Sales Management: MKT 445

Section: 01
SUMMER 2019
Submitted to:

Qudrat-E-Elahi Asif (QEA)

Lecturer, Department of Marketing and International Business

North South University

Group Report on:

Sales Strategies for Canon Professional Cameras in Bangladesh

Group: 7

Name NSU ID
Ashiqur Rahman 142 1364 030
Chowdhury Shibli Maruf 1421456030
Israt Jahan Ritu 1731122030
Shuvo Gosh 161 2775 030
Ali Kauser 162 0823 030
Anjum Shahi 171 2971 630
Nasir Sharif Tonmoy 171 2165 630

Date of Submission: 07th August, 2019

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07th August 2019

To,

Mr. Qudrat-E-Elahi Asif

Lecturer, Department of Marketing and International Business
School of Business and Economics
North South University

Subject: - Submission of our report on “Sales Strategies for Canon Professional Cameras in
Bangladesh”

Dear Sir,

The report consists of the sales strategies for launching Canon Professional Cameras in
Bangladesh. These cameras are the top of the line products which is for a niche target market
mostly consisting of professional photographers

The project has been completed through extensive research, and we have tried to mention
everything we have found relevant about the product and brand to our project. We believe
you will find the project as per your guideline.

Thanking you, this project which has given us the opportunity to apply our theoretical studies
to a real life situation. Please contact us if you have any further queries.

Sincerely,

Ashiqur Rahman

Shuvo Gosh
Ali Kauser
Anjum Shahi
Nasir Sharif Tonmoy
Israt Jahan Ritu

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Acknowledgement

We would like to express our gratitude to our faculty Mr. Qudrat- Elahi- Asif, for giving us
the opportunity and guiding us in preparation of our project on “Sales Strategies for Canon
Professional Cameras in Bangladesh”. Through this report we have learned the real life
application of the theories that were taught in class. This gave us a clear understanding on
how we can implement these strategies in our workplace.

Finally, without the effort of each and every member of the group, this project would not
have been successful.

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Executive Summary

As a student of Marketing it is useful to analyze real life scenarios to understand complex

situations. As a business student, it is necessary to get hold of practical and theoretical
aspects of business. This report is based on the suggestions on how Canon can improve its
sales of professional line of cameras in Bangladesh.

This report deals with the background information about the organization. The finding also
identified the new marketing mix and segmentation of the organization proposed by us
based on surveys and critical thinking.

Financial situation has also been analyzed here. The past income statement has been
provided along with future possible income statement that has been prepared based on
suggested plans. The financial statement for the future two years has been projected after
analyzing the financial statements from the past two years.

This report also deals with suggested sales promotions which Canon can implements. The
flaws of our suggested tactics are also provided here along with recommendations that
would best work to tackle difficulties that will arise out of those flaws.

Through this report we can see how Canon can benefit themselves financially, through
using some simple strategies which best fits with their organizational values and can lead to
prfit maximization for their organization

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 Table of Contents

Serial Content Page No.

No.
1 Introduction 6
2 Previous Sales History 7
3 Sales Strategy 8-14
4 Sales Hierarchy 15
5 Sales Budget 16
6 Sales Promotion 17
7 Limitations 18
8 Recommendation and Conclusion 18

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1. Introduction

"Canon Inc.is a Japanese multinational corporation specializing in the manufacture of imaging and
optical products, including cameras, camcorders, photocopiers, steppers, computer printers and
medical equipment. It's headquartered in Ōta, Tokyo, Japan. Canon was founded in 1937 by Takeshi
Mitarai, Goro Yoshida, Saburo Uchida and Takeo Maeda.

Canon" meaning “Holy Scripture" and "criterion or standard of judgment." The name canon comes
from Buddhist bodhisattva Guan Yin (Kannon in Japanese), previously translated as Kuanyin,
Kwannon, or Kwanon in English. It effectively captures Canon’s corporate spirit, which aims to set a
global standard for advanced technologies and service while becoming a criterion in the industry to
which others will aspire.

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2. Previous Sales History (For Two Years)

(Reference)

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3. Sales Strategy
3 (a). Customer Segmentation:

Geographic Demographic Psychographic Behavioral

Segmentation Segmentation Segmentation Segmentation
Major Cities: Occupation: Outdoor Enthusiasts Usage Rate: Heavy
Dhaka Professional Status Seeker Users Awareness
Chattogram Photographers Status: Aware
Sylhet Age: 25-35 years Brand Loyalty: Loyal
Khulna Gender: Male Benefit Segmentation:
comilla Income Level: Upper Long Lasting
Middle Class Value for money

Geographic segmentation: Basically canon focus on enrich city in our country. Besides those
has transportation flexibility like chattogram,Khulna,sylhet. According to world view, most
of the affluent people live in capital in every country that is another reason to grow up their
market in Dhaka.

Demographic: In these terms, they focus on age, sex, profession, income, upper class and
middle class. According to survey, they basically understand that most of the customers are
young, affluent, enthusiastic, and professional. From this forecasting, they decide their sales
policy.

Psychographic segmentation: According to survey they know that most of the customers are
affluent, young, professional. Besides they like to find out innovative or update model.
Through this policy their sales position attracts outdoor enthusiastic and status seekers.

Behavior segmentation: They basically focus on long lasting relationship. In this basis they
follow every behavior rules. Through the market analysis, they are trying to find out their
lacking in behavior rules. Then they try to update their rules.

3 (b). Marketing Mix (4Ps)

Product:

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In this picture here lot of models of Canon cameras and this are offered by Canon. These
products enhance their product image and company name in the world wide. And this product
targeting the future targeting and the professional line. And Canon accessories would also be
with each product, which is listed in the pricing.

Fig 1: List of Products we are targeting

Specification of Two Products

Canon EOS 6D Canon EOS 5D

20.2MP full frame CMOS sensor
Weight;930 g
DIGIC 5+ image processor
ISO 100-25600 standard, 50-102800 Sensor-Type:CMOS
expanded
Display:3.2 Inch
4.5 fps continuous shooting
'Silent' shutter mode Video:H.264 Intra frame / inter frame
1080p30 video recording, stereo sound via
Memory-Type:Compact
external mic
11 point AF system, center point cross-type Flash Type I (UDMA compatible) SD card,
and sensitive to -3 EV
SDHC card or SDXC card
63 zone iFCL metering system
97% viewfinder coverage; interchangeable Battery: Rechargeable Li-ion Battery LP-E6
screens (including Eg-D grid and Eg-S fine-
focus)
1040k dot 3:2 3" ClearView LCD (fixed)
Single SD card slot
Built-in Wi-Fi and GPS
Single-axis electronic level

Price:

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 Model Price (in BDT)
Canon 5Ds EOS 3,20,000
Canon 7D Mark II 90,000
Canon 6D Mark II 95,000
Canon 80D 87,000
Canon 5D Mark III 80,000

The price has been mentioned here, all the cameras are professional cameras. If we notice
that, among these professional cameras there are few price segments considering the target
customers, the highest price is 3,20,000 BDT and the minimum price is 87,000 BDT. This let
Canon acquire customers from different segments.

List of accessories provided with the product: -

There are some accessories given with the products. And they are:

Cover bag
AV cable
18-55 mm zoom lens
Charger

Place/Distribution:

There are two kinds of channels of distribution.

 Direct
 Indirect.

Canon should choose indirect channels of distribution because of their amateur and
intermediate line of products. Canon also pushes their professional cameras through
indirect channels. It will be more cost effective than setting up their own store.

Fig 1: Different types of Indirect Channel members.

Exclusive distribution will be better for Canon, it will be a wise idea because each city would
consist of an exclusive dealer outlet and customers can experience the product by their

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preference. Exclusive dealer outlets have also their service centers with experience
technicians. They can fix all kinds of problems related to the product.

Example:

Sylhet has one canon center which will be responsible for the sales of professional level
cameras and it has a facility to do repair jobs. The exclusive store would be named
‘’Canon360 degree Sales and Service.”

Promotion:

This is the integral part of marketing that needs to be completed in order to aware customers
about a product. There are various suggestions for Canon:

Direct Selling: According to canon promotion policy, it would be wise to use direct selling.
Direct selling is suitable when advertisement is expensive and advertising turns out to be
(overflow or something). THROUGH this direct selling they attract their affluent customer
besides other middle class customer enthusiastic to buy this product. MOST of the leading
brand in this world that emphasis on direct marketing like canon. Direct selling best works
when the product is expensive and number of customers is few

Public Relations:

1. Sponsoring Photography Exhibitions Photography exhibitions are best platform to reach

the professional photographers. Once an exhibition is sponsored, the sponsor name reaches
people more quickly than any other kind of promotions. Photographers will have soft corner
for this brand and might turn out to be a potential customer.
2. Sponsoring University Based Exhibitions: Sponsoring university based exhibitions will
make the market wide for Canon since they are now targeting a segment who has the
possibility to be a future customer. Because whose people enthusiastic, adventurous,
passionate besides they like to take some magnificent moment in your life.

Digital Media: Social Media is one of the most attractive medium to target niche markets
through which Canon can easily send their message to their target audience. In this case, they
know that most of the buyer in canon is millennia that’s why they are to trying to much more
focus in digital media. We will prepare posts and AVs through which customers can both
rationally and emotionally relate to our products.

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Celebrity Endorsement: As, our main target market is professional photographers, we plan
on endorsing “Mr. Prito Reza” who is an award winning photographer both locally and
internationally. These would shift consumers mind into thinking that professionals from the
same background is endorsing Canon. Besides dipkha paducon the bollowed super heroine
also endorse this brand.

(c). Consultative Strategy

These are the strategies through which our managerial decisions would bring our customers
and sales personals closer and build a long lasting relationship between them. This approach
focuses on using strategic questioning skills to engage in a dialogue with a client or potential
client. A consultative sales process requires the salesperson to constantly request feedback
and use that information to ask the right questions at the right times. This ensures both parties
are communicating and understanding each-other effectively.
(https://www.richardson.com/sales-resources/defining-consultative-sales/ )

The Consultative Strategies for Canon are: -

1. Recruit Experienced Employees: -

When it comes to purchasing cameras, brand loyalty is key, and word of mouth from
experienced individuals from this sector is key in the decision making process of a customer.
So, Canon Bangladesh will be recruiting an individual from their key competitor “Nikon
Bangladesh” who is also popular in professional photography Product Manager of Nikon
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“Mr. Mayeen Ahmed”. This would give us an access to our potential market easily as they
would obviously think highly of Canon only because a managerial level employee moved to
Canon.

2. Research on Consumer Expectations: -

Canon Bangladesh will regular research on consumer expectation would give Canon a
competitive edge on staying ahead of competition. Which will give them an idea on what
kind of future managerial decisions the company can take to further enhance their market
position.

3. Training for Sales Representatives: -

Professional line of cameras should be handled by experienced sales representatives who

would know about the product in order to sell the particular product. The customer needs to
understand the reasons to purchase a specific product. And, this is where the role of the sales
representatives comes in, as they would be handling heavy users and people who are aware of
the product training for the employees is important.

3 (d). Pricing Strategy

(https://www.marketing91.com/types-of-pricing/)

This is the amount that would be charged from the customers in return for the sold cameras
by Canon. There are various types of pricing that exists: Premium pricing, penetration
pricing, economy pricing, skimming pricing, psychological pricing, captive product pricing,
optional product pricing, bundling pricing, promotional pricing strategy and geographical
pricing.

Out of all these pricing strategies mentioned, we will suggest Canon to go with Premium
pricing strategy. This pricing would help Canon to charge price higher than its competitors
and to achieve premium positioning. This strategy suggests that Canon cameras has
characteristics that are unique and distinct from others. Through the premium pricing
strategy, we will not only be pricing our products higher, we would also try to maintain the
high standards and the exclusivity that our customers’ demand from Canon Bangladesh.
Earlier in our distribution strategy we have mentioned how we would provide our customers

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with the perfect ambience and after sales service in our premium outlets which would
guarantee the outmost satisfaction of our customers.

Moreover, although selling cameras is our core business, we will also have accessories for
cameras, and camera lenses which would be priced at a price skimming policy so that we can
ensure a proper inflow of revenue from all sources. As, the camera lens acts as a captive
product for the camera. But there are also substitutes for camera lenses for which other
strategies cannot be followed.

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4. Sales Hierarchy

Fig.1 Sales Hierarchy of Canon Bangladesh

The above diagram is our Sales Hierarchy, through which our entire communication process
and hierarchy level can be clearly identified. As, we would have three exclusive outlets we
will have three junior managers under whom there would be two sales representatives.

The Director- Sales will be leading the team. The Senior Sales Manager will be handling the
exclusive outlets as well as look after other indirect channels. The three junior managers will
be in charge of the three exclusive sales outlets.

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5. Sales Budget

Canon Inc. and Subsidiaries

Pro-Forma Statement of Operation

In Million, Except per Share Data

Unaudited

Three month ended

31-Aug-19 31-Dec-18
Projection As Reported
Net Sales
Products and Equipment’s 3194724
Service 757213
4939921 3951937
Cost of goods Sold
Products and Equipment’s 1762171
Service 354212
2476168 2116383

Gross Profit 2463753 18355544

Operating Expenses
Selling and administrative expenses 1176760
Research and development expenses 315842
1640202 1492602
Earnings before interest and taxes 823551 342952
Interest and dividend income 4703 6604
Interest expense 1102 797
Other income 10667 14133
14268 19940
Earnings before taxes 837819 362892
Taxes 101167 96150
Net income 736652 266742

Note: Here we have expected a boost in sales for about 25% and an increase in Cost of
Goods Sold for 17%. Rests of the accounts are adjusted accordingly.

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6. Sales Promotion
The main target of our sales promotion will be to boost our short term sales and to connect
with our customers. The overall strategies we will be undertaking are divided in those two
segments and described below:

Strategies for Short Term Sales Boost:

 Discount on camera related accessories like batteries, straps and carrying bags. We
won’t be discounting our main products, but the discount on side products will boost
customer morale.
 We will start an exchange offer where the customers can exchange their old cameras
with our new products with an added price on top of that. This will bring in new
customers for us; as customers who are using different brand’s camera will be more
inclined to buy and try out our cameras.
 5% Discount on payments if it is made by cards.
 EMI facility for customers who can’t pay upfront. This will bring in relatively lower
tier customers for us.
 Discounts and raffles draws during major festivals; for example: 2 Eid’s and Pahela
Boishakh. This will create buzz and awareness as well as boosting short term sales.
Strategies to Connect with the Customers:

 Offer 6 months replacement guarantee and up to 2 years of service warranty to the

customers for all the cameras and related products.
 Create a special club or online community where consumers can compare and ask for
help from other users.
 Consumers can earn discounts and win products in giveaways by sharing our posts
online.

Other promotional strategies can be giving raffle draw coupons at the end of the purchase
where lucky customers can a chance to win gifts and plane tickets to Thailand
Also, customers can participate in our giveaways by sharing our social media pages which
not only will allow customers to win prizes but will also help create awareness and can help
us get potential customers.
We also hope to gain the confidence of our customers by providing after sales services such
as 6 months replacement warranty and 2 years’ service warranty for all cameras and
accessories.
The customers will also have an option to subscribe to our upgrade program where with a
small payment each month, customers can upgrade to a newer generation of Canon product.

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7. Limitations

No matter the perfectly devised plans, there are always some limitations there. For a diverse
market like this country, there are some limitations that persist there.

 The first issue will be of customer’s perception of the brand. Canon is a premium
brand and we want to keep that same positioning intact here. But constant
promotional offers or discount might hurt that image. On the other hand, to capture
this country’s customer segment we have to offer such promotional offers. The trick
will be to maintain a balance between the two.
 High pricing and premium positioning will limit our customer segment to a degree.
If we keep up the promotional offers meant to boost short term sales for a long time, it will
incur even more cost on us. So, we have to time our promotional offers accordingly.

8. Recommendation and Conclusion

Canon Company has wide range of businesses around the world. They specialize in image
and optical products, camera, photocopiers and printers. Company always believed in ground
breaking inventions. They started to thinking out of the box and they always applied their
things with future in mind. Canon mainly focuses on direct selling which is too much
suitable. On the other hand canon can easily send their message to their target audience by
digital media which is a great advantage to reach customers mind through social media.
Canon is all time focus about their customer's satisfaction and their service quality is good
which will create a good position in the market.

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Bibliography

(n.d.). Retrieved from https://en.wikipedia.org/wiki/Canon_Inc.

(n.d.). Retrieved from https://www.richardson.com/sales-resources/defining-consultative-

sales/

(n.d.). Retrieved from https://www.marketing91.com/types-of-pricing/

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