No smoke and mirrors

BY IMPACT Staff

By Sneha Ullal

By exiting the very popular compact camera category and focusing primarily on its high-end, cutting-edge mirrorless cameras, is Olympus taking a big risk with the Indian market? Kenichiro Mori, Managing Director, Olympus Imaging India Pvt Ltd, believes that the heart of the brand is in the right place, as it offers value-for-money cameras that make memories, not just mere photographs

Q] How does your advertising module work for your Indian audiences?

We believe that today’s customer spends more time online as compared to watching television, in order to glean requisite information as well as for leisure. Keeping in mind the same we are conducting a number of activities on social media. We have developed an online community for our customers and are on Facebook, Twitter and YouTube, apart from having our own microsite. We are shifting our communication to social media and are trying to establish a one-on-one connect that television advertisements do not offer.

Q] What is the core marketing philosophy of Olympus Imaging India Pvt Ltd?

The world of marketing has slowly graduated from analogue to digital and we have chosen to follow the same path. Our core focus will be around consumer engagement, because we have realized that unless we engage with our customers, we will be unable to understand their requirements. Thus, our marketing philosophy shall be to engage via various means with our consumers and understand their needs.

Q] What is your approximate marketing budget for the Indian market? What does the brand’s media mix look like?

Our marketing budget would be pegged at approximately 10% of our revenues with a core focus on digital. At present though, we would be unable to reveal our marketing strategy.

Q] Olympus recently announced that it plans to exit from the low-end compact camera market. What consumer insights led to this decision?

Do you believe that compact cameras will be completely replaced by smartphones soon, not just in India but around the world? There are two mindsets that we have seen prevail among camera buyers: one is less focused on quality and more on the situation which needs to be shared among friends, and the other is conscious of the image quality and makes that a priority. In the past, the two were intertwined, but today the market is going in two different directions. Customers who want to share basic informative images quickly, are moving towards smartphones. However, we don’t believe smartphones will be able to completely erode the compact camera market because for example, we do not think any parent would want to take a picture of their child growing up, with a smartphone. Smartphones make situations but with quality limitations, but only a camera can portray true memories. Over time, people will always value quality. Other camera specific features such high optical zoom, waterproof, low-light shots are also not available on smartphones. Therefore, these cameras will continue to survive alongside interchangeable lens cameras. Also to see things in a different light, smartphones are encouraging photography as a culture and we see this as something to rejoice, because the same user will upgrade to cameras for photo quality in the future so we do not feel threatened at all.

Q] You’ve recently launched the new OM-D E-M1 mirrorless DSLR in India. How big is the market for high-end cameras here? What kind of advertising/marketing activities are you planning in order to promote these cameras and educate your consumers?

Though the market is recovering from the throes of a downturn, we believe it’s ideal for mirrorless cameras, because we entered the market less than two years ago and have already captured about 3% of the camera market. This speaks for the popularity of the category itself. We have heard enough about India being price-sensitive. However, we believe that the Indian consumer today want value for- money. Therefore, given the superior technology that we provide, we feel that consumers are ready to pay for quality. Our new product is a game changer in imaging, and we feel that our consumers’ faith will prove us right irrespective of the price point.

In order to promote the OM-D E-M1, we are running a variety of offers such as pre-booking promos and accessory bundles worth more than Rs 18,000. Apart from these, we have constant promotions running on our microsite www.olympuspro.in and have also begun category creation by introducing Mirrorless Roundtables, where we invite camera enthusiasts, both media and non-media, to partake in discussions with our National Product Head on Technology, Jaswant Vaghela, on imaging trends.

Q] How well are the brand’s binoculars and camera accessories doing in India? How do you plan to develop and promote both?

The binocular business is doing extremely well and we are the number one player in India. We are also continuously widening our distribution. In the past, binoculars were only sold at specialty shops along with cameras, but today large sellers such as Croma and Vijay Sales retail these products too.

We are studying the market for camera accessories currently. Most retailers were not stocking accessories as customers would not ask for them. Now though, the market has started to change, and details of accessories and their availability are present on the Internet. We believe e-commerce websites can contribute a lot to these markets. Our focus will be on a mix of different media and non-media related tools in order to promote our entire product range.

Q] What is the brand’s current market share in India?

We were at 3% of the total imaging market as of March, 2013. After that, we have witnessed a 10% growth quarter-on-quarter, and are looking at a 10% market share of the overall imaging market by 2015.

Q] What growth targets are you aiming for overall and particularly in the DSLR segment?

The professional camera segment has been increasing at about 20 to 30% and we see the same continuing for some time to come. Given the fact that we are in the mirrorless market, which is seen as the future of photography, we have already captured about 3% of the entire imaging market in less than two years. This augurs well for us.

Q] How challenging is the market in India for Olympus, as opposed to other countries? What are the opportunities that you see here?

After-sales service is the biggest challenge for any consumer electronics manufacturer. This is something that is true not only to India but several global markets as well. We have entered India in order to build a relationship, and not just to sell cameras. As the country grows economically, so shall we. Therefore, no sudden price hikes for us and no stating that smartphones are eating into our market. We are here to stay and that is the biggest opportunity for us in a market like India.

Feedback: sneha.ullal@exchange4media.com

Tags : CMO Interview