Digital Camera

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(No Transcript)
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Presented by

• Mr. Lertchai S. 441-9147
• Mr. Sarawut L. 452-9185
• Ms. Benjangkamas V. 461-9111
• Ms. Kittima K. 461-9131
• Ms. Porntip W. 461-9156
• Ms. Savidchaya L. 461-9177

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Agenda

• The objectives of the presentation
• Company background
• Current market situation
• SWOT analysis
• Competitor analysis
• Competitive positioning
• Consumer analysis
• Marketing strategy
• Financial projection

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Objectives

• To understand the procedures of new product
  launching in a systematically way
• To identify marketing strategy of new product how
  it launches
• To identify the key success factor of launching
  new product in the market
• To describe the business trend and market
  circumstances of digital camera in Thailand

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Market Situation

• Develop from a film camera since 1991 by Kodak
  (Professional Digital Camera System)
• Apple launched in 1994 for consumer-level market,
  and followed by Kodak and Casio in1995.
• Intense Competition nowadays
• Market Size is expected to grow by 30
• - 450,000 cameras in 2004
• - 585,000 cameras in 2005
• More than 20 brands in the market
• Its Life Cycle around 5-6 months or 2 quarters

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Current Market Situation

• Year 2004, demand of 1M pixel camera have
  decreased as the price of 3M and 4M pixel are
  reduced
• Price of 3M pixel drop to Baht 7,000 -9,000
• Price of 4M pixel drop to Baht 13,000 17,000
• It can be said that the growth rate pf 4M 5M
  pixel increased whereas those of 3M pixel
  decreased

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Product Segmentation
Source GfK Report
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Average Price of Digital Camera
Source GfK Report
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Market Size Value(Jan.-Apr. 2004)
134
186
Unit
Baht
Source GfK Report
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Market Contribution(by Segmentation)
Source GfK Report
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Market Share By BrandThailand (Year 2004)
Source Fuji Co.
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DSC Market Share By Resolution Thailand (Year
2004)
Source Fuji Co.
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Digital Still Camera-ThailandTop 10 Hit list By
Pixels lt 3M
Source GfK Report
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Digital Still Camera-ThailandTop 10 Hit list By
Pixels lt 4M
Source GfK Report
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Digital Still Camera-ThailandTop 10 Hit list By
Pixels lt 5M
Source GfK Report
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Digital Still Camera-ThailandTop 10 Hit list By
Pixels lt 6M
Source GfK Report
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Existing brands

• Pentax
• Sony
• Canon
• Sumsung
• Nikon
• Kodax
• Fuji
• Casio
• Panasonic
• BenQ

• Kyocera
• Olympus
• Konica Minolta
• Leica
• Sanyo
• HP
• Brica
• Contax
• Sigma
• Others

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High
Price
Sony
Nikon
Canon
Kodak
Fuji
Pentax
Kyocera
Casio
14,000 B
Panasonic
Olympus
Ricoh
Samsung
Ben Q
Brica
Low
High
3M
Source GfK Report
Resolution
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3 Main Considerations in Buying Decision

• Brand
• Price
• Resolution

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PENTAX SWOT Analysis

• Strength
• Well-known camera brand due to Pentax has their
  own lens manufacturer
• Good quality and good design product
  (professional camera design)
• Strong distribution channel through leading
  department stores
• Strong relationship with dealers and suppliers
• Synergy with CMG brand in term of promotion

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PENTAX SWOT Analysis

• Weakness
• Limited technical service center
• Low gross profit margin, then limited in a
  marketing budget

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PENTAX SWOT Analysis

• Opportunity
• Increase in demand of 4-5 mega pixels digital
  camera
• Increase no. of complementary product.
• High technology, price is lower, high purchasing
  power
• High education, easy to communicate

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PENTAX SWOT Analysis

• Threats
• High competitors in the market (20 brands in
  digital cameras)
• Dealer has more bargaining power
• Digital camera has a short time life cycle due to
  rapidly change in technology

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Competitor Analysis

• Weakness
• Strict policy with dealers
• Low market coverage
• One price policy
• Less flexible in adjusting price and promotion

• Strength
• Strong brand awareness and brand image
• After sales service
• Variety of products to support each products
  (SONY Community)
• Economy of scales in term of Advertising.

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Competitor Analysis

• Strength
• Know-how in lens
• High brand awareness and well-known in camera
  market
• Good image
• Good quality product at a reasonable price
• Get support directly from Japan

• Weakness
• Inventory shortage

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Competitor Analysis

• Strength
• Lower price than other competitors
• Rapidly brand awareness
• Economy of scale in term of Advertising
• Schneider lens
• Thai menu

• Weakness
• Limited channel distribution (camera shop)
• Low quality

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• PENTAX By CMG

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Companys Background
Central Marketing Group

• To Pursue for excellent CMG is the important
  core business of Central Group acting with a role
  to be a market leader of many leading brands by
  employing the new management to provide the
  concrete benefits and profits to trade partners,
  staff, shareholders and society.

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Companys Background

• established in 1947, by Mr. Tiang Chirathivat a
  general merchandise store in a wish to sell
  imported good quality products from other
  countries.
• Central Group has defined business into 5 core
  businesses. And CMG is the fifth categories in
  Trading Marketing Business which managed by Mr.
  Pichai Chirathiwat on Feb 2002.

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Companys Background

• CMG is covered the business area in
  manufacturing, trading and marketing.
• At present, CMG is divided into two groups
• 1.Factory Group is manufacturing products under
  international licenses and own brands
• 2.Trading and Marketing Group is distributed
  both imported and domestically manufactured
  products throughout the country.

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Companys Background

• CMG has 5 categories of products
• Apparel
• Cosmetics
• Watches
• Electrics
• Miscellaneous

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Companys Background

• When electrical appliances and cameras was
  imported under the name of Central Trading
  Store, it is a critical step in expanding
  various types of their business.
• DSC Brands in Photographic Department
• 1. Pentax
• 2. BenQ

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Marketing Plan

• Sales Objective
• To achieve sales 50 MB for new model.

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Product

• There are 6 new upcoming models, launching on
  this October
• The selling points are Resolution and Design

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Optio S50

• Specification 5 Mega Pixels
• 3X Optical zoom
• 2.6X Digital zoom
• 1.8 inch LCD Monitor
• Price 14,000-15,000 Baht
• Target Group Mass
• Availability Early October

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Optio S5i

• Specification 5 Mega Pixels
• 3X Optical zoom
• 4X Digital zoom
• 1.8 inch LCD Monitor
• Price 17,000-18,000 Baht
• Target Group Working Women
• Availability Early October

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Optio X

• Specification 5 Mega Pixels
• 3X Optical zoom
• 8X Digital zoom
• 2 inches swiveling LCD
• Price 15,000-20,000 Baht
• Target Group Gen X, Gen Y
• Availability Mid October

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Optio SV

• Specification 5 Mega Pixels
• 5X Optical zoom
• 4X Digital zoom
• 1.8 inches LCD Monitor
• Price higher than 18,000 Baht
• Target Group Mass
• Availability End October

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Optio MX4

• Specification 4 Mega Pixels
• 10X Optical zoom
• 10X Digital zoom
• 1.8 inch swiveling LCD
• Strange design, Hi Tech
• Price gt30,000 Baht
• Target Group Working men
• Availability End October

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Optio 750Z

• Specification 7Mega Pixels
• 5X Optical zoom
• 8X Digital zoom
• 1.8 inch swiveling LCD
• Classic Design
• Price gt30,000 Baht
• Target Group
• Availability Early October

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Distribution

• 4 main distribution channels
• Modern Trade Power Buy, Mega Universe,
  Super Sport, etc.
• Photo Shop Big Camera, Photo Hut,
• World Camera
• IT Shop Data IT, IT City
• Others King Power, Internet

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Promotion

• Budget 4 from sales forecast
• (Sales Forecast 2004 is 135 MB.)
• Marketing budget 1.5 MB for new model

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Promotion
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Promotion

• Advertising (Media Plan)
• Camera Magazine Budget .15 MB
• New Product Testing
• IT Magazine Budget .15 MB
• New Product Testing
• Newspaper Budget .32 MB
• Thairat

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Promotion

• Sales Promotion (directly to dealer)
• Premium (CMG brand)
• Trade Discount
• Event Budget .6 MB
• Com Mart
• PR

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What next?

• Market Size is expected to grow by 30
• - 585,000 cameras in 2005
• Growth rate in 4-5 MP
• No. of gt6 MP will increase
• Decline in 2-3 MP

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What next?

• Two technologies of image censorCCD and CMOS
• CMOS which is the revolution of CCD
  (Charge-Coupled Device, invented by Bell Labs,
  1960)
• New CMOS Higher resolution
• New CMOS Require less power consumption

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TVCF
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• Thank You