Market Segment And Targeting

Case Study: How Canon

Carved A New Market
Segment
 Case Study: How Canon Carved A New Market Segment

 The problem
‘Consumers’ preference and behaviours have shifted. They now prefer Smartphone for
capturing snapshots at the expense of digital cameras.
Demand has been dropping mainly due to the threat from the more user-friendly photo
function from Smartphone. The whole DC market size is shrinking.

 The objective
Canon looks to develop a new market with kids segment for the model IXUS and to become the
first optical maker to extend its franchise into kids segment.
Kids segment is an under-developed market. Throughout the past year Canon is trying to extend
its target segment from new parents, to-be parents and parents with kids mainly 5-9 years old.

Canon noticed that parents are more willing to buy DC for their kids than Smartphone for its
pure use of photography function. Kids photography is an untapped segment in DC market that
other competitors haven’t explored yet.

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 Case Study: How Canon Carved A New Market Segment

 The strategy

Phase one – raise awareness on kids photography in a soft approach

Canon adopts an engagement journey to foster the kids photography culture in Hong Kong,
spanning varies media and platform. It kicks off with a kids photo competition targeting parents
and kids.

Kidictionary, the three months contest asks participants to click lots of pictures through
photography, and then to share them online in social media.

Many parents nowadays like to share photos of the life of their kids on Facebook. The contest
does not only aims to provoke kid’s interest in photography, but also awaken parent’s interest
through parent-child interactive activity.

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 Case Study: How Canon Carved A New Market Segment

Phase two – Further implanting the idea of photography into kids mind in-depth

Targeting middle class families, it aims to tight the brand closer to its target customers with
an eight episode TV programme ‘Canon IXUS Kids Snapping’ on Now TV and RoadShow,
teaching audiences some tricks of photographing.

The campaign has also pulled in some in-school workshops and photography courses to
provoke the kids interest in photography.

The Result

The campaign has gained 40% market share on DC compared to last year (according to GfK
index ended October).

This is how a proper market segmentation helped Canon get a lead in business than its
competitors.

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Thank You