Video Title: Konica/Minolta: Advancing in the Digital Age

Run Time: 3:39

Classroom Application: Instructors will find this video useful in the study of consumer
behavior. Konica/Minolta serves as a good case study for understanding consumer
behavior, especially as it relates to the changes experienced as a result of the digital age.
Providing students with such knowledge can help them to appreciate and better
understand the way digital advancements are shaping the business marketplace and the
importance of understanding consumer behavior.

Synopsis
Konica/Minolta has been in business since 1873. It was a successful photo company for
many years, but with the advancement of digital photography the company decided to
change course in 2007 and completely moved out of the photo industry. Konica/Minolta
now produces office equipment and print products for commercial printers. The company
also has a health care and medical group, optics group, and a division that produces
components for cell phones and televisions. Konica/Minolta’s marketing strategy is now
a business-to-business approach and has changed drastically with the advancement of
social media.

Discussion Questions
1. For many years, Konica/Minolta was a major player in which industry? Explain why
the company eventually exited this industry entirely.

For many years, Konica/Minolta was a major player in the photo industry. In 2003, they
began a shift away from this industry. Even though the company was the number three
provider of film and photo paper globally, Konica/Minolta recognized the decline of this
industry. As digital cameras became more popular, the photography industry was
becoming a consumer electronics industry. This change did not play to the strengths of
Konica/Minolta; therefore, the company decided to diversify and move away from the
photo business. By 2007, Konica/Minolta had completed exited the photo industry.

2. Explain how Konica/Minolta’s marketing strategy has changed within the last decade.

Konica/Minolta’s marketing strategy has changed drastically within the last decade. The
company has moved away from business-to-consumer marketing and now uses a
business-to-business marketing strategy. Konica/Minolta markets to small and mid-size
businesses, as well as large companies, government agencies, and educational
organizations. Brand is critical to their new marketing strategy.

3. How has social media influenced Konica/Minolta’s marketing techniques?

In the past, the company had complete control over their brand message. Today, social
media creates an interactive marketing environment. What customers are saying about a
company on social media sites affects the brand image. Social media also provides
Konica/Minolta with a method for interacting with customers and an opportunity to
understand customers’ thoughts and feelings about their products. This provides the
company with instantaneous feedback and can be a useful marketing tool.

Quiz
1. Which of the following best describes why Konica/Minolta decided to get out of the
photo business in 2003?
a. Photography was becoming an all-electronic medium in which products such as
film would no longer be sold.
b. Photography was becoming an all-electronic medium in which products such as
cameras would no longer be sold
c. Photography was becoming an all-electronic medium in which people would now
use video rather than still images.
d. Konica/Minolta’s cameras could no longer compete with those of Nikon and other
big photography companies.
Answer: a
Explanation: Prior to 2003, Konica/Minolta made most of its revenue selling
photographic film and paper. Recognizing that photographic images would soon be
largely viewed on computer screens as digital images, Konica/Minolta exited the photo
business.

2. Suppose you were a Konica/Minolta manager in 2003 and needed to determine which
part of your business was likely to disappear first. Which part of the company’s photo
business would you consider to be LEAST likely to survive?
a. the camera business because cameras are no longer required for photography
b. the photographic paper business because electronic images do not need to be
printed on paper
c. the photographic ink business because electronic images do not need to be printed
with ink
d. the film business because electronic cameras do not require film
Answer: d
Explanation: Of all the things that changed in the photography business, the need for film
was the most drastic change. Currently, cameras, photographic ink, and photographic
paper are still products that have a large market. The market for traditional photographic
film has almost completely disappeared.

3. In 2003, the CEO of Konica/Minolta made a brilliant move by exiting the company’s
core business and move into new fields. Which of the following, if true, would pose
the greatest threat to Konica/Minolta’s current business?
a. cell phone cameras that are so high in quality and resolution that the market for
dedicated cameras disappears
b. printing equipment that is so high in quality and resolution that the market for
commercial production-quality professional printers disappears
c. tablet computers that are so high in quality that they rival the images that appear
on photos printed on paper
 d. consumers deciding that they will have “paperless” households and causing the
consumer printer market to drop dramatically
Answer: b
Explanation: Konica/Minolta currently focuses on commercial, production-quality
printing equipment. If professionals no longer need specialized equipment for publishing
such things as magazines, Konica/Minolta’s business will once again be in trouble. Such
things as better cameras, better tablet computer images, or paperless households will not
threaten Konica/Minolta’s current business.

4. Which of the following statements is true with regards to changes in the marketing
environment of the past?
a. Brand image was more critical 20 years ago than it is today.
b. In the past, companies had complete control over their brand message; today,
customers share partial control of brand message.
c. In the past, customers had more control over a company’s brand message; today,
companies retain complete control of brand message by representing themselves
on on TV, the Internet, and in social media.
d. In the past, it was easier to obtain customer feedback than it is in today’s
marketing environment.
Answer: b
Explanation: Twenty years ago, companies had complete control over their brand
message. Today, customers share in a company’s brand message through what they say
in social media and other websites. For example, when Konica/Minolta comes out with a
new product the company almost immediately gets feedback — through blogs, social
media sites such as Facebook, and other consumer rating sites — on how well the product
works and whether the product successfully meets a need in the market. This feedback
helps the company, in turn, adjust not only its brand image but sometimes also the
product itself, making design changes in response to customer reaction.

5. Which of the following identifies a key benefit to the use of social media for a
company like Konica/Minolta?
a. Using social media, companies can get close to customers without having to
conduct expensive focus groups.
b. Using social media, companies can manipulate the public’s reaction to a product
by posting “consumer opinions” that are actually observations that come from the
company’s PR department.
c. Using social media, companies can get close to the activities of competitors and
learn about the products that they plan to market before the public finds out about
them.
d. Using social media, companies can relate to consumers as just “one of the guys”
without the stigma of being seen as having an agenda.
Answer: a
Explanation: The greatest benefit of social media is that a company like Konica/Minolta
can get an accurate view of its customers’ response to a product without needing to
conduct expensive focus groups or market research. Companies often release a product in
an unfinished “beta” form and allow users to respond. Based on the response, the
companies then may choose to tweak the product, make major changes in the product, or
release the product for general consumption as is.