CANON LTD IN VIETNAM AND ITS MARKETING

Nowadays, the economy of the world grows significantly. The demands of consumers increase, all companies must satisfy them to exist.

Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING I. INTRODUCTION Nowadays, the economy of the world grows significantly. The demands of consumers increase, all companies must satisfy them to exist. Marketing is important part of all businesses that helps them achieve success. It is large scale that includes many things, such as researching customers, promoting the products. Marketing has many ways to define and many concepts to achieve which depends on ability and target of company. Canon Inc. is a multinational corporation that specializes in the manufacture of imaging and optical products, including cameras, photocopiers, steppers and computer printers. Therefore, Canon cannot lack marketing orientation that everything focuses on needs and wants of customers. Canon operation is not harm to environment, so its marketing approach is societal marketing. All business situations or not business situations of the company observe this approach. Because of this, Canon achieved many success and become famous brand of its field in the World. The first purpose of the report is to introduce marketing orientation of Canon that affirms its operation trend, such as its organization structure or strategy. Moreover, this report analyzes Canon Vietnam marketing activities in detail to help readers have clearly view about business of Canon. Besides, it proposes projects that help Canon promote two printer lines that are SELPHY and Laser printer, to Sales Director. The method used to conduct this research is using secondary data from previous studies on course books, reference books and internet. They are reliable sources such as BPP Professional Education, Canon Vietnam and Philip Kotler author and so on. However, this report still has limitation. Firstly, it did not mention to marketing process. The second is marketing mix which is important elements of marketing is not analysed in detail. Finally, situations relate closely to products are not stated, such as total product or distribution channel, etc. Page 1 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING II. BASIC CONCEPT OF MARKETING 1. What is Marketing? Nowadays, marketing is an important part in all enterprises. Market is battlefield that many companies compete with each other to have large market share. Which company has best marketing, it will win in this fight. Marketing has influence in whole process from researching to selling products. The purpose of marketing is to help companies find the best way to produce and support new products to the market by researching customers’ needs and wants to satisfy them. The following is some marketing definitions: Chartered Institute of Marketing Philip Kotler American Marketing Association Definitions Marketing is the management process which identifies, anticipates and supplies customer requirements efficiently 　 and profitably. (BPP Professional Education, 2004, p8) Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others (Philip Kotler, 2000, p4) Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. (BPP Professional Education, 2004, p8) Similarity To concentrate on customer. Differences - Management process. - To focus on customer requirements efficiently 　 and profitably. - Social process. - Creating and exchanging products and value with others - Process of planning and executing. - Completing previous definitions, satisfying both organization and customer with 4Ps. It is easy to realize that the improving in marketing concept increases more and more. However, they can be separated to two periods that are classic marketing and modern Page 2 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING marketing. Originally, when marketing concept just appeared, the economy had not developed, supply is bigger than demand. Therefore, suppliers have power to decide what products are bought through their own experiences. But nowadays, the economy is developing. Customer demands are advanced. Thus, to keep with development of economy, the definition of marketing must change. The companies have a process to understand customer demand and their objective is providing customer satisfactions. Moreover, there is not only customers are satisfied but also organizations’ goal is emphasized. To modern marketing, the risk in business is reduced many times. As a whole, marketing concentrates on satisfaction of customer demand, requirement. 2. The main characteristics of marketing orientated organization for Canon Marketing orientation is that a business strategy whereby customer’s needs and wants, as identified by the marketing function, determine corporate direction (Marketing MiMi.hu, n.d). Canon Inc. is a marketing orientated company. It is easy to realize because of its products. The new products of Canon are made by concentrating on customers. SELPHY ES3 & ES30 provide intelligent functions and attractive looking figures and offers users not only convenience, quality and versatility but also a unique lifestyle. Moreover, they have good looking shapes that best fit in home interior and irresistible effects that bring charm to users' photos , come with over 10 image effects, 3 of which are brand new that are Starlights, Nostalgic, Modern bright & Pinhole. Besides, Canon introduced the Laser Printer LBP3250 and the colour laser printer LBP5050 which are perfect for home and small offices. They have better features and quicker printouts while assuring both quality and quantity. Furthermore, USB 2.0 Hi-Speed in them enables both printers to transfer data at high speeds without fear of data bottlenecks and never-ending print queues [Scenario]. Canon always has a clear marketing strategy that each showroom will show and introduce one product line, primarily in order to increase concentration and profession into each product Page 3 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING and consumers of it (Thế Giới Vi Tính, 2006). Moreover, it is Multinational Corporation, so its structure is by geography which has local decision making at the point of contact between the organization and its stakeholders (BPP Professional Education, 2004, p67). “The expectations toward us identified through dialogue between our stakeholders and relevant company divisions” (Canon, 2008). Canon always listens and cares about stakeholders’ objectives. Figure1. Canon Governance Structure (Source: Canon Annual Report 2008) The first thing in marketing orientation is that know what customers want, how to be better than competitors. Therefore, Canon has to have research market. After that is strong research and development capabilities, which made its product line on a reliable basis, and provided it with a strong pipeline of new products and technologies. For example, new Canon product possessing amazingly intelligent functions and attractive looking figures, offer users not only convenience, quality and versatility but also a unique lifestyle (Scenario). All these features focus on users, it means Canon has customer oriented which base on customers demand. The Canon’s commitment is showed through its philosophy “kyosei” that is “All people, regardless of race, region or culture, harmoniously living and working together into the future” (Canon Vietnam, n.d) and this thing is implemented from top to employees. Therefore, there is coordination of company led activities which are 4Ps: product, price, place and promotion that around customers’ needs. Subsequently, Canon achieved success with the profitability. Canon Page 4 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING Vietnam Co. Ltd. earns more than US$200 million. In Asia and Oceania, sales climbed 4.5% year on year to ¥729.9 billion, accounting for 17.8% of consolidated net sales [Scenario]. 3. The various elements of the marketing concepts According to Philip Koler (1997): Concepts Profit Driver Western European Timeframe Elements Production Production method Until the 1950s - Production and distribution - Reduce costs - Improve efficiency Product Quality of the product Until the 1960s - Concerns quality of product - Focus on product, not care about customers’ needs Selling Selling methods 1950s and 1960s - Effectiveness and promotion -Focus on selling(sells existing products) - Using promotion techniques to attain the highest selling as possible. Marketing Needs and wants of customers 1970s to present day - Satisfy - Marketing plan are based - Customers desires Societal marketing Benefit to society 1990s to present day Elements of marketing concept and curtailment on any harmful activities to society Canon is a company that has marketing orientation. The approach which Canon uses is societal marketing. It is proved by 5Cs analysis. It is an environmental scan on five key areas especially applicable to marketing decisions (NetMBA, n.d). 　 First C is company, here is Canon which is manufacturer of business and consumer imaging products. Canon’s vision is “All people, regardless of race, region or culture, Page 5 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING harmoniously living and working together into the future” (Canon Vietnam, n.d). Hence, its purpose is to bring goods thing to all people in the world by its products that are ensured that protect environment and the future. C anon establishes system that manages rubbish and recycles 100% kinds of plastic, metal and paper (Canon Vietnam Co., Ltd, n.d). And “Canon Vietnam launched the Canon Friendship School Chain Project in July 2007 to support the construction of schools in Vietnam”(Canon, 2008). Figure2. Canon’s main social and cultural support activities (Source: Canon Sustainability Report 2008) The second is collaborators which are distributors, suppliers, etc. In Vietnam, Canon has five main distributors and more than 300 agencies, such as Lê Bảo Minh (VnEconomy, 2008). Moreover, Canon always has cooperative activities with its suppliers, promotes fair and transparent business transactions (Canon, 2008). The third is customer, Canon concentrates on customer orientation. Canon had diversified product lines that can satisfy market requirements with different quality levels, low, average and high and suitable price for customers (VnEconomy, 2007). Thus, target customer of Canon is business and consumers who have money. Besides, each product of Canon has different target customers, such as Laser Printer LBP3250 and LBP5050 focus on home and small offices Page 6 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING [Scenario]. Next is competitor, main competitors of Canon are HP, Brother, Epson, Lexmark. They are big company in market, their brand name is affirmed by customers. In printer market, their position is not less than Canon, especially HP. In 2006, HP share of operating income is less than Canon’s but its share of revenue is higher than Canon’s. Figure3. CY Q1 2006Financial performance (Source: http://static.seekingalpha.com/wp-content/seekingalpha/images/crowley2.gif) Context is last C that belongs to macro-environmental factors, Canon is great corporation, so influences of this factor to Canon is high. “In 2009, Canon's business performance is feeling the impact of the global economic crisis. But for Canon, these tough times present a golden opportunity to bolster our corporate structure” (Canon Global, n.d). 4. The costs and benefits of using societal marketing to doing business in Vietnam Costs Benefits Identifying customer - Canon must research needs and wants of customer that is customer focus. Through - Canon can get customer loyalty. It means Canon can Page 7 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING partners in Vietnam, information about demand and taste of customer are send to office of Canon in Japan (Tokyo) to have suitable product strategy (Thế Giới Vi Tính, n.d). - Customer delight is long-term competitive advantage of a company, so Canon pays many costs to have satisfaction of customer, especially in Vietnam because technology in Vietnam is not good as others, like Singapore. - Canon try to get customer loyalty by reduce risk dissatisfaction when buying new product. It provides information of product to customers exactly, warranty card and preventing fake stamp (Xã Hội và Thông Tin, 2009). - In Vietnam, cost of acquiring new customers is expensive, Canon cannot be outside of it. The company must pay for advertising, salesman or sales promotion. In 2009, Canon Vietnam had sales promotion with total cost is 225,000,000 VND (Xã Hội và Thông Tin, 2009). keep its current consumers and get new one because loyal customers will buy again and advise for their family, friends. Market share of Canon Bubble and Laser Printer in Vietnam is 39% and 42% (Cơ quan của Đảng Bộ Đảng Cộng Sản Việt Nam Thành phố Hồ Chí Minh, 2007) Building a valuable - Now, Canon pay a lot of money to build two Customer Care Centrals in Ho Chi - Canon Vietnam can keep the care of customers, instead of Page 8 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING relationship with customer Minh and Hanoi to ensure customer satisfaction is focused and increase relationship marketing between Canon and customers. - Another cost that Canon has to pay is cost of lost customers. If all customers has product, they will not buy anymore. Vietnam is poor country, so Vietnamese people have not enough money to buy two or more same kind of product. its competitors. It is proved by market share of Canon printers. - Image of Canon in Vietnam is increased. Customer care and service - To be a big company, Canon must have customer care strategy that includes many stages, so it can pay many time and money for this strategy. - It is easy for Canon to research and satisfy customer demands. Quality issues and their implication for customer relationships - To achieve customer satisfaction, Canon always has quality control which ensure about quality of product. Canon factories in Vietnam have managing component quality and managing product quality departments to get target “No error product” (Canon Vietnam Co., Ltd, n.d). - Moreover, Canon Vietnam implements plan that produce product not harm to societal, “the environmental-friendly manufacturing facility utilizes traditional Vietnamese bamboo racks” [Scenario] - Canon Vietnam has been recognized by ISO 9001 about quality of product and 14001 about environmental management (Canon Vietnam Co., Ltd, n.d). Page 9 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO. LTD AND ITS MARKETING In order to do societal marketing, Canon must pay many kinds of cost for marketing activities, such as researching market, advertising, and social welfare activities. Benefits and costs analysis show that all costs that Canon has to pay is to satisfy customer demands by its products and services. However, it gains many benefits, the company’s image will be raised and its income will increase. And the benefits that it gains come from customers, such as customer loyalty. Figure4. Flowchart of Countermeasure to Product Malfunctions or Quality Issues (Source: Canon Sustainability Report 2008) III. CANON LTD. IN VIETNAM AND ITS MARKETING 1. The Macro and Micro environmental factors 1.1. Micro environmental factor Micro environmental factor has two parts which are market and internal (BPP Professional Education, 2004, p84). Stakeholders of Canon are key elements of its market which have three main types: internal (employees, managers), external (customers, suppliers), concerned stakeholders (local resident, Page 10 [...]... 0918.775.368 CANON VIETNAM CO LTD AND ITS MARKETING Canon marketing activities because marketing focus on customers while their behavior is different This report finds out useful information about marketing activities and applies to Canon The reader should base on it to doing business and bring out the best marketing strategies However, it has some limitations, so the further reports are recommended to investigate... need printers which have business benefits and bring benefits to many people such as operation power, network capability and so on Thus, laser printers’ marketing activities must meet the Page 20 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO LTD AND ITS MARKETING printing needs of them, such as capable of printing large volume at an ultra-fast printing time,... 0918.775.368 CANON VIETNAM CO LTD AND ITS MARKETING the community, government and interest groups) Canon achieved the success because of understanding the interaction and behavior of these groups Firstly, employees and managers are essential parts of the strategic planning process Meanwhile, human resource in Vietnam is profuse, high quality and cheap According to Mr Kageyama, most of engineers in Canon can... things from other countries However, Vietnam economy is developing, so there is one threat that market appears more competitors It has high influence to marketing decisions of Canon On the other hands, the culture of Vietnam is falling in line with the World, income of Vietnamese people is higher, so consumer buying power is increasing that create opportunity to Canon deploy its marketing strategy and. .. provider and Vietnam is one potential market of the company Firstly, basic concept of marketing which influences to Canon is mentioned The report answered what exactly marketing is which satisfaction of customer demand, requirement and prove marketing orientation of Canon Moreover, it explains three element of societal marketing concept of Canon and through it, Canon pay many costs but it gains benefits... strategy and achieve big income One thing has bad influence to Canon is that technology in Vietnam is weak, especially Page 12 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO LTD AND ITS MARKETING supporting industry of Vietnam (Đời Sống Pháp Luật, 2009) Canon gets many difficulties because Canon always tries to use technology inside Vietnam to reduce cost To... customer demands Canon printers in Vietnam are multiform with two main lines: SELPHY ES3 and ES30 and Laser Printers include LBP3250 and colour laser printer LBP5050 Each product has different features, so it is useful for Canon to launch differentiated marketing, thus earn lots of profit Another factor is product’s life-cycle stages which include introduction, growth, maturity and decline (Quick MBA,... has direct influence to target strategy of Canon which put product into differentiated marketing or concentrated marketing 4 Buyer behavior for the products affect the Canon s marketing activities in the two different markets 4.1 Definitions Consumer buying behaviour can be defined as, ‘the decision processes and acts of individuals involved in buying and using products or services’ (BPP Professional... from link: http:/ /canon- cvn.com.vn/vn/production_stream.html (Accessed 2nd December 2009) 5 Canon Vietnam Co., Ltd. , Thông điệp từ Tổng giám đốc, [online], canon- cvn, Available from link: http:/ /canon- cvn.com.vn/vn/gd_message.html (Accessed 28th November 2009) Page 25 Website: http://www.docs.vn Email : lienhe@docs.vn Tel (: 0918.775.368 CANON VIETNAM CO LTD AND ITS MARKETING 6 Canon Vietnam, (n.d), Canon. .. connect with changes of marketing decisions Hence they have big influence with the choice of targeting strategy for Canon products Now, Selphy and laser printers are new products in Vietnam that in introduction stage, so initially, it is practical to launch only one at a time But, in the future, when they are in mature stage, Canon should focus these products in differentiated marketing Page 17 Website: