As you may have gathered from previous posts, I’m interested in photography, so when I scanned MediaPost’s Marketing Daily last week, the title “Nikon Unveils New Cameras, But Plans No New Marketing” was bound to catch my eye.
Assuming that Nikon really does not plan any specific marketing to support the new Coolpix cameras, I wonder what thinking went into that decision? Is it a tacit acknowledgement that digital cameras have become commoditized, or is it a reflection of the faith Nikon has in its brand name?
The article, written by Laurie Sullivan, opens with this information: “Nikon tore the wraps off eight Coolpix digital cameras and a photo hosting service called ‘my Picturetown’ that lets users store up to 2 GB of images and videos. But there was something missing from Thursday’s product launch–an innovative marketing and advertising strategy highlighting the cameras’ features and prices aimed squarely at a range of consumers, analysts said.”
While mentioning no names, Ms. Sullivan goes on to state that “some analysts say Nikon may be missing an opportunity to connect with potential tech-savvy buyers who are unaware of Nikon’s Expeed image processing system.” Well, yes, it is accepted wisdom that new news sells, but is Nikon really missing a trick in this case?
First of all, I would hope that Nikon and their agency were smart enough to realize that a new image processing system, in and of itself, is not compelling news. This development will be newsworthy only if it can be conveyed in a relevant manner to potential buyers. And by “relevant” I do not mean that the new system is “central to driving the speed and processing power needed for many of the camera’s new features.” The last thing most people want is more features. (We should have learnt that from the mobile phone market.)
What people want is a real benefit, like the removal of the shutter lag found on compact cameras—i.e., that pregnant pause while the camera juggles all the variables to get the perfectly focused and exposed shot, while the fast-moving subject moves out of the frame. To my mind, this has to be the cause of more disappointment with compact digital cameras than anything else. I know I am still searching for a solution (other than lugging my D80 around all the time).
The decision not to support the new line is all the more interesting because Nikon has previously invested in broadcast advertising for its new products. For instance, the MediaPost article reports on the ad campaign for the Nikon D40 (an entry-level digital SLR), which ran in print, on TV and on Google’s YouTube in April. Nikon spent more than $17 million on advertising through the first half of 2007, roughly on par with the previous year. So maybe Nikon is hoping that the D40 campaign will have a trickle-down effect on their line of compact cameras?
That sounds sensible to me. After all, the camera world has become so complex that no one could hope to research all the options. It would be a bit like painting the Golden Gate bridge; by the time one had finished reviewing all the current options, it would be time to start on the next batch of newly introduced cameras. What people need are short cuts to help guide them through the multitude of options out there. A well-known brand name should do the trick.
However, Ed Lee, a digital camera analyst at InfoTrends in Weymouth, Massachusetts, was quoted in the MediaPost article and he seems to disagree. He thinks Nikon needs to get the “right message” to consumers on the grounds that “Most people think Nikon is a high-end product, but they do offer a nice line of affordable cameras with great features.” But this statement seems to assume that camera buyers are passive and decide solely based on what they know before shopping.
It is true that awareness and reputation have an important role in shaping people’s consideration, but the camera market is a classic “high search” category, characterized by high tech, lots of choice, and a long inter-purchase interval. All of these factors combine to encourage people to seek out information to guide their decision. (These same factors also make the category one that’s ripe for word-of-mouth marketing). Therefore, as a result of shopping the category, people are highly likely to discover Nikon makes a line of affordable cameras. Will the Nikon brand name then be a factor which dissuades them from buying a Coolpix, or one that encourages them to do so with confidence, knowing that this is a company that knows a thing or two about cameras? Based on the success of smaller cars sold by high-end companies like Mercedes, Audi and BMW, I would suggest the latter.
So what do you think? Should Nikon get the news out about their new technology, or will a trickle-down strategy work for them? Please give us your thoughts.
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