are you willing to try a different camera brand?: 13. Did you do any research before buying your camera?: 14. What do you believe is the most important factor when purchasing a digital camera?: Price, Quality, Ease of Use, Features, or Other 15. How much did you spend? 16. What do you like/dislike about it? 17. What do you consider to be the most important feature: Megapixel, Lens quality, Size of the LCD screen, Battery life, Size and weight or Shooting modes/presets 18. How often do you use your camera? 19. In what situations do you use your camera the most? 20. What do you like to do in your spare time? 21. What television shows do you like to watch? 22. What magazines/newspapers/websites do you enjoy reading? Digital Camera User Survey Questions

26. CREATIVE EXECUTION • AD • At least 3 • At comprehensive stage • Must reflect a consistent idea based on the creative strategy and the brand positioning developed by the ad. team

27. WITH YOU