FINAL REPORT ON NIKON CAMERA

SUBMITTED BY:
NAME: C.B. Sujeeth Bharadwaj
SECTION: CM-3
PRN: DM18C13
SEMESTER: 2nd (2018-20)
Contents

SECTOR INFORMATION .............................................................................................................................................. 3

MARKET SIZE........................................................................................................................................................... 3
FACTORS LEADING TO THE GROWTH OF THE CONSUMER ELECTRONICS SECTOR................................................ 5
PORTERS FIVE FORCES ANALYSIS ........................................................................................................................... 6
COMPANY INFORMATION .......................................................................................................................................... 7
SWOT ANALYSIS...................................................................................................................................................... 9
LATEST NEWS RELATED TO THE COMPANY ........................................................................................................ 12
4ps Of Sony PRODUCT ......................................................................................................................................... 13
PRICE:- ............................................................................................................................................................ 14
PLACE ................................................................................................................................................................ 14
PROMOTION .................................................................................................................................................... 14
SEGMENTATION, TARGETING AND POSITIONING .................................................................................................. 16
Sales Forecast........................................................................................................................................................... 18
❖ NAÏVE/RATIO METHOD............................................................................................................................. 18
DISTRIBUTION MANAGEMENT ................................................................................................................................ 19
DISTRIBUTION STRUCTURE.................................................................................................................................. 19
Distribution Levels ............................................................................................................................................... 19
MARKETING CHANNELS: .................................................................................................................................. 20
CONCLUSION ........................................................................................................................................................ 21
SECTOR INFORMATIONi
Indian appliance and consumer electronics (ACE) market reached Rs 2.05 trillion (US$ 31.48 billion) in
2017. It is expected to increase at a 9 per cent CAGR to reach Rs 3.15 trillion (US$ 48.37 billion) in 2022.
Electronics hardware production in the country reached Rs 3.88 trillion (US$ 60.13 billion) in FY18,
growing at a CAGR of 26.7 per cent between FY14-18. Demand for electronics hardware in India is
expected to reach US$ 400 billion by FY24.
The consumer durables sector in India is expected to grow 8.5 per cent in 2018-19. Consumer durables
index under the Index of Industrial Production (IIP) has grown 7.50 per cent year-on-year between Apr-
Dec 2018.
MARKET SIZEii

Segment Size
7%

9%

3% 36%
5%

14%

12% 14%

TV STB Digital Camera Refregirator AV Players Air Coolers AC Washing machine

The Consumer Durables sector comprises of two main segments –Consumer Electronics (Brown Goods) and
Consumer Appliances (White Goods)
SEGMENTS SEGMENT SIZE
DSLR 32%
Compact Digital Camera 60%
Others 8%

Source:- 6Wresearch Quarterly India Digital Camera Market

GROWTH OF THE CONSUMER ELECTRONIC SECTOR IN INDIAiii

• Revenue in the Consumer Electronics segment amounts to US$6,734m in 2019.

• Revenue is expected to show an annual growth rate (CAGR 2019-2023) of 16.2%, resulting in a market
volume of US$12,281m by 2023.
 • User penetration is 20.7% in 2019 and is expected to hit 30.8% by 2023.

• The average revenue per user (ARPU) currently amounts to US$23.81.

• In global comparison, most revenue is generated in China (US$127,269m in 2019).

Revenue

12000

10000
In Million Dollar

8000

6000

4000

2000

0
2017 2018 2019 2020 2021 2022
Year

in Million $

Source:- Statista, 2019

FACTORS LEADING TO THE GROWTH OF THE CONSUMER ELECTRONICS SECTOR
1. Rapid urbanization A majority of India still lives in ‘villages’. This statement no doubt holds true but the
figures suggest that there has been a paradigm shift of the Indian populace in terms of rural–urban
divide. The aspirations of higher income, higher standard of living etc. has drawn more and more people
from villages to settle in towns and cities. This transition from rural to urban areas has led to an increase
in the demand for goods (owing to higher income and ever-expanding needs). The consumer durables
manufacturers are therefore targeting the ‘middle class’ populace by ensuring the availability of varied
products at various price ranges to match the needs of a ‘common man’.
2. Rising income levels & growing per capita expenditure
- In the last decade, Indian economy has progressed rapidly. Correspondingly, India’s per capita GDP has
gone up from Rs 80,518 in FY13 to Rs 127,292 in FY18 at a CAGR of 9.6% fuelling a consumption boom in
the country. - Correspondingly, the per capita personal disposable income surged from Rs 82,408 in
FY13 to Rs 128,894 in FY18 at a CAGR of 9.4%. Also, the per capita private final consumption
expenditure too rose from Rs 45,461 in FY13 to Rs 74,915 in FY18 at a CAGR of 10.5%. The growth in
country’s per capita GDP in turn has increased the disposable income of the populace ultimately driving
the country’s consumption.
3. Growing spread of plastic money & easy availability of credit
The growing use of ‘plastic money’ i.e. credit and debit cards has resulted in an increased spending
amongst the consumers thereby fuelling the demand in the durables sector. With the acceptance of
plastic money by almost all the retailers in the organised segment, the number of outstanding plastic
cards in the country is on a rise. The incentives such as cash-back offer or discounts on selected sales
linked to the plastic money have lured the Indian consumer to experience the pleasure of ‘cashless
shopping’. Also, with year round discounts on e-commerce, reduced tax rates and advancements in
technology at lower costs, demand is further expected to get a boost.
4. Rising growth in number of nuclear families
The rapid growth of population, increased urbanisation and the unavailability of large real
estate spaces have led to the growth of nuclear families in the country. The average number of
person per household has reduced from 5.6 in FY81 to 4.9 in FY11. - The growing number of
households has not only pushed the demand for necessities but the combined mix of greater
purchasing power and willingness to spend has resulted in the nuclear family’s shifting focus
towards luxury/semi-luxury products. This has thus led to higher demand for durables in the
country
 PORTERS FIVE FORCES ANALYSIS

Threat of Substitutes

▪ Technology advancements
▪ Buyers have huge propensity
to substitute

Competitive Rivalry Bargaining Power of Buyers

Bargaining Power of Suppliers

▪ Product differentiation is ▪ Continuous innovation ▪ Use of Internet to get all the

very low leads to intense rivalry information enables
▪ By changing the input, ▪ Homogeneity in product customers to be powerful
firms cannot drastically and low switching cost ▪ Buyer’s switching cost is very
differentiate on price less

Threat of New Entrants

▪ Highly capital intensive

▪ Major players have developed brand
equity
▪ Brand loyalty is moderate

Positive Impact Neutral Impact Negative Impact

COMPANY INFORMATIONiv

In 1946, Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation, the predecessor of
Sony) started as a small company with capital of just 190,000 yen and approximately 20 employees.

Founder Masaru Ibuka said the purpose of setting up the company was to "establish an ideal factory that
stresses a spirit of freedom and open mindedness that will, through technology, contribute to Japanese culture."
Symbolizing Sony's spirit of challenge to "do what has never been done before," the company has continued to
release countless "Japan's first" and "world's first" products. The company created a paper-based magnetic
recording tape in 1950, brand named Sony, and the company became Sony Corporation in 1958. At the 1964
New York World’s Fair, Sony introduced the MD-5, the first all-transistor desktop calculator. In 1968 the
company shipped its first Trinitron colour television. By 1971, 40 percent of Japanese households had colour
television sets, so Sony introduced the first colour video cassette recorder (VCR), which led to its introduction of
the Betamax VCR in 1975. The Betamax, though widely considered the best VCR technology ever developed, was
more expensive than its competitor, the VHS (Video Home System). As more and more studios and video stores
turned to VHS, Betamax lost market share, and Sony finally introduced its own VHS in 1988.

In 1979 the Sony Walkman portable tape player hit the streets. Although Sony’s engineers were skeptical about
designing a device that could only play and not record, Morita insisted on developing the product, saying he
would resign if the Walkman was not a success. The Walkman was an international sensation and eventually
sold hundreds of millions of units. The first compact disc (CD) player emerged in 1982 from a development
agreement between Sony and Dutch manufacturer Philips Electronics NV. Sony provided pulse-code modulation
technology and combined it with Philips’s laser system. The failure of Betamax had taught Sony a lesson; the
format standard for CDs (and later digital videodiscs [DVDs]) was agreed upon by a wide range of companies in
Japan, Europe, and North America. The next year Sony introduced the first camcorder.

The first digital camera from Sony appeared in 1988, the Mavica. It worked with a TV screen display. Sony did
not create another digital camera until 1996's release of the company's first Cyber-shot model. In 1998, Sony
introduced its first digital camera that made use of the Memory Stick external memory card. Most previous
digital cameras had used internal memory.

Source :- https://www.lifewire.com/what-are-sony-cameras-493492

Worldwide Revenue Share: -

FMCG company has generated total revenue of $288 million. And, UK has the highest share, $87.9 million, among
all the countries. Two biggest growing economies have contributed, $65.6M and $46.6 million only.
Out of India’s $46.6 million, ‘stores’ have bought $17.5 million, ‘direct sales’ about $15.6 million and ‘partners’
helped them gain $13.4 M. India’s market is so vast that companies often fail to penetrate. Also frequently face
challenges with India’s distribution network.
GDP Contribution Sector wise: -
The FMCG sector in India generated revenues worth US$ 49 billion in 2016.By 2020, the revenues of the sector
are forecasted to reach US$ 104 billion. The FMCG market in India is expected to grow at a CAGR of 27.86 per
cent and is expected to reach US$ 103.70 billion by 2020 from US$ 52.75 billion in FY18.
In the long run, with the system becoming more transparent and easily compliable, demonetisation is expected
to benefit organised players in the FMCG industry.
SWOT ANALYSIS
STRENGTHS

• Quality Products Offering – Sony has strong product quality in its portfolio.
• Globally Recognized Brand: - Sony has been offering quality [products from the inception of the company.
As a result, it gained global recognition.
• Strong Brand Image :- the global recognition and the quality helped, Sony to develop strong brand image
• Innovative Products: - From the beginning, it has been offering innovative products to customer.
• Great after Sales Service: - the after sales service of Sony is world class, and it has helped in gaining
reputation.

WEAKNESSES
• Pricing: - The pricing is too high, as many people from around are unable to buy their products.
• Not very much diversified like competitors: - Because of this reason, they are not capable of increasing
their global profits.
• Low Promotional Activity: - Sony does not go through heavy promotional activity.

OPPORTUNITIES

• Multinational Company: - as a multinational company, it can expand globally in future.

• Emerging Global Market: - The global market is expanding and now people in any corner of the world can
buy anything.

THREATS

Low Diversification:- Low diversified portfolio will reduce profit in case of global recession
Increasing Competition: - The competition in the market is increasing. The competitors like Samsung, LG, DELL,
SONY, HP are growing faster.

Same products offered by other companies:- these products are offered at lower price by other companies, so
people are becoming interested in those products, so in long run which is a negative for the sony.

COMPETITOR ANALYSIS
According to “India Camera Market Forecast & Opportunities, 2017”, Indian camera market will witness
phenomenal compounded annual growth rate (CAGR) of 27% for next five years. Some of the drivers for growing
camera market in India are low penetration, increasing disposable income, increasing social media, increasing
tourism, and increasing advertising. On the other side, grey market &substitute products like mobile cameras
are acting as restraint to growth of the camera market in India. However, technological advancements like
mirror-less camera, 3D camera and increased functionality like GPS, Bluetooth, Wi-Fi etc. in the camera is
expected to reduce the substitution effect in the coming times.“India Camera Market Forecast & Opportunities,
2017” include-

India Overall Compact and DSLR Market Size, Market Share and Forecast

- Indian Camera Market Pricing Analysis, Sales Channel Analysis, PEST Analysis

- Drivers &Restraints, Market Trends &Developments

- Competitive Landscape &Strategic Recommendations

As discussed in the SWOT analysis of the company, the Indian FMCG industry is flooded with a lot of companies
and it is a major threat to theCompetitors analysise companies itself. Companies like ITC, HUL, and P&G owns
the maximum amount of the share.
Source:- Cyber Media Research, 2017

LATEST NEWS RELATED TO THE COMPANYv

Description:

• Sony has announced a 4K ultra-compact action camera that it describes as "the world's smallest and
lightest.
• Sony A6400 brings enhanced real-time tracking to mirrorless camera line(world’s fastest AI mated
mirrorless camera)

MARKETING
STRENGTHS

− Sony has a strong market position built on broad product portfolio

− Sony has diversified geographic presence with focus on developing markets provides
diversified revenue stream with reduced business risk
− Strong research and development capabilities facilitate new product development in line
with changing consumer preference
− Effective integration of digital platforms like social networking sites in its marketing efforts
has helped attract larger target audience
Excellent advertising and branding exercises through TVCs, online ads and print ads of Sony products
WEAKNESSES

− Dependence on products and businesses

− Imbalance between engineering and customer feedback
Low speed of innovation
OPPORTUNITIES

− Online sales opportunities by leveraging e-commerce market and effectively using online
marketing options
− More innovative product offerings for the customers
THREATS

− Rapid technological changes

− Competition: The main competitors of Sony
are Canon, Casio, Kodak, Panasonic, and Olympus

4ps Of Sony PRODUCTvi

Product can be refer as to that mix of marketing which defines the different products available as well as well
their quantity and variance

Digital SLR Cameras:

Sony manufactures and markets D series of
Digital SLR cameras in Indian market. Some of
the bests selling DSLR models are: D4S, D4,
D600, D610.

Sony Alpha:
The Sony 1 series are high-speed mirrorless
interchangeable-lens cameras with 60 frames
per second (fps). The series currently includes
Sony 1 V1, J1, J2, and S1 with a 10-megapixel
image sensor

`
 Phenomenal 0.02 sec.1 AF performance
including newly developed Real-time Tracking
ExmorTM CMOS sensor and BIONZ XTM for
superb image quality
180° tiltable LCD touch screen for selfies and
vloggin

• The ZEISS® Vario-Sonnar® T* 16-35 mm F2.8

zoom is already a favourite, and now it has
been refined for even better performance.
With excellent contrast and resolution in ultra-
wide focal lengths it offers a dynamic palette
of viewpoints and perspectives. The new
edition reduces ghosting for improved clarity,
lens processing has been revised for faster
tracking and it is dust and moisture resistant.

PRICE:- Sony DSLR Cameras are priced in range of Rs.23000 to Rs.2,50, 000.The basic DSLR starts at
Rs.23000 which comes with some features while a high end model can go upto Rs.2,49,995 with best in
class features

• Sony D3200 DSLR Camera – Rs. 28,950

• Sony D5300 DSLR Camera – Rs. 59,950
• Sony D7000 DSLR Camera- Rs. 68,950
• Sony D3200 DSLR Camera- Rs. 43,950
• Sony D7100 DSLR Camera- Rs. 99,950
• Sony D800 DSLR Camera- Rs.1,63,950

PLACE
With time, Sony has created a strong user base and a wide network of shops and service centers.
Cameras by Sony are available worldwide. The cameras are available at online stores like Amazon,
Flipkart, Alibaba. They are also available in physical stores like, exclusive Sony stores, multi brand
stores, supermarkets etc. Stores of Sony are spread all over the world. Service centers are a very
important factor that determines if a camera will be sold or not. For this reason, Sony has set up
service centers in all major urban cities and sub urban areas in India and rest of the world
PROMOTION
Sony promotes its products through celebrity endorsements, trade fairs and by launching various
festive offers from time to time. They sponsor sports events, runs a Sony school to develop
photography skills in the interested people and create awareness about photography. They also
run a club among corporate people to take care of their photography
• Celebrity endorsements
• Trade fairs
• Sponsorship of events and teams
• Television, magazine and newspaper advertisements
SEGMENTATION, TARGETING AND POSITIONING

SEGMENT Geographic:
Tier 1, Tier 2 cities, Metro Cities (for
DSLR Cameras)

Demographic Segmentation:
Age: Mainly 18-42
Class: Upper Middle Class and Upper
class Income Level: Medium-High

Psychographic Segmentation:
Social Class: Middle class, Upper class.
Lifestyle: Achievers, strivers, survivors.

Behavioral Segmentation:
Benefits: Good price-quality proportion.
User Status: User, potential user, non-
user. Usage Rate: Low, Medium, High.
Occasions: Regular Occasions, Special
Occasions
TARGET • Earlier Sony targeted only professionals
for its DSLR Range, now they are
targeting anyone who has interest in
photography

POSITIONING • Positions itself as one of the best Camera

brand with tagline “At the heart of the
Image” which sells quality imaging
products for professionals as well as
non- professionals. Sony has been
traditionally associated with professional
photography; Lately focus has shifted to
everyday photography.
PRODUCT LIFE CYCLE

The product life cycle of a product depicts the stages that a product goes through during its duration.

INTRODUCTION STAGE refers to any new product launched by the company. GROWTH STAGE refers to the time
when the product starts gaining momentum and moves towards the maturity stage. MATURITY STAGE refers to
the stage where the product attains its maximum popularity and there’s no scope of growth of that product
until any new innovative idea is being added to the product. At last is the DECLINE STAGE, where the product
loses its popularity as well as the market share and new improved products take its place. Moreover, it is the
time where the product earns minimum revenue.
Sales Forecast
FINANCIAL ANALYSIS

Below are the sales figure of Sony from 2008 – 2017

SONY CAMERA

YEAR VS SALES (Million)

YEAR NET SALES ( ¥ )

2008 955,792

2009 879,719

2010 785,499

2011 887,513

2012 918,652

2013 1,010,494

2014 980,556

2015 857,782

2016 819,388

2017 749,273

2018 717,000

❖ NAÏVE/RATIO METHOD
actual sales of this year
= actual sales of this year*
actual sales of last year
 717000
= 717,000*
749273

= 686,117.07 ¥ Million

Based on the two methods I have obtained two figures after forecasting. But the second figure i.e. 681558 ¥ Million seems
to be more realistic forecast and the reason behind is the technological change with emerging technology in imaging
industry where the Cell phones also carry compatible picture quality as that of the modern camera thus giving tough
competitions to camera manufacturer.

DISTRIBUTION MANAGEMENT
DISTRIBUTION STRUCTURE
DISTRIBUTRION LEVELS: Sony has adopted exclusive and selective distribution strategy to reach its target
customer in the Indian market. Cameras of Sony are available in the stores of Sony which carries only Sony
camera to its accessories thereby making exclusive distribution moreover the cameras can also be purchased
from selected stores from the market wherein various brands are also available within the store thereby
creating selective distribution format. Today being an era of E- commerce thus the cameras are also available
in various E- commerce sites for purchase.
Distribution Levels
Sony practices 0 – level and 1 – level distribution, wherein in 0 – level where instead of selling the goods to the
intermediary sells it directly to the consumer through Sony own website, mail order selling, or internet selling. Sony also
sells its cameras and accessories through its exclusive or selected retail stores.
MARKETING CHANNELS:

• Promotional activities are carried out by displaying advertisements in newspapers,

hoardings in important public places, magazines, television, online videos in YouTube, etc.
• Movie stars like Aston Kutcher, Priyanka Chopra have lent their glam quotient to Sony in
promotional campaigns and ads.
• Sony targets prospective customers by sending them promotional emails with offers.
General offers like cameras bundled with lenses at discounted prices, cashback offers are
put out from time to time to retain loyal customers and attract new customers.
• Most of Sony’s campaigns feature ads which are not about the product only but also about
the people surrounding it and have an emotional theme.
• Sony is a very social media active brand, which stays in touch with the recent happenings
all around the world.
• Sony has photography clubs for its existing users. This gives the existing customers a sense
of belonging to a special community. Sony organizes events and photography contests for
photo enthusiasts from time to time. One of its most memorable campaign featured the
line “I am _ ”. This was filled by various people with words like Sony, Brave, awesome. It
induced creativity in customers and instilled self-respect. The campaign was so successful
that people rushed to buy Sony cameras resulting in huge volumes. Hence this completes
the Sony marketing mix
CONCLUSION
The project has help me understanding the consumer durable as a sector and the micro and macro- economic factors that
impact the sector. Also the divisions and sub divisions in the sector and the factors for driving the sector in the Indian
context. The porters five force model has helped me understanding the sector as a whole and the five forces that plays and
important role in the sector. After the study of the company I have understood the company’s information, its strength,
weakness, opportunity and threat to the imaging industry and its various offerings to the market with wide range of
camera. Moreover, its competitor and their respective market share.

In my study my focus is mainly on Sony DSLR category camera and hence I have studied the sub sector within Sony company
and performed SWOT analysis. Further I studied the marketing mix for DSLR category and identified the various models
and their respective price for the same. In the later part of my study for better understanding of the camera market I
performed STP (Segmentation, Targeting and Positioning) analysis. In the first part i.e. segmentation I have understood
and identified the geographic, demographic, behavioural and Psychographic Segmentation of the market and further
identified the primary target customer based on segmentation.