Canon Vietnam Co LTD and Its Marketing

CANON VIETNAM CO.
LTD AND ITS MARKETING
I. INTRODUCTION
Nowadays, the economy of the world grows significantly. The demands of consumers
increase, all companies must satisfy them to exist. Marketing is important part of all
businesses that helps them achieve success. It is large scale that includes many things, such as
researching customers, promoting the products. Marketing has many ways to define and many
concepts to achieve which depends on ability and target of company.
Canon Inc. is a multinational corporation that specializes in the manufacture of imaging
and optical products, including cameras, photocopiers, steppers and computer printers.
Therefore, Canon cannot lack marketing orientation that everything focuses on needs and
wants of customers. Canon operation is not harm to environment, so its marketing approach is
societal marketing. All business situations or not business situations of the company observe
this approach. Because of this, Canon achieved many success and become famous brand of its
field in the World.
The first purpose of the report is to introduce marketing orientation of Canon that affirms
its operation trend, such as its organization structure or strategy. Moreover, this report
analyzes Canon Vietnam marketing activities in detail to help readers have clearly view about
business of Canon. Besides, it proposes projects that help Canon promote two printer lines
that are SELPHY and Laser printer, to Sales Director.
The method used to conduct this research is using secondary data from previous studies
on course books, reference books and internet. They are reliable sources such as BPP
Professional Education, Canon Vietnam and Philip Kotler author and so on.
However, this report still has limitation. Firstly, it did not mention to marketing process.
The second is marketing mix which is important elements of marketing is not analysed in
detail. Finally, situations relate closely to products are not stated, such as total product or
distribution channel, etc.
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CANON VIETNAM CO. LTD AND ITS MARKETING
II. BASIC CONCEPT OF MARKETING
1. What is Marketing?
Nowadays, marketing is an important part in all enterprises. Market is battlefield that
many companies compete with each other to have large market share. Which company has
best marketing, it will win in this fight. Marketing has influence in whole process from
researching to selling products. The purpose of marketing is to help companies find the best
way to produce and support new products to the market by researching customers’ needs and
wants to satisfy them. The following is some marketing definitions:
Chartered Institute of Philip Kotler American Marketing

Marketing Association
Definitions Marketing is the Marketing is the social Marketing is the process of
management process process by which planning and executing the
which identifies, individuals and groups conception, pricing,
anticipates and supplies obtain what they need promotion and distribution
customer requirements and want through of ideas, goods, and services
efficiently　and creating and to create exchanges that
profitably. exchanging products satisfy individual and
(BPP Professional and value with others organizational goals.
Education, 2004, p8) (Philip Kotler, 2000, (BPP Professional
p4) Education, 2004, p8)
Similarity To concentrate on customer.
Differences - Management process. - Social process. - Process of planning and
executing.
- To focus on customer - Creating and - Completing previous
requirements exchanging products definitions, satisfying both
efficiently　and and value with organization and customer
profitably. others with 4Ps.
It is easy to realize that the improving in marketing concept increases more and more.
However, they can be separated to two periods that are classic marketing and modern
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marketing. Originally, when marketing concept just appeared, the economy had not
developed, supply is bigger than demand. Therefore, suppliers have power to decide what
products are bought through their own experiences.
But nowadays, the economy is developing. Customer demands are advanced. Thus, to
keep with development of economy, the definition of marketing must change. The companies
have a process to understand customer demand and their objective is providing customer
satisfactions. Moreover, there is not only customers are satisfied but also organizations’ goal
is emphasized. To modern marketing, the risk in business is reduced many times. As a whole,
marketing concentrates on satisfaction of customer demand, requirement.
2. The main characteristics of marketing orientated organization for Canon
Marketing orientation is that a business strategy whereby customer’s needs and wants, as
identified by the marketing function, determine corporate direction (Marketing MiMi.hu, n.d).
Canon Inc. is a marketing orientated company. It is easy to realize because of its
products. The new products of Canon are made by concentrating on customers. SELPHY ES3
& ES30 provide intelligent functions and attractive looking figures and offers users not only
convenience, quality and versatility but also a unique lifestyle. Moreover, they have good
looking shapes that best fit in home interior and irresistible effects that bring charm to users'
photos, come with over 10 image effects, 3 of which are brand new that are Starlights,
Nostalgic, Modern bright & Pinhole. Besides, Canon introduced the Laser Printer LBP3250
and the colour laser printer LBP5050 which are perfect for home and small offices. They have
better features and quicker printouts while assuring both quality and quantity. Furthermore,
USB 2.0 Hi-Speed in them enables both printers to transfer data at high speeds without fear of
data bottlenecks and never-ending print queues [Scenario].
Canon always has a clear marketing strategy that each showroom will show and introduce
one product line, primarily in order to increase concentration and profession into each product
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and consumers of it (Thế Giới Vi Tính, 2006). Moreover, it is Multinational Corporation, so
its structure is by geography which has local decision making at the point of contact between
the organization and its stakeholders (BPP Professional Education, 2004, p67). “The
expectations toward us identified through dialogue between our stakeholders and relevant
company divisions” (Canon, 2008). Canon always listens and cares about stakeholders’
objectives.
Figure1. Canon Governance Structure
(Source: Canon Annual Report 2008)
The first thing in marketing orientation is that know what customers want, how to be
better than competitors. Therefore, Canon has to have research market. After that is strong
research and development capabilities, which made its product line on a reliable basis, and
provided it with a strong pipeline of new products and technologies. For example, new Canon
product possessing amazingly intelligent functions and attractive looking figures, offer users
not only convenience, quality and versatility but also a unique lifestyle (Scenario). All these
features focus on users, it means Canon has customer oriented which base on customers
demand.
The Canon’s commitment is showed through its philosophy “kyosei” that is “All people,
regardless of race, region or culture, harmoniously living and working together into the
future” (Canon Vietnam, n.d) and this thing is implemented from top to employees. Therefore,
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there is coordination of company led activities which are 4Ps: product, price, place and
promotion that around customers’ needs. Subsequently, Canon achieved success with the
profitability. Canon Vietnam Co. Ltd. earns more than US$200 million. In Asia and Oceania,
sales climbed 4.5% year on year to ¥729.9 billion, accounting for 17.8% of consolidated net
sales [Scenario].
3. The various elements of the marketing concepts
According to Philip Koler (1997):
Concepts Profit Driver Western European Elements
Timeframe
Production Production Until the 1950s - Production and distribution
method - Reduce costs
- Improve efficiency
Product Quality of the Until the 1960s - Concerns quality of product
product - Focus on product, not care about
customers’ needs
Selling Selling methods 1950s and 1960s - Effectiveness and promotion
-Focus on selling(sells existing products)
- Using promotion techniques to attain
the highest selling as possible.
Marketing Needs and 1970s to present - Satisfy
wants of day - Marketing plan are based
customers - Customers desires
Societal Benefit to 1990s to present Elements of marketing concept and
marketing society day curtailment on any harmful activities to
society
Canon is a company that has marketing orientation. The approach which Canon uses is
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societal marketing. It is proved by 5Cs analysis. It is an environmental scan on five key areas
especially applicable to marketing decisions (NetMBA, n.d). 　
First C is company, here is Canon which is manufacturer of business and consumer
imaging products. Canon’s vision is “All people, regardless of race, region or culture,
harmoniously living and working together into the future” (Canon Vietnam, n.d). Hence, its
purpose is to bring goods thing to all people in the world by its products that are ensured that
protect environment and the future. Canon establishes system that manages rubbish and
recycles 100% kinds of plastic, metal and paper (Canon Vietnam Co., Ltd, n.d). And “Canon
Vietnam launched the Canon Friendship School Chain Project in July 2007 to support the
construction of schools in Vietnam”(Canon, 2008).
Figure2. Canon’s main social and cultural support activities
(Source: Canon Sustainability Report 2008)
The second is collaborators which are distributors, suppliers, etc. In Vietnam, Canon has
five main distributors and more than 300 agencies, such as Lê Bảo Minh (VnEconomy, 2008).
Moreover, Canon always has cooperative activities with its suppliers, promotes fair and
transparent business transactions (Canon, 2008).
The third is customer, Canon concentrates on customer orientation. Canon had
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diversified product lines that can satisfy market requirements with different quality levels,
low, average and high and suitable price for customers (VnEconomy, 2007). Thus, target
customer of Canon is business and consumers who have money. Besides, each product of
Canon has different target customers, such as Laser Printer LBP3250 and LBP5050 focus on
home and small offices [Scenario].
Next is competitor, main competitors of Canon are HP, Brother, Epson, Lexmark. They
are big company in market, their brand name is affirmed by customers. In printer market, their
position is not less than Canon, especially HP. In 2006, HP share of operating income is less
than Canon’s but its share of revenue is higher than Canon’s.
Figure3. CY Q1 2006Financial performance
(Source: http://static.seekingalpha.com/wp-content/seekingalpha/images/crowley2.gif)
Context is last C that belongs to macro-environmental factors, Canon is great
corporation, so influences of this factor to Canon is high. “In 2009, Canon's business
performance is feeling the impact of the global economic crisis. But for Canon, these tough
times present a golden opportunity to bolster our corporate structure” (Canon Global, n.d).
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4. The costs and benefits of using societal marketing to doing business in Vietnam
Costs Benefits
Identifying - Canon must research needs and wants of - Canon can get customer
customer customer that is customer focus. loyalty. It means Canon can
Through partners in Vietnam, keep its current consumers
information about demand and taste of and get new one because
customer are send to office of Canon in loyal customers will buy
Japan (Tokyo) to have suitable product again and advise for their
strategy (Thế Giới Vi Tính, n.d). family, friends. Market share
- Customer delight is long-term of Canon Bubble and Laser
competitive advantage of a company, so Printer in Vietnam is 39%
Canon pays many costs to have and 42% (Cơ quan của Đảng
satisfaction of customer, especially in Bộ Đảng Cộng Sản Việt Nam
Vietnam because technology in Vietnam Thành phố Hồ Chí Minh,
is not good as others, like Singapore. 2007)

- Canon try to get customer loyalty by
reduce risk dissatisfaction when buying
new product. It provides information of
product to customers exactly, warranty
card and preventing fake stamp (Xã Hội
và Thông Tin, 2009).
- In Vietnam, cost of acquiring new
customers is expensive, Canon cannot
be outside of it. The company must pay
for advertising, salesman or sales
promotion. In 2009, Canon Vietnam had
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sales promotion with total cost is
225,000,000 VND (Xã Hội và Thông
Tin, 2009).
Building a - Now, Canon pay a lot of money to build - Canon Vietnam can keep the
valuable two Customer Care Centrals in Ho Chi care of customers, instead of
relationship Minh and Hanoi to ensure customer its competitors. It is proved
with satisfaction is focused and increase by market share of Canon
customer relationship marketing between Canon printers.
and customers. - Image of Canon in Vietnam
- Another cost that Canon has to pay is is increased.
cost of lost customers. If all customers
has product, they will not buy anymore.
Vietnam is poor country, so Vietnamese
people have not enough money to buy
two or more same kind of product.
Customer - To be a big company, Canon must have - It is easy for Canon to
care and customer care strategy that includes research and satisfy customer
service many stages, so it can pay many time and demands.
money for this strategy.
Quality - To achieve customer satisfaction, Canon - Canon Vietnam has been
issues and always has quality control which ensure recognized by ISO 9001
their about quality of product. Canon factories about quality of product and
implication in Vietnam have managing component 14001 about environmental
for customer quality and managing product quality management (Canon
relationships departments to get target “No error Vietnam Co., Ltd, n.d).
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product” (Canon Vietnam Co., Ltd, n.d).
- Moreover, Canon Vietnam implements
plan that produce product not harm to
societal, “the environmental-friendly
manufacturing facility utilizes traditional
Vietnamese bamboo racks” [Scenario]
In order to do societal marketing, Canon must pay many kinds of cost for marketing
activities, such as researching market, advertising, and social welfare activities. Benefits and
costs analysis show that all costs that Canon has to pay is to satisfy customer demands by its
products and services. However, it gains many benefits, the company’s image will be raised
and its income will increase. And the benefits that it gains come from customers, such as
customer loyalty.
Figure4. Flowchart of Countermeasure to Product Malfunctions or Quality Issues
III. CANON LTD. IN VIETNAM AND ITS MARKETING
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1. The Macro and Micro environmental factors
1.1. Micro environmental factor
Micro environmental factor has two parts which are market and internal (BPP
Professional Education, 2004, p84).
Stakeholders of Canon are key elements of its market which have three main types:
internal (employees, managers), external (customers, suppliers), concerned stakeholders (local
resident, the community, government and interest groups). Canon achieved the success
because of understanding the interaction and behavior of these groups.
Firstly, employees and managers are essential parts of the strategic planning process.
Meanwhile, human resource in Vietnam is profuse, high quality and cheap. According to Mr.
Kageyama, most of engineers in Canon can communicate by English and employees are very
creative, skillful and self-educated (cpv.org, 2006). To compare with some countries in Asia,
price of labour in Vietnam is about 50% to 70% (Cơ Quan Trung Ương Đảng Cộng Sản Việt
Nam, 2006). This thing affects relationship of Canon with customers which reduce production
cost and price of products.
Secondly, meeting the needs and providing benefits for customers are the way that Canon
exists. Vietnam is potential market of Canon, thus it brings out high quality products to satisfy
various requirements of consumers and increases quality of services (VnEconomy, 2008).
Thus, Canon can have customer loyalty. Besides, Canon cannot lack suppliers, close supplier
relationships ensure competitive and quality products which make difference to its
competitors. Canon mentions “green regulation” program with suppliers which obey
environmental standard of Canon and Vietnamese law (Canon Vietnam Co., Ltd., n.d).
Annually, Canon invests a lot of money into Vietnam. It helps Vietnam economy develop
from local to government. So Canon has treatments from them. It is exempted 10%
corporation tax in 8 years and VAT, customs duty (Cơ Quan Trung Ương Đảng Cộng Sản
Việt Nam, 2006). Furthermore, Canon Vietnam has contributed to Vietnamese people by
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implementing “Friendship School Chain Project” and protecting environment (Canon, 2008).
Therefore, it develops Canon image by the way the company is perceived by various interest
groups.
Internal shows strengths and weaknesses of Canon. First strength is internal capability.
Canon is big famous company, so financial resource is advantage, its employees has high
quality. Besides, technology and innovation are strength of Canon that makes its competitive
effect. Canon created products with amazing features, such as “Both SELPHY ES3 & ES30
come with over 10 image effects” [Scenario]. Furthermore, “kyosei” is culture of Canon
which impacts its marketing decisions. Canon is rare company that always ensures to protect
environment in production process. Finally, Canon uses “by geography” structure, so it can
understand customers’ objectives of each area to satisfy them. However, there are some
particular cases about personnel that have bad influences to Canon’s image. In 2007, there
was a line chief tied its two employees (Lao Dong, 2007).
1.2. Macro environmental factor
Macro environment is shown by PEST factors that are political, economic, social and
technological. Vietnam is potential market of Canon, so it contains opportunities and threats.
Mr. Mikio Takeuchi assessed that one of three reasons that investors choose Vietnam is
stableness of political and social situations and good national security (Cơ Quan Trung Ương
Đảng Cộng Sản Việt Nam, 2006). Thus, Canon can feel safe when it sells new products and
develop the business in Vietnam. Moreover, to attract FDI from Japan, Vietnam has special
policies that innovates investment environment, especially administrative innovation (Cơ
Quan Trung Ương Đảng Cộng Sản Việt Nam, 2008). This thing opens development
opportunity to Canon.
Besides, Vietnam economy is integrating into WTO and economy of the world, the GDP
growth rate in 2008 was 6.18% (LookatVietnam, n.d). Vietnam government reduces import
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tax, so Canon can decrease cost of products because it still imports many things from other
countries. However, Vietnam economy is developing, so there is one threat that market
appears more competitors. It has high influence to marketing decisions of Canon.
On the other hands, the culture of Vietnam is falling in line with the World, income of
Vietnamese people is higher, so consumer buying power is increasing that create opportunity
to Canon deploy its marketing strategy and achieve big income.
One thing has bad influence to Canon is that technology in Vietnam is weak, especially
supporting industry of Vietnam (Đời Sống Pháp Luật, 2009). Canon gets many difficulties
because Canon always tries to use technology inside Vietnam to reduce cost. To high price,
products of Canon meets disadvantage with its competitors, such as HP, Brother, Epson.
Furthermore, each company has separate competitive strategy base on Porter’s generic
competitive strategies which include cost, differentiation and focus (BPP Professional
Education, 2004, p50). Although price of Canon products have competition, the products are
made from the best materials, and its product lines are variety, have different levels. So
neither cost nor focus is Canon competitive strategy. To compete with main competitors
which are HP, Brother, Epson, Lexmark, Canon uses differentiation. It is easy to understand
because strengths of Canon are internal capability, and technology and innovation. Thus, it
has enough finance and technology to concentrate on developing special features of high
quality products and the best services.
2. The segmentation of Canon products in Vietnam
In 1994, Philip Kotler defined “Market segmentation is the subdividing of a market into
distinct subsets of customers, where any subset may conceivably be selected as a target
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market to be reached with a distinct marketing mix” (BPP Professional Education, 2004,
p157). Market segmentation has four main bases: geographic (religion, culture, geography),
demographic (occupation, age, income), psychographic (social class, lifestyle, personality
traits), behavioral segmentation (benefit, users status, etc.).
2.1. SELPHY ES3 and ES30
2.1.1.Segmentation
Geographic By density - Urban and rural areas.
- Big cities: Hanoi, Ho Chi Minh City, etc.
Demographic By income - Products of Canon focus on customers which have average
and high income.
Depending on features of SELPHY ES3 and ES30, they are suitable with geographic and
demographic ways to segment Vietnam market. Firstly, Vietnam density is separated into two
kinds: urban and rural areas. Canon focuses SELPHY ES3 and ES30 on big cities, such as
Hanoi and Ho Chi Minh City because population in these cities is increasing significantly. In
2007 and 2008, the population of urban area hold 27,47% and 28,11% (Tổng Cục Thống Kê,
n.d). Moreover, income of citizen is higher than people live in rural areas. In 2006, average
income of rural and urban people in Vietnam is 506,000 VND and 1,058,000 VND per month
(Tổng Cục Thống Kê, n.d). SELPHY ES3 and ES30 are not cheap, SELPHY ES3: VND
4,500,000 (Canon Vietnam, n.d). Therefore, these products are directed toward customers
who have average and high income.
2.1.2. Benefits and Limitations
Benefits Limitations
Geographic - Customers are divided into regions - The demands of customers are
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- Canon resources will not be wasted not identified clearly.
Demographic - The needs of customers are focused. - Canon loses other segments.
- Canon resources will not be wasted.
Geographic helps Canon divide customers into regions, so it can narrow scale of
demands. But the demands of customer are not identified clearly because people live in the
same areas which not mean they have the same demands. Meanwhile, with demographic,
customer requirements of Canon are focused on. There is one benefit that appears in both two
bases that Canon will not waste money or technology for irrelevant parts. However, Canon
forgets and loses others which are niche market.
2.2. Laser printers
2.2.1.Segmentation
Demographic By occupation - Small offices and Home offices (SOHO)
- Executive and clerical officers.
Behavioral By benefit - Economical.
- Working productivity.
In Vietnam, demographic and behavioral are two appropriate ways to segment LBP3250
and LBP5050. They have better features and quicker printouts while assuring both quality and
quantity [Scenario], they are used for people work in SOHO, such as executive and clerical
officers who use printer many times with big volume daily. Besides, Laser printers transfer
data at high speeds without fear of data bottlenecks and never-ending print queues [Scenario],
it shows these printers have high working productivity. Furthermore, they are economical
printers. Thus, they bring business benefits for users.
2.2.2. Benefits and limitations
Benefits Limitations
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Demographic - Expanding profit for Canon. - Skipping other segments.
- Focusing on characteristics of - Be difficult for Canon when
particular class. changing.
Behavioural - Canon concentrates on benefits of - Skipping problems about beauty,
users. or easy to transport, etc.
With demographic, Canon can focus laser printers on characteristic of particular class like
offices that use printers every day. Offices are big market which uses printers with large
quantity, so Canon can get more profit than SELPHY. However, like other segmentation,
Canon loses other segments that may be potential market. And when the products are used
every office, it is difficult for Canon to put them in other market.
The target customers of Laser printers are home and small offices. They are businesses
which use printers with high productivity. Therefore, laser printers focus on benefits of them.
Nevertheless, this method still has limitation which other characteristics of products are not
cared, such as beauty.
Relying on these segmentations, Canon must choose one of market coverage strategies.
The first is concentrated marketing, Canon can depend on special features of SELPHY ES3 &
ES30 to penetrate into niche market. The second is differentiated marketing. With features of
Canon products, they can be offered to different kinds of customers. The third is
undifferentiated marketing. Canon produces products with features that can satisfy demands
of all kinds of customers (old, young, teenager, etc.)
After choosing the segment, Canon must know its product position in marketplace. There
are two things that are quality and price. To compete with competitors, Canon can produce
products have high quality but high price or low price but low quality or low price and high
quality. The right competitive advantage for Canon is high quality products and not low price
but competitive price because Canon has advantages about technology and finance.
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3. The factors influence the choice of the targeting strategies
Targeting strategies are very important to achieve success of new Canon products. Canon
has to have right decision to choosing targeting strategy.
The choice of Canon is one of three kinds of strategy that is called market coverage
strategies. First strategy is concentrated marketing, Canon will not face with competitors
when select this strategy because it apply for niche market. However, it is difficult to do that
because features of SELPHY ES3 & ES30 and Laser Printer are not too different from same
kind printers of other firms. Moreover, profit of this strategy is low.
The second is differentiated marketing strategy. With features of these products, they can
be offered to different kinds of customers, SELPHY can satisfy people who want show their
level and lifestyle, Laser printers focus on home and small office. Thus, Canon will earn high
profit, but the disadvantage is addition costs of marketing and production. However, Canon
has strength of resources, so it is not bad problem. Differentiated marketing strategy is the
most suitable strategy for SELPHY and Laser printers of Canon.
The third is undifferentiated marketing strategy. Canon will not lose too much money for
marketing and product price and design suit with all customers. However, it is hard to happen
because SELPHY ES3 & ES30 and Laser Printer have not enough capability to demand of
customers nowadays that are not homogenous.
The following are main factors that have influence the choice of targeting strategies:
Firstly, Canon has to calculate the attractiveness of market segment. The target customers
of SELPHY printers are people live in urban areas where the population increases annually
and Laser printers are small and home offices. Most of these people have average to high
income. Therefore, the growth rate in this segment is high, Canon can achieve expected profit.
Company resources include human, finance, technology, etc. Canon must depend on
these resources to decide its target marketing. Product variability is uneven quality of a
product made by the same manufacturer (Answers, n.d). The degree of product variability
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connects closely to customer demands. Canon printers in Vietnam are multiform with two
main lines: SELPHY ES3 and ES30 and Laser Printers include LBP3250 and colour laser
printer LBP5050. Each product has different features, so it is useful for Canon to launch
differentiated marketing, thus earn lots of profit.
Another factor is product’s life-cycle stages which include introduction, growth, maturity
and decline (Quick MBA, n.d). These stages connect with changes of marketing decisions.
Hence they have big influence with the choice of targeting strategy for Canon products. Now,
Selphy and laser printers are new products in Vietnam that in introduction stage, so initially, it
is practical to launch only one at a time. But, in the future, when they are in mature stage,
Canon should focus these products in differentiated marketing.
Figure5. Product Life Cycle Diagram
(Source: http://www.quickmba.com/marketing/product/lifecycle/)
Besides, market variability is an important factor. As analysis above, there are many
segments in market, so having more opportunity for company to choose. They can be
advantage or disadvantage of company depend on company capability. If Canon can choose
suitable markets with its product, it is advantage and inverse. Selphy and Laser printer are
products have differences, they concentrate on particular customers, so differentiated
marketing makes more sense.
Finally, competitor’s strategy is a factor that influence indirectly to Canon. Depending on
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competitors’ strategy, Canon has to choose to become better than competitors or unique.
Thus, it has direct influence to target strategy of Canon which put product into differentiated
marketing or concentrated marketing.
4. Buyer behavior for the products affect the Canon’s marketing activities in the
two different markets
4.1. Definitions
Consumer buying behaviour can be defined as, ‘the decision processes and acts of
individuals involved in buying and using products or services’ (BPP Professional Education,
2004, p125).
Organizational (or industrial) buying may be defined as, ‘the decision-making process by
which formal organizations establish the need for purchased products and services and
identify, evaluate and choose among alternative brands and suppliers’ (BPP Professional
Education, 2004, p149).
4.2. The differences between customers and organizational buying behaviour
Customer buying behaviour Organizational buying behaviour
- Less time spent on purchasing process. - More time spent on purchasing process.
- Large number of consumer buyers - Organizational buyers are few in number.
- Quantity of purchase is comparatively low. - Quantity of purchase is more.
- Segmentation on geographic, - Segmentation on purchasing approach,
demographic, psychographic factors. situational factors, personal characteristics.
(Source: http://www.scribd.com/doc/6757515/Organizational-Buying-Behavior)
Canon has two main printer lines in Vietnam that are premium compact photo and Laser.
Buyer behaviour which has consumers and organizational buying behavior has difference that
is based on needs and decision-making units. For consumers, the purchasing decisions are
based on the informal and motivated by personal interests and lifestyles. Organizations have
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to go through a decision making process and they are really complex and formal.
4.3. Consumer Buying Behaviour
Before consumers buy a product, they have a process to have decisions. The first is need
recognition. When customers want buy a printer, it originates from their using requirement,
such as printing pictures or document, or they just watch advertising or hear from their friends
and like it. After that, consumers search information about product. It can come from internet,
experiential or other people. For example, SEPHY ES3 and ES30 are premium compact photo
printers, LBP3250 is laser printer and LBP 5050 is colour laser printer [scenario]. Consumers
have to evaluate them that which is suitable with their demand, SELPHY suit with printing
photo, Laser printer suit with printing document. The next is purchase decision, consumers
will choose the printer that they want. Finally, they will tell their feeling to others, such as
family, friends, etc that they are satisfied or not.
Besides, the purchase action of customers depends on many things. Basically, they will
take care about premium compact photo printers: SEPHY ES3, ES30. Since, this product line
focuses on personal and psychological factors of customers. It has benefits that satisfy
requirements of lifestyles, for example convenience, quality, versatility, portability and a
unique lifestyle [Scenario]. This thing will bring pride to its owners, make them delight. So,
this market attracted consumers. There is one more thing that strikes on customers’ mentality,
price of them are not high, Selphy ES3: VND 4,500,000 (Canon Vietnam, n.d).
Canon has to depend on the process of consumer buying behavior and factors influencing
consumers’ purchase actions to have right marketing activities to spread the product.
4.4. Organizational Buying Behaviour
Organizations have complex process before buying product. They just want buy a product
when they have problem, such as their printer is broken down or not enough features. After
that, they find out about it in detail. If they cannot fix it, they will think about new printer.
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Hence, they search for printers and suppliers. The next thing is to evaluate printers relative to
specifications, like Laser printers which have better features and quicker printouts while
assuring both quality and quantity [Scenario]. Organizations select and order the most
appropriate product and evaluate the product and supplier performance which it is good and
prestige or not.
Because an organization involves many people, the purchase of organizations is decided
by interpersonal factor includes users, influencers, deciders, approvers, buyers and
gatekeepers (BPP Professional Education, 2004, p152). And this is business environment, so
organizations need printers which have business benefits and bring benefits to many people
such as operation power, network capability and so on. Thus, laser printers’ marketing
activities must meet the printing needs of them, such as capable of printing large volume at an
ultra-fast printing time, USB 2.0 Hi-Speed enables to transfer data at high speeds without fear
of data bottlenecks, never-ending print queues and network interface ideal [Scenario]. On the
other hand, organizations do not care about SELPHY ES3, ES30 because they need not
benefits like good looking, best fit in home interior or bringing charm to users’ photo
[Scenario]. Hence, compact photo printer market is not attractive with organization.
III. CONCLUSIONS AND RECOMMENDATIONS
Page 21
Canon Inc. is the world leading image solution provider and Vietnam is one potential
market of the company. Firstly, basic concept of marketing which influences to Canon is
mentioned. The report answered what exactly marketing is which satisfaction of customer
demand, requirement and prove marketing orientation of Canon. Moreover, it explains three
element of societal marketing concept of Canon and through it, Canon pay many costs but it
gains benefits.
Secondly, the report analyzes macro and micro environmental factors of Canon Vietnam
with SWOT, PEST, competitive strategies, etc. After that, market is segmented to many parts,
Canon has its choice with market and locate it with competitors. Furthermore, five factors
have big influences to targeting strategy are investigated. Finally, buyer behavior is very
important to Canon marketing activities because marketing focus on customers while their
behavior is different.
This report finds out useful information about marketing activities and applies to Canon.
The reader should base on it to doing business and bring out the best marketing strategies.
However, it has some limitations, so the further reports are recommended to investigate more
about those parts.
APPENDICES
Page 22
Figure1. Canon Governance Structure
(Source: Canon Annual Report 2008)
Figure2. Canon’s main social and cultural support activities
Page 23
Figure3. CY Q1 2006Financial performance
(Source: http://static.seekingalpha.com/wp-content/seekingalpha/images/crowley2.gif)
Figure4. Flowchart of Countermeasure to Product Malfunctions or Quality Issues
Page 24
Figure5. Product
Life Cycle Diagram
(Source: http://www.quickmba.com/marketing/product/lifecycle/)
Page 25
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Canon Vietnam Co LTD and Its Marketing

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CANON VIETNAM CO.

LTD AND ITS MARKETING

concepts to achieve which depends on ability and target of company.

Canon Inc. is a multinational corporation that specializes in the manufacture of imaging

field in the World.

that are SELPHY and Laser printer, to Sales Director.

distribution channel, etc.

II. BASIC CONCEPT OF MARKETING

Nowadays, marketing is an important part in all enterprises. Market is battlefield that

wants to satisfy them. The following is some marketing definitions:

Chartered Institute of Philip Kotler American Marketing

products are bought through their own experiences.

marketing concentrates on satisfaction of customer demand, requirement.

2. The main characteristics of marketing orientated organization for Canon

Canon Inc. is a marketing orientated company. It is easy to realize because of its

data bottlenecks and never-ending print queues [Scenario].

and consumers of it (Thế Giới Vi Tính, 2006). Moreover, it is Multinational Corporation, so

Figure1. Canon Governance Structure

(Source: Canon Annual Report 2008)

3. The various elements of the marketing concepts

According to Philip Koler (1997):

Concepts Profit Driver Western European Elements

Production Production Until the 1950s - Production and distribution

method - Reduce costs

Product Quality of the Until the 1960s - Concerns quality of product

product - Focus on product, not care about

Selling Selling methods 1950s and 1960s - Effectiveness and promotion

-Focus on selling(sells existing products)

- Using promotion techniques to attain

the highest selling as possible.

Marketing Needs and 1970s to present - Satisfy

wants of day - Marketing plan are based

customers - Customers desires

Societal Benefit to 1990s to present Elements of marketing concept and

marketing society day curtailment on any harmful activities to

especially applicable to marketing decisions (NetMBA, n.d).

First C is company, here is Canon which is manufacturer of business and consumer

construction of schools in Vietnam”(Canon, 2008).

Figure2. Canon’s main social and cultural support activities

(Source: Canon Sustainability Report 2008)

transparent business transactions (Canon, 2008).

The third is customer, Canon concentrates on customer orientation. Canon had

home and small offices [Scenario].

than Canon’s but its share of revenue is higher than Canon’s.

Figure3. CY Q1 2006Financial performance

customer customer that is customer focus. loyalty. It means Canon can

Through partners in Vietnam, keep its current consumers

customer are send to office of Canon in loyal customers will buy

strategy (Thế Giới Vi Tính, n.d). family, friends. Market share

- Customer delight is long-term of Canon Bubble and Laser

competitive advantage of a company, so Printer in Vietnam is 39%

satisfaction of customer, especially in Bộ Đảng Cộng Sản Việt Nam

Vietnam because technology in Vietnam Thành phố Hồ Chí Minh,

is not good as others, like Singapore. 2007)

reduce risk dissatisfaction when buying

new product. It provides information of

product to customers exactly, warranty

card and preventing fake stamp (Xã Hội

và Thông Tin, 2009).

- In Vietnam, cost of acquiring new

customers is expensive, Canon cannot

be outside of it. The company must pay

especially applicable to marketing decisions (NetMBA, n.d). 　