Canon shoots PC out of picture

Canon India is changing the rules of digital imaging entertainment business.

The company is making a paradigm shift from PC-centric positioning to television

centric. Arriving at the market strategy after the thorough study of the

entertainment industry in India, where TV entertainment garners about 67% of

total entertainment industry, the company aims to reach out to 85m TV users

across country with its new range of 28 products, informed Alok Bharadwaj, VP,

Canon India. "It leverages not only on the TV-user base-higher than the 14

m PC user base-but also on the convergence happening in the digital imaging

market," said Bharadwaj. The move repositions the company from a PC

peripherals company to a digital imaging company.

"Television is the epicenter of home entertainment and Canon's new

range is build around this epicenter," stated Alok. The strategy will help

the company hit it right on high functionality and customer engagement - two

very important determinants in garnering market share.

With this new range of 28 products including DV camcorders, digital cameras,

TV printer, portable Bluetooth enabled photo printer, all-in-ones and home

cinema projectors Canon is giving its customers more-right from printing from

TV, to formatting and printing photos directly on a Selphy portable printer, to

printing from laptops and cell phones.

The company has reorganized and constituted a new sales vertical to reach out

to the market. "We are expanding our retail initiative in IT, photo and

audio visual space," said Alok. Canon retail stations 21 of them currently,

spread across India, will go to 30 by December 2005. That apart, the Digiclick

zones would go from eight to 30 and Home Cinema Centers would grow from the

current seven to 18 by December 2005.

According to Alok, the strategy for B- and C- class cities is also ready for

roll out. The company is widening its reach to emerging markets in the eastern

states reaching out to Guwahati, Shillong and cities like Indore and Surat in

Central India. The company is also expanding its channel base of 75 dealers and

1,700 resellers to 150 dealers and 3,000 resellers across the country. Also,

Canon is touching base with end-customers. It is rolling out three TV campaigns

with a budget of Rs 20 crore.

DQC NEWS BUREAU