Estimates from 1999 census

Most of these individuals have benefited from the extensive improvements in the educational system that occurred during the 1990s. The national literacy rate is around 90 percent and 96 percent of the population has completed primary school. The young and educated people in Vietnam are eager and get accquainted with high – tech products such as computer, digital camera, compact photo printers, laser printers… So, Canon can introduce and sell high-tech products easily in Vietnam.

Technological environment: Canon is one of the world leading image solution providers. In Vietnam, Canon faces competition from HP, Brother, Epson, Lexmark etc. Vietnamese consumers always pay attention to high-tech product with latest and useful technology. In order not to lose the market share to the competitor companies, Canon must to pay a lot of money for R&D activity. The Company increases R&D expenditure annualy. Canon’s consolidated R;D expenditures were i?? 368,261 million (U. S. $3,230 million) in fiscal 2007, i??

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308,307 million in fiscal 2006 and i?? 286,476 million in fiscal 2005. The ratios of fiscal 2006 and i?? 286,476 million in fiscal 2005. The ratios of R;D expenditure to the consolidated total net sales for fiscal 2007, 2006 and 2005 were 8. 2%, 7. 4% and 7. 6%, respectively (Canon Annual Report 2007). This expenditure will help Canon to to sustain Canon’s leading position in its current fields of business, and to explore possibilities in other markets. Canon believes such investments will be the basis for future success in its business and operations.

Therefore, the company always develops new technologies to reduce the cost of products but still maintain or improve the quality in order to satisfy customer demand. Technology is a key to succeed in Vietnam market. Besides the macro environment, Micro environment also influences Company’s making decision. It includes stakeholders and the competitive environment. Employees are a factor that influences the company directly. A company can’t achieve its goals with lazy, old, unskillful, uncreative employees. Vietnamese workers are young, easy to train and keen to consume (see appendix 1).

They help Canon Vietnam contributes 25 percent of Canon’s total global production of Bubble Jet Printers and is currently the largest* exporter in Hanoi with exports representing 53 percent of all exports by the capital’s foreign sector, and earnings more than US$200 million. ( from scenario) Distributive network is also an important factor that influences the company. You produce a good product but you don’t have a distributive network, so how can you bring your product to the customer? Canon products have been available in Vietnam since the 1980s through its authorized distributors.

The authorized distributor, LE BAO MINH Joint Stock Corporation, and hundred of authorized dealers have made great distribution to the success of Canon as well as enhanced Canon’s brand identity in Vietnam’s market. In Vietnam, Canon faces competition from HP, Brother, Epson, Lexmark etc. They also have strong brand names with good products and competitive price. If Canon doesn’t want to lose their market and get more profit, Canon must pay attention to the competitors. So, Competitions are also a big factor that influences the company.

This has been a big challenge for Canon since the company entered the Vietnam market. Some factors I mentioned above directly affect the company’s strategy as well as performance. There are not only many advantages but also a lot of disadvantages in Vietnam market. Canon Vietnam has to analyze these factors to identify the opportunities and risks for the company when entering the Vietnam market. How the markets for the products (SELPHY ES3 ; ES30 and Laser Printer) may be segmented in Vietnam In order to achieve the marketing objectives, Canon focuses on some particular group of customers who have similar needs.

In term of marketing, it is called market segmentation. With market segmentation, company can easily capture and satisfy customers’ needs. The customers can be segmented by Geographic, Demographic, Psychographic, Behavioural area. In Vietnam, Canon uses differentiated marketing to segment customers for the products (SELPHY ES3 & ES30 and Laser Printers), by Geographic and Demographic area. In Geographic area, Canon segments customers into 2 markets: Northern (Ha Noi) and Southern (Ho Chi Minh city) market. Ha Noi and Ho Chi Minh city are the two biggest and most developed cities.

According to General Statistics Office of Vietnam, the population of Ho Chi Minh city is 5,929,479 people and the population of Ha Noi is 2,632,087 people on 2009-04-01. Besides, Hanoi and Ho Chi Minh city – will lead the world as the fastest-growing cities in terms of real gross domestic product (GDP) in the 2008-2025 period. (see appendix 2) By doing this segmentation, Canon gets some benefits. Canon has two representative offices in Ho Chi Minh City and Hanoi, they will support the selling and customer care in the most effective way.

On the other hand, the high GDP and population in these cities will ensure for the success of selling the products (SELPHY ES3 & ES30 and Laser Printers). The infrastructure and transport system in the two cities are good and advantageous for the distributive network. Canon can save the transport costs and get more profit in the two cities. So, Ha Noi and Ho Chi Minh city are the ideal places to lauch the new products in Vietnam. But this method also has limitation. The products are just popular on their market (the northern and southern Vietnam).

Canon forgets the Middle of Vietnam – a profitable market. In Demographic area, Canon bases on the socio-economic status to segment their products. According to the Ministry of Planning & Investment Portal, there are 200,000 small and medium business and 3,000,000 individual business households in Vietnam. So, the printing needs are really huge. Perfect for home and small offices, Canon introduced the Laser Printer LBP3250 and the colour laser printer LBP5050. With the latest technology , they will satisfy the printing needs.

Based on age, Canon introduced SELPHY ES3 & ES30, premium compact, attractive looking figures, amazingly intelligent functions photo printers. The young people in Vietnam are eager and willing to accept high-tech products. They want to show their own style in each picture so with the latest technology and carrying handle, SELPHY ES3 & ES30 photo printers can help them satisfy their needs. By doing this segmentation, Canon will improve customer relations (the businessmen and the youth). But this segmentation also has limitation. It doens’t focus on the big company and the old people – the profitable markets.

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