Nikon Australia - The Initiation of the NIKONOS SoPa - Essay Example

Summary The foregoing proposal is a prospectus of sponsorship request for support of Nikon Australia's Research and Development Division's reintroduction and enhancement of the company's NIKONOS series cameras, and toward advancement of integrated marketing efforts in the sport consumer market segment. The proposal addresses a two-tier investment by Nikon Australia in strategic planning of research and development projects that incorporate consumer preferences, with cutting edge technological innovations in underwater photography. We at Nikon Australia have a special mission to provide our customers with the highest quality camera equipment, and our stakeholder sponsors with market performance that they can believe in. The forthcoming three years extends an opportunity to the R+D division of our regional business, as the national company ramps up to accelerate market share. Our innovative staff knows Oz, and nowhere on this planet might photographers find a better aquatic venue for employing our new NIKONOS series cameras than our Great Barrier Reef. To this end, we request consideration of our request for AUS $ 3 million to support our efforts toward introduction of our new NIKONOS SoPA (South Pacific) model, and to enhance our potential to exceed expectations in terms of consumer impact in the sports camera market. Background to a Product Line The initiation of the NIKONOS SoPa is Nikon Australia's latest regional product. Unique to our national expansion in underwater photography, the new South Pacific model debuts here in Australia, with global extension of the complete underwater camera equipment line by 2014. Roll out of the SoPa is scheduled to proceed in the South Pacific region by 2012. Marketed through new and traditional media, events, press and tourism, the camera is slated to hit the Australian market in September of 2010, the commencement of our Summer season. Research and development is looking for new ways to enhance the quality of the lens in the product, as new instruments are tested, and risk assessment applied to development and manufacturing of forthcoming models. The NIKONOS SoPa series camera is prefaced forty years of underwater photographic use. The popularity of the camera's versatility is shown to us year after year, as customers communicate the durability and performance of Nikon's technology in bad weather conditions, and exposure to water spray. Our customers are sports people. One only has to look to the creativity of Japanese sports fans utilizing the NIKONOS at beer-pouring parties in celebration of the professional baseball championships to understand the effectiveness of our product. The NIKONOS goes where single-lens reflex cameras cannot. As we move toward the latter half of 2010, we are proud to maintain that our efforts to provide globe with technology that has not rival have succeeded. Unparalleled in market segment, our NIKONOS series cameras are not to be beat by competitors. The reality is that our underwater cameras are a synergy of distinctive technological factors. At Nikon, all of our products are crafted with the highest degree of engineering expertise. From research, design and development to careful manufacturing, the Nikon brand bears the mark of distinction and quality. The waterproof capability of the NIKONOS series cameras is the result of a composition of integrated lenses, Speedlight, and a seamless systemic compatibility with the product's line of underwater sports technology accessories. Discontinuation of the NIKONOS in the 1990s has allowed us much time to consider this vintage product's potential and its legacy. In the field of underwater photography, the method for taking pictures involves 'a land-use single-lens reflex camera enclosed in water pressure-resistant casing, or housing' (Nikon 2010). Steady evolution of this process drove professionals to newer options in aquatic imaging. However, in response to much demand by fans of the former, discontinued NIKONOS camera series, Nikon has decided to reintroduce the product, but this time to the mass consumer market at a budget price. Foreseen to be highly popular amongst tourists, and especially in the South Pacific, hence the new NIKONOS SoPa was innovated for a different kind of consumer than the series once was marketed to. Australians have been some of the most avid in their dialogue with us, and participation in the development of the new underwater camera line has been met with much enthusiasm and brainstorming by our customers. At least one former diver and surfer whom owned several NIKONOS in the 1970s suggested to Nikon's representation at the recent Sydney convention, 'there is nothing like a NIKONOS to hunt sharks mate.' Objectives The 7 Objectives of the NIKONOS SoPa Proposal BRAND IDENTITY Objective 1: to extend the Nikon brand identity as the leading source for top of the line underwater camera equipment through introduction of the NIKONOS SoPa at the regional and global levels MARKETING Objective 2: Integrated Media Campaign that incorporates new and traditional media, press, and radio distribution Objective 3: Identity Management A streamlined market & PR toolkit especially designed for identity management of our product for increased visibility and product line identification Objective 4: Events for promotion of the NIKONOS SoPa series camera line at outdoor and sports related events promoted by existing Nikon sponsors in Australia, and other commercial partners in the region Objective5: Market Research evaluation of R+D product roll out and consumer perception in chosen market segment. Will allow review of known and emerging markets BUDGET Objective 6: Sustainable Growth in response to allocation toward the project from Nikon Global REPORTING Objective 7: Final Data dissemination on the entrance of the NIKONOS SoPa into the Australian and forthcoming South Pacific markets Target Market Nikon Australia is set on extending its brand to a more youthful audience. At present, Nikon's primary market segment capture men between 40 and 60 years of age. Responsive to changes within the entertainment and creative technologies markets, Nikon Australia is well position to increase interest in the teenage and young adult markets. In the active and extreme sports environment of Australia and particularly those consumers whom enjoy water sports. Sports photography offers the broadest and quickest appeal to extension of reach in the youth market, and the NIKONOS SoPa is designed for just that. Photography is an intergenerational activity. Well known amongst Australians and the world alike, Nikon has been there for much of world history since the company's inception. Audiences to world events such as the space flight Apollo 13 have often unknowingly been reliant upon Nikon technologies. Realization of NASA's much watched missions was made possible through Nikon contribution to space science. At an everyday scientific level, Nikon's microscopes are used in lab settings from schools to cell biology research laboratories. The excitement generated through the advancement of science through sports at Nikon dates back to our 1963 partnership with undersea explorer Jacques Cousteau, when we introduced our first underwater camera system. The 1970s saw further development, when Nikon introduced high-precision coordinate measuring instruments. Each step of the way, families have been there. Nikon speaks to the legacy of sports science, and to the possibilities of missions yet to come. In Japan, Nikon Headquarters reports that the company has made inroads in the teenage and twenty-something markets through broadcast content on Nintendo, and Wii's and Wiinoma video-on-demand service channels; available to console owners in Japan (Nikon 2010). The programmatic structure offers technical explanation to a popular audience, and promotes digital cameras and photolithography systems. Nikon Australia plans to mobilize a similar project in order to reach its home consumer audience, and will coordinate new media technologies and related entertainment media toward this end. The implementation of those communications strategies will be furthered through our existing corporate sponsorship partner activities, already promoting Nikon's products in the context of sporting events. Brand Identity Entrance of the NIKONOS SoPa into the Australian and South Pacific markets will generate renewed interest in a brand identity known for its regional strength. Extension of the product line post 2012 into the global market will solidify Nikon Australia's position as a leader in consumer underwater photography, and as an innovative force in chain management, and particularly identity management, of the R+D to market process. The heritage of the Nikon name was first founded by Lensmaker Nippon Kogaku KK in 1917 in consortium with three large Japanese optical glassmakers. In 1925, Nippon Kogaku introduced its first microscope in 1925. By 1932 the company 'adopted the brand name Nikkor for its lenses, which were attached to other manufacturers' cameras' (Nikon 2010). During World War II, the Japanese government was the primary customer to the company, and diversification was instigated by the sale of 'cameras, microscopes, binoculars, surveying equipment, measuring instruments, and eyeglass lenses' for the war effort (Nikon 2010). It was at this time in 1946, that Nippon Kogaku was rebranded as Nikon. While the company sold pocket cameras to a consumer market, it was only upon popularity of the company's photographic equipment amongst photojournalists during the Korean War that Nikon widened consumer interest. Amid the global economic slowdown and dwindling demand for its goods, Nikon Australia is especially challenged in introduction of new product lines at this time. Let this summer be our Korean War. We are prepared to wage the best possible strategic campaign in the battle for market share amongst youth and adult underwater and sports photography consumers. The popularity made possible through the reporting style of Nikon's early photojournalists stands to be replicated in the reintroduction of this beloved, vintage series the NIKONOS. Our new SoPa model encourages the capture of environmental photography. At the heart of our struggle, is Nikon's dedicated commitment to products and projects toward environmental sustainability. The planet is our revolution, and Australia is ready to face the front - or at least the underwater preserve of our future intent. At Nikon Australia, research and development efforts are always intended to innovate the most durable, high performance photographic equipment. The product speaks for itself. In keeping with Nikon's market position, and its redirection recapture consumers' interest by pooling efforts toward the 'creat[ion] of next-generation products' Nikon Australia is doing its share with the best 'know how' available. From the Great Barrier Reef to the Outback, Nikon Australia and its constituent consumer market are well prepared to meet the organizational development strategies that support the company's planning; setting aside 'some 160 billion (about $1.8 billion) for capital investments and 220 billion (about $2.5 billion) for research and development by 2011' (Nikon 2010). NIKONOS SoPa promises to advance those interests, and Nikon's brand identity through virtual assimilation of camera science as a next generation product in our quite large next generation, national market demographic. Marketing Nikon Australia is sold on the constancy of research and development as the single most viable source of competitive 'capital.' As we attempt to forge new possibilities in the global market, we at Nikon consider the equity of 'value' as a price impact statement or 'proposition;' one that is apt as a method of translating identity within the market through illustrated performance of our products. Consumer satisfaction is an essential element of determining Nikon's future in the Australian market, and our products are designed with much thought to consumer preference. Our orientation toward research and development of products includes a two tier of product analysis: 1) external and environmental analysis; and 2) internal or organizational analysis to serve as a grounded hypotheses based on customer insights (e.g. consumer segmentation), and selection of methodological tools for integrated analysis of those preferences into in-depth analyses of product life-cycle, and the viability of investment in those futures based on portfolio adaptation. Marketing of our products at Nikon Australia follows Nikon Global's advertising media program. Aimed at conspicuous advertising, we use a media mix for maximum impact through billboard, TV commercials, the Internet. Our marketing research strategy is directed at interpretation and analysis of segmentation within the target market, according to product reception and shifts in consumer preference. According to the proposed project's outlined objectives, the Marketing Prospectus for the NIKONOS SoPa roll out is intended to fund coordinated objectives through the following: 1) Integrated Media Campaign; 2) Identity Management Strategy; 3) Events; and 4) Market Assessment. 1. Integrated Media Campaign The integrated media campaign strategy is intended to build a relationship with Australia's consumer market through new and traditional media, outdoor advertising, product interface advertising with partner products, and consumer based internet interactive discussion. Nikon focuses on the business side of development, and understands that evolutionary developing and redeveloping of consumer identification to the Nikon brand through our various product lines increases the degree of usability by consumers, and in turn meets the needs and financial interests of stakeholders. The simultaneous roll out of our NIKONOS SoPa series cameras and the integrated national marketing campaign will serve as an interface for the remainder of the kick off campaign relationship between Nikon Australia and it target market. 2. Identity Management Strategy If the primary function of public relations is identity management is correction of mismanaged communications, both in terms of content and the form. Proliferation of media on topics related to a corporation's interests, if misrepresented, may lead to desultory results for all parties. At Nikon Australia, how PR messages are crafted and channeled is fundamental to consistency of the company's brand on the national, and ultimately its projection into the regional South Pacific and global markets. Inept management of brand identity, particularly where partners are involved, may impact the very future(s) of individuals, commercial and political enterprises involved in the life of a product's spin. Indeed, the term 'spin doctoring' situates the practice of business communication in the realm of a 'cure.' In the case where sports figures are incorporated into the sale of products on behalf of a partner business, damage can also result from if ethical dilemmas arise in the context of an individual's public misconduct. Nikon Australia is well informed and prepared on such matters, and ensures investors that the forthcoming entrance of the NIKONOS SoPa into the Australian market will indeed be meet commercial contract relationships with our celebrity sports representatives head on. In particular, our universal PR toolkit for managing brand identity companywide, speaks to our years of experience in this area; and we understand our responsibility to agreements concerning contractor liability with sports players whom are both 'labor' and licensed trademarks (and even in the case where licensing rights are under contract by another party). Finally, we recognize that independent and inherent legal rights of an individual supersede all regulatory claims. 3. Events The lifestyle marketing campaign of the NIKONOS SoPa reintroduction into the its first premiere market in Australia will be accompanied by site opportunities for advertisement and exhibit of the product at diving, sailing, surfing and other active and extreme sports events. At present, we take great pride in support quite a few national sports teams and related venue relationships, and in affiliation with youth market sports teams and competitive participants. The event structure of the marketing plan will commence immediately in 2010 upon entrance of the SoPa into the market in September, with coordinated efforts toward sustaining a comprehensive strategy through 2013. 4. Market Research Assessment Ongoing assessment of Nikon Australia's presence in the national and South Pacific markets will be put into comparative analysis with Nikon Global outcomes. The NIKONOS SoPa campaign will provide us with an exceptional opportunity to reach new generation technology consumers. Evaluation of the NIKONOS SoPa campaign will be subject to a tri-partite survey analysis by: 1) Survey at events; 2) Survey on the Internet; and 3) Survey by mail through user application of packaging insert. Data derived from the Survey instruments will be rendered statistically through SAS, and utilized for deployment of knowledge on consumer engagement and rationale for purchasing. Follow-up to the surveys will be approached through request for contact, and schedule of focus groups with user consumers whom are already actively trained in use of the underwater photographic equipment. Finally, the consumer segmentation data will be put into comparative analysis with internal survey of findings regarding identity management analysis of public media and press. Opinions generated through the consumer and media based formats will enable Nikon to draw dense conclusions about the informational and feedback loop. Knowledge acquired from the dissemination of the market research findings will be considered within forthcoming R+D planning strategies according to value. Financial analysis of the sales of the NIKONOS SoPa provide the last term of analysis for future product and price planning. The expansion of Nikon Australia's reach into the wider Nikon Global marketing network holds important promise if not at the international, the regional level. According to our estimates, our prospectus is exceptionally strong in the product divisions dedicated to sports photography and other emergent youth market segments. Budget Nikon Global Financial Statement (Millions of Yen) Net Sales in Japan and Export Sales by Region 2006/3 2007/3 2008/3 2009/3 2010/3 Japan 173,144 207,699 258,994 163,682 139,026 Overseas 557,799 615,114 696,797 716,037 646,472 North America 209,675 207,845 229,826 261,368 245,112 Europe 166,127 176,261 208,915 208,957 189,507 Asia & Oceania * 173,307 217,939 244,736 232,034 195,629 Other Areas 8,688 13,068 13,318 13,677 16,223 * From for the year ended March 2008, Oceania is rearranged from Other Areas to Asia & Oceania. Project Budget Knowledge & Marketing Expenses (R+D) Accounting 8,306.50 10,000.00 12,000.00 14,000.00 Equipment 31,184.58 33,000.00 34,000.00 35,000.00 Fees 13,255.61 15,000.00 16,000.00 16,000.00 Misc Expenses 5,000.00 20,000.00 25,000.00 Informational Logistics Supplier Inputs 11,706.75 14,000.00 14,000.00 14,000.00 Risk Assessment 24,824.40 26,000.00 28,000.00 30,000.00 Risk Management 20,915.50 22,000.00 22,000.00 22,000.00 Total R+D Logistics 57,446.65 62,000.00 64,000.00 66,000.00 Salaries 2,119,473.00 2,320,000.00 2,600,000.00 2,900,000.00 Total Project Budget 2,291,084.00 2,507,000.00 2,810,000.00 3,122,000.00 Bibliography ADWEEK. Retrieved at: www.adweek.com Anderson, S. S. (2003). On a clear day you can see the EU1: Case Study Methodology in EU Research. ARENA Working Papers, WP 16/03. Norwegian School of Management/ ARENA2. Retrieved at: http://www.arena.uio.no/publications/working-papers2003/papers/03_16.xml Ewen, S. 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