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Canon Powers Way To Top

By Greg Scoblete -- TWICE, 7/25/2005

Sidebars:
DIGIC Made the Difference

New York — The past year has seen a noticeable shift in fortunes among some of the marquee brands in the digital camera market as Canon and Kodak have bumped Sony from its long-held position atop the market.

The micro picture closely mirrored the macro picture, with Canon and Kodak virtually neck-and-neck for the top-selling model in TWICE's annual Success Story top product feature. Interestingly, Canon had but one product among the top ten best sellers from June 2004 through May 2005; but it was No. 1.

The 3-megapixel PowerShot A75 was a “home run” for dealers based on its feature set, style and cosmetics, and value, according to Eliot Peck, sales VP and general manager, Canon. Indeed, Peck noted that orders were so strong during the fourth quarter of 2004 — when the suggested retail was brought from $299.99 to $199.99 — that the model was on “severe back order” for the majority of the quarter.

The A-series was geared toward “high quality features at attractive price points” migrating some features down from the higher-level G-series to attract savvier consumers, Peck said.

The A75, which began shipping in the spring of 2004, offered a 3x optical zoom and was one of the first Canon models to incorporate the print/share button. This dedicated button let consumers transfer and print pictures to Canon printers without first connecting to a PC. Using the button, consumers could produce photo IDs in 28 sizes and, on the company's CP printer line, print individual still images from video clips captured by the camera.

The camera was also PictBridge-enabled.

The A75 also benefited from the company's DIGIC processor, 12 shooting modes and a 9-point autofocus system, Peck said, all of which made it “attractive to first time digital camera buyers.”

The product was also the beneficiary of improved brand-awareness, as Canon heavily promoted its first lower-cost digital SLR — the Digital Rebel — and ramped up its effort to make significant gains in the photo printer market, Peck said.

 

DIGIC Made the Difference

NEW YORK — Canon's multimillion dollar role of the dice DIGIC ad campaign has paid dividends, helping to distinguish the PowerShot A75 against similarly priced, similarly featured competitors, according to retailers who sold the model.

That campaign — an “Intel Inside”-inspired ad drive around a sophisticated camera processing technology — helped lift overall brand awareness and alerted consumers to the fact that there's more involved in taking a good picture than simply megapixels, said Mary Gentile, associate merchant, Office Depot.

“They put lots of effort into that message, and they've been among the best manufacturers in driving home a marketing message” that defies simple specifications that can easily be bulleted in a circular, Gentile said.

“I think the performance of this model really spoke to the importance of brand and not megapixels,” said Kristen Elder, senior buyer, Circuit City. “Canon did a great job of communicating to consumers that there are other aspects to making a great picture with their DIGIC promotion.”

This effort helped push the camera to the top despite its having less resolution than some of its closest competitors.

“It's not about resolution anymore,” Elder said. The camera's style and small form factor helped as well, Elder noted.

“The look and the feel of the camera helped, with some of the other marquee introductions tending toward futuristic designs, the A75 had a more traditional feel,” Gentile said.

Of course, the $199.99 price point didn't hurt either.

“The value and ease of use which you can get for the money has made it easier for first time buyers” to make the leap to digital, said Ben Dicks, digital printing and imaging merchant, Office Depot.

“If you look at 2004, the 3-megapixel was really the midrange of the market and the A75's LCD screen size was larger, relative to its competition which helped,” Gentile said. Calling out the PictBridge direct printing feature — which Canon did more aggressively than some of its competitors — also helped “tell a better story,” Gentile said.

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