Product Analysis

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Digital Cameras
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The Story
camera obscura

camera obsoleta!

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The Sharp Shooters: Users of Cameras
Astronomers

Hobbyists Biologists
Physicists

Documentation
Surveillance Agencies

Medical Imaging

Print Media

Professional Photographers

…and many more. 3

“Market segmentation is a natural result of
the vast differences among people.”

-Donald Norman

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The Sellers Way : Price
“Whoever can afford it is my customer”

If u find a camera SLR/Large

here, tell us and
get chocs n mishti

Prosumer/Medium
Product
Non-Branded
Quality

Compact/Small
The marketer’s dream
customer lives here!
low Price high

Where will you put Disposable (Use and Throw) Cameras? Camera Phones? 5
The Needy Way…

User type Need Benefit

Capturing beauty,
The Professional quest for perfection

“Photography is art”
Sharing emotions,
The Amateur memories
“Memories forever” connecting to family and
friends

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Camera
Functional Benefits Map
Technical Merit

The Pro

Resolution Focus
Beauty Perfection

Life Memories Sharing

Cost of Ergonomics
ownership

The Amateur

Usability

Technology Functionality Benefit

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 A Way for India:
By Prestige Seeking Behaviour
Asahi SLR Power
Shot

Camera Cool Pix

Phone
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 The Triangle of Contentment
Utility
Aspiration
Consumer
Want

Camera

Technology Services
Quality Sharing
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Usability Personalizing
A Useful Classification

 Film-Based Cameras
 Digital Cameras
 Camera Phones

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Disruptive Technology

Relatively
Stable
Technology

Camera Lens Film Processing

The Change Value Substitutes

Digital Memory Photo quality Photo High Quality

Camera Chips Paper Sharing Printers

Convergent Technology

Technology is fast changing the landscape of Photography 11

Comparison: Who’s got the Shutter Bugs?

Parameter Conventional Digital Camera

Phones
Affordability Medium Low, rising Medium,
rapidly rising rapidly
Cost of High Low Low
ownership
Perceived Medium High Medium
complexity for
user
Image quality High Medium, Low, rising
for similar rising rapidly rapidly
price
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Once upon a time in India:
It was not a Pretty Picture
 Pre-1990s, cameras and film were considered luxuries.
 Most Indians rely on studios and professional photographers to take
formal pictures.
 Even on travel, use of personal cameras was low. Travellers used the
services of small-time commercial photographers at the popular
tourist spots.
 Since the bulk of Indian families have not actually used a camera,
there is a popular belief that the cameras are complicated gadgets.
Large number of Indians are still familiar with the ancient and
complicated-looking cameras used by studios.
 Photography does not rank high on the list of hobbies for the average
Indian, even now.

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…but there is reason to Smile 
 A burgeoning middle class.
 Family values of Sharing and Connecting (“Kodak Moments!”).
 Current penetration levels are less than 5%  Huge potential.
 Growing urbanization, changing culture, increasing consumer
spending on lifestyle consumer durables.
 Leisure and travel increasing.
(More Indians are on vacation at this moment than ever before!)

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The Digital Wave
Size of the market
 In 2003, the market for digital cameras in India amounted to 1 lakh
units as against 30 lakh units of conventional cameras.
 The digital camera market in India will touch around Rs 600 crore
by 2008 from Rs 100 crore in 2003.
 Around 10 lakh digital cameras (excluding camera phones) are
expected to be sold by 2008.
Customers
Personal segment: Huge number of urbanbased consumers,
Institutional Market : 100,000 photo studios, 750 media houses, and
100,000 event and wedding photographers.

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 2005 figures from Datamonitor

* Exclusive of camera phones 16

 2005 figures from Datamonitor

* Exclusive of camera phones 17

Camera Phones

Samsung’s latest offering: A 10 Megapixel Camera Phone!

Camera Phones pose a quandry for the industry – Threat or Complement?18

The Rise and Rise of the Camera Phone
By 2009, nearly
India 70% of all handsets
globally are
expected to be
embedded with
cameras, with a
majority shifting to
multi-megapixel
resolutions,
according to
ABI Research

Almost overnight Nokia became the world’s largest manufacturer of cameras. 19

Top Selling Camera Phones

Classification
• VGA
• Megapixel
• Optical Zoom

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What Camera Phones have got going for them
 Camera phone-ready photo kiosks installed in thousands of public
places in India
 Other nearby phones  P2PNetwork Effect
 MMS, GPRS, Wi-Fi
 TV sets for viewing on the large screen
 Photo sharing and printing web sites where you and others can view
your images and even order prints
 Photo blogs, the latest, hottest, and easy to use personal publishing
sites that thousands of photographers are using as their personal
journals or galleries
 Personal photo editing applications for the PC

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Camera Phones and Cameras : A case of
Double Click?
 A recent report from the IDC says that over 25% of camera phone
users were inclined to buy a traditional digital camera because of
their relationship with their camera phone.
 According to the report camera phone users are becoming more
interested in digital photography and comfortable enough with the
technology to purchase a regular digital camera for true keepsake
images.
 Camera phones outsell traditional digital cameras 4 to 1. But camera
phones only take about 7.5 billion images per year while traditional
digital cameras take over 40 billion images.

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Kodak
 The first photographic company to set up operations in India
 Products: cameras, films, photo chemicals and other imaging
products
 Strong distribution network: owned outlets and allied
 Low medium segment: traditional cameras
 High commitment to the old way of photography
 Vertical integration: road-block for shift to digital cameras
 Traditional cameras with a big chunk of sales from films
 Late entrant in the digital world
 Present in most of the market segments in the traditional cameras
 The “Kodak moments” campaign
 Concept of exchange offers
 Concept of KODAK EASY SHARE
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 SWOT Analysis for Kodak
Strengths
 One of the early movers into Indian market and 
hence a greater understanding if Indian camera
market and consumer.
 Deep rooted distribution network, coupled with
own outlets and allied infrastructure for digital 
photo printing etc.
 Well-established brand in Low-Medium
segment for traditional cameras.
Opportunities
 Leveraging the household brand image of
Kodak in capturing the first time camera
buyers, a huge market in India today.
 Working on up gradation of existing entry
level mode using customers.
 Adapting to the digital market by capitalizing
on the infrastructure of Photo printing, etc.
 Internet ordering and home delivery systems
could be worked out.
Weaknesses
High level of commitment to traditional
camera sales, photo printing and film roles.
 Low-impact player in digital camera
segment.
High degree of vertical integration, i.e
presence in production, and well as sales and
service might be a hindrance in adapting to
the digital market.
Threats
 Household image perceived as Low end
technology. Digital camera sales might be
hit.
 Competition from Players like Sony,
Olympus, because of their positioning as the
best technology providers, in every price
range.
 Low-end segment of digital cameras already
flooded by brands like Fuji, Yaschica, etc.
 Camera phones eating into the market for
causal users of cameras.
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Canon
 “The advanced simplicity” campaign
• Advanced technology makes life easier
• Lets users get the best results
• Whole of company brand communication
 Product range
• Digital video camera
• Digital still camera
• Bubble jet printer
 51 products launched in India
 33k to 100k: sales increase projected

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Canon
 Digital cameras: 2nd largest player: 20% market share
 30 crores budget for 2006 on marketing initiatives
 “Canon festival of delights” campaign
 Canon India has focussed on channel partners, targeted at
the youth – 54 per cent of India's population is below 24
years – and has launched interactive photo retail stores in
various cities. At the Canon Digiclick Zone, consumers
can experience digital photography, and understand its
nuances.

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“At the Heart of the Image”
 Nikon tries to appeal to the customer’s emotional values through three promises:
• Be true to the heart: Nikon will deliver the essence of the image
• Ignite the heart: Nikon will inspire a new passion for life with the image
• Invent fore the heart: Nikon will make the world’s dreams for the image come true

Products:
 Digital SLR Cameras
 Digital Compact Cameras (COOLPIX Series)
 Film Cameras
 Lenses and Accessories
 Film Scanners
 Software

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