CANON VIETNAM CO. LTD AND ITS MARKETING.DOC

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
Marketing
Philip Kotler American Marketing
Association
Definitions Marketing is the
management process
which identifies,
anticipates and supplies
customer requirements
efficiently　and
profitably.
(BPP Professional
Education, 2004, p8)
Marketing is the social
process by which
individuals and groups
obtain what they need
and want through
creating and
exchanging products
and value with others
(Philip Kotler, 2000,
p4)
Marketing is the process of
planning and executing the

conception, pricing,
promotion and distribution
of ideas, goods, and services
to create exchanges that
satisfy individual and
organizational goals.
(BPP Professional
Education, 2004, p8)
Similarity To concentrate on customer.
Differences - Management process.
-
To focus on customer
requirements
efficiently
　
and
profitably.
- Social process.
- Creating and
exchanging products
and value with
others
- Process of planning and
executing.
- Completing previous
definitions, satisfying both
organization and customer
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

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.
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CANON VIETNAM CO. LTD AND ITS MARKETING
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
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
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CANON VIETNAM CO. LTD AND ITS MARKETING
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, 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].
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CANON VIETNAM CO. LTD AND ITS MARKETING
3. The various elements of the marketing concepts
According to Philip Koler (1997):
Concepts Profit Driver Western European
Timeframe

Elements
Production Production
method
Until the 1950s - Production and distribution
- Reduce costs
- Improve efficiency
Product Quality of the
product
Until the 1960s - Concerns quality of 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
wants of
customers
1970s to present
day
- Satisfy
- Marketing plan are based
- Customers desires
Societal
marketing
Benefit to
society
1990s to present
day

Elements of marketing concept and
curtailment on any harmful activities to
society
Canon is a company that has marketing orientation. The approach which Canon uses is
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.
C
anon establishes system that manages rubbish and recycles
100% kinds of plastic, metal and paper (Canon Vietnam Co., Ltd, n.d). And “Canon Vietnam
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CANON VIETNAM CO. LTD AND ITS MARKETING
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 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
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CANON VIETNAM CO. LTD AND ITS MARKETING
than Canon’s but its share of revenue is higher than Canon’s.
Figure3. CY Q1 2006Financial performance
(Source: />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).
4. The costs and benefits of using societal marketing to doing business in Vietnam
Costs Benefits
Identifying
customer
- Canon must research needs and wants of
customer that is customer focus. Through
partners in Vietnam, information about
demand and taste of customer are send to
office of Canon in Japan (Tokyo) to have
suitable product strategy (Thế Giới Vi
Tính, n.d).
-
Customer delight is long-term
- Canon can get customer
loyalty. It means Canon can
keep its current consumers
and get new one because loyal
customers will buy again and

advise for their family,
friends. Market share of
Canon Bubble and Laser
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CANON VIETNAM CO. LTD AND ITS MARKETING
competitive advantage of a company, so
Canon pays many costs to have
satisfaction of customer, especially in
Vietnam because technology in Vietnam
is not good as others, like Singapore.
-
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 sales
promotion with total cost is 225,000,000
VND (Xã Hội và Thông Tin, 2009).
Printer in Vietnam is 39% and
42% (Cơ quan của Đảng Bộ
Đảng Cộng Sản Việt Nam
Thành phố Hồ Chí Minh,
2007)

Building a
valuable
relationship
with
customer
- Now, Canon pay a lot of money to build
two Customer Care Centrals in Ho Chi
Minh and Hanoi to ensure customer
satisfaction is focused and increase
relationship marketing between Canon
and customers.
-
Another cost that Canon has to pay is cost
of lost customers. If all customers has
product, they will not buy anymore.
- Canon Vietnam can keep the
care of customers, instead of
its competitors. It is proved by
market share of Canon
printers.
-
Image of Canon in Vietnam is
increased.
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CANON VIETNAM CO. LTD AND ITS MARKETING
Vietnam is poor country, so Vietnamese
people have not enough money to buy
two or more same kind of product.
Customer
care and

service
- To be a big company, Canon must have
customer care strategy that includes
many stages, so it can pay many time and
money for this strategy.
- It is easy for Canon to
research and satisfy customer
demands.
Quality
issues and
their
implication
for customer
relationships
- To achieve customer satisfaction, Canon
always has quality control which ensure
about quality of product. Canon factories
in Vietnam have managing component
quality and managing product quality
departments to get target “No error
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]
- Canon Vietnam has been
recognized by ISO 9001
about quality of product and

14001 about environmental
management (Canon Vietnam
Co., Ltd, n.d).
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.
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CANON VIETNAM CO. LTD AND ITS MARKETING
Figure4. Flowchart of Countermeasure to Product Malfunctions or Quality Issues
(Source: Canon Sustainability Report 2008)
III. CANON LTD. IN VIETNAM AND ITS MARKETING
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,
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CANON VIETNAM CO. LTD AND ITS MARKETING
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 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
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