PROJECT REPORT

(CONSUMER BEHAVIOUR)

A STUDY ON DIFFUSION OF DIGITAL CAMERA

INNOVATIONS

SUBMITTED TO:
Prof. G K Murthy

SUBMITTED BY: GROUP 1

Abhinav Aayush
Shambhavi
1

EXECUTIVE SUMMARY
The project titles Diffusion on Innovation in Digital camera category is
undertaken at Chandragupt Institute of Management under the Consumer
behaviour Course. For this project we have to select three different kinds of
innovation in the same product category but from different company. We
Kodak in digital camera category, Nikon in DSLR range, Sony for Mirrorless
Interchangeable Camera. We choose these companies because they are
leading company in the field of Photography camera category. The project is
related to the study of consumer buying preferences and what factors
influenced them to buy a new innovated product this was done through the
survey.
Our new idea of innovation is Smart Mirrorless Camera to launch in the
market. In this report we discuss about what new features required for this
innovation. Also we discuss about the marketing strategy for this product.

Table of Contents
Topic

Page No.

Cover Page
Executive Summary
Introduction
Research Methodology
Survey Analysis of Digital

4
7
8

Camera
Survey Analysis of DSLR
Survey Analysis of Mirrorless

11
13

Interchangeable camera
Conceptualization of new

15

innovation idea
Marketing strategy for new

16

innovation
References

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INTRODUCTION
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A digital camera or digicam is a camera that encodes digital images and

videos digitally and stores them for later reproduction. Most cameras sold
today are digital.
Early 2000, Fujifilm released the FinePix S1 Pro, which was the first digital
SLR to be directed at consumers in the timeline of digital photography
technology. In 2001, Canon introduced the EOS-1D and entered the world of
professional digital SLR cameras. Two years later, Canon upgraded their line
and began showing image sensors that could detect 6.3 megapixels.
Since that point, Nikon and Canon have competed for shares of the digital
camera market of around 40% each. In 2004, Kodak announced it would no
longer be producing film cameras. In 2006, both Nikon and Canon followed
suit. While megapixel sensors now detect up to 22 pixels, there are
also camera phones that can sense up to 4 megapixels used on most cellular
phones.
Indeed, there seems to be no end to digital photography technology.
We selected three innovations in digital photography technology
i)

Kodak digital camera which was not very successful

ii)

Nikon DSLR camera success

iii)

Sony Mirrorless Interchangeable Camera - success

Failure of KODAK in digital camera

Eastman Kodak was the Apple of its day, but that was a long time ago. Founded in
1880, it was known for its pioneering technology and innovative marketing. You
press the button, we do the rest, was its slogan in 1888. By 1976 Kodak accounted
for 90% of film and 85% of camera sales in America. Until the 1990s it was regularly
rated one of the world's five most valuable brands
So it is that Kodak, which built one of the first digital cameras in the 1970s (and
thus has the patents that it's trying to enforce today, with lawsuits against Apple
and others), quickly became an also-ran when consumers decided they liked
shooting pictures on memory cards rather than film. Kodak actually made a
competitive digital camera in the mid-1990s, but its strategy had always been to
sell cheap cameras that would entice people to buy a lot of profitable film. Digital
photography didn't work that way, so Kodak didn't invest enough in it. Kodak always
thought that people would never part with hard prints and that people valued filmbased photos for their high quality. In other words, Kodak saw digital as a direct
substitute for film based photography. Kodaks leadership rejected the digital
camera, fearing it would cannibalize existing business. Kodak DC20, Kodak DC25,
Kodak DC40, Kodak DC50, Kodak120 is the range of Kodak digital camera. Canon
and others introduced cameras with vastly improved image quality, and Kodak
couldn't keep up.

NIKON - Success in DSLR range

The camera that changed the world Nikon F
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The Nikon F was one of the most advanced cameras of its day and
introduced in April 1959.Nikons first SLR camera. Although many of the
concepts had already been introduced elsewhere, it was revolutionary in that
it was the first to combine them all in one camera. It was the first SLR system
to be adopted and used seriously by the general population of professional
photographers. The Nikon F was succeeded in 1972 by the Nikon F2 series
after a production total of 862,600 bodies. Subsequent "single-digit" F
cameras continued as the top of Nikon's professional line of film SLRs,
through the Nikon F6 introduced in 2004.The naming system changed for
digital SLRs, beginning with the Nikon D1 in 1999, but Nikon's DSLRs
continue to use the F lens mount introduced in 1959.
If we talked present scenario Nikon has always impressed there consumer
with its broad range of DSLRsfrom the mighty D4s to the lowly D3300.
Success in mirrorless camera SONY

According to The NPD Group, overall mirrorless camera revenue has grown
16.5% over the past 12 months, with DSLR sales declining approximately
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15% over the same period. During this time, Sony has experienced a robust
66% boost in their companys mirrorless camera sales, strengthening their
dominant position as the #1 overall mirrorless brand, a position they have
held for 4 consecutive years.
As DSLR in quite bulk to carry, photographers shift their preference from
DSLR to mirrorless camera as it provides same quality of picture. Mirrorless
cameras are quite handy and easy to carry, while clicking photographs to it
doesnt make noise so wildlife photographers prefers more in comparison to
DSLR cameras.

RESEARCH METHODOLOGY
Choice of methodology
For the field research we decided that the most appropriate approach would
be a questionnaire that would be filled out by people of CIMP Patna. To
encourage the peoples not to reject the questionnaire outright, and to
increase the response rate, the questionnaire should be limited to maximum
of one sheet of A4 paper. This study started out as an exploratory study.
Having this knowledge we continue to identify specific factors that are of
importance of diffusion process of digital camera. The respondents are
selected randomly mainly the users of digital camera. It is an exploratory
research study. Sampling Unit: Sample Size: The sample size was restricted
to only 24 respondents Sampling Area: The area of the research was CIMP
PATNA
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Data Collection: Primary Data

Primary data for the research was collected through questionnaires. Due to
the purpose of our research, only the questionnaire method would be able to
approach the topic and
able to collect the answers in a satisfactory manner.
Questionnaire: The questionnaire was designed to collect primary data in
order to find firsthand information on how the respondents value the
importance of quality, features, brand etc for camera.
In-depth Interview: To collect the data for the brand preference, why they use
camera, why not they are using DSLR or mirrorless camera. Mainly focus to
know how they will get affected with the innovation in camera.
Limitations:i)
ii)
iii)

Survey only in the CIMP Patna

Biased in age group
Approx all respondents are the user of digital camera

Understanding the diffusion of Digital camera innovation and the

factors responsible for consumer (Cultural, Social, Personal and
Product Characteristics) on the basis of survey
I)

Digital Camera

From this survey we would say that the users of digital camera are more as
compared to the DSLR or mirrorless interchangeable camera. For digital
camera, diffusion of innovation mainly affected by social and culture factors
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when the trend came for digital camera people thought that it shows the
status symbol for them. Digital cameras are most accepted in family for
memorable photography because of easy to use and easy to carry. Another
reason was easy to operate and less cost incurred as compared to film
camera. The respondents category is mainly students /youths but these are
the also responsible for buying the digital camera in their family. Brand
loyalty is also one of the factors in choosing the digital camera like some of
the respondents having a Kodak digital camera currently as shown in below
figure.

Figure 1: Existence of Kodak Brand in digital

camera

Socio-Cultural Profile of Consumers:

As we see from the graph, the main factors for purchasing of digital camera
are family decision as well as status with 30% score. On other side we that
age of respondent is in between 18-25 years which shows that they also play
an important role for purchasing digital camera because they are well known
about new trends in the market and new technology of the product .This age
group people easily influenced by their friends circle, peer group

or from

advertisement also.

This is Adoption of an innovation over time but in x-axis the data we have
put is according to our survey (respondents) and In-depth interview.
Innovators: In this category the consumers absorbing the financial cost.
Consumer tends to be younger, better educated and more conscious about
status. According to our survey the respondents are younger and they are
ready to take the risk because digital camera is dynamically continuous
innovation after the film photography camera by Kodak.
Early Adopters: In this they are concerned about failure also. These adopters
tend to be an opinion leader in local reference group. They are well educated
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and somewhat younger than their peers. So, when purchasing of digital
camera in home parents may ask from children or any person who is more
knowledgeable in this product category. From figure 2 we can see that
influence by friends or peer group is also 20%.
Early Majority: In this consumers are more cautious about innovations. From
graph show that 40% which shows double increment from early adopters
score because the consumers are socially active. Getting more review or
feedback from others consumers because they mainly rely heavily on
interpersonal sources of information .They want to know each and every
thing about the digital camera from their social group like as cost, quality,
how to use, which brand is best etc.
Late Majority: Again here percentage becomes less because they not too
much socialize consumer. Late purchaser of the product or we can say that
decreased availability of the previous product. In the above figure 1, shows
that only 20% of respondents using the Kodak digital camera.
Laggards: No laggards according to our survey.
II)

DSLR camera

According to our understanding DSLR camera is a continuous innovation but

this product has relatively more concern to the consumer .Because digital
single-lens

reflex

cameras,

or

DSLRs

for

short,

provide

passionate

photographers with more than just a host of lenses, accessories, and a steep
price tag. DSLRs allow for greater control and precision over nearly every
aspect of the picture-taking process given their reflect design and digital
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imaging sensor, easily trumping compact cameras specification category.

However, though renowned manufacturers like Nikon and Canon offer DSLR
cameras at an upwards of $8,000, most companies remain committed to
getting their DSLRs into the hands of budding photographers with entry-level
alternatives. These DSLR camera in starting used by professionals but now a
days everyone having because consumer want good quality of picture and
as well other functions are also available like video recording, sharing of
pictures etc.
Personal Values profile of consumers:

The surveyed consumers are mainly Tech savvy (33%) and Risk Taker (11 %)
which shows the difference in the consumer perceptions about self. The Tech
savvy, Status Conscious, Risk Taker and Fashionable will be the potential
buyers of the DSLR while Passionate decision largely depends on the type of
motivation they have. Presence of a social status conscious group or tech
savvy respondents may drive their purchase decision. Also 56% focus on
brand of the camera and then on functionality. Another parameter of camera
works in low light almost every respondent agree with this. For this Nikon

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DSLR it lie under the early adopter category because on the subject of
camera features, survey participants seemed especially enthusiastic about
Nikon's offerings (five out of six better-than-average marks); Canon (three
positives). Scoring significantly worse than the rest of the field on features
measures were Kodak, with five negatives each.[Question shown below]

III)

Mirrorless Interchangeable Camera

DSLR seems to be getting obsolete and being replaced by mirrorless

cameras. They're not bad at all, but shooting with them is quite a different
experience from shooting with a DSLR. Sooner or later there will be no DSLR
on the market.
According to our survey and in- depth interview we find these major features
regarding to mirrorless camera:

Small and lightweight, almost pocket able

Excellent sensors, abundant accessories

Lens selection is not as good for DSLRs

DSLR-like picture quality is easily possible. Same class sensors.

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Autofocus is not as good as that of DSLRs. Slow and inaccurate in

low light, covers a big area which makes accurate selection
problematic.

Respondents recommendations: Sony A6000, A6300 or Samsung

NX500

For an interchangeable lens camera to achieve the photographic ambitions,

we'll not only have to decide between mirrorless and DSLR, but also which
brand. This is important because lenses can't generally be used across
different brands easily. Brands use specific lens mounts, so if we buy into one
system, we'll have an investment in it.
Socio Culture characteristics of consumer involves here because this camera
is very expensive (major respondents are students) and more knowledge
about lens. Also these cameras for who is more passionate about the
photography or professional photographer and this lead to a personal
characteristics of the consumer. Majority (76%) of respondents refer Sony
brand in mirrorless interchangeable camera. [Graphs shown below]

Figure 6: socio-culture
factors
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For this Camera mainly they dont pay much attention on advertisement they
mainly go for facts and figure of the new technology. In this case slow
diffusion occurs because older people could not adopt easily as compared to
youngsters and also many consumer lies in laggards.
If youre known for one thing the market will not give you another thing.
Kodak is film in the minds of the market place and not camera. Nikon,
which is camera in the mind, has better chance at becoming a successful
digital camera.
If we view the new cameras as electronic, canon, sony and HP have a
better chance at being big in digital camera industry.
Because emerging market has its own leader, Kodak the leader in the film
photographic technology, has a little chance of becoming the leader in the
segment of digital photographic technology segment.
Armed with the research findings, conceptualize a new innovation of
Photography camera
Smart Mirrorless Interchangeable Camera
Smart Mirrorless Interchangeable Camera (SMIC) segment that we would
like to launch. SMIC can be a one stop solution for all the problems which are
currently faced by the photographers. SMIC will provide features like: - Cloud
based storage with instant Wi-Fi connection, instant pairing with printers

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through Wi-Fi and Bluetooth and Cast Screen Features. Benefits thorough
these features:1. Cloud based Storage with instant Wi-Fi connection- Adding cloud
storage facility will increase the memory of the camera. In this feature
Photographers can click as many as pictures without getting worried
about storage. They have to connect their camera to internet through
Wi-Fi and they can store pictures on web. This will also help them in
case of damage of memory card or lost of camera.
2. Instant pairing with printers through Wi-Fi and Bluetooth- This
features provide instant printing of photographs just by pairing with
printers through Wi-Fi or Bluetooth. No more beautiful pictures only on
soft copy you can feel it livelier.
3. Cast Screen- Cast screen, for the uninitiated, is a technology that
allows a person to display whatever is visible on his/her's device's
screen on another screen, mostly wirelessly using Wi-Fi as a medium
for sharing the screen. User dont need to connect their camera
through wire for seeing pictures simply they can cast their camera
screen with the help of Wi-Fi to Projector or TVs.

Marketing Strategy for Smart Mirrorless Interchangeable Camera

Market Segmentation Since early purchaser of an innovation differ
from late purchasers, so we should consider a moving target market
approach. This is, after selecting a general target market. We will focus
on those individuals within the target most likely to be innovators and
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early adopter. As smart mirrorless interchangeable camera is totally

new concept in the market so only these two group will purchase this
camera just after its launch.AS the innovation gains acceptance, the
focus should shift to the early and late majority. For them we will
design different media sources. We will try to highlight the success of
our product to them so that they can easily accept this product.
Targeting Initially we will try to target only Innovators and
Professional

Photographers

who

already

have

mirrorless

interchangeable camera, after their acceptance we will shift our focus

to early adopter of technology and early majority.

Positioning of Product As this is totally new concept in the camera

market, so will highlight the features of this camera like :- Cloud based
storage with instant Wi-Fi connection, instant pairing with printers
through Wi-Fi and Bluetooth and Cast Screen Features and its benefits
to the user. We will position it in high end camera category.

Ansoff matrix for Smart Mirrorless Interchangeable

Camera

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Smart mirrorless interchangeable camera is new product to the

existing market so we will try to go for more product development in
that category as per requirement of its users.

References
Hawkins, D. I. (2015). Consumer Behavior: Builiding Marketing Strategy. McGraw Hill
Education (India) Private Limited.

10 best mirrorless cameras in 2016. (2016, july 15). Retrieved from

http://www.in.techradar.com/: http://www.in.techradar.com/news/photography-videocapture/cameras/10-best-mirrorless-cameras-in-2016/articleshow/44880386.cms
Best mirrorless cameras of 2016. (2016, sep 1). Retrieved from
http://www.cnet.com/: http://www.cnet.com/topics/cameras/best-digitalcameras/interchangeable-lens/
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Digital cameras. (n.d.). Retrieved from Digital Camera Buying Guide:

http://www.consumerreports.org/cro/digital-cameras/buying-guide.htm
How Success Killed Eastman Kodak. (2011, oct 1). Retrieved from www.forbes.com:
http://www.forbes.com/sites/petercohan/2011/10/01/how-success-killed-eastmankodak/#527e113e4d86
Nikon Technology. (n.d.). Retrieved from http://www.nikonusa.com/:
http://www.nikonusa.com/en/learn-and-explore/nikon-technology/index.page
The best Sony mirrorless cameras. (n.d.). Retrieved from www.http://snapsort.com/:
http://snapsort.com/roundups/best-sony-mirrorless-cameras
The Evolution of Digital Cameras A Patent History. (2008, Oct 28). Retrieved from
www.ipwatchdog.com: http://www.ipwatchdog.com/2014/10/28/the-evolution-ofdigital-cameras-a-patent-history/id=51846/
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