Since the introduction of smart phone in early 21st century, people are able to take pictures with their mobile phone anywhere and conventional camera manufacturers more focus on producing high technological digital cameras to compete against highly functional mobile phones. During this period, we had witnessed the decline of conventional film camera manufacturers such as Kodak (Associated Press 2012). However, FUJIFILM Instax is back on the game and restore popularity with an increased market share (Stefani 2015). How do they make this possible? We will look into their business marketing strategy, in particular segmentation, targeting and positioning (STP).
A market segment is a group of consumers who have similar tendency toward a product (Iacobucci 2014, p.27). FUJIFILM segments the market into demographic, geographic and psychological variables. In demographic segment, the company was more focusing on female customers and they also look into psychological aspects of young females. Global expansion of their business is considered as geographical market segmentation (FUJIFILM Corporation n.d.).
How FUJIFILM targeted in each segment?
Based on demographic and psychological fit, the company is more focused on young female customer. Targeted age group is 18-30 years old (Nagata 2014). These people are normally in the stage of life that socially more engaging than other age group. Typically, they have higher desire to spend more time with peers and also higher expendable income as well due to non-existent of dependants as yet. Therefore, they prefer to have products that are high spec, stylish design and more portable. According to JB-HiFi, the price is from $99 which is an affordable price for this age group.
FUJIFILM was established in 1934 in Japan as the photographic film manufacturer (FUJIFILM corporation n.d.). Throughout the long and rich history over 80 years, it has accumulated advanced technologies of camera and film. The instant photo system was introduced in 1998 in Japan but it was sluggish in the country. After expanding their instant camera business in East Asia market, it was used in the Korean TV series and became popular in the region. After the boom in the region, the system has expanded globally and it became a global success for the company (Fujikawa 2015). In addition, their competitor, Polaroid Corporation, exited the instant film market and shifted to other products (Jewell 2008). In the film camera market, there are no competitors, so this particular product ‘Instax’ became more important to FUJIFILM.
How to position Instax in the camera market?
Instax is an instant film camera and this is the difference compared to other mainstream digital cameras in the current camera market. Smartphone has now a built in digital camera function and it has taken the market share from digital cameras (Fujikawa 2015). However, an old style instant film camera such as Instax is positioned as unique in the market and it cannot be easily replaced by digital camera or mobile phone. From this ‘Shoot!Print!’ video, we can see that how this conventional camera can be used by younger generation as a new way of communicating and keeping in touch with peers.
In conclusion, FUJIFILM Instax has gotten through difficult times in the beginning of digital camera era. However, it could survive in the rapidly changing market environment by analysing the market and customers accurately with STP strategy. This shows how vital it is to have the right marketing plan for the company in the ever changing and competitive market situation.
By SHOKO KOBAYASHI (211723445, skobaya)
The Associated Press 2012, ‘Bankruptcy fears again hit Kodak’s stock’, AP English Worldstream-English, 13 January, retrieved 8 April 2016, Newspaper Source Plus, EBSCOhost.
FUJIFILM Corporation n.d., ‘Corporate History’, retrieved 7 April 2016, http://www.fujifilm.com/about/history/corporate_history
FUJIFILM Corporation n.d., ‘Global Link’, retrieved 7 April 2016, http://instax.com
Fujikawa, M 2015, ‘Fujifilm Chief Doesn’t See Need for Camera Industry Consolidation’, Wall Street Journal (Online), 3 March, retrieved 8 April 2016, Newspaper Source Plus, EBSCOhost.
Iacobucci, D 2014, Marketing Management (MM4), South-Western, Cengage Learning, Mason.
Jewell, M 2008, ‘Polaroid leaving instant-film field’, The Seattle Times, 9 February, retrieved 7 April 2016, http://www.seattletimes.com/business/polaroid-leaving-instant-film-field
Nagata, K 2014, ‘Instant camera gets mojo back with cute focus, Korean push’, Japan Times, 15 August, retrieved 9 April 2016, Newspaper Source Plus, EBSCOhost.
Stefani, LD 2015, ‘The Future of Film Photography: Instant Toy Cameras and Small-Scale Labs’, Time, 31 August, retrieved 7 April 2016, http://time.com/4011238/the-future-of-film-photography-instant-toy-cameras-and-small-scale-labs