CAMERA MAKER FOCUSES ON STUDENTS, PROFESSIONALS

Program courts students to start with Canon, pros to switch

Companies can look at markets as static entities comprised of
groups with whom they would like to gain market share. Or they can
look at certain key groups and see their potential to grow, or
influence other segments of the market.

That is the philosophy that guided Canon USA Inc. as the camera
manufacturer looked at the professional photography market.

Beginning in 1994, Canon employed a two-pronged approach: it
targeted budding professionals--photography students at leading
universities and colleges--and it reached out to established and
respected professional photographers.

The program grew out of Canon's goal to become the most popular
camera brand used by professional photographers working in fashion,
photojournalism, fine art and commercial markets. The market share
leader in these categories always had been Canon's competitor, Nikon.

Finding Best Photographers, Schools

In 1994, Canon began working with PR firm The Rowland Co., New
York, to develop a plan to overtake Nikon in the professional market.

The first step was research to identify the top photographers and
the top photography schools.

Staff at Rowland analyzed more than 100 top consumer magazines to
identify photographers who appeared most in demand. Based on this
analysis and a study of memberships of leading photographers'
associations, the firm identified 55 leading photographers. Contacted
by phone, 70 percent of them confirmed they used Nikon equipment, but
about half of the Nikon users said they were open to switching to
Canon if its cameras could be shown to be technically superior and if
the company's customer support were better than that of Nikon.

At the same time, another research effort focusing on the Society
of Photography Educators identified 35 U.S. colleges and universities
judged to be the best.

Interviews with staff at these schools revealed that incoming and
first-year students generally have not settled on one brand of camera.
Moreover, their choice of camera often is influenced by the brand of
camera that is recommended by professors or made available to them
through college "loaner" programs, said Mark Weiss, CEO of Rowland.
Also, professors agreed that the limited amounts of new photography
equipment available at many schools imposed a limitation on the
quality of education the schools could offer.

Programs for Professionals

Canon proposed to the top professionals identified through its
research that, in exchange for Canon equipment, they participate in
several activities:

-- lectures on photographic technique at selected photography
schools;

-- workshops at photography trade shows; and

-- providing at least six of their best photos for a Canon-
produced "coffee table" photography book and CD.

Adding a cause-related twist to the campaign, proceeds from sales
of the book and CD were to be donated to National Association for the
Blind and the Seeing-Eye Dog Foundation.

All 55 photographers contacted by Canon agreed to participate in
these programs.

Programs for Schools

From the list of 35 top schools identified, Canon approached nine
across the country with offers to support educational programming. To
deans of colleges or departments of photography, the company proposed
several forms of support, all of which were accepted by the schools:

-- a gift of approximately $130,000 of Canon cameras, lenses and
accessories, to be made available for student use;

-- three lectures on photography technique over a one-year
period. The lectures would be conducted by one or more of the 55
professionals identified by Canon;

-- assignment of a Canon technical representative to each school.
The reps conducted training sessions on use of Canon equipment, which
were required for all those wishing to borrow the schools' Canon
equipment; and

-- a Canon discount purchase program for students and faculty.

Local, National Publicity

In addition to distributing promotional materials about the
program on campuses, Canon also distributed information to the media
about equipment and programming support it was providing to
universities. The lectures by noted professionals at the schools were
open to the public, and were promoted, to draw as many camera devotees
as possible to the events, which were identified as sponsored by
Canon.

Programs Succeed, Sales Jump

The professional and university audiences rated the Canon program
highly, according to Rowland CEO Weiss. Canon officials believe the
strong support by professionals, schools and students are leading
these three groups to be knowledgeable about--and in some cases
advocates for--Canon equipment.

Sales figures seem to bear this out. In the first half of 1995,
sales of Canon equipment market were twice their levels for all of
1994, although this could not be attributed to the
professionals/schools program alone. But Canon executives believe the
company's move from the number-two position to the number-one market-
share position in the professional single-lens reflex camera market--
as documented by the Photo Marketing Association--undoubtedly resulted
in part from this program.

Canon has committed to continue the program at least through
1997. (Canon, 516/328-5145; Rowland, 212/527-8800)