Nikon is a Japanese multinational company founded on July 25th, 2017 and is headquartered in Tokyo, Japan. The ranges of products include camera lenses, microscopes, binoculars, ophthalmic lenses, spotting scopes, rifle scopes and is the world’s leading suppliers of solutions and products based on optoelectronic and precision based technology. Nikon is especially famous for its binoculars and cameras.
They even make equipment that can be used to fabricate the semiconductors found in smartphone and PC and also measuring instruments that detect microscope defects in electronic components. They have a presence in more than 90 countries in Europe, Asia, and Europe, etc.
Table of Contents
Segmentation targeting and positioning in the Marketing strategy Nikon :
Segmentation:
Nikon produces high-end quality lenses, cameras, and optical instruments. The brand primarily focuses on the division of photography. Under demographic segmentation, it is done according to age, salary, occupation and under psychographic segmentation interests, the mentality of people, etc. The 3 age groups that Nikon focuses on 18-35, 36-45 and 45 above. Individuals who have an interest in photography and also sharing pictures on social media.
Target :
The first target market is the camera enthusiasts who are between the ages of 20 and 40. They are the market that is really not willing to pay the maximum for the expert gear so Nikon has developed cheaper variants for it. The other target market is the amateur photographer who hopes to take high-quality photos without much editing and have an interest in special cameras. The other target market is the professional photographers who need high-end equipment to take photography as their passion or as their occupation. Nikon targets this market with high-end cameras.
Positioning :
Nikon initially was positioned in the market as a brand that provides well equipped and extremely functional cameras but now it has shifted focus to everyday photography. The Nikon cameras are positioned to portray real people, with a cause and a mission.
Mission: By providing diverse products, services and solutions, we will continue to be a brand in which everyone can feel “Trustworthiness and Creativity”. This is our mission
Vision: Unlock the future with the power of light Unleashing the limitless possibilities of light. Striving to brighten the human experience. Focused, with purpose, on a better future for all. THIS IS THE ESSENCE OF NIKON.
Tagline: Unlock the future with the power of light
Competitive advantage in the Marketing strategy Nikon :
1) Brand heritage
Ever since its establishment in 1917, Nikon has been focusing on light and expanding the possibilities of light as a pioneer of optical technologies to the world. By leveraging the technologies it has cultivated thus far, Nikon will continue to function as the “eyes” that help enrich people and industry while providing new value for the future. Nikon will contribute to the development of image cultures on into the future.
2) Good advertising
The advertisements Nikon has is not focused towards its products but its more about what consumers can do with the products The strategy is about portraying reality and celebrating what the consumers do. The heart of the marketing strategy is co-creation. The new marketing strategy puts all the focus on consumers with a website called KeyMission which invites consumers to share their own videos and own personal missions.
Nikon has multiple Instagram accounts across the globe and uses different sets of influencers to handle those accounts. Nikon has created a great platform to display camera’s high quality and versatile features. The brand has also associated itself with the world’s top photographers and designated them as official brand ambassadors.
3) Diversified business
Since its founding, Nikon has been involved in the development of microscopes. The expertise and technologies that Nikon has accumulated over the years have helped find the practical use of regenerative medicine. Nikon has also invested in retinal imaging diagnosis field.
Nikon has contributed hugely in the advancement of medicine and life science which has helped to improve quality of life for countless individuals. Nikon has developed semiconductor lithography systems for manufacturing semiconductors that are used in the number of electronic devices. Nikon also has partnerships with companies and universities and is contributing towards medical research. These diverse initiatives have helped Nikon have the number of alternative revenue sources.
BCG matrix in the Marketing strategy of Nikon
The imaging products are the star products for Nikon. The imaging products include Digital SLR cameras, Mirrorless cameras, Flashes (Speedlights), Software, Accessories, and Sports Optics. The imaging products are the major revenue source for Nikon. The precision equipment business also improved because of the change in the business strategy. The sports optics products like Fieldscopes, Loupes, Fieldmicroscope, etc. falls under the question mark category of the BCG matrix. Nikon has remained committed to using the finest selection of high-quality optics but how well it will do in the market still needs to be determined.
Distribution in the Marketing strategy of Nikon:
The overseas market of Nikon accounts for 80% of the total sales of the brand. The brand offers an extraordinary range of product from Nikon cameras to industrial equipment used for manufacturing of high-definition screen. The company has built a wide network of shops and service centers and also a very strong user base across the world. The cameras are also available online like on Amazon, Alibaba, and Flipkart, etc. The products are also available in multi-brand stores, Nikon stores, Supermarkets, etc. The stores are located all over the world.
Nikon has established service centers in all the major urban cities and also in the suburban areas of India and also the world because the presence of service centers are the important factor that determines if the cameras will be sold or not.
Brand equity in the Marketing strategy Nikon :
The challenge lies “At the heart of the image” and Nikon dares to take on that challenge. The brand takes an emotional appeal when talking about the company and focuses more on the brand than the products. The brand talks about how the cameras capture the unique senses in the world like wonder, hope, joy, sorrow, etc. It markets itself as the brand that captures the expressions of the world through its instruments.
It describes the riches of human experiences by creating new values for the images captured by the cameras. These experiences the brand creates for its consumers has helped reinforce the desire for the brand.
Competitive analysis in the Marketing strategy of Nikon
Nikon has a strong position in the market that has been built on broad product portfolio. It also has diversified geographic presence and the diversified business revenue which reduces the business risks and this one main advantage of Nikon. For 2018, interchangeable lens, Canon has 49.1% share, Nikon has 24.9% share and Sony has just 13.3% share. Other competitors include companies like Olympus, Panasonic, and Fuji, etc. Which all combined has a share of 13%. Its main competitor is Canon and Nikon must create better strategies to have a point of differentiation among the competitors.
Customer analysis :
Nikon caters to wide range of consumers who have diversified needs from amateurs to professional photographers. Nikon also produces sunglasses, lenses, and spectacles. Nikon also has the business and commercial clients through their scanners, semiconductor business, and printers. The main consumers for the camera business include the camera enthusiast, Amateur Photographer, Professional photographers, college and high school graduates. The use of social media and the need for good pictures have piqued the consumers more interest from the consumers
Promotion Strategy:
The promotional activities are carried on hoarding boards, magazine, online Videos, YouTube, etc. Stars like Priyanka Chopra, Aston Kutcher have collaborated in the promotional campaigns and ads. Several promotional offers are provided to its customers like cashback, discounted prices, lenses bundled with cameras, these strategies have helped attract new customers and retain loyal ones.
Nikon is a very social media active brand and takes part or takes stand-in events happening around the world. It even has a photography club for its existing users giving its loyal consumers a sense of belonging. Nikon also organizes photography contests and events for the photo enthusiasts, one of its most successful campaigns is the “ I am ___” campaign, and people used to fill the blank space with positive words like “brave”, “strong”, ”awesome’ etc.
It induced self-respect and creativity among the camera users, the campaign was so successful that people rushed to buy the Nikon cameras, resulting in high volume sales.
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Thank you for a thoughtful and interesting assessment of Nikon’s marketing strategy. Recently the company’s financials have deteriorated due to Canon’s commanding lead in market share. In addition, Sony, in the #3 position, has been aggressively gaining market share at Nikon’s expense. By its own admission, Nikon expected its mirrorless Z-line to produce more volume, but instead it finds itself in the most competitive environment in its history. Unless Nikon can improve its return, corporate ownership may demand fundamental changes.