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Executive Summary
Canon started out as a company with a handful of employees and a burning passion.
That company soon became a world-renowned camera maker and is now a global multimedia
corporation. However, the origins of our success remain unchanged: the passion of our early
years and technological expertise amassed over more than 60 years. And now Canon India
closed 2008 with revenues of Rs. 665 crores, which marked 31% growth over 2007. Overall,
Canon expects to touch revenue of 840 crores in 2009.
The company has a range of products under its profile. Printers being the prime products have a
major share of their profit in India. For the success of every business customers are at the core
center. Effective marketing focuses on two activities: retaining existing customers and adding
new customers. Customer satisfaction measures are critical to any product or service company
because customer satisfaction is a strong predictor of customer retention, customer loyalty and
product repurchase.
So Canon India wanted to conduct a survey of customer satisfaction in Pune region. To know
that the customer are satisfied or not. This will give them an insight into their own strengths and
weaknesses. So that company can know in which area they are not upto the expectations of the
customers. And can focus on them in future to accomplish a steady growth, which in turn will
facilitate in achieving a target of 840 crores in 2009.
So in the project we focused on the areas in Pune. The project was focused on customer
satisfaction aspects: There are ten 'Quality Values' which influence satisfaction behavior, known
as the ten domains of satisfaction. These ten domains of satisfaction include: Quality, Value,
Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line
Service. Project was intended to cover all these domain.
The Sample size for the project was 250, and the sampling units were Xerox centers, Cyber
cafes, Retail outlets and small home offices. So respondents were surveyed by collecting the
questionnaire from them. For that purpose randomly samples were selected and surveyed. The
questionnaire was filled personally by the person who used the printer.
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Respondents have given importance to quality aspect of Canon printer while buying. Also Canon
is known for its onsite service so respondents have rated after sales service as second most
important aspect. Technological excellence of Canon printers have given them the share of
priority among the respondents. Price of the printer and the maintenance cost are also the other
aspects which have importance than other aspects.
The dissatisfaction is with the after sales services of the company. 1-2 years onsite warranty is
the USP of Canon printers. But customers have to call more often to get it done. So many a times
customers themselves have to take the printers to the service center rendering the onsite warranty
futile.
Also we visited schools for “Brand Promotion” of our products. We gave the school students the
broachers of Inkjet printer iP1300 and All in on MP145. They were given to the students at
discounted price.
3
Chapter no. 1
5
satisfied they will become an asset for the company on whom it can rely. But if the customers
are dissatisfied they will switch over to competitors brand and will be a loss for the company.
Effective marketing focuses on two activities: retaining existing customers and adding new
customers. Customer satisfaction measures are critical to any product or service company
because customer satisfaction is a strong predictor of customer retention, customer loyalty and
product repurchase.
Customer who are satisfied are also loyal. So there is less possibility that they will revoke to the
company. So in such scenario customer satisfaction needs to be analyzed. It will give an insight
into where the company is falling short of the expectations of the customers. So that it can
improve upon it and gain customer satisfaction.
In the printer industry HP, Samsung, Epson are some of the competitors of Canon. In such a
competitive market Canon cannot afford to miss on the customers. So it becomes necessary to
know the customer satisfaction. In printer industry market share wise HP are the leaders. To take
over the top position Canon needs to be the best company and for it ,it should satisfy its
customers. So this research project becomes critical and important from Canons perspective.
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Chapter no.2
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2.1 Company Name and History:
Name of the Company: Canon Inc.
Founded : August 10, 1937
Headquarters: 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan.
Canon started out as a company with a handful of employees and a burning passion.
That company soon became a world-renowned camera maker and is now a global multimedia
corporation. However, the origins of our success remain unchanged: the passion of our early
years and technological expertise amassed over more than 60 years.
Canon Inc. is a global leader with total revenue of about US$ 45 billion in 2008, in
photographic and digital imaging solutions. Its global network now includes 239 companies,
employing some more than 131,352 people. Five Technology ‘imaging' engines of Optical,
Electro photography, Canon is the world leader in office automation and digital imaging
technologies.
Since 1990, Canon has used numerous types of recycled plastic in exterior housings and
other product parts in cooperation with resin manufacturers in Japan and abroad. “Sandwich
molding,” in which recycled plastic is sandwiched between layers of virgin plastic, enables
usage rates for recycled plastic of up to 30% in final products. So Canon has been making eco
friendly products from a period of time."Canon Group Environmental Charter" has been
introduced, global environmental promotion organization are also described. Here the product is
viewed in terms of its three stages-produce, use and recycle - Canon contributes to minimizing
environmental burden through the effective application of environmental technologies.
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2.2 Organizational Chart Of the Company:
2.3 Growth:
Canon India Private Limited, India 's No.1 Complete Digital Imaging Company, has
registered the highest growth in Eastern market in most of the product categories in the first 5
months of 2009 over the same period last year. Canon is also a leading player in East in the
digital camera and digital copier multifunctional categories with 30% market share in both. And
Canon achieved 30% market share for laser printer nationally during April 2009.
Canon India closed 2008 with revenues of Rs. 665 crores, which marked 31% growth
over 2007. Overall, Canon expects to touch revenue of 840 crores in 2009 and 1000 crores in
2010. Canon will invest 100 crores in India this year.
ran 2008*
k Company No.
4,16
1 IBM
4
Samsung 3,51
2
Electronics 8
2,11
3 Canon
4
2,02
4 Microsoft
7
5 Intel 1,77
10
7
1,73
6 Panasonic
7
1,61
7 Toshiba
4
1,49
8 Sony
9
1,49
9 Fujitsu
3
1,42
10 Hewlett-Packard
0
Canon is said to be a Technology Innovators, With over 1100 registered patented
technologies in Digital Cameras, 2300 in inkjet printers, 5600 in multifunctional printers and
more than 200 in scanners, Canon has emerged as one of the leading technology innovators in
the digital imaging space worldwide.
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Office Imaging Products:-
12
Copying Machines
13
Computer Peripherals :-
Image Scanners
14
Cameras:-
15
LCD Projectors
16
2.5 Technology Used in Printers:
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ChromaPlus Technology :-
The new ChromaPlus technology has an additional red added to the original 6-colour ink.
Colour Precision Distribution :-
Canon re-arranges print head for uniform colours rendition.
Photo Realism :-
How we make printouts look like silver-halide photographs.
FINE:-
Canon PIXMA printers incorporate the Full-photolithography Inkjet Nozzle Engineering
(FINE) technology print head, which has more nozzles than competitors' equivalent
models.
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Canon has also developed on-demand fixing technology for its color printers and copying
machines. One system utilizes a double-layer fixing-film sleeve, such as those used in
monochrome machines, which includes an intermediate rubber layer. In another, the base layer
of the fixing-film sleeve is made from thin metallic film instead of heat-resistant resin and
employs a three-layer structure which includes a rubber layer and release layer. The inclusion of
the soft rubber layer contributes to improved toner-fixing performance and ensures the uniform
application of heat to the toner to produce consistently high-quality color images.
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2.6 Awards and Recognitions :-
• Canon has notched up a total of 80 prestigious awards in 2008 in recognition of the
superior technology and quality of its products across different segments. Canon was named as
the Best Service Backup Company of the Year by Better Photography magazine.
• Canon India is certified for ISO 9001, ISO 14001 and OHSAS 18001. In 2006, the
company was certified for its "Strong commitment to excel" at the CII-EXIM Business
Excellence Award.
• In 2008 Canon has been ranked amongst top 10 employers in India in the Business Today
'Best Companies To Work For In India' survey.
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• Best Service Backup Company 2007
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Chapter no. 3
What is a research?
A careful investigation or inquiry especially through search for a new facts in any
branch of knowledge. It is a systemized efforts to gain new knowledge.
Types of research:
1) Descriptive
2) Analytical
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3) Applied
4) Fundamental
5) Quantitative
6) Qualitative
7) Conceptual
8) Empirical
Data Sources:
There may be different types of data, some of the information may be published, while some is
unpublished, some is complete and some information as available without any charge and some
may acquire nominal expenditure. Its necessary for the research work and the type of sources
from which it is generally collected. The research problem decides the nature of the sources of
data they may be secondary data and primary data.
Data Collection:
The method to collect data was primary. Primary data is obtained through respondents, whether
through questionnaire or through personal interview. Collection of primary data is done during
the course of doing experiments in experimental research, but in case of descriptive type and
when survey performed, whether sample survey or census surveys, then we can obtain primary
data either through observations of through direct communication with there are several methods
of collecting primary data, particularly in survey is descriptive research.
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A sampling unit is that element or set of elements considered for selection in some
stage of sampling. The one who will be the respondent and the concerned for the survey is
sampling unit. In our case sampling unit is the end user of the printer, one who is actually using
the printer. So the Xerox center, cyber cafes, small offices and the retail outlets are our sampling
units. Sampling frame was all the Xerox centers, cyber café, retail outlets, small home offices.
Sample size:
The sample size is 250 and it includes Xerox center, Cyber cafes, Retail shops, Small
home offices in Pune city.
• Interviews
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• Focus group interviews
• Observation
• Case-studies
In my project I have collected the primary data using Questionnaire as a tool. The responses of
the respondents were collected directly from the printer users. So this gave the first hand
information from the respondents.
Secondary Data:
A clear benefit of using secondary data is that much of the background work needed has been
already been carried out, for example: literature reviews, case studies might have been carried
out, published texts and statistic could have been already used elsewhere, media promotion and
personal contacts have also been utilized.
The source of secondary data was canon website and the company brochures and leaflets. Their
was no secondary data available or their was no data which was published earlier.
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CHAPTER NO. 4
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1. Canon printer users
Yes 178
No 72
Total 250
Interpretation:
Majority of the respondents visited were using Canon printers. The sample respondents were the
customers of past 2 year of United Peripheral, Canon’s product distributor in Pune.
Interpretation:
52% of the respondents were using the printer for more than a year. And 48% were newly added
in last 1 year. So the respondents had a good experience with the printer and can give their
feedback about their satisfaction.
Yes 133
No 45
Total 178
Interpretation:
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Most of the cyber cafes and Xerox centers have more than 1 printer. Because they have more
printing load , so there is a need for multiple printers .This saves customers time and long
waiting ques. To meet the demand they use multiple printers, it may be of Canon or any other
company.
Interpretation:
This shows that HP is the major competitor of Canon. They are the market leader in terms of
market share in the print industry.
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From the graph we can see that the other printer used by respondents were HP, Epson, Samsung.
HP is the most challenging competitor followed by Epson and Samsung. These other printers
includes All in one as well as inkjet and laser printers.
Better 35
Good 64
Equivalent 56
Inferior 23
TOTAL 178
Interpretation:
56% of the respondents rated Canon printer good in comparison with the other printers which
they were using. This shows that Canon printers have edge over other printers which the
respondent is using
13% found it to be inferior to their other printer.
6. Number of Prints
Interpretation:
The graph shows that 51% of the respondents have printing load more than 50 pages per day.
This is a sizable amount of print load, so they have to use more than one printer. This majorly
includes Xerox centre and Cyber cafes.
Interpretation:
The most important aspect while buying a printer is its price and quality. So mostly all the
respondents have given most importance to price, quality along with the maintenance cost.
Technology and availability of the printers had a mixed response but majority were neutral to the
importance of it. But the after sales service accounted for important attribute to look for while
buying a printer. Company name also had an influence in decision of the respondents.
While the printing speed of the printer did not had much of importance given to by the
respondents.
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Quality 152 85%
Price 132 74%
Usage 56 31%
Maintenance cost 84 47%
Availability 67 38%
Technological
Excellence 118 66%
After Sales services 139 78%
Easy to use 90 51%
Printing speed 89 50%
Anti Jam 63 35%
Interpretation:
Above graph shows that the nearly all the respondents have given importance to quality aspect of
Canon printer while buying. Also Canon is known for its onsite service so respondents have
rated after sales service as second most important aspect. Technological excellence of Canon
printers have given them the share of priority among the respondents. Price of the printer and the
maintenance cost are also the other aspects which have importance than other aspects.
9. Satisfaction level of Customers
Interpretation:
Customer are Satisfied with the price of the printer, but also many respondents are neutral as
well as dissatisfied, this is because of the low prices of Samsung and Epson printers. Samsung
and Epson have the lowest prices compared with other printers.
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Most of the respondents were satisfied and highly satisfied with the quality of printer. This again
authenticates that the quality of Canon printers is best.
The dissatisfying aspect was the Maintenance cost, respondents were highly dissatisfied and
dissatisfied with the consumable cost of Canon printers. Also they are to be purchased more
often. So this adds to the running cost. The cost of the cartridges is high compared to other
printer cartridges.
Regarding the availability and ease of using the printer respondents gave a mixed response and
were satisfied with it.
Respondents gave very little importance to the anti paper jamming mechanism while buying a
printer. They were satisfied with it.
The USP of Canon printers are i.e. Technology used, Onsite warranty. On the technological front
respondents are satisfied but on the warranty front respondents are dissatisfied with the services
of the company.
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Yes 49
No 129
Interpretation:
Among all the respondents 28% of them had some functional problem with their printer. Most of
the respondents were using a printer more than 6 months. So this shows that the problems do
occur with the printer after using it for a period of time.
Interpretation:
69% of the respondents have informed to the service center about their problem. Still this figure
is small because respondents have tried to sort out their problem through other sources available
in the market.
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12. Respondents who got Onsite warranty.
Yes 26
No 10
TOTAL 36
Interpretation:
28% of the respondents did not get the onsite service. This is a sizable portion of the
respondents. This is one of the major issues which needs to be worked out and improved upon.
And is also one of the major region of dissatisfaction. Also it shows that Canon is not able to
meet its Onsite Warranty service.
35
Yes 41
No 8
TOTAL 49
Interpretation:
Here I have considered all the 49 respondents who had some functional problem with the printer.
Above graph shows that customers got a solution to their problem irrespective of their source of
repairing.
The problem faced by the respondents who did not get a solution was of ink clogging. When the
printer is unused for a period of time, the ink dries up. This creates a blockade and ink is not
fired through the nozzles.
Yes 3
No 46
TOTAL 49
Interpretation:
Here also I have considered all the 49 respondents who had some functional problem with the
printer.
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3 respondents reported that the problem resurfaced after some time. So we can say that the break
down period is less.
15. Respondents who said other problem /s occurred after the service.
Yes 3
No 46
TOTAL 49
Interpretation:
The response given indicates that, after the service other problems occurred. A new problem
takes place. These problems should not occur. This shows that the after sales service is not up to
the mark. And there is a need to improve upon it.
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16. Satisfaction level of After sales services.
Highly 2
dissatisfied
dissatisfied 10
Neutral 9
Satisfied 14
Delighted 1
TOTAL 36
Interpretation:
Graph clearly shows that the respondents who had a problem and approached service center for
it, are dissatisfied with the service received. 14 were satisfied and only one was delighted. But
the neutral, dissatisfied and highly dissatisfied part is a major one, so it is an area of concern for
Canon.
Canon provides two years of onsite service for inkjet printers, and one year for the laser printers.
Also it is an USP of Canon, but on the same front it is not able to meet the expectations of the
customers. So this is one of the major area of concern.
17. Repeat Purchase of Canon printers.
Yes 102
No 76
TOTAL 178
Interpretation:
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57% respondents said they will buy the printer again ,but remaining were not willing to buy the
same. It may be because of after sales received were not upto their expectation, and the high
consumable costs.
Yes 105
No 73
TOTAL 178
Interpretation:
41% have responded that they will not tell others to buy the same printer. This shows that those
who are using the Canon printers are not confident enough to tell others to buy. This is because
of the high cost of consumables. Maintenance cost tends to go a higher scale for Canon printers.
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CHAPTER NO. 5
40
➢ Customer who are using Canon printers are totally satisfied with the ‘Quality’ of the
product. On product front Canon printers are excellent, and many respondents have rated it better
than other competitors.
➢ While buying a printer customers prefer price as well as quality. Maintenance cost is also
having importance, because it includes the consumables like toner, cartridge which are
consumed more and needs to be purchased more often. Printer is a one time investment and the
consumables are used more often so customer do give importance to it.
➢ Customers buy Canon printers because of its quality, after sales services, technology so
the customers have preferred the same aspects where Canon have its strength.
➢ Considering the Technological aspect, Canon printers have Tier-I technology, they have
the edge of technology over other competitors. They are the technology innovators. But this fact
of superior technology is not communicated to the customer who are using the printer.
➢ Respondents have a good image of the company, as company is well known and have
their dominance in the Xerox industry. They are the market leaders and technology innovators.
So Canon have a good image in the market.
➢ Customers were not satisfied with the running cost or the consumable cost of the product.
They had to spend more on the cartridge and the toners. This was because the prices of Epson
and HP Consumables are less as compared to the Canon consumables. But the Ink contents of all
the cartridge is different. Canon have more ml capacity per cartridge, than the other cartridges in
the market. So the initial cost goes around three times the other cartridges.
➢ The dissatisfaction is with the after sales services of the company. 1-2 years onsite
warranty is the USP of Canon printers. But customers have to call more often to get it done. So
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many a times customers themselves have to take the printers to the service center rendering the
onsite warranty futile.
➢ If any breakdown occurs then the components are not easily available in the market.
Customers have to wait till the company delivers them the component or the spare part.
5.2 Suggestions:
• Problem: Lack of customer awareness.
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Customers should be made aware about the technological aspects of Canon printers.
For that purpose the sales person, distributor, dealers needs to be educated on the product front
and should be made aware of each and every aspects which needs to be communicated to the
customers. There is a need to arrange more campaigns like “Print City” to educate the
distributors and dealers about the technicality and make them thorough with the product.
Also the fact regarding the consumables i.e. ink cartridge and toners should be communicated.
They should be made aware about the Canon ink capacity, which is nearly three times the ink
capacity of HP or Epson printers.
Consumables have more running cost. Consumables includes ink cartridges, toner, their
repurchase cost. There is a need to make customer aware and convince them to buy original ink
cartridges and toners. They should be made aware about the advantages of using original ink.
But at the same time Canon should focus on making the consumables available easily. They
should open more number of original ink centers and at an affordable price lower than the
existing one.
The services provided by the service center does not meet the expectations of the
customers. So to improve it company should make their product partners “United Peripherals”
and consumable partners “Lynsis computers” to supervise the working of service center.
Company should give the ownership of service center to some sources and supervise the
proceedings.
The products were pitched as a utility for school children in their Papers, Presentations &
Reports. The articles from Newspapers, Reference books & other published material can
be scanned and saved permanently for future reference and any time printed or copied to
include when and where required. The Printers were also promoted not only as document
or text printer but also as one capable of printing lab quality photos captured from
digcams and mobile phones.
For the purpose of school campaign I visited 15 schools. Of these 15 I got the permission
in 5 schools and carried out the promotion by giving the students a small presentation in
their respective class rooms. I had selected class 8th,9th,10th students only. Because they
are better in understanding and communicating the information to their parents.
The information was distributed to the students in the form of the brochures and
pamphlets. Each and every information about the offer and terms and conditions were
mentioned clearly.
Schools visited –
1. City International School
4. Bishop School
5. St. Annes School, Camp
The students who were interested contacted directly to the Canon product partner United
Peripherals. And thus the leads were generated through the campaign. And also the brand
awareness was successfully carried on.
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CHAPTER NO. 6
Conclusion:
46
The print city campaign which is launched by Canon India in Pune has set a target of
51% for this year compared to current 36% share. Under this campaign business expansion is
required. So there is a need to tap new market and new potential customers. But at the same
time, there is a need to hold onto the current customer. The study was aimed at conducting the
survey for finding out the satisfaction of the Canon Printer users in Pune city.
During the course of the project it was found that Canon as a brand in Xerox industry is
well established. But the same image is not replicated in the printer section.
Canon has most number of patents, technological excellence, onsite service. In spite of
all these facts they are behind the market leader HP. One of the major factor responsible for it is
their running cost. The consumables i.e. the ink cartridges and toner, have more cost compared
to the HP or any other companies consumables. Customers are not aware about the Canon ink
capacity, which is nearly three times the ink capacity of HP or Epson printers. This is the reason
why Canon ink cartridges are expensive compared to others. So more number of customer are
either neutral or dissatisfied or highly dissatisfied with the maintenance cost. Highly dissatisfied
customers are fond only in this category.
Most of the customers refill their cartridges and toner using ‘C’ grade products which are
China made. The ink droplet size of these inks is 3-5 pico litre. Canon have Nozzle size from 1-2
pico litre. So it cannot give the desired performance as that of the original ink. So many were
dissatisfied because of this.
If we consider the USP which is the Onsite Warranty upto two years here also Canon
scores negative. Customers do not receive on site warranty, and if they do they are not happy
with it. Customers have to repeatedly call to the service center to register their complaints. The
word of mouth is also responsible for it. Canon has given very bad after sales service in the past.
So, long time printer users are still under the same impression which they had experienced
before. And it has spread from peer to peer and has mounted to give a bad image to the
company. Thus I have concluded that after sales services are not meeting customer
requirements and should be improved.
The study of customer satisfaction gave areas where the company lacked and was not
upto the expectations of the customers. This surely would help the company to identify the
pitfalls and to improve in the future.
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The purpose of the research was to determine the customer satisfaction of the Canon
printer users .The purpose of conducting the survey was to self identify the loopholes. This
purpose was served with the study. The findings gave an insight into the areas which needs to be
concentrated upon and overcome in the future.
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Books and Journals referred:
1. Marketing Management by Philip Kotler.
Websites referred:
1. www.canon.in
2. www.google.com
3. www.scribd.com
4. www.customerpro.com
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50
\
51
Questionnaire
We are doing a brief survey to find out the “Satisfaction level of the customers
for Canon printers in pune city”. We would be grateful if you could spare a few minutes
to participate in it.This project is done by a management trainee and all the information would be
strictly confidential.
NAME:
AGE: GENDER:
ADDRESS:
CONTACT NO:
a. Yes b. No
2. How long you are using the printer?
a.0-6 months b.6-12 months c.1-2 year d. more than 2 years
3. Do you use multiple Printers ?
a. YES b.NO
4. If YES Which other printer you are using?
a. Canon b. HP c. Samsung d. Brother e. Epson
f. Any other_________________
5. How do you find Canon printer against your other printer?
1 2 3 4
Inferior Equivalent Good Better
6. How many prints do you take daily?
a. Less than 10 b.10-20 c.20-50 d.50-100 e. More than 100
7. Rate your Importance OR priority (From 1To 5), while selecting a printer.
(Least Important -1, Not So Important -2, Neutral-3, Important -4, Most Important-5)
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Priority
PRICE
QUALITY
MAINTENANCE
COST
TECHNOLOGY
USED
AVAILABILITY
AFTER SALES
SERVICES
COMPANY NAME
PRINTING SPEED
10. Did you have any problem with your printer in recent past?
a. YES b. NO
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11. IF YES,
I)Did you inform to the service centre about it?
a.YES b.NO
II) Did you get Onsite service?
a.YES b.NO
III) Did you get the solution to your problem?
a.YES b.NO
IV) Problem was repeated after the service?
.a.YES b.NO
V) After the service any other problem occurred?
.a.YES b.NO
12. Rate the satisfaction level of After sales services received, on a scale of 1 to 5.
1 2 3 4 5
(Highly dissatisfied) (dissatisfied) (neutral) (satisfied) (Delighted)
a.YES b. NO
14. Will you tell others to buy the same?
a.YES b.NO