Executive Summary

This report which is showing the produce a 12-month marketing plan of Canon company.
The company is now facing huge competition from its competitor worldwide, especially
in Japan where it has lost market leadership. Due to the decreasing profit margin and
threat of losing market share, the company has decided to come up with new innovate
Printers PIXMA (example model: MG6240) which will help the company in improving
its profit margin and sustaining market share in UK and worldwide. The report is divided
into 5 parts which areas follow
Introduction to Canon
Situation Analysis segment
Marketing Plan
Marketing Objective
Marketing Budget

Introduction section focuses on the opening to the company, its main goals and
recommendations of the marketing plan. The second part inspects the business overview
(situation analysis) of the company in UK. For this purpose analysis, Core competencies
and SWOT analysis of the company has done in UK and analysis the environment and
factors effecting new product development. The third part is Marketing Plan. For this
purpose product information has analysis to assess the marketing objective strategically.
The marketing plan focuses on the market segmentation, target market, positing,
differentiation and market mix for new product and its implementation at global level.
The fifth section forecast the marketing budget for the new product.

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Table of Contents
Contents
1. Introduction
3
2. Situation Analysis (Business overview)
3
2.1 SWOT Analysis
3
Strength
4
Weaknesses
4
Opportunities
4
Threat
4
3. Introduction to the new product
4
3.1 Goals
5
4. Market Segmentation
6
4.1 Target Market
6
4.2 Positioning
6
5. Marketing mix
7
5.1 Product
7
5.2 Pricing Strategy
7
5.3 Distribution Strategy
7
5.4 Promotional Strategy
8
5.5 E-Business Mix globally
8
6. Implementation
8
6.1 Schedule for Product Implementation Plan
7.
8.
9.

Budget
10
Evaluation of Results
References
12

11

1. Introduction
Canon Inc. is a Japanese multinational corporation that specializes in the manufacture of
imaging and optical products, including cameras camcorders photocopies steppers
and computer printer. Canon is the one of the leading company in the world doing
business in Australia, China, Japan, US and Europe, the company headquarter is in
Tokyo, Japan and it employees are 168,879 (Data Monitor 2010). According to the
(Canon 2010) the company net sales were $34,883 million in 2009,and its net income in
2009 was $1,431million.

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Canon UK (2009) group loss for the year 2009 after taxes was 2.0 million and gross
profit margin declined by 7.1%due to increased cost sale and pound deprecation.
Canon is one of the leading companies in world with 2,204 patents in 2009 Canon is the
brand leader in different parts of the world. According to the Reader digest (cited in
Canon 2009 press release) Canon is vote as most trusted in 13 countries out of 16 in the
Europe for 9th consecutive times and number one in UK.

2. Situation Analysis (Business overview)

2.1 SWOT Analysis
Strength
Goodwill and strong market position
3rd patient holder company of Globe
Diversified Product line
Automated Machinery and Robots for Production
Product diversification (cameras camcorders photocopies steppers and computer
printer)
Purchased Order Based Production System
Weaknesses
Customers Concentration
Decrease in Profit Margin 2007-2010
Huge Dependability on HP for Manufacturing Laser printers

Opportunities

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 China and other Asian markets

Demand for Printers
Medical and digital commercial printing
Threat
Dollar-Yen Exchange Rates
Government and large supplier contracts renewals
Evolving Trends

3. Introduction to the new product

3.

jfs
PIXMA MG6240 is a High-Performance Wireless All-In-One with Intelligent Touch
System for simple, quick operation combined with stunning design & offering superb
photo lab-quality printing.

High-Performance Wi-Fi All-In-One

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Intelligent Touch System

6 Single Inks, up to 9600dpi, min 1pl quality

ISO ESAT speed 12.5 mono/9.3 color ipm

10x15cm photo in approx. 20sec

Auto Duplex

Full HD Movie Print

PIXMA Cloud Link

3.1 Goals

Maintain the market

To increase the market share by 5% in 1 year

To increase the profit Margin

The main objective for launching this product is to strengthen the current market share of
UK to its competitor Secondly this product will help in increase the market share and
ultimately the profit margin which is declining 2009-2010.Ultimately the profit margin
which is declining 2009-2010.Objective strategically with market situation we see that
the company is going to offer new product in current market to sustain its market share ,
to capture competitor share and to activate in-active user so the product offered has new
improved quality and features .The product life cycle is expected to be 14 to 18 months,
the product can achieve its growth stage in 4 to 5 months and can reach at maturity stage
in 7 or 8 months and may be declined over 14 months due to new technologies and
development The market of UK is very saturated with lot of customer with different types
of products and strategies, such as the Nikon has adopted the low cost strategy which is
creating difficulties for the Canon to retain its customers, this product focuses the whole
market and Canon has adopted the cost leadership strategy for this product.

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4. Market Segmentation
Successful market segmentation can be achieved by satisfying the existing and the
potential customers in a clear defined market. Target market for Canon Printers
(example:PIXMA-MG6240) is its existing consumer market for Canon Printers
Series: PIXMA which canon has already sold many of them ,and this new product
features and innovation will target the existing customer by driving them to upgrade
their product with new one and will help in attracting new customer.
4.1 Target Market
This target market of this product is done on the basis of variety of information, e.g. in
geographic sense UK has been selected, where Canon has its offices in London,
Birmingham, Livingston, Surrey making it easy to launch and manage the product,
secondly UK has strong distribution channel which can be easily use to launch the
product in UK and across the Europe. If we talk about geographically this printer
targeting all age groups, its price is reasonable 200 which is easily accessible to all
income groups as well. Majority of the sale to every business is from this income group.
4.2 Positioning
Positioning is how the product is different in the customers minds. Positioning is the new
technique to communicate, advertise and market your product.
Canon is market leader in the UK and Western Europe with market share of 57.15 in
2008 The company has won the most trusted, best green company and different other
brand in industry. As the company is market leader in UK and Europe so this will add
value to the new product and will aid the new product to foundation in achieving the 5%
of the market in 1 year. The company knows what customer wants and reasons why
customers are buying Canon .e.g. Canon PIXMA MG6240 can be like, Simple
navigation, Enhanced connectivity, Cloud printing, Versatile media handling, Versatile
media handling, Advanced Software, hence the product will attract the existing customers
and new customers as well.

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5. Marketing mix
5.1 Product
Ideal for photo enthusiasts, this high-performance 6 ink All-In-One, delivers up to
9600dpi print resolution for exceptionally detailed color photos and grain-free images.
Canon's class leading FINE print head technology, with minimum 1pl ink droplets helps
provide a stunning photo-lab quality 10x15cm borderless print in approximately 20
seconds. Plus impressive ISO ESAT speeds of 12.5 ipm for mono documents and 9.3 ipm
for color
5.2 Pricing Strategy
The purpose of launching this product is to help Canon UK to improve its profit margin,
sustain its existing market share and to increase its market share in UK and globally
especially in potential markets which showed significant increase in digital printer market
like 25% in East Europe,20% in Asia and 51% in Latin America . The demand for Canon
PIXMA MG6240 is increased due to the quality of results.
5.3 Distribution Strategy
UK has one the world best and fastest distribution channel in the world. Canon is
enjoying the fastest network of distribution. Canons new product distribution will be
according to the Canon existing network and procedure. Canon UK introduced Partner
Net dedicated IT reseller website in 2011 where Canon resellers can access the Canons
sales and marketing tools this will be used for distribution.
The product will be sold through the Canon UK online store, Canon eBay outlet, and
professional network and local distributors. Canon has developed fast distribution
network for availability of its products in time.

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The UK regulation for environmental protection and other laws related to employment,
competition, Waste Electrical and Electronic Equipment Directive Packaging waste
WEEE and ROHS Regulation if the company is not following it can get fined and be
taken to the court. The company has contracts with large supplier and government
making it very competitive to retain contracts in the time of renewal, and can effect the
company overall profit margin and consumer segment as well.
If company is successful in attracting the targeted income groups and market as stated
above it can achieve its marketing objectives. Canon major competitors Sony, Samsung,
Nikon are doing the similar PIXMA MG6240 and camcorder business, so it will be bring
tough competition from the rival after launching this product.
5.4 Promotional Strategy
The main focus of the promotional strategy for this product is on e-business, however it
will include TV sponsorship and digital billboard, news paper and consumer magazines
for promoting as part of it marketing mix. The purpose of this promotion is to increase
the declining sale, profit margin and to sustain market share. Canon will use its website
for promotion, its products will be mainly promoted and sold on website, and
other sources for promotion on web would be face book, YouTube, Twitter, and Google,
direct email and product review blog.
5.5 E-Business Mix globally
For e-business the company will firstly use its global website for TV ads, press release,
sponsorships, PR , newspapers, consumer magazines and it online store on eBay, it blog
and product review world wide. The company will focus on the social network website
including face book, which has more than 500 million active users worldwide, and can be
easily targeted using it face book page, which is not posting any new post currently.
Secondly, Twitter, YouTube, and Google are also having huge traffic which can be
targeted for increasing the company sales.

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6.

Implementation

6.1 Schedule for Product Implementation Plan

Product Implementation Plan

Sep-

Nov

Dec

Nov

- Dec Feb

Feb - Mar -

May

Jul-

Mar

-Jul

Sep

May

Pre-launch preparation

Marketing Manager and staff

discuss the marketing strategy
and its implementation
Acquisition of resources to
produce PIXMA MG6240 ,
ensure production capacity
Development of website
Development of the distribution
channel
Training of marketing staff
Launch
Launch PIXMA MG6240
Promotion-Advertising Campaign
Post-launch
Monitor and control (weekly
basis)cost effective to interpret
market share and sales revenue
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Upgrade content of the website

7.

Budget
Canon, Inc
Planning Budget (Euro)
For the Year Ended September 31, 2012

Revenue
2,000,000

(200 Per each*10,000)

Expenses
Wages and salaries
100,000
Digital Advertising Exp

280,000

Online Sales Platform Exp

300,000

News/Magazine Exp
220,000
Rent
160,000
Freight-out
50,000
Total Expense
Net Operating Income

(100000+80000+120000+50000)

1,110,000

890,000

The total budget for marketing plan of this product cost 1110000 and the net operating
income is 890000. The product is expected to be launched in Nov 2011. This budget is
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forecasted for marketing of product through different method, after marketing and
launching of the product the performance will be judged on the sale and the forecasted
marketing budget will be evaluated against the actual budget.

8. Evaluation of Results

8.1 How to measure Success?

The key factors in achieving profitability are increasing revenues by:
1. implementing multi-segmentation strategies in the companys major markets
to target distinct market clusters divided by competitive intensity and
socioeconomic levels;
2. implementing well-planned product, packaging and pricing strategies through
channel distribution
3. achieving operational efficiencies throughout the company.
8.2 Why Strategic Plan Fail:
1.
2.

Failure to understand the customer needs and wants, trend, behavior.

Inability to predict environmental reaction ( competitor, price war, fighting brands,

3.

government intervention)
Over-estimation of resource competence ( can the staff, equipment, and processes
handle the new strategy, Failure to develop new employee and management skills

8.3 Refocusing the strategic plan and move on

1. Try to figure it out the companys core competencies
It will basic our company SWOT Analysis, and then to refocus what
things that is our company really need to do
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2. Shaping and anticipating the future

Organizations start out with few assumptions about the business itself,
what it is good at, and what the future will be like
3. Reengineering (Structurally Changing) Processes
Focuses on fundamentally changing how work is accomplished.

9.

References
Payne, A., 2006. Handbook of CRM :Achieving Excellence in Customer
Management, Oxford; Burlington, MA :Elsevier.
http://www.canon.co.uk/about_us/about_canon/Annual_Report/> [Accessed 27,
January2011]
Canon Press Release,
2009,<http://www.canon.co.uk/about_us/about_canon/industry_awards/>
[Accessed 27, January2011]
Canon Press Release, 2009.
<http://www.canon.co.uk/about_us/about_canon/Facts__Figures/#tcm:14512764> [Accessed27, January 2011]Data Monitor (2007), Canon Company
Profile, Retrieved January 28, 2011, form Business Source Complete (University
of Wales).
Data Monitor (2009), Canon Company Profile, Retrieved January 28, 2011, form
Business Source Complete (University of Wales).
Data Monitor (2010), Canon Company Profile, Retrieved January 28, 2011, form
Business Source Complete (University of Wales).
GFK (2010), Global photo market on an upward trend,
<www.gfk.com/group/press_information/press.../index.en.html> [Accessed 27,
January 2011]

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