Thom Hogan: Impact of mFT on Nikon DX line

Started 10 months ago | Discussions thread
Eamon Hickey
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they know; but it's expensive
In reply to sderdiarian, 10 months ago

sderdiarian wrote:

Nikon and Panasonic both now have no-excuses products. They need to get the word out, as Nikon and Canon did in the 70's, to assert themselves in the market. But they don't seem to understand the value in this.

Of course they understand the value of marketing/advertising. But it's expensive. The question is not will a massive advertising campaign sell more cameras. It will. The question is will you get a return on your investment -- i.e. will you increase sales enough that you make more money than you spend.

And I assure you, managers at Olympus and Panasonic have a much clearer picture of the numbers on that than anybody in this forum does.

If you go to a top-line ad agency in New York and say we need to make a big improvement in our brand awareness, they'll say 'no problem; we can do that. We've got a three year initial plan; it'll cost you $250 million. Then, to maintain your gains, you'll need to spend $50 million every year after."

Now your job is to figure out how many more cameras you have to sell to pay for that. Can you do it? Do you even have the production capacity to support it? If you don't make that number, your advertising investment is just money you might as well have burned for all the good it did you.

In the history of the camera business, only Canon has done large-scale global advertising in the style of big consumer brands. They started in the 1970s, and they approached it very systematically, with a clear product roadmap to pay for it and the balls to invest in the production capacity, the distribution network, and the logistics infrastructure to support that kind of sales volume.

They bet a lot of money on it, and they won that bet. But it was really risky. Nobody else thought you could sell that many cameras.

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