LOVELY PROFESSIONAL UNIVERSITY

ACADEMIC TASK - 1
ASSIGNMENT

Mittal School of Business (MSOB). Faculty: Hitesh Jhanji

Course Code: MGN341 Section: Q4E21
Date of Allotment: 29th January 2021 Date of Submission: 12th February 2021

Course Title: EMERGING TECHNOLOGIES FOR MANAGERS

A Project report on CANON

Bachelor of Business Administration

(Information Technology)

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA, PUNJAB

Submitted By :

Name of student: Shivam Tripathi

Registration Number: 11900954

1. Introduction
c anon, originally founded in Tokyo, Japan in 1937, is now a world leader in
imaging technologies. Canon India Pvt. Ltd. incorporated in 1997, is a 100%
subsidiary of Canon Singapore Pte. Ltd. Today, Canon has
offices spread across 7 cities in India with an employee
strength of over 700 people, 140 comprehensive ranges of
sophisticated and

contemporary digital imaging products in the country.

These include photocopiers, fax-machines, inkjet and laser
printers, scanners, digital cameras, digital camcorders and
multi media projectors etc. With over 1100 registered
patented technologies in Digital Cameras, Canon has
emerged as one of the leading technology innovators in the
digital imaging space worldwide.

According to Business Today 'Best Companies To Work For In India' survey

conducted in 2008, Canon has been ranked amongst top 10 employers in India. This
ranking was given on the basis of a process that involved an understanding of the
HR systems of companies, a survey of their employees, and a survey of their
external stakeholders such as B-schools, placement firms, and alumni.

Canon India is certified for ISO 9001, ISO 14001 and OHSAS 18001. In 2006, the
company was certified for its "Strong commitment to excel" at the CII-EXIM Business
Excellence Award. Over the last 12 years of its India growth story, Canon’s
comprehensive range of the latest digital imaging products supported by a trained
sales force across the country has emerged as its key differentiator.

Canon has a strong distribution network. It has around 300 primary level channel
partners, 13 National Retail chain partners, 4 Level IV Master Service Centres, over
100 authorized service centers, 3000 secondary retail points, 270 National retail
chain stores and 33 Canon Care Centres. Canon products are available in over 300
towns in India. Overall, Canon's presence increased to 4000 outlets in December
2008.

Positioning of the Brand ‘Canon’

Brand positioning is at the heart of the marketing strategy (Keller, 2009). It is the act
of designing the company’s offer and image so that it occupies a distinct and valued
place in the target customer’s mind. As the name implies, positioning means finding
the proper ‘location’ in the minds of a group of customers or market segment, so that
they think about a product or service in the right or desired way to maximize potential
benefit to the firm. Good brand positioning help to guide marketing strategy by
clarifying what a brand is all about, how it is unique and how it is similar to
competitive brands and why consumers should purchase and use it.

Canon has placed its position as emotional positioning based on role model where
cricketer Sachin Tendulkar is shown). On the matrix it will be credence attributes as
it has already created a value proposition in the mind of customers, to whom
Perceived Quality of Canon is very high.

2. Analysis of Canon Business

Canon Company have wide range of businesses around the world. They specialize in
image and optical products, camera, photocopiers and printers. Canon Company has
become a leader in digital imaging, office printers, copiers, fax machines, and
broadcasting equipment. They have more than 200 companies worldwide. They have
some business types.

*Personal. *Office

*Professional *Industry these are the categories of their business.

 Personal

They have many products under this. For a person who want to capture the
moments, scenes from travels, special occasions, Canon Company develop the best
products for these things.

These are the some products they have,

 Interchangeable Lens Digital Cameras

 Digital Camcorders
 Digital Camcorders
 Connect Stations
 Inkjet Printers

 Office

Canon Company have high-quality printers and products for office use. And also they
have software solutions and cloud-based document services and other technologies.
Canon Company offers wide range of tools and products for office work
environments.
  Laser Printers and Multifunction Printers
 Large Inkjet Printers
 Multimedia Projectors
 Business Inkjet Printers

Professional

Canon professional use products are made with high

technology. Their professional cameras provide high image
quality. Canon image products earned the trust of the top
professionals in world. In the medical field their imaging technologies deliver the
best support. These are some products at Professional level.

 Digital Cinema Cameras

 Professional Displays
 Ophthalmic Equipment
 Digital Radiography
 Professional Photo Inkjet Printers

Industry

Canon Company produces the high-performance,

high-image-quality industrial equipment. They have
many products in this category, these are some of their
products.

 Digital Production Printing System

 3-D Machine Vision Systems
  Semiconductor Lithography Equipment
 Commercial Photo Printing
 MR Systems

 Pricing Strategy
Prices of various Canon digital cameras for three sub brands (IXUS, Power Shot and
EOS) . Though Canon has some cameras in EOS category whose price is more than
Rs. 1 lakh, cameras up to Rs. 1 lakh are shown in the figure for better clarity.

It is observed from Fig. 4.2 that variation in prices in Power shot sub-brand is more
(Rs. 7000 to Rs. 37000), price of stylish IXUS sub-brand varies from Rs. 12000 to
Rs. 24000. Professional category EOS starts from Rs. 30000 and goes up to Rs.
413000 (in figure, product only up to Rs. one lakh are shown for better clarity).

Price overlaps between sub-brands are also observed. For example, entry level
DSLR camera EOS 1000D is less costly than Power shot model SX1 IS or G10. This
price is kept strategically lesser mainly for two reasons:

 A consumer in Power Shot category will be tempted to up grade himself to

EOS category, as owning EOS is a status symbol.

 To compete with other brands (Nikon, Olympus, Sony etc) at DSLR level and
lure customers in buying Canon product.
 Once a customer buys a canon DSLR camera, he has to buy other
accessories (Lenses, Flash gun etc) of Canon only. Due to this
complementarity effect Canon’s sales will go up.

3. Research on its future innovation or disruption in

industry and Competition Analysis

digital camera market is highly competitive. One has to upgrade one’s products in
regular interval to stay in the market. At the entry level Canon has many
competitions, namely, Sony, Kodak, Samsung, Panasonic, Olympus, Nikon etc. At
the high end SLR category, Canon has to compete with Nikon. Fig. 4.1 shows the
total camera market in 2007. It clearly

indicates that Canon is in No. 1 position in total sales. When it comes to the
strategically important and fast-growing market of SLR cameras, Canon remained
No. 1 worldwide in 2007 but lost share to Nikon, new statistics show. Canon sold
3.18 million single-lens reflex cameras in 2007 compared with Nikon's 2.98 million,
according to a study released by market researcher IDC in 2008. That represents a
42.7 percent and 40 percent share, respectively, of the 2007 SLR market. It's a much
narrower margin for Canon than in 2006, when it had 46.7 percent of the market,
compared with Nikon's 33 percent.

 Competition at Sub Brands Level

A comparison between various categories of digital camera of Canon, Nikon and
Olympus . Remarks are drawn collecting information from various review sources
(dpreview, dcresource, cameras.co.uk, steves-digicams, reviews.cnet, dcviews,
photoreview, infosyncworld, ephotozine). Details of these review sources are given
in references.

 Innovation

 Introduction of image stabilizer: It takes care any shaking of

hand during photo session. Now this feature is installed in all
Canon cameras.

  Introduction of live view shooting: This feature will help in

taking photo using camera screen and is very helpful as it
indicates which objects are in the frame of the picture. Earlier this
feature was not available in DSLR camera, however, Canon has
started introducing it in its DSLR range (Canon EOS 1000D, EOS
450D etc).

 Automatic focus: This will help in taking sharp picture very easily
without devoting much time in focusing.

 Automatic face detection technology: Canon is pioneer in this

technology. It will detect any human faces and focus it
automatically.

 Vary angle LCD screen: This will help in shooting at different

positions. Canon Power Shot SX10 IS, SX1 IS has this feature.
  Movie mode in DSLR Camera: This is a new feature where still
camera can be used as a movie camera for a short while. Canon
has this facility introduced in certain model of its DSLR range.

4. Challenges for implementation

Canon is still banging away at the document reproduction market. The

company makes printers and other computer peripherals for home and
office use. Its other well-known lines include copiers, fax machines, and
scanners. Canon's optical segment features products used in such
diverse applications as semiconductor manufacturing equipment, TV
broadcast lenses, and devices used for eye examinations. Canon still
operates its original camera business, which makes digital cameras,
camcorders, LCD projectors, lenses, and binoculars. The company,
which generates about three-quarters of its revenues outside of Japan,
continues to emphasize its product development and marketing efforts in
Europe and North America

Centralized Invoice Receipt with Automated Data Extraction: A

centralized structure with automated OCR (optical character
recognition), data extraction and validation processes can yield
significant benefits. These include lower invoice processing costs, fewer
errors, shorter cycle times and the elimination of handoffs.
Process Automation: While it requires an investment in technologies
such as an invoice workflow system, supplier portal, mobile approval
capabilities, dynamic discounting and analytics, workflow automation can
help companies realize successes. These can range from an average $5
decrease in cost per invoice to a 3.5 day shorter cycle time for invoices
and a 117% increase in invoices processed per month.
Outsourced or Managed Services: One of the most popular
approaches is outsourcing the front-end invoice imaging and data
conversion. Canon has found that just the act of outsourcing an AP
activity has a synergistic effect on higher AP performance – including
cycle time, cost and labor performance.
 5. CONCLUSIONS

canon is one of the strongest brands in India, particularly in digital

camera segment. Its global presence helps in building the brand image
in India. Canon global group invests 7.5% of consolidated revenue in
research and development, significantly more than many other
companies. This is important to make continuous innovation in order to
stay in the

competitive market. A few important aspects which are observed during

the analysis are given below.

1. i)  Canon follows monolithic approach branding strategy as all its

products (digital camera, copier, printer, projectors, scanners,
camcorders, facsimiles etc.) are launched in the brand name of
‘Canon’. The advantage of this approach is low cost in launching a
new product.
2. ii)  The company has three sub brands in digital camera category.
These are IXUS, PowerShot and EOS. Each sub brand is targeted
to the potential customers to capture the various segment of the
market using different slogans.
3. iii)  Canon has taken many steps recently for brand building. Out
of them, Image Lounge, Brand Ambassador, Regional Outreach
Program have a significant prospect.
4. iv)  Canon has placed its position as emotional positioning
(credence attributes) based on role model (Sachin Tendulkar). It
has already created a value proposition in the mind of customers
to whom perceived quality of Canon is very high.
5. v)  Successful introduction of entry level DSLR camera (EOS
1000D) with a competitive price, reflects one of the pricing
strategies of Canon.
6. vi)  Regular introduction of new variants, replaces its old products,
which is observed through cannibalization effect in PowerShot
category.