TABLE OF CONTENT
EXECUTIVE SUMMARY
COMPANY DESCRIPTION
STRATEGIC FOCUS AND PLAN
MISSION/VISION & GOALS
CORE COMPETENCY
SUSTAINABLE COMPETITIVE ADVANTAGE
ORGANIZATIONAL STRUCTURE
SITUATION ANALYSIS
S.W.O.T. ANALYSIS
INDUSTRY ANALYSIS
COMPETITOR ANALYSIS
CUSTOMER ANALYSIS
MARKET-PRODUCT FOCUS
MARKETING AND PRODUCT OBJECTIVES
TARGET MARKETS
POINTS OF DIFFERENCE
POSITIONING
MARKETING PROGRAM
PRODUCT STRATEGY
PRICE STRATEGY
PROMOTION STRATEGY
PLACE (DISTRIBUTION) STRATEGY
WORKS CITED
APPENDIX
EXHIBIT 1 – EMAIL CORRESPONDENCE
EXHIBIT 2 – NIKON CORPORATE STRUCTURE
EXHIBIT 3 – NIKON S.W.O.T.
EXHIBIT 4 – PENTAX S.W.O.T.
EXHIBIT 5 – CANON S.W.O.T.
EXHIBIT 6 – SONY S.W.O.T.
EXHIBIT 7 – TARGET TABLE 1
EXHIBIT 8 – US DEMOGRAPHY
EXHIBIT 9 – MEDIA FLOW CHART
EXHIBIT 10 – HOUSTON SYMPHONY RATES
EXHIBIT 11 – DIGITAL PHOTO PRO COVER
EXHIBIT 12 – DIGITAL PHOTO PRO RATES
EXHIBIT 13 – PC PHOTO COVER
EXHIBIT 14 – PC PHOTO RATES
EXHIBIT 15 – OUTDOOR PHOTOGRAPHER
WEB SITE AND E-NEWSLETTER RATES
EXHIBIT 16 – DISTRIBUTION FLOW CHART
EXHIBIT 17 – UPS SUPPLY CHAIN SOLUTIONS
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EXECUTIVE SUMMERY
The purpose of this marketing plan is to increase awareness of the new Nikon
D300S, with the goal to distribute and increase sales in the Houston, Texas
area within 2010. To reach this objective, G.R.C. Marketing Group proposes
the following strategy.
The marketing plan is divided into the following sections, and will be discussed
in detail in each corresponding section.
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Company Overview - includes Mission, Vision and Goals,
Core Competencies and Competitive Advantage.
Situation Analysis – includes SWOT and PEST analysis.
Market-Product Focus – includes Industry, Competitor,
and Customer Analysis.
Marketing Program – includes product description, promotion, price
strategy, distribution methods and media buy strategies.
The Nikon Corporation is a well-established Japanese company founded in
1917 and has its core competency in precision optic manufacturing. Other
products produced by the firm medical devices and optics, semi-conductor and
wafer technology, survey and measuring equipment, photographic lens and
camera products. Nikon is a global company with subsidiaries across, Asia, the
Americas, Europe and Australia.
When it comes to photographic equipment, Nikon’s goals are to:
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Increase satisfaction and trust from their customers
Provide products and services that have superior levels of
quality and safety
Enhance and enrich the enjoyment of photographs
Minimize impacts on the environment from production of
products and services
Build products that conform to international safety standards.
“Safety Design Principle” (Nikon | Corporate Info)
The company’s sustainable competitive advantage and strengths encompass
its roots in optical design expertise and corporate culture, long-term development
of optical and camera technology, continuous collection of data and research,
superior customer service with its techniques to discover customer needs and
rapid customer response system.
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Competitors such as Pentax, Canon, and Sony have comparable products, but
because of a robust pricing structure, coupled with Nikon’s established brand and
distribution channels, these firms do not pose any serious competitive advantage.
The new Nikon D300S has an outstanding list of features ranging from its
electronics and sensor systems to high-quality HD video capability; it also
includes a unique dual-slot memory card set up to separate pictures from
video capture. Its affordable and competitive price makes this camera a highly
attractive product for individuals who either want to seriously enter the world
of digital photography or are professionals who want to upgrade from their
present equipment.
Based on our customer analysis and research, we recommend the following
promotional strategy and targeted media campaign, exclusively for Houston,
Texas, in conjunction with the FotoFest event in April and May of 2010. The
overall goal with this campaign is to raise sales by 2% for 2010 in the Houston
market.
To reach the market we crafted two major campaigns for print and online
media. The first is a continuous campaign, starting in January and running
until December. The second is a shorter campaign starting in January continuing
until the end of the FotoFest event in May.
Both campaigns are designed to utilize local print publications, online banner
ads and search engine marketing tactics, with FotoFest being targeted on a
national level to reach potential customers who plan to travel to Houston for
the event. The second campaign would be a Nikon sponsored campaign in
conjunction with participating local retailers.
In addition to the print and online campaigns we propose several bundled
and/or rebate offers to attract customers. These offers range from camera and
selected lens bundles to upgrades of memory cards at purchase.
We recommend that Nikon continue its relationship with UPS as a cost effective
distribution channel for the new D300S and that the firm count on this firm to
maintain positive relationship with Nikon’s established specialty retailers.
To achieve these goals, Nikon budgets $500,000 for all marketing initiatives.
They include printed advertising in the Houston local publications, several
nationally distributed trade magazines, online banner campaigns on Google,
Yahoo!, publication web site, and a direct mail campaign and targeted email
blasts to customers on local retailers’ mailing lists.
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COMPANY DESCRIPTION
Nikon began in 1917 when three of Japan’s leading optical equipment
manufacturers merged to form Nippon Kogaku (Japan Optics), offering a full
range of optical products. The company’s core competency was research and
production of optical glass. Their product line included cameras, microscopes,
binoculars, surveying and measuring instruments, and ophthalmic lenses. In
1946, they named their first cameras Nikon. In 1952 they established the
Nikkor Club with its mission to promote a photography culture (Nikon-AboutHistory). Nikon’s first single lens reflex camera (SLR), the Nikon F, was first
introduced in 1959.
The Nikon Optical Co. was the first subsidiary to open in the United States in
1953. In the following decades, their lines of products would expand drastically.
Some of these products included: in the 1960s the all weather camera, in the
1970s sunglasses, the 1980s introduced the first auto-focus compact camera
and color printers, and in the 1990s the first underwater SLR camera and
electrochromic sunglasses (they had the ability to change color depending on
the surroundings brightness). Subsidiaries would also open all over the world
in countries such as the Netherlands, Switzerland, the U.K., Germany, Canada,
Hong Kong, France, Taiwan, Sweden, China, Thailand and Hungary.
In 2007, Nikon’s aspirations were defined: Meeting Needs, Exceeding
Expectations (Media Information). Nikon’s innovative company continues to
develop and introduce new cutting-edge consumer-based products to the
world today.
STRATEGIC FOCUS AND PLAN
MISSION, VISION AND GOALS
“…Our determination and goal: Transforming imagination into creativity”
(Nikon).
Nikon’s philosophy of “Trustworthiness and Creativity” defines the company’s
focus on meeting the needs and expectations of their consumers.
Nikon’s mission is based on the company’s responsibility to positively serve
their customers and the global environment. Nikon’s overarching goal is to
achieve loyal customer satisfaction by producing efficient high quality products.
Nikon takes its role as stewards of the environment seriously as evidenced by
their very own “Safety Design Principle” (Nikon | Corporate Info).
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Nikon’s overall corporate goals can be summarized in the following:
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Increase satisfaction and trust from their customers
Provide products and services that have superior levels
of quality and safety
Enhance and enrich the enjoyment of photographs
Minimize impacts on the environment from production
of products and services
Build products that conform to international safety standards
as guided by “Safety Design Principle”
NIKON CORE COMPETENCY
The Nikon Corporation is a complex organization with a multitude of
subsidiaries, products and service offerings. Hence, their core competencies
exist on many layers. However, there is one basic core competency that spans
across all products and services — Nikon glass — from which all precision optical
lenses are crafted. From the raw silicon to the final coating, Nikon glass
production is considered both a science and an art form (Media Information).
NIKON SUSTAINABLE COMPETITIVE ADVANTAGE
The Nikon Corporation’s competitive advantage can be broken into several key
components:
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Its roots in optical design expertise, corporate culture, and vast
knowledge of and deep respect for all things photographic
Long-term research and development of optical technology, camera
development, processing technology forged by history and preserved
tradition
Continuous collection of data and responses, plus research and
development at its Core Technology Center
Customer service, customer satisfaction, and customer retention —
all of which are vital to the success of the firm and at which the
company excels
Integrated solutions to discover customer needs and concerns,
in order to address them as quickly as possible
A rapid-response system that was implemented in 2006 that allows
Nikon to respond to customer inquiries within 5 hours — a time 600%
faster than prior to implementation of this customer service strategy
(Nikon’s competitive edge) (See exhibit 1 – Email correspondence)
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NIKON ORGANIZATIONAL STRUCTURE
The Nikon Corporation is a global organization with a multitude of subsidiaries
and product divisions across Asia, the Americas, Australia and Europe (Nikon,
Fact Book). (See exhibit 2 – Corporate Structure)
SITUATION ANALYSIS
NIKON S.W.O.T. ANALYSIS
The Nikon Corporation’s primary strength lies in its roots in optical device
manufacturing and optical lens development. Its network of subsidiaries
enables Nikon to penetrate many markets to help maintain its position as the
leader in photographic equipment manufacturing and in the field of semi-conductor
technology. The implementation of processes to enhance internal communication
and consumer relations aided Nikon in establishing a corporate culture that
fosters motivation and customer satisfaction. Also, the integration of an
advanced CRM (Customer Relationship Management) system helps Nikon to
effectively collect, evaluate and manage information to benefit business operations.
Potential weaknesses that could be improved upon are its pricing structure,
exploring opportunities to produce high quality but less expensive products,
and the firm’s need to raise awareness of areas of expertise other than the
development of precision optics and cameras.
Areas of opportunity include the expansion and positioning of Nikon in the
semi-conductor technology manufacturing space; embrace Web 2.0 technology
and utilize the social media trends and the promotion of My Picturetown®, an
online photo sharing and distribution application.
Serious threats exist due to fierce competition by the alliance of ASML and
Zeiss Company. Less serious threats are in the area of camera equipment
production, as Nikon also faces continuous competition with the development
of cheaper and comparable products, for example: Canon and Pentax digital
SRLs with video capability for the consumer market. Additionally, the recent
less favorable economic climate contributes to lower consumer spending and
awareness to price conscious end users. (See exhibit 3 – S.W.O.T. Chart)
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INDUSTRY ANALYSIS
PEST ANALYSIS
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Political factors include government regulations and legal issues. In the
case of Nikon Digital SLR cameras, the only restriction we could
encounter, are tax policies and trade restrictions and tariffs. Nikon is
staying ahead by implementing eco-friendly regulations in their
companies before legislation requires.
Economic factors that could affect a successful marketing initiative are
the current economic down turn, difficulty in qualifying for a loan,
potentially high interest rates. In a depressed economy, consumers are
more cost conscious and may not want to invest in new cameras or
accessories or replace older equipment until absolutely necessary. At
the same time, potential expansion of the secondary market in today’s
society demands for higher quality images and with Nikon’s expertise in
that area, the firm could experience increased marketability.
There are no real Social factors that would negatively impact the
company. Nikon’s “Vision Nikon 21” and “Safety Design Principle” provide
the company a solid image in the social responsibility and environmental
conscious platforms.
Socially, consumers perceive that an individual wielding a Nikon camera
is a serious photographer and knows what he/she is doing.
Technological factors in respect to Nikon Digital SLR marketing such as
R&D activities, automation, technological incentives and the rate of
technological change will not be a problem because of continuous
research and innovation to stay ahead of the competition. Pending
Patents is being assigned continuously with Nikon keeping them on the
edge of technology.
COMPETITOR ANALYSIS
PENTAX S.W.O.T. ANALYSIS
Similar to Nikon, the Pentax Corporation has its roots in the optical device
research and manufacturing sector. Only two years after the foundation of
Nikon in 1919, Pentax started developing high-quality lenses and began building
its core competency in lens polishing technology.
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Historically, Pentax developed and continues to develop cameras and lens
systems at a very fast rate. Pentax also is exploring other industries, such
as the development of digital scopes and precision surgical optics. Pentax also
recognized the potentials of the Internet and the influence of social media
and customer behavior, and the company launched two web sites:
pentaxian.com and pentaxphotogallery.com, both intended for sharing and
distributing imagery.
Pentax’s major (current) weakness, however, is its fragile corporate and
management structure caused by the merger with the HOYA Corporation in
2006. Consequently, the firm continues to struggle in stabilizing its business
infrastructure. (See exhibit 4 – S.W.O.T. Chart)
CANON S.W.O.T. ANALYSIS
The Canon Corporation has been an established company for nearly threequarters of a century. When it comes to cameras, they are a household name.
The firm began in the 1930s with their focus on developing quality cameras.
Only one other company is at their level of notoriety: Nikon.
Today’s society has become a very “Green” conscience world, and Canon has
joined that following. Factor 2’s goal is make lighter, smaller, more energy
efficient products with the goal of reducing greenhouse gases (Canon:
Corporate Info). Canon‘s focus on environmental concerns makes them very
desirable to the earth-conscience society we live in today. That strong focus,
though environmentally friendly, may not be so consumer friendly. Focus on
customer service should be a priority as well. Canon’s price point remains
competitive with its top competition, Nikon.
Though, to keep up with Nikon in the market place, further expansion globally
could be useful. Also, in today’s declining economy, expansion could increase
buyers. Digital SLR’s are not an inexpensive product and cannot be afforded
by all. (See exhibit 5 – S.W.O.T. Chart)
SONY S.W.O.T. ANALYSIS
SONY’s strengths lie in the social platform arena and the company’s contribution
to society at large. Corporate entities such as the Sony Life Insurance Co., Ltd,
Sony Institute of Higher Education Shohku College, Sony Corp of America, and
Sony de Mexico S.A de C.V. create a solid foundation and structure for Sony
that could be expanded on within Japan and other countries.
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With their brand widely known within several retail areas, SONY proves to be
proficient within their marketing capabilities. Their low price point of their
products seem to be sufficient to customers’ needs, making Sony one of the
most affordable brands among the competition from Nikon and Canon. SONY
has the ability to enhance their brand through careful planning of low material
cost and high operational efficiency.
Company weaknesses are in customer service and sales service satisfaction,
which has the potential to drive away long-term customers and convert brand
loyalists.
An area of opportunity that can be improved is in environmental responsibility.
Marketing their products globally, with the emphasis on product safety as well
environmental philosophy could bring SONY closer in competition with Nikon’s
“Safety Design Principle.”
Major threats to SONY come from Nikon’s “Vision Nikon 21” customer service
strategy, and Nikon’s “Safety Design Principle.” Both programs are extremely
important to Nikon’s success and retention of customers and to create brand
loyalty. (See exhibit 6 – S.W.O.T. Chart)
NAICS CODES
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Primary SIC Code: 3861 - Photographic equipment and supplies
Primary UK SIC Code: 33.403 - Manufacture of photographic and
cinematographic equipment
Primary NAICS Code: 333315 - Photographic and Photocopying
Equipment Manufacturing
The Nikon Corporation specializes on a variety of products and services that
span different industries. The above NAICS codes reflect all photographic
equipment in which Nikon is involved.
CUSTOMER ANALYSIS
MARKET SEGMENTS INTRODUCTION
G.R.C. Marketing Group identified two sectors of the digital SLR camera space,
the consumers and the professionals. We segmented the consumers into
students, teachers, individuals, and amateur/hobby photographers, with
students being the target group for lower mega-pixels and lower cost digital
SRLs. Teachers, individuals and hobby photographers are the targets for the
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10 to 12 megapixels and higher cost range. Cameras are purchased either
online or at retail stores. Cost is a significant factor for these consumer segments.
Cameras are purchased throughout the year with possible spikes before and
after the summer period. Special sales programs could be before summer
vacation and before start of school and at the year-end start of holiday season.
Other considerations are competitor activities. The primary target markets is the U.S.
The professional sector is divided into educational organizations, photo studios,
advertising agencies, researchers, and government or military, with focus
on the 12 and 24 megapixels cameras, because of the higher cost of the
purchase and need of use. No special timeframe is designated for these
segments. Purchase will happen according to need any given time of the year.
A possible spike in purchase of high-end models could be 4th quarter, as budgets
are either planned or need to be spent.
For the consumer sectors, cost is major factor in purchase decision, whereas
the professional sector is driven by need. Other significant reasons for
purchase in both sectors could account for the prior purchase and availability
of interchangeable Nikkor lenses and accessories for older 35mm Nikon cameras
by brand loyalists who are switching to digital photography.
Based on the assumptions in Table 1, we will focus marketing efforts towards
the 10 and 12 mega-pixels range digital SLRs, for both the consumer and
professional sectors. Targeted advertising campaigns will be deployed in late
spring and early fall, for both print and online media, including coupon offers
and / or special bundled items for added value depending on geography.
(See exhibit 7 – Market Segments - Table 1)
MARKET-PRODUCT FOCUS
MARKETING AND PRODUCT OBJECTIVES
Nikon’s main focus is marketing to professional photographers by having the
highest quality and most technically advanced photography equipment on the
market. The current D series SLR cameras offer features such as EXPEED
motion cancellation, high megapixel format, and low noise ISO sensitivity. The
quality of a final image is what the photographer is most concerned with, and
Nikon gives them the tools they need to capture any photo, in any condition.
Nikon also extends their products to the more avid consumer interested in
photography as a side hobby or future career interest. Long battery life,
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in-camera image editing, more advanced help menu features and a reasonable
price tag are things this market is interested in, and Nikon meets their needs
with models such as the D300S.
Because of the ever-growing technological advancements in the industry,
Nikon keeps their products as up to date as possible. New models are released
regularly introducing features and additions being demanded by customers,
and less frequently an entire new product with an entirely new feature will
be released.
TARGET MARKET
PRIMARY MARKET
PROFESSIONAL PHOTOGRAPHER
Age 18-50
College educated
Caucasian, Asian, and other ethnicities
Male
No children 0-17
Income $100,000+ annually
Geographic location: United States
Employed
The primary purchaser of a Nikon D-SLR camera is a professional photographer.
He is male, between the ages of 18 and 50, and a college graduate. He lives
in the United States, has no children, and makes upwards of $100,000
annually, placing him in the Upper class.
SECONDARY MARKET
CONSUMER PHOTOGRAPHER
Age: 18+
Sex: Male/Female
Income: $30 – $100k
Education: Some college/college graduate
Race: All
Social Class: Middle/ upper class
Family Size: No children 0-17
Geographical: United States
Lifestyle: Two income, single parent incomes, student
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Nikon’s secondary market targets both males and females 18 years of age and
older. This group would usually consist of people with a college background
who consider photography as a hobby and/or may be studying the field of
photography for a potential career opportunity. All races are included. The
secondary group has an income average of $30-$100k, establishing themselves
as the middle/upper class group.
According to the Nikon Quantcast Audience Profile for Nikon, “No Kids In High
School” best describes the family size. It is also reported that this particular
group has a high interest in Consumer Electronics, Technology, Sports/Outdoors,
and Consumer Goods. The above characteristics were partially determined using
graphs showing web traffic. (See exhibit 8 – U.S. Demographics)
TRADE ASSOCIATIONS – NIKON
CONSUMER ELECTRONICS ASSOCIATION- CEA
(HTTP://WWW.CE.ORG/)
The CEA mission statement: “CEA's mission is to grow the consumer electronics
industry” (About CEA) Their members receive access to market research,
networking opportunities, educational programs, regulatory and legislative
news and exposure in promotional programs. Over 2000 companies have been
united by CEA to achieve this. They have online forums, meetings and conferences
to help members stay in touch with such people as government representatives,
buyers, industry leaders and the media. For 75 years they have been providing
objective market research, and are accredited by the American National
Standards Institute.
‘The voice of the U.S. standards and conformity assessment system’ (About
ANSI) Their Technology and Standards program consists of about 1900
participants and 30 working groups, committees and subcommittees. The
world’s largest consumer technology tradeshow is produced by the CEA: the
International CES. United at this conference are press from over 140 countries
and over 100,000 distributors, manufacturers, importers, exporters, retail
buyers and market analysts. If a member were to have an exhibit at the show
they would receive benefits and discounts.
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POINTS OF DIFFERENCE – NIKON D300S
Nikon has many qualities within their operations that allow them to outshine
the competition
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Nikon announces a new product one to two months before releasing it,
allowing consumers the option to wait for the new and improved model
This never leaves their customer in the position of feeling their purchase
was obsolete.
D-Movie Mode with sound: Record 720p HD movie clips enhanced by
NIKKOR interchangeable lens quality and versatility. Offers the most
cutting edge optical products in both the commercial and consumer
market.
Vari-angle color LCD monitor: Position the 3 -inch monitor freely for
fresh shooting perspectives. Screen flips inward for safe keeping.
GPS Geo-tagging: GP-1 GPS unit (optional) automatically identifies and
records every image’s latitude, longitude and altitude, with satellite
time-of-day.
Built-in Flash unit: up to 17 feet range.
Affordable and competitive pricing. (Nikon D300S Points of Difference)
POSITIONING
Nikon’s new D300S is the DSLR camera that delivers patented EXPEED
processing technology and dual memory card slots only because Nikon is the
leader in quality and performance.
MARKETING PROGRAM
PRODUCT STRATEGY
The Nikon D300s has a remarkable number of features that will draw the
buyer in. These features are what make this camera unique and a “must have”
for any photographer.
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12.3 megapixel, high resolution, and low-noise image, creating sensor
This is a sensor that offers 1,005-Pixel 3D Color Matrix Metering II, the
only system that meters the colors in your shot to make exposures
more brilliantly accurate.
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The ISO range is 200 to 3200, and also offers a Lo-1 and Hi-1 option
which are equal to having a 100 and 6400 ISO allowing for a high range
of lighting variations and still create incredible images.
The 920,000-dot, 100% accurate, LCD Monitor is a full 3 inches and
capable of One-Button Live View help for challenging shoots and
reviewing them afterward.
When taking pictures of people it is important to make sure that they
are in focus, so Nikon has implemented its Face Detection System. This
works during playback, and it zooms in directly onto the face in the
image so you can check for its sharpness.
Nikon has a 51-point Auto-focus system and utilizes 3D Focus Tracking,
which is a system designed specifically for moving subjects. This system
follows the subject while the shutter is pressed half way down, then
when the lapse between the shutter being pushed and the picture is
taken. The camera predicts where the object will move to ensure a
clear image.
Nikon’s patented EXPEED processing technology produces your images
with amazing precision at fast speeds and while also using less power.
In continuous shoot mode, 7 frames can be shot per second and with
the included EN-EL3e battery fully charged; up to 950 pictures can
be taken.
This camera not only shoots HD video, but it shoots at a cinematic 24
frames per second rate. When you are done shooting a video, Picture
Controls allows you to trim the video or modify its tone and color. These
same controls are used for still images allowing adjustments of
Sharpening, Contrast, Brightness, Saturation and Hue, as well as
customizing 9 capture preferences in addition to the 4 already
available: Standard, Neutral, Vivid and Monochrome.
High contrast situations are a challenge for professional photographers,
usually something that must be remedied in post processing software
that leads to degradation of images, Nikon’s Active D-Lighting in the
D300S takes care of this problem by bringing back the highlight and
shadow details by centralizing tonal control. Wedding photographers
who photograph white dresses and black tuxedos will truly appreciate
this aspect of this product.
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Another feature regarding lighting with the D300S is its built-in flash
that is compatible with Nikon’s Creative Lighting System. This system
makes it possible to control remote flash units for wireless lighting. This
particular camera can control up to two units. The built-in flash also has
a wider coverage than most cameras with coverage for a 16mm
wide-angle lens.
The D300S includes a Virtual Horizon Graphic Indicator which eliminates
the purchase of a separate hot shoe level for those times you need to
make sure you are trying to get that perfect landscape shot, it can be
leveled through either the viewfinder or the LCD monitor. (Nikon D300S
Features and specifications)
The Unique Selling Proposition of the Nikon D300S is its dual memory card
slot. One slot is for Compact Flash mass storage card (CF cards) and the other
is for a Secure Digital non-volatile memory card (SD cards). These two-memory
card slots help organize images while shooting. If you are shooting video and
pictures, you can separate the two by putting the videos on one and the still
images on the other. Also, if you are shooting JPEGs and raw files, they
can also be separated by memory card. Images or videos can be copied
and pasted between cards. If you are shooting a video, the card with the
most memory left on it can be calculated to make sure that video is placed
on that card.
Since it is the features that sell the camera, and when a purchaser is making
their decision they are looking at the camera itself and not the box, the
packaging will be kept simple to keep costs down. A simple box with the label
of the type of camera in the box is all that is necessary.
Nikon offers a standard 1-year parts and labor Limited Warranty as well as a
toll-free number that can be called for additional support. When in-person
support is necessary, Nikon has local retailers and distributors that it partners
with for help that can be easily contacted.
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PRICE STRATEGY
Unit Cost and profit per unit for Nikon D300S
Cost Break up per unit (Unit price $500)
Materials
Fixed Cost (Salary)
Misc. Fees (Legal)
Total Cost per unit
$
$
$
$
250
125
50
425
The D300S will be sold for $500 to the wholesalers. Based on this model,
profit per unit will be $75.
BREAK-EVEN ANALYSIS
The following calculations are based on estimated fixed and variable costs,
for 1 Million D300S cameras to be sold.
Cost Breakdown (Fixed Cost)
Marketing/Advertising/Graphics
Facility (12 months) - $20,000 monthly
(Lease, Rent, Property Tax)
Overhead (Utilities, Phone, Water, etc.)
12 months - $5.000 monthly
Salaries & Benefits (related to D300S personnel)
Patent & Legal Fees
Subtotal
Fixed cost per unit: $ 1,900,000 / $ 1,000,000 = $ 1.9
Cost Breakdown (Variable Cost) for 1 Million Units
R&D
Materials — $250 per unit
Transport Fees — $5 per unit in bulk
Tax & Tariffs — based on assumed 20% for each unit
Subtotal
$
500,000
$
240,000
$
$
$
$
60,000
1,000,000
100,000
1,900,000
1,000,000
$
$ 250,000,000
$
5,000,000
$ 50,000,000
$306,000,000
Variable cost per unit: $ 306,000,000 / $ 1,000,000 = $ 306
To break even, Nikon needs to sell 9,793 units of the D300S camera.
1,900,000 / (500 [unit price] – 306 [variable cost]) = 9,793 units
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SUGGESTED RETAIL PRICE STRUCTURE FOR THE NIKON D300S
Cost Breakdown
Materials
Fixed Cost (Salary)
Misc. Fees (Legal)
Total Cost per unit
$ 250
$ 125
$
50
$ 425
Tax & Tariffs (based on 20% of $500)
Transport (bulk shipment per unit)
Sub total ($500 +$100 + $5)
$
$
$
Total Unit Cost (Suggested retail price)
$1,815
Profit based on $500 sold per unit ($75)
Wholesaler Mark up (estimated)
Retailer Mark up (estimated)
$
$
100
5
605
605
605
PROMOTION STRATEGY
CREATIVE PRICING STRATEGY AND TACTICS
•
Odd-even Pricing—retail price of 1799.95
•
Offer trade-in discounts: up to so much off ($300) of your D300S
with the trade-in of your used D-SLR
•
•
•
•
•
Quantity Discount Pricing—For schools or photography businesses
offer a discount when purchasing more than one camera.
Seasonal Discount—Christmas and Thanksgiving offer an additional
percentage off
Offer Package deals that could possibly include: one or more lenses,
carrying case, tripod, extra battery, memory card(s), a flash, or a
lens cleaning kit.
Offer Instant Rebates ($150) on other Nikon products with the
purchase of a Nikon D300S
Student Discounts—with student ID receive 30% off
16
CONTROL PLAN
In the event that Nikon does not reach its financial goals for the year due to
possible deviations, Nikon has already created possible solutions.
POSSIBLE DEVIATION
•
Sales suffer a great decrease due to the suffering economy.
•
Sales decline due to the lack of advertising of the product.
•
There is a sudden increase of product substitution from competitors.
POSSIBLE SOLUTIONS
•
•
•
Due to the suffering economy, Nikon sales can potentially drop. If this
scenario should arise, Nikon will then search within a field for potential
future growth where their distribution network can be used. They will
make necessary means to expand worldwide by identifying potential
regions where a promising increase of sales numbers can be expected.
If there is an increase of product substitutes by competitors, Nikon
will search different approaches to make their product more efficient.
Nikon will search opportunities in the high-tech industry and visual
imaging field to capitalize on their product.
Product sales that may decline due to a lack of advertising, Nikon will
have the opportunity to embark on several business promotions outside
the Nikon Group. Nikon will search for elements outside the company
to expand promotion with promoting tie-ups, alliances, mergers, and
several acquirement.
PLACE STRATEGY
Nikon has several affiliates, but our product is mainly seen in specialty stores
such as Houston Camera Exchange and Wolf Camera. To reach potential
consumers and maximize the distribution channels, we recommend that Nikon
do a co-op promotion with the specialty stores in order to help maximize their
budgets as well as get them to feature this camera in their promotions.
17
PROMOTIONAL STRATEGY
As part of the promotional strategy for the Nikon D300S, G.R.C. proposes two
major marketing campaigns for print, online and mass media. The first is
directed towards families and individuals planning for their summer vacation
who want to capture their memorable moments, as well a special campaign
for the Houston FotoFest, starting in April 2010. This group of consumers
could be first-time purchasers of a digital SLR, or hobby photographers who
want to make the switch from traditional 35 mm film cameras to digital
cameras, or for photographers who plan on upgrading their current
D-SLR camera.
The second campaign would be initiated in mid-to-late fall and would be
directed towards professional photographers, businesses and organizations
that plan on purchasing new equipment to take advantage of the fourth quarter
corporate spending as well as the following year’s tax incentives. A tertiary
target group is present for the fall campaign – students, especially those in
the field of photography, who choose to purchase their own equipment.
This could be combined with a targeted campaign towards educational
organizations only.
There are two key strategies for each campaign, which could be potentially
combined:
•
•
A special offer of bundled components, such as the D300S and an
18-to-135 mm lens.
A coupon reimbursement offer that would allow capturing consumer
behavior data for future targeted online marketing.
(See exhibit 9 – Promotion Details)
G.R.C. Marketing Group proposes a media and advertising campaign for the
Nikon D300S camera, which will be focusing on the Houston, Texas, area.
Media channels include print advertising in local newspapers and magazines,
with a special national ad campaign sponsored by Nikon, in several trade
magazines such as Digital Photo, PC Photo, and Outdoor Photographer. This
special campaign will be targeted towards the FotoFest event in March 2010
in Houston, and is part of an integrated marketing strategy that will utilize
online banner space to increase awareness nationwide prior to the arrival of
visitors and participants. Our secondary goal is to set a foundation for other
cities to join for similar events across the U.S.
18
MEDIA PLAN
Magazine
•
•
•
Houston Symphony – Monthly advertising in several different spots
and sizes. They include 12 Back cover, Inside Front cover, 1/2-page,
and Center spread in color, and 1/3-page in black & white ads.
Digital Photo Pro – 3 monthly issues – February, March and April of
2010. Ads will start running one month prior the Photo Fest event
start in Houston, Texas, and will end when the event ends on April 25,
2010. Ads include 3 Full page, Cover 2, 1/2-page in color, and 3 1/3
page in black & white.
PC Photo – 3 monthly issues – February, March and April 2010. Ads
will start running one month prior the FotoFest event in Houston,
Texas, and will end, when event ends on April 25, 2010. Ads include 3
Full page, Cover 2, 1/2-page in color, and 3 1/3 page in black & white.
Newspaper
•
•
Houston Symphony – Monthly advertising in several different spots
and sizes. They include 12 Back cover, Inside Front cover, 1/2-page,
and Center spread in color, and 1/3-page in black & white ads.
Houston Press – Weekly (52) Jr. Premium print advertisements for
12 months.
Email Blast and Direct Mail
Both email and direct mail strategies will be a combined deployment of local
retailers with co-op support from Nikon. Combined US mailings and email
blasts will contain special incentives for potential customers: for example, buy
the camera and get an upgraded memory card. Direct mail postcard will be
sent in February, and the e-mail blast will be sent in September.
Online Banner Campaigns
We allocated $60,000 for Google (Ad Words) and Yahoo! ad placements and
will monitor and control deployment at various times of the day and week,
as well as the number of clicks. The banners for Google and Yahoo! will be
running the entire year for constant exposure.
A more focused banner campaigns will be deployed before the Houston
FotoFest. Banners include Leaderboards at 728x90 pixels, for 4 issues of
19
e-newsletters of each. Outdoor Photographer, PC Photo, and Digital Photo Pro
(Werner Publishing) magazines, and their corresponding home pages,
measured at 200,000 (CPM – Cost per thousand). They will be deployed starting
in January, and will run until the end of April. Cost for each e-publication is
$2,395. The budget for each of the three publication web sites is allocated
at $18,000.
The following is a detailed break down of the various print and online
advertising components:
Line Item Budget
Magazine & Newspaper Print Advertising
Digital Photo Pro (3x – various sizes and cover)
Nikon co-op sponsored
PC Photo (3x – various sizes and cover)
Nikon co-op sponsored
Houston Symphony (12x – Full Page Back
cover & Inside)
Houston Press (Junior Premium 52 Weeks)
Direct Mail (Co-Op with
local retailers)
Postcards (estimated)
$
65,455
$
43,365
$
16,530
$
91,468
$
$
30,000
50,000
$
80,000
$
30,000
$
30,000
$
7,185
Online Email Blasts (Co-Op with local retailers)
Campaign Monitor bulk mailing (100,000 recipients
@ 0.8 cents)
Online Banner Advertising
Yahoo! (Depending on imprints and clicks) – sponsored
Google Ad Words (Depending on imprints and clicks)
Nikon co-op sponsored
Werner Publishing (4 x Banner Ads for newsletter)
Nikon co-op sponsored
Werner Publishing (Banner Ads on home pages)
Nikon co-op sponsored
Total Advertising Cost
(See exhibit 9 – Media Buy Flow Chart)
(See exhibit 10 to 15 – 2009 Advertising Rates & Samples)
$ 54,000
$498,003
20
PLACE (DISTRIBUTION) STRATEGY
Nikon partners with UPS Supply Chain Solutions to provide a solid distribution
network. The network includes; supply chains, logistics, transportation, and
freight & customs brokerage services. Nikon is responsible for keeping skilled
customer service primary, and keeping distributors and retailers updated on
product availability. With UPS Supply Chain Solutions, Nikon will reach its sales
goals of $5 million by distributing in areas within the United States, Latin
America, and the Caribbean.
Nikon's merchandise starts at manufacturing centers in Korea, Japan, and
Indonesia. Air and ocean freight, and customs brokerage are managed by UPS
Supply Chain Solutions which are all forwarded to UPS's global operations and
logistics center main campus in Louisville Kentucky. Here, Nikon's products are
"kitted" with batteries, chargers, and with any type of needed accessory. The
products is then repackaged to meet the requirements of Nikon's in-store
display arrangements and are shipped for export within the United States, to
Latin American and Caribbean retail outlets and distributors for customers
purchase.
To keep track of their products, UPS Supply Chain Solutions provides
“SKU-Level” visibility and provides Nikon with advance shipment notifications
throughout the U.S, Caribbean & Latin American markets. This method gives
Nikon a glance of the supply chain that rivals their performance. (See Exhibit
16 – Distribution Flow Chart)(See Exhibit 17 – UPS Supply Chain Solution)
21
WORKS CITED
(2009). About Us/Overview. Retrieved August 17, 2009, from American City
Business Journal
Nikon | About Nikon | Responsibility / Safety Design Principle. Retrieved
July 14, 2009, from http://www.nikon.com/about/csr/customers/productsafety/index.htm
Nikon’s competitive edge. Email correspondence. Retrieved July 16 2009.
Exhibit 1a and 1b
Peppers & Rogers Group, "Turning Customer Experiences Into Competitive
Edge:Nikon's Journey to Leadership." (2006): 5. Print.
"Nikon|Corporate Info|Nikons Philosophy." Nikon. 2008. Nikon Group.
16 Aug 2009 <http://www.nikon.com/about/info/philosophy/index.htm>.
Nikon | Corporate Info | Products History (Corporate / Cameras / Movie and
Digital Imaging Equipment and Others). (n.d.). Retrieved July 14, 2009,
from http://www.nikon.com/about/info/history/products/index.htm
Nikon, Fact Book 2008 English Edition 16. Print. Exhibit 2
Nikon Instruments Inc. | News | US News | Company Backgrounder. (n.d.).
Retrieved July 17, 2009, from http://www.nikoninstruments.com/News/USNews/Company-Backgrounder
Nikon | Responsibility | Production of Safe Products. (n.d.). Retrieved
July 16, 2009
http://www.nikon.com/about/csr/customers/product-safety/index.htm
Nikon | Responsibility | Quality Control. (n.d.). Retrieved July 15, 2009,
from http://www.nikon.com/about/csr/customers/quality-control/index.htm
Nikon | Responsibility | Relationship with Customers. (n.d.). Retrieved
July 15, 2009, from http://www.nikon.com/about/csr/customers/index.htm
Nikon | Responsibility | Role in Society. (n.d.). Retrieved July 15, 2009, from
http://www.nikon.com/about/csr/society/index.htm
About PENTAX - Company History and Timeline. (n.d.). Retrieved July 25,
2009, from http://www.pentaximaging.com/about/history
AnnualReports.com. (n.d.). Retrieved August 8, 2009, from
http://www.annualreports.com/About
22
CEA: About CEA - About CEA. (n.d.). Retrieved August 8, 2009, from
http://www.ce.org/AboutCEA/default.asp
Canon : Corporate Info. (n.d.). Retrieved July 24, 2009, from
http://www.canon.com/corp
Canon | Environmental Activities | Vision for 2010 : Factor 2. (n.d.).
Retrieved July 24, 2009, from
http://www.canon.com/environment/vision/factor2.html,
http://www.canon.com/environment/vision/vision.html
Census Bureau Home Page. (n.d.). Retrieved July 29, 2009, from
http://www.census.gov
Canon | Environmental Activities. (n.d.). Retrieved July 24, 2009, from
http://www.canon.com/environment
Feldman, D. S. (n.d.). Business Activity Code, NAICS Code, SIC Code &
Industry Search. Retrieved July 29, 2009, from http://www.naicscode.com
"Examples Of Positioning Statements." Business Plans to Start and Grow
your Business.. 15
Aug. 2009 <http://www.growthconnection.com/Examples-OfPositioningStatements.htm>
IR Solutions. (n.d.). Retrieved August 8, 2009, from
http://www.irsolutions.com/irSolutions-productsservices.html NAICS & SIC
Updates, Manuals, Reference Files & Database
Enhancements. (n.d.). Retrieved July 29, 2009, from http://www.naics.com
Nikon Competition . (n.d.). Retrieved July 25, 2009, from
corptv.datiq.net/asml/Q22009/index.html nikon.com - Quantcast Audience
Profile. (n.d.).Retrieved July 31, 2009, from
http://www.quantcast.com/nikon.com#demographics
Nikon’s competitive edge. Email correspondence. Retrieved July 16 2009.
Exhibit 1a and 1b
Peppers & Rogers Group, "Turning Customer Experiences Into Competitive
Edge:Nikon's Journey to Leadership." (2006): 5. Print.
"Nikon|Corporate Info|Nikons Philosophy." Nikon. 2008. Nikon Group. 16
Aug 2009 <http://www.nikon.com/about/info/philosophy/index.htm>.
23
Nikon | Corporate Info | Products History (Corporate / Cameras / Movie and
Digital Imaging Equipment and Others). (n.d.). Retrieved July 14, 2009,
from http://www.nikon.com/about/info/history/products/index.htm
Nikon, Fact Book 2008 English Edition 16. Print. Exhibit 2
Nikon Instruments Inc. | News | US News | Company Backgrounder. (n.d.).
Retrieved July 17, 2009, from http://www.nikoninstruments.com/News/USNews/Company-Backgrounder
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http://www.nikon.com/about/ir/index.htm
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http://www.ansi.org/about_ansi/overview/overview.aspx?menuid=1
Nikon | Responsibility | Production of Safe Products. (n.d.). Retrieved July
16, 2009, from http://www.nikon.com/about/csr/customers/productsafety/index.htm
Nikon | Responsibility | Quality Control. (n.d.). Retrieved July 15, 2009,
from http://www.nikon.com/about/csr/customers/quality-control/index.htm
Nikon | Responsibility | Relationship with Customers. (n.d.). Retrieved
July 15, 2009, from http://www.nikon.com/about/csr/customers/index.htm
Nikon | Responsibility | Role in Society. (n.d.). Retrieved July 15, 2009, from
http://www.nikon.com/about/csr/society/index.htm
PENTAX Photo Gallery. (n.d.). Retrieved July 24, 2009, from
http://www.pentaxphotogallery.com/home
Pentax - Wikipedia, the free encyclopedia. (n.d.). Retrieved July 25, 2009,
from http://en.wikipedia.org/wiki/Pentax
"PEST Analysis." Strategic Management. 2007. 17 Aug 2009
<http://www.quickmba.com/strategy/pest/>.
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Sony Global - Affiliated Companies(Japan). (n.d.). Retrieved July 27, 2009,
from http://www.sony.net/SonyInfo/CorporateInfo/Subsidiaries/index.html
Sony Global - Procurement and Purchasing. (n.d.). Retrieved July 23, 2009,
from http://www.sony.net/SonyInfo/procurementinfo/index.html
24
"PEST Analysis." QuickMBA: Accounting, Business Law, Economics,
Entrepreneurship, Finance, Management, Marketing, Operations, Statistics,
Strategy. 2 Sep. 2009
<http://www.quickmba.com/strategy/pest/>.
(2008). Nikon | News | Vision Nikon 21. Retrieved August 31, 2009, from
Nikon Web site:
http://www.nikon.com/about/news/2000/principal.htm
Nikon D300S Points of Difference. Retrieved September 24, 2009, from
http://photo.net/equipment/nikon/D300s/preview/,
Product brochure (PDF )
Nikon D300S Features and specifications. Retrieved September 24, 2009, from
http://imaging.nikon.com/products/imaging/lineup/digitalcamera/slr/d300s/
"UPS Supply Chain Solutions - Nikon Consumer Goods." 2005. UPS/NIKON.
7 Sep 2009
Yahoo! Online advertising - http://adspecs.yahoo.com/index.php
Email Blast - http://www.campaignmonitor.com/pricing/
25
APPENDIX
26
EXHIBITS
Exhibit 1 - Email Correspondence
Gmail - Nikon's competitive edge
http://mail.google.com/mail/?ui=2&ik=329c5a3db3&view=pt&ca...
Ron Tayyab <rontayyab@gmail.com>
Nikon's competitive edge
Fasano Edward R. <efasano@nikon.net>
To: Ron Tayyab <ron.tayyab@gmail.com>
Thu, Jul 16, 2009 at 12:10 PM
Ron,
I'm afraid that time is an extremely valuable commodity that collides with a surprising number of requests
such as yours. Still, we are flattered that our brand is occasionally viewed as a model for study. In any case, I
offer the following, albeit brief and less than ideally ordered responses to your question.
Nikon Inc., a wholly-owned subsidiary of Nikon Corporation in Tokyo. We are one of Nikon
Corporation's major marketing centers (a Kyoten), with sales, marketing and service responsibilities for
North and South America and the Caribbean.
As the historical information on various Nikon websites indicates, the company's roots, and arguably
one of its core competencies is considerable expertise in optical engineering, combined with the
essential resources and infrastructure to execute against that expertise.
However, optical design expertise does not, by itself, necessarily provide an ideal foundation for the
design, manufacture and marketing of photographic products. This is where another layer of core
competency comes into play. As obvious as it may sound, Nikon (unlike many competing consumer
electronics companies, and even some competing photographic manufacturers), has a vast knowledge
of, and deep respect for, things photographic. And because optical design, as it relates to the
development of interchangeable lenses, is sometimes as much art as it is science, this combination of
competencies, mixed with protected values contributes to perhaps our most important unique selling
proposition—NIKKOR interchangeable lenses. This USP, stemming from core competencies, yields a
special (if not unique) sustainable competitive advantage.
Certainly though, Nikon's expertise is not limited to optics. SLR cameras (once film and now
overwhelmingly digital), Speedlights and system accessories, together with NIKKOR lenses contribute
to the strength of the photographic brand that is Nikon. Nikon is, by no means, a small company. But,
we are smaller than our nearest competitor. Some would say (and I have) that our brand is bigger than
we are. We work very hard, and often make some challenging decisions, to sustain that.
The Nikon brand, for what it represents; combined with the Nikon photographic system for its
capabilities, come together to create something against which, competing in a meaningful way, is no
easy task. At the same time, it is no easy task (for those of us at Nikon) to remain intensely focused on,
and to aggressively protect the fundamental values that helped get us to where we are. But, the
potential (and historically-proven) reward for doing so is the ability to remain a brand against which
competing is difficult.
Much of the above substantiates a fascinating business culture, within which both the brand and
photography itself are held in exceptionally high regard. Nikon's core beliefs go beyond mission
statements on a plaque or platitudes in company newsletters. When a majority of employees share a
similar mindset as a matter of course, it has a natural and positive effect on decision-making at virtually
every level. More times than not, this decision-making effect leads to decisions that are (1) correct and
(2) serve to protect the brand and the corporation’s values.
Clearly, Nikon has meaningful competition. That competition makes us a better company. And I would
1 of 3
7/17/09 6:18 PM
27
Exhibit 1 - Email Correspondence
Gmail - Nikon's competitive edge
http://mail.google.com/mail/?ui=2&ik=329c5a3db3&view=pt&ca...
submit that they would admit that we also make them better company. An important result of this is
better value and higher performance for discriminating photographers and casual picture takers alike.
When occasionally asked, from a marketing perspective, what is the single most important thing a
marketing manager can and should do; my response is always the same. Before all else, protect your
brand.
One important way in which we protect the brand is our deep appreciation for the images that our
products are capable of generating.
Another and much more tedious way in which we protect the brand is linked to truthfulness. A
surprising number of photographic images used in the advertising of photographic merchandise
(visually suggesting or plainly stating the capabilities of the hero product) weren't captured with that
hero product. In many instances, stock images are selected and licensed with little, if any regard for
what equipment was used for their capture. And in other instances, a manufacturer may use
professional-grade equipment to produce images that will ultimately be used to demonstrate the
capabilities of much lesser products. Nikon end-result images that appear in advertising, on packaging,
point of purchase materials, websites and more, must first meet the stringent requirement of having
been captured with the product to which they are being associated. Candidly, we get little credit for this.
Still, it is something that we feel is (1) right and (2) is one of those elements that protects the brand. In
the end, it also helps us sleep better at night.
I'm going to guess that this series of scattered responses may not be what you expected, but I hope that they
offer you some insight that will allow you and your team to refine your own conclusions.
Good luck with your studies and your business future.
Edward R Fasano
General Manager, Marketing, SLR System Products
Nikon Inc.
1300 Walt Whitman Road
Melville NY 11747-3064
Office: 631-547-4003
Fax: 631-547-0309
efasano@nikon.net
www.nikonusa.com
From: rontayyab@gmail.com [mailto:rontayyab@gmail.com] On Behalf Of Ron Tayyab
Sent: Wednesday, July 15, 2009 12:23 PM
To: Fasano Edward R.
Subject: Nikon's competitive edge
[Quoted text hidden]
2 of 3
7/17/09 6:18 PM
28
Exhibit 2 - Nikon Corporate Structure
Structure of Nikon Group
As of July 1, 2008
General Shareholders’ Meeting
Board of Directors
Representative Director, President, CEO & COO
Corporate Auditors/Board of Corporate Auditors
Executive Committee
Internal Audit Department
Corporate Planning Department
Financing & Accounting Department
Corporate Communications & IR Department
Affiliates Administration Department
Business Development Headquarters
Information System Headquarters
Hikari Glass Co., Ltd.
Nikon Optical Shop Co., Ltd.
Nikon Vision Co., Ltd.
Nikon Engineering Co., Ltd.
Nikon Americas Inc.
Nikon Holdings Europe B.V.
Nikon-Essilor Co., Ltd.
Nikon-Trimble Co., Ltd.
Nikon Systems Inc.
Intellectual Property Headquarters
Business Administration Center
Nikon Business Service Co., Ltd.
Nikon Tsubasa Inc.
Core Technology Center
Research & Development Headquarters
Production Technology Headquarters
Precision Equipment Company
Sales Headquarters
Development Headquarters
Production Headquarters
Mito Nikon Precision Corporation
Zao Nikon Co., Ltd.
Tochigi Nikon Precision Co., Ltd.
Sendai Nikon Precision Corporation
Nikon Tec Corporation
Nikon Precision Inc.
Nikon Research Corporation of America
Nikon Precision Europe GmbH
Nikon Precision Korea Ltd.
Nikon Precision Taiwan Ltd.
Nikon Precision Singapore Pte Ltd
Nikon Precision Shanghai Co., Ltd.
LCD Equipment Division
Imaging Company
Marketing Headquarters
Development Headquarters
Production Headquarters
Instruments Company
Customized Products Division
Tochigi Nikon Corporation
Sendai Nikon Corporation
Nikon Imaging japan Inc.
Nikon Inc.
Nikon Canada Inc.
Nikon Europe B.V.
Nikon AG
Nikon GmbH
Nikon U.K. Ltd.
Nikon France S.A.S.
Nikon Nordic AB
Nikon Kft.
Nikon s.r.o.
Nikon Polska Sp.z o.o.
Nikon Hong Kong Ltd.
Nikon Singapore Pte Ltd
Nikon (Malaysia) Sdn. Bhd.
Nikon Imaging (China) Sales Co., Ltd.
Nikon Australia Pty Ltd
Nikon India Private Limited
Nikon Imaging Korea Co., Ltd.
Nikon (Thailand) Co., Ltd.
Nikon Imaging (China) Co., Ltd.
Nikon International Trading (Shenzhen) Co., Ltd.
Guang Dong Nikon Camera Co., Ltd.
Hang Zhou Nikon Camera Co., Ltd.
Kurobane Nikon Co., Ltd.
Nikon Instech Co., Ltd.
Nikon Instruments Inc.
Nikon Instruments Europe B.V.
Nikon Instruments S.p.A.
Nikon Instruments (Shanghai) Co., Ltd.
Nikon Instruments Korea Co., Ltd.
Nanjing Nikon Jiangnan Optical Instrument Co., Ltd.
Glass Division
16
29
Exhibit 3 - Nikon S.W.O.T. Analysis
v
v
v
v
v
v
v
Strengths
Core competency: Manufacturing of
precision optics and high-quality
lenses (NIKKOR).
Expertise: Long-term research and
development in optical technology,
camera development, processing
technology and other technological
innovations forged by history and
preserved tradition. Continuous
collection of data and responses,
research and development at its Core
Technology Center.
Market share: Global market
penetration with subsidiaries in Asia,
the Americas, Europe and Australia.
Quality: Almost 100 years of
reputable brand building.
Client relationship: Vision Nikon 21 superior customer service strategy by
listening to the needs of customers and
improved response rate.
Corporate culture: Motivating
corporate culture radiation outwards
and environmental-friendly
manufacturing process.
Business operation: Rapid
management response system to
quickly adapting to frequently
changing business climate.
v
v
Weaknesses
Pricing structure: Nikon
photographic products are relatively
expensive to the average consumer.
Often competitors such as Canon
and Pentax develop comparable
products that are packed with more
advanced features.
Product awareness: Nikon is
known for its development of
photographic equipments. However
Nikon is a competent player in many
other areas, especially in the
development of semi-conductor
technology, and / or in areas of
Electron Projection Lithography.
30
Exhibit 3 - Nikon S.W.O.T. Analysis
v
v
v
v
v
Opportunities
Niche market development: Semiconductor wafer technology.
Web 2.0 integration:
my Picturetown® – online image
storage, viewing and distribution
application, enabled through Wi-Fi
technology.
Growing emerging markets:
Affordable consumer products in the
field of photography for both the
casual and professional user and
shortening the product replacement
cycle.
Broader features and advanced
technology: Shift from digital picture
taking to HD video capabilities,
broadened field for development to
post-photography image processing
and viewing.
Sales regions: Will widen
considerably with growth in markets
following economic development in
emerging markets.
Threats
Serious Threats
v Semi-conductor technology:
Long-term continuing shrinkage.
v Fierce competition: ASML/Zeiss
Alliance in optical technology in the
semi-conductor sector; CANON and
PENTAX camera development of
affordable HD video able D-SLRs.
Probable Threats
v Pricing structure: Nikon
photographic products are relatively
expensive to the average consumer.
Often competitors such as Canon
and Pentax develop comparable
products that are packed with more
advanced features.
v Economy: Global economic
downturn, hence less consumer
spending.
31
Exhibit 4 - Pentax S.W.O.T. Analysis
v
v
v
v
v
v
v
v
v
v
Strengths
Core competency: Manufacturing of
precision optics, superb lens polishing
technology and cameras.
Expertise: Long-term research and
development in optical technology and
camera development. Branching off
into medical and surgical optical
device development and scopes for
recreational use.
Market share: Global market
penetration with strong foothold the
U.S., Asia and Europe.
Quality: Almost 100 years of
reputable brand building (like Nikon).
Business operation:
Rapid development of products and
ability to adapt to the fast changing
business environment.
Pricing structure: Affordable highquality equipment.
Opportunities
Niche market development:
Medical and surgical product
expansion. Riflescopes and digital
binocular manufacturing.
Web 2.0 integration: pentaxian.com
and pentaxphotogallery.com –
viewing, sharing and distribution
application.
Growing emerging markets:
Affordable consumer products for
photographic cameras, for both the
casual and professional user. Digital
compact camera market expansion.
Technology: Broader features and
advanced technology. Shift from
digital picture taking to HD video
capabilities.
v
v
v
v
v
Weaknesses
Business operation: Internal
turmoil caused by recent mergers
and management turnover.
Availability of lenses: a) high
demand and not being able to
produce, and b) range of lens
products.
Threats
Competition: Nikon and Canon
camera development of HD video
able D-SLRs.
Economy: Global economic
downturn, hence less consumer
spending.
Business Operation: Shareholder
input and pressure.
32
Exhibit 5 - Canon S.W.O.T. Analysis
v
v
v
v
v
v
v
v
v
v
v
Strengths
Experience: 72 yrs.
Striving to improve on safety of
people who produce our products and
improving on the products themselves.
The Global Environment Strategic
Expert Committee: goal to strengthen
environmental management.
Expansion: people connected to the
company and the regions Canon
resides in increases daily.
Energy Conservation: Factor 2
introduction-energy saving equipment
brought into production facilities as
well as products being produced that
are more efficient, smaller and lighter.
Competitive pricing
Main Product Focus: from
inception; cameras.
Corporate Culture: San-ji which
means Three Selves: self-motivation,
self-management, and self-awareness
Opportunities
Possible merger with competing
companies to reduce competition.
Acquiring experts with knowledge to
help improve products more efficiently
and quickly.
Expansion of advertising to create
knowledge to potential customers.
v
v
v
v
v
v
v
v
Weaknesses
Pricing: D-SLR’s are a higher-end,
more expensive product, not
affordable by all.
Technology Based Corporation:
Ever changing technology, must
always keep up.
Global: not as Global as main
competitor, Nikon
Customer relationship: stronger
focus on environment and employee
concerns.
Threats
Potential decline in demand.
Nikon is extremely strong
competition-technology expansion
similarly paced.
Construction delays for
prospective expansion.
Unforeseen lawsuits
33
Exhibit 6 - Sony S.W.O.T. Analysis
v
v
v
v
v
v
Strengths
Affiliates: expansion with several
companies within and outside of
Japan. Ex: Sony Life Insurance Co.,
Ltd, Sony Institute of Higher
Education Shohku College, Sony Corp
of America, and Sony de Mexico S.A
de C.V.
Customer and Supplier Loyalty:
High level of expectation with
customers and suppliers from all
backgrounds.
Prices: Lower product prices vs.
Nikon and Canon product prices.
Procurement Activities: Enhancing
Sony Brand Equity, Competitive
Products, and Strengthening Profits
with lower material cost and great
operational output
Opportunities
Corporations: Offer marketable
corporations such as banking
opportunities or higher education
learning worldwide.
Environmental: Market their
approach globally of environmental
research and safe production
v
v
v
v
Weaknesses
Customer Service: Lack of
customer service / sale service
satisfaction. This important factor
can drive away long-term
customers.
Environmental: Lack of an
established environmental safety
plan for production of their products
Threats
Production Safety: Nikon's
customer satisfaction and
environmental approach for their
products. (Nikon's 'Safety Design
Principle').
Customer Service: Nikon's 'Vision
Nikon 21'. SONY's lack in customer
service satisfaction can damage
customer loyalty
34
Exhibit 7 - Market Segments - Table 1
MARKETS
SECTOR
SEGMENT
PRODUCTS
< 10 MP*
10 MP
12 MP
24 MP
Students
Consumer
Teachers
Individuals
Amateur
Education
Studios
Professonal
Agencies
Research
Gov./Military
Table 1
*Megapixels
35
Exhibit 8 - U.S. Demographics
36
Exhibit 9 - Media Buy Flow Chart
37
Exhibit 10 - Houston Symphony Rates
THE HOUSTON SYMPHONY – WHERE YOUR
MESSAGE MEETS MILLIONAIRES…AND MORE!
OFFICIAL PROGRAM GUIDE OF THE HOUSTON SYMPHONY
Read by elite, luxury consumers of high-end goods and services
Hand-delivered at every Houston Symphony performance – more
than 100 annually
0% newsstand waste
Pass-along readership 625,000
Attract business owners and executives, loyal arts patrons,
high-wealth Houstonians
Year-round distribution at prestigious Jones Hall
DEMOGRAPHICS
• 1 in 6 patrons are millionaires. Average income: $180K
• 70%+ CEOs, business owners, executives, decision-makers
• 88% own stocks and bonds
• 21% own second homes
• 81% visit galleries and museums
• 61% dine out frequently each week
FOUR COLOR
2X
4X
6X
12X
4,620
ADVERTISING
RATES
BACK COVER
5,890
5,595
5,305
INSIDE FRONT COVER
4,855
4,615
4,370
3,810
INSIDE BACK COVER
4,450
4,230
4,005
3,490
Circulation: 250,000
Pass-along: 625,000
FULL PAGE
3,600
3,420
3,240
2,825
Frequency: Monthly
2/3 PAGE
2,680
2,545
2,410
2,100
1/2 PAGE
2,120
2,015
1,905
1,665
1/3 PAGE
1,505
1,430
1,355
1,180
1/6 PAGE
1,155
1,045
990
860
CENTER SPREAD
7,725
7,335
6,600
5,605
BLACK AND WHITE
2X
4X
6X
12X
FULL PAGE
2,585
2,450
2,325
2,020
2/3 PAGE
1,890
1,760
1,670
1,455
1/2 PAGE
1,525
1,405
1,340
1,165
1/3 PAGE
1,080
1,010
955
830
1/6 PAGE
725
670
640
555
PRICING FOR PREFERRED POSITIONS AVAILABLE UPON REQUEST
38
Exhibit 11 - Digital Photo Pro Cover
39
Exhibit 12 - Digital Photo Pro Rates
®
Rate Card #8
Effective January 2009
GENERAL ADVERTISING RATES
BLACK & WHITE
1 time
3 times
6 times
Full Page $11,175 $10,740 $10,320
9 times 12 times 18 times
$9,910
$9,505
$9,125
2/3 Page
8,515
8,170
7,835
7,525
7,240
6,965
1/2 Page
6,485
6,210
5,970
5,730
5,495
5,295
1/3 Page
4,940
4,740
4,540
4,360
4,185
4,025
1/4 Page
3,760
3,585
3,450
3,330
3,185
3,065
1/6 Page
2,855
2,730
2,635
2,515
2,435
2,330
1/12 Page
2,195
2,090
2,020
1,915
1,855
1,775
1-inch
1,120
1,065
1,015
965
950
895
BLACK & 1 PROCESS COLOR
1 time
3 times
6 times
9 times 12 times 18 times
Full Page $12,725 $12,225 $11,750 $11,275 $10,820 $10,385
2/3 Page
9,705
9,290
8,935
8,575
8,240
7,915
1/2 Page
7,360
7,085
6,785
6,530
6,265
6,030
1/3 Page
5,600
5,380
5,175
4,975
4,760
4,580
1/4 Page
4,260
4,105
3,925
3,780
3,640
3,475
FOUR-COLOR
1 time
3 times
6 times
9 times 12 times 18 times
2009
RATES
SPECIAL CLASSIFICATION
BLACK & WHITE
1 time
Full Page $7,765
2/3 Page
5,905
1/2 Page
4,495
1/3 Page
3,425
1/4 Page
2,610
1/6 Page
2,000
1/12 Page 1,520
1-inch
780
3 times
$7,460
5,695
4,345
3,285
2,515
1,915
1,480
765
6 times 9 times 12 times 18 times
$7,165 $6,885 $6,625 $6,335
5,450 5,240
5,015
4,830
4,165 4,005
3,825
3,690
3,165 3,040
2,925
2,805
2,395 2,310
2,235
2,135
1,840 1,755
1,675
1,640
1,400 1,355
1,305
1,255
705
680
660
645
BLACK & 1 PROCESS COLOR
1 time 3 times 6 times 9 times 12 times 18 times
Full Page $9,005 $8,650 $8,320 $7,980 $7,680 $7,360
2/3 Page
6,865
6,605
6,335
6,070
5,835
5,600
1/2 Page
5,210
5,015
4,815
4,615
4,425
4,260
1/3 Page
3,985
3,810
3,665
3,520
3,385
3,230
1/4 Page
3,025
2,910
2,790
2,685
2,570
2,470
FOUR-COLOR
1 time 3 times
Full Page $10,555 $10,150
2/3 Page
8,035
7,715
1/2 Page
6,125
5,890
1/3 Page
4,665
4,475
1/4 Page
3,545
3,400
6 times
$9,745
7,405
5,650
4,280
3,270
9 times 12 times 18 times
$9,365 $8,990 $8,630
7,120
6,845
6,550
5,410
5,190
4,995
4,120
3,945
3,810
3,145
3,025
2,910
Full Page $14,895 $14,315 $13,765 $13,205 $12,650 $12,150
2/3 Page
11,335
10,895
10,465
10,025
9,625
9,250
1/2 Page
8,630
8,285
7,955
7,625
7,335
7,020
1/3 Page
6,550
6,285
6,050
5,815
5,575
5,360
1/4 Page
4,995
4,775
4,595
4,425
4,240
4,060
3 times
6 times
COVERS
1 time
Cover 2
9 times 12 times 18 times
$16,680 $16,025 $15,395 $14,775 $14,180 $13,600
Cover 3
15,805
15,160
14,555
14,000
13,420
12,885
Cover 4
17,880
17,165
16,505
15,825
15,190
14,590
MARKETPLACE
4.75-inch
3-inch
2-inch
1-inch
1 time
$1,610
1,360
1,000
640
3 times
$1,545
1,310
965
610
6 times
$1,490
1,1250
920
590
CLASSIFIEDS
Words
Red Words
Borders
$35
50
65
each
each
Bleed covers and body units are an additional 10%. No charge for gutter bleed only. Oversized material that requires bleed handling will be charged the bleed premium.
WERNER PUBLISHING CORPORATION • 12121 WILSHIRE BOULEVARD, SUITE 1200, LOS ANGELES, CA 90025
PHONE: (310) 820-1500 • FAX: (310) 826-5008 • WWW.DIGITALPHOTOPRO.COM
40
Exhibit 13 - PC Photo Cover
41
Exhibit 14 - PC Photo Rates
®
Rate Card #14
Effective January 2009
GENERAL ADVERTISING RATES
BLACK & WHITE
1 time
3 times
6 times
2009
RATES
SPECIAL CLASSIFICATION
BLACK & WHITE
9 times 12 times 18 times
1 time
3 times
6 times
9 times 12 times 18 times
Full Page $14,970 $14,365 $13,800 $13,245 $12,715 $12,205
Full Page $10,995 $10,560 $10,135
$9,725
$9,340
$8,965
2/3 Page
11,380
10,930
10,485
10,070
9,660
9,280
2/3 Page
8,360
8,025
7,705
7,400
7,105
6,810
1/2 Page
8,655
8,310
7,975
7,655
7,345
7,055
1/2 Page
6,360
6,105
5,855
5,625
5,400
5,185
4,825
4,640
4,455
4,275
4,105
3,940
1/3 Page
6,580
6,315
6,070
5,820
5,585
5,365
1/3 Page
1/4 Page
5,000
4,800
4,605
4,430
4,250
4,075
1/4 Page
3,680
3,525
3,390
3,260
3,125
3,000
1/6 Page
3,810
3,655
3,505
3,370
3,230
3,110
1/6 Page
2,800
2,685
2,575
2,480
2,375
2,280
1/12 Page
2,895
2,780
2,670
2,565
2,465
2,365
1/12 Page
2,130
2,050
1,955
1,885
1,805
1,735
1-inch
1,450
1,395
1,340
1,290
1,240
1,190
1-inch
1,070
1,030
985
955
915
870
BLACK & 1 PROCESS COLOR
BLACK & 1 PROCESS COLOR
1 time
3 times
6 times
9 times 12 times 18 times
Full Page $16,840 $16,160 $15,515 $14,900 $14,305 $13,730
2/3 Page
12,800
12,290
11,805
11,325
10,870
10,435
1/2 Page
9,730
9,340
8,970
8,610
8,265
7,930
1/3 Page
7,400
7,100
6,815
6,550
6,290
6,035
1/4 Page
5,630
5,395
5,190
4,975
4,780
4,590
1 time
3 times
6 times
9 times 12 times 18 times
Full Page $12,850 $12,330 $11,835 $11,370 $10,910 $10,470
2/3 Page
9,770
9,375
8,995
8,640
8,290
7,965
1/2 Page
7,425
7,125
6,840
6,565
6,300
6,055
1/3 Page
5,645
5,425
5,200
5,000
4,800
4,605
1/4 Page
4,290
4,120
3,955
3,805
3,650
3,505
FOUR-COLOR
FOUR-COLOR
1 time
1 time
3 times 6 times
9 times 12 times 18 times
3 times
6 times
9 times 12 times 18 times
Full Page $14,675 $14,095 $13,535 $12,990 $12,470 $11,970
Full Page $22,470 $21,570 $20,710 $19,880 $19,090 $18,325
2/3 Page
10,285
9,880
9,480
9,100
2/3 Page
17,080
16,400
15,740
15,110
14,510
13,930
1/2 Page
8,490
8,145
7,825
7,510
7,205
6,920
1/2 Page
12,980
12,470
11,970
11,490
11,030
10,595
1/3 Page
6,455
6,190
5,940
5,710
5,480
5,265
1/3 Page
9,870
9,475
9,100
8,735
8,380
8,045
1/4 Page
4,905
4,710
4,525
4,345
4,170
4,005
1/4 Page
7,500
7,210
6,910
6,640
6,375
6,125
11,160 10,720
MARKETPLACE
COVERS
1 time
Cover 2
3 times
6 times
9 times 12 times 18 times
$25,330 $24,315 $23,345 $22,410 $21,510 $20,655
1 time
3 times
6 times
9 times
$1,820
$1,745
$1,675
$1,630
3-inch
1,360
1,310
1,250
1,215
4.75-inch
Cover 3
24,340
23,360
22,430
21,540
20,670
19,850
2-inch
1,000
965
925
895
Cover 4
26,220
25,170
24,175
23,210
22,275
21,385
1-inch
640
640
590
575
Bleed covers and body units are an additional 10%. No charge for gutter bleed only. Oversized material that requires bleed handling will be charged the bleed premium.
WERNER PUBLISHING CORPORATION • 12121 WILSHIRE BOULEVARD, SUITE 1200, LOS ANGELES, CA 90025
PHONE: (310) 820-1500 • FAX: (310) 826-5008 • WWW.PCPHOTOMAG.COM
42
Exhibit 15 - Outdoor Photographer Banner Rates
2009 Online Ad Rates & Specs
Werner Publishing Corp. produces upscale enthusiast publications in the photography, golf and
aviation categories. Our goal is to produce media product that attracts passionate and engaged
audiences. You can reach them with the powerful Werner Publishing Imaging Group websites.
outdoorphotographer.com
Outdoor Photographer inspires visual trips, taking visitors to
destinations they never thought possible. Focusing on scenics,
travel, wildlife and sports, Outdoor Photographer draws visitors who
consistently rank among the best consumers for photo products.
• outdoorphotographer.com is the amateur and professional
photographers’ online source for cutting-edge photo products,
travel locations and how-to articles.
• outdoorphotographer.com has established itself as the online
source for landscape, nature and wildlife photographers looking
for equipment and how-to information.
• Our monthly page views have increased by 137% in 2H ’08.
• We expect continued double-digit growth in website traffic in 2009.
pcphotomag.com
PCPhoto focuses exclusively on the world of digital photography
and video as it relates to the enthusiast. Its website,
pcphotomag.com, offers online articles with expanded tutorials and
illustrations that provide digital-imaging enthusiasts with the tools
and instruction necessary to perfect their digital photography skills.
• Since the site relaunch in February ’08, pcphotomag.com has
grown tremendously. Page views in January ’06 were 135,489;
in January ’08, they were 454,894—an increase of 336%.
• Our monthly page views have increased by 76% in 2H ’08. We
expect continued double-digit growth in website traffic in 2009.
• Our weekly “Tip of the Week” e-mails have been very successful
in driving traffic to the website. The database is growing daily.
digitalphotopro.com
Digital Photo Pro provides the essential blend of artistic inspiration
and digital technology information for professional and advanced
photographers. Our website, digitalphotopro.com, is a direct extension
of digital workflow technique and technology, and is the online guide to
advanced creativity and technology, as well as the complete source
covering professional and advanced photographers’ equipment needs.
• digitalphotopro.com was relaunched in July ’08 and has
established itself as the leading authority of information and
inspiration for working professional photographers.
• Page views were 10,449 in January ’06; in January ’08, they jumped
to 185,586—an increase of 1,778%.
• Our monthly page views have increased by 130% in 2H ’08. We
expect continued double-digit growth in website traffic in 2009.
• digitalphotopro.com offers a unique combination of beautiful
images and practical information. There’s nothing else like it.
Werner Publishing Corporation • 12121 Wilshire Boulevard, Suite 1200, Los Angeles, CA 90025
Phone: (310) 820-1500 • Fax: (310) 826-5008
43
Exhibit 16 - Distribution Flow Chart
44
Exhibit 17 - UPS Supply Chain Solutions
UPS Supply Chain Solutions
SM
Nikon Focuses on Supply Chain Innovation —
and Makes New Product Distribution a Snap
Top consumer goods manufacturers now recognize that success requires
more than just making market-leading products. Having the right
distribution network is just as critical. Nikon Inc. is the world’s leader in
precision optics, 35mm and digital imaging technology. So it’s no surprise
that when the company saw the next big trend in photographic technology
— digital cameras — they were ready to deliver with some of the most
advanced product designs in the marketplace. But to ensure that retailers
could meet the demand of tech-hungry consumers and professional
photographers, Nikon, with the help of UPS Supply Chain Solutions,
reengineered its distribution network to keep them well supplied.
case study
Nikon
Consumer Goods
GEOGRAPHIC AREA SERVED
United States, Latin America and
the Caribbean
CHALLENGE
Design and implement new
distribution strategy to introduce
Nikon product line.
Client Challenge
To support the launch of its new digital cameras, Nikon knew that
customer service capabilities needed to be completely up to speed from the
start and that distributors and retailers would require up-to-the-minute
information about product availability. While the company had previously
handled new product distribution in-house, this time Nikon realized that
burdening its existing infrastructure with a new, demanding, high-profile
product line could impact customer service performance adversely.
“In our business, it’s not enough just to produce leading-edge products,”
said Arnold Kamen, Nikon’s Vice President of Operations and Customer
Service. “Having the ability — and visibility — to predict how much
merchandise is available and when it can be distributed makes the
difference in staying ahead of customers’ needs.”
For Nikon, that meant applying its well-known talent for innovation to
creating an entirely new distribution strategy and taking the rare step of
outsourcing distribution of an entire consumer electronics product line.
With UPS Supply Chain Solutions on board, Nikon was able to quickly
execute a synchronized supply chain strategy that moves product to retail
stores throughout the United States, Latin America and the Caribbean,
and allows Nikon to stay focused on the business of developing and
marketing precision optics.
SOLUTION
Integrated system for managing
inbound air and ocean freight,
repackaging and kitting products
for final distribution.
R E S U LT S
• Significantly shortened Nikon’s
supply chain
• Increased speed to market
• Enabled higher level of service
to retailers
• Improved product visibility
across the supply chain
45
Exhibit 17 - UPS Supply Chain Solutions
“Having the ability—
Our Solution
Starting at Nikon’s manufacturing centers in Korea, Japan and Indonesia,
UPS Supply Chain Solutions manages air and ocean freight and related
customs brokerage. Nikon’s freight is directed to Louisville, Kentucky,
which not only serves as the all-points connection for UPS’s global
operations, but also is home to the UPS Supply Chain Solutions Logistics
Center main campus. Here, merchandise can either be “kitted” with
accessories such as batteries and chargers, or repackaged to in-store
display specifications. Finally, the packages are distributed to literally
thousands of retailers across the U.S., or shipped for export to Latin
American or Caribbean retail outlets and distributors, using any of UPS’s
worldwide transportation services to provide the final delivery.
With the UPS Supply Chain Solutions system in place, the process
calibrates the movement of goods and information by providing SKU-level
visibility within complex distribution and IT systems. UPS also provides
Nikon advance shipment notifications throughout the U.S., Caribbean
and Latin American markets. The result: a “snap shot” of the supply
chain that rivals the performance of a Nikon camera.
and visibility—to
predict how much
merchandise is
available and when
it can be distributed
makes the difference
in staying ahead of
customers’ needs.”
—Arnold Kamen,
Vice President of Operations and
Customer Service,
Nikon Inc.
Nikon has already seen the results of its innovation in both digital
technology and product distribution. The consumer digital camera sector
is one of Nikon’s fastest growing product lines. In addition, supply chain
performance and customer service are measurably improved. Products
leaving Nikon manufacturing facilities in Asia can now be on a retailer’s
shelf in as few as two days. While products are en route, Nikon also has
the ability to keep retailers informed of delivery times and to adjust them
as needed, so that no retailer needs to miss sales opportunities due to
lack of product availability.
UPS Supply Chain Solutions is forging a broad spectrum of creative
solutions to support the Nikon supply chain, including logistics,
transportation, freight and customs brokerage services. Synchronizing
those pieces to work together gives Nikon a significant advantage in
leveraging the competitive strengths of UPS Supply Chain Solutions.
“Through a combination of UPS services, we have been able to greatly
shorten our supply chain,” Kamen said. “Although we are achieving
greater speeds, we have better visibility of our products, which enables
us to provide a higher level of service to retailers and ultimately, the final
customer.” Once again, Nikon leads the market in leveraging the latest
developments in technology.
For more information please contact us
1.800.742.5727 U.S.
1.678.746.4365 International
info@ups-scs.com
Visit us at ups-scs.com
© Copyright 2005 United Parcel Service of
America, Inc. UPS, the UPS brandmark, and
the color brown are trademarks of
United Parcel Service of America, Inc.
All rights reserved. 10% Post-consumer goods
CS.SCS.CG.503 10/05
E
UPS Supply Chain SolutionsSM
46