CONTENTS:SONY MARKETING MIX 4 P’S

Executive Summary…………………………………………........

Introduction ………………………………………………………

Sony Corporation In Brief ……………………………................

Sony Products …………………………………………….............

Sony Promotion……………………………………………………

Sony Place (Distribution) …………………………………..........

Sony Price…….. …………………………………………….........

Suggestion On The Current Marketing Mix ……………………

SONY SWOT ANALYSIS

Strength…………………………………………………….

Weakness…………………………………………………..

Opportunities………………………………………………

Threats………………………………………………………

Executive Summary

In brief, this assignment is concerned about marketing management. It Covers in details about the concept of marketing mix with the aid of Sony Organization which I have taken as a case study in exploring the way this Organization has applied the marketing mix.

In this assignment the following points are going to be discussed:

1. Sample List of Marketing Mix being used by the organization. 2. Find out if the marketing mix used by organization is satisfactory. 3. My suggestion to the organization concerning the marketing mix. Introduction:

Marketing Mix is a major concept in modern marketing and involves practically everything that a marketing company can use to influence consumer perception favorably towards its product or services so that consumer and organizational objectives are attained, i.e. Marketing mix is a model of crafting and implementing marketing strategy.

In this assignment, I will discuss the major marketing mix variables as classified by Prof. E. Jerome McCarthy which are:

i. Product ii. Price iii. Place (Distribution) iv. Promotion. Throughout the assignment I will prefer to use my reference to Sony

Corporation. I will refer to this company how it has diversify its market products, the price range, places for distribution and the promotional strategies they have used to promote their products.

I will also try to find out if the current marketing mixes used by the Sony corporation are satisfactory or not.

Also I will give suggestion to the Sony Corporation regarding the marketing mix.

SONY Corporation In Brief Sony Corporation is a multinational conglomerate corporation Headquartered in Tokyo, Japan, and one of the world's largest media

Conglomerate with revenue of US$88.7 billion (as of 2008) based in Minato, Tokyo. Sony is one of the leading manufacturers of electronics, video, communications, video game consoles and information technology products for the consumer and professional markets. Its name is derived from Sonus, the Greek goddess of sound.

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments—electronics, games, entertainment (motion pictures and music), financial services and other. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony BMG Music Entertainment, Sony Ericsson and Sony Financial Holdings. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. The company's slogan is Sony. Like no other.

SONY Products

The first market mix element is Product. A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want.

Product decision normally base on brand name, Functionality, Styling, Quality, Safety, Packaging, Repairs and Support, Warranty, accessories and Services. These product attributes can be manipulated depending on what the target market wants. Also, customers always look for new and improved things, which is why marketers should improve existing products, develop new ones, and discontinue old ones that are no longer needed or wanted by the customer.

Sony has a variety of products ranging from electronic devices, games and entertainment. So, briefly Sony products can be categorized in the following major product categories:

I. Television and Projectors. ii. Home video. Iii. Home Audio. Iv. Home Theatre system. v. Digital Photography. vi. Hand cam video camera. Vii. Computer Peripheral. Viii. Portable Audio. ix. Game. x. In-Car entertainment. xi. Mobile phones.

xii. Storage and Recording media. xiii. Batteries and Charger. xiv. Other Accessories.

A. Television and Projectors In the category of television and projector, Sony has further subdivided its products in different models, style and performance. In this category we have several other sub categories and designs which are:

I. Bravia LCD TV. ii. CRT TV. iii. Home theatre projector Iv. Business Projector. v. Public Display Panel. As it can be seen above, Sony has tried to cover many areas where the need of displaying devices are of great need. For example here we can see that Sony has tried to fulfill the demand of displaying devices from the home television sets, Office projectors and Public display panels to cover different needs and the size of the people in need of those displaying devices.

B. Home Video In this category, Sony has tried to bring in new format so as to dominate the market, for example the emerging data storage format called Blue- ray has been launched along with the devices which can be used to run such a latest storage technology. In these category, Sony has included home video systems and accessories which can enable the user to record various favorite TV programs.

These products include:

i. Blue-ray disc player. ii. DVD player. iii. DVD portable player.

C. Home Audio Depending on the customer needs, usage and budgets, Sony has provided several home products ranging from small packages to big audio systems. They boast on their Hi-Fi which deliver rich music, made richer with preset equalizer settings. Among other features which Sony boast to offer are like, multiple disc changers which for putting many discs at a go. Also, Some even house additional features such as the ability to handle multiple formats, track programming and repeat and random play.

The home audio products categorized by Sony are:

i. Hi-Fi Systems. ii. Home audio accessories. E.g. Digital media port.

D. Home Theatre System Sony has tried to combine the latest video and audio technologies. Sony has developed a series of Home Theatre Systems that provides customers with an enhanced home theatre experience, eg. Surround sound environment and dedicated audio input for connecting portable digital music players.

In this category, Sony has categorized the products as:

i. DVD Home Theatre System ii. Home Theatre Component System iii. Home Theatre System Accessories E. Digital Photography In terms of digital photography, Sony has produced a variety of imaging devices depending on the users and their professions. For example for a casual user or girls there are slim camera which can be easy to carry or put on the purse. For real photograph enthusiast and professionals there are more sophisticated cameras with advanced features like digital SLR camera. And also they have produced photo printers and frames.

The sub-categories in digital photography which Sony offers include:

i. Digital SLR ii. Cybershot Digital Camera iii. Digital Photo Printer iv. Digital Photo Frame.

F. Handy Cam Video Camera Sony has produced a variety of video camera for home and office use. A variety of these handy cam video camera are easy to use as from producing family video, documentary filming and developing feature films.

The subcategories of these hand cam video camera produced by Sony are as follows:

i. Handycam high definition video Camera ii. Handycam Standard Definition Video Camera iii. Handycam Accessories iv. Digital Photo Printer v. Digital Photo Frame G. Computer and Peripherals Combining form, function and the latest in technology, Sony provides a range of IT and computing devices. In case of the computer devices Sony has produced a variety of laptops with different price ranges and performance to meet the demands of the users like home users, students and businessmen.

The sub-categories of these are:

i. VAIO laptops and computers ii. VAIO accessories iii. Business Projectors iv. Memory Stick H. Portable Audio Sony has produced a lot of various varieties of portable audio whose main target are the youth of the new generation.

The sub-categories of these portable audio produced by Sony are:

i. Walkman mp3 series ii. CD Walkman series iii. CD/Radio/Cassette player iv. Radio v. Voice recorder vi. Audio Accessories

I. Games Sony offers games of all genres to match customers gaming preference. Also, Sony has produced Powerful consoles which are accompanied with compelling games.

These games produced by Sony includes:

i. Playstation 3 ii. Playstation 2 iii. PSP (Playstation Portable) J. Mobile Phones With Sony Ericsson, Sony has produced a variety of mobile phones for different people, lifestyle, usage, budget and profession. Also a series of mobile phone accessories have been produced by Sony so that customer can spruce up their mobile phone’s appearance, prevent them from damage, or enhance their usage.

Among the subcategories are:

i. Phones ii. Phone Accessories. K. In-Car Entertainment Different in-car entertainment products have been produced by Sony. Apart from the normal car radio and CD changer devices, Sony has produced more entertaining devices to view different media like video and television. Among the products subcategorized in this category are as follows:

i. Xplod CD receiver

ii. Xplod in car visual iii. Xplod Cassette receiver iv. Xplod Amplifier v. Xplod Speaker/Subwoofer

L. Storage and Recording Media Sony has developed a range of reliable storage and recording media that customers can depend on for recording, transferring or storing their information. These products ranges from those devices which can be used to store small amount of data for transfer and those media to store a large amount of data permanently.

The sub- categories of these products include:

i. Memory Stick ii. USB storage media iii. Data storage media iv. Video Storage media v. Audio media vi. Storage media vii. Professional media M. Battery and Charger Sony has a range of batteries that are long-lasting and offer maximum power for optimum performance, making sure that the customer will never be left hanging during the most crucial time.

SONY Promotion Brief Introduction:

Promotion is a key element of marketing program and is concerned with effectively and efficiently communicating the decisions of marketing strategy, to favorably influence target customers’ perceptions to facilitate exchange between the marketer and the customer that may satisfy the objective of both customer and the company.

A company’s promotional efforts are the only controllable means to create awareness among publics about itself, the products and services it offers , their features and influence their attitudes favorably.

Sony Marketing Communication Mix:

Sony India will spend Rs 200 crore in this financial year on advertising and promotion (Promotional Budget) of the entire range of consumer electronics, out of which Rs 60 crore will be spent only on digital imaging products.

The major elements of promotion mix include advertising, personal selling,

sales promotion, direct marketing, and publicity. Sony Corporation has used all of these marketing communication mix elements.

Advertising

Advertising is any paid form of non-personal mass communication through various media to present and promote product, services and ideas etc. by an identified sponsor.

So far, SONY has advertised its products through many different ways and media. Through TV we have seen different advertisements of its products such as Bravia televisions or Sony wega TV. Sony also advertise its products by targeting those favorable television programs, like sports, series and also it has its own channel called Sony TV channel. Sony uses some events like Miss India 2008 to promote its products.

Also, Sony has advertised its games like Playstation 3, Playstation 2 and PSP using sports like football in England premiere league.

Through newspapers like Times of India, Sony has advertised a wide range of products it offers to its customers. And also through Posters a message has been sent to a lot of people to be aware of the products which Sony offers.

Sony also uses direct – response advertising. This is type of advertising that encourages the consumer to respond either by providing feedback to the advertiser or placing the order with the advertiser either by telephone, mail or the internet. Such advertising is done through direct mail or catalogues.

Sony incorporates co-operative advertising in its advertising process. Sony corporation provides the dealers (e.g. Sony World) with the materials and guidelines to develop ads for print, television or radio commercials. This ensures that message is in line with, what the manufacture wants to communicate. The company and the dealers usually share the media costs and hence, the name ‘co-operative advertising’.

Sales Promotion

Sales promotion is a marketing discipline that utilizes a variety of incentives techniques to structure sales – related programs targeted to customers, trade, and/or sales levels that generate a specific, measurable action or response for a product or service.

Sales promotions for example includes free samples, discount, rebates, coupons, contents and sweepstakes, premiums, scratch cards, exchange offers, early bird prizes, etc.

Sony has promoted its products through different sales promotional strategies. For example after the release of the Sony BRAVIA television sets, Sony promoted them by earl bird prizes by saying that all BRAVIA full HD LCD TVs purchased during July 2008 and registered within two weeks of purchase qualify for a Bonus Playstation 3 as long as the customer claims is one of the first 35,000 received and validated by Sony.

Also Sony has promoted its Sony Ericsson P1i phones by including a scratch cards which gives the customer the offer to download 10 free software application for that mobile phone.

Sony Ericsson has also promoted its Sony Ericsson K550i Mid-Range Cyber-shot Phone that if you buy it you get a free Bluetooth headset with one year manufacturer’s warranty.

Public Relations and Publicity

Public relations is a broad set of communication activities employed to create and maintain favourable relationship with employees, shareholders,suppliers, media, educators, potential investors, financial institutions, government agencies and officials and society in general.

Through its website, Sony corporation has its provided contacts for those customers who will be in need of any information from the company. In this way Sony can create a mutual relationship with its customers and ensure that it serves the wishes and demands of its customers.

Unpleasant situations arising as a result of negative events may precipitate unfavorable public reactions for an organization. To minimize the negative effect of such situations leading to unfavorable coverage, the company has policies and procedures in place to manage help any such public relation problems.

For example, Sony released an ad depicting a man smiling towards the camera and wearing on his head a crown of thorns with button symbols (., O, X,

.). At the bottom, the copy read as "Ten Years of Passion". This supposedly took advantage of the publicity from the Mel Gibson film The Passion of the Christ. The advertisement outraged the Vatican as well as many local Catholics, prompting comments such as "Sony went too far" and "Vatican ex-communicates Sony". After the incident, the campaign was quickly discontinued. Another example is that, In July 2006, Sony released a Dutch advertising campaign featuring a white model dressed entirely in white and a black model garbed in black. The first ad featured the white model clutching the face of the black model. The words "White is coming" headlined one of the ads. The ad has been viewed as racist by critics. A Sony spokesperson responded that the ad does not have a racist message, saying that it was only trying to depict the

contrast between the black PSP model and the new ceramic white PSP. Other pictures of the ad campaign include the black model overpowering the white model.

So it’s the duty of the public relation department of Sony to solve such issues as mentioned above so as to ensure that it maintains a good public relation with the public.

SONY Place (Distribution)

Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. Depending on the nature of the product, marketing management decides to put into place an exclusive, selective or intensive network of distribution, while selecting the appropriate dealers or wholesalers.

Sony being the company which positions itself as a seller of durable and high-end products, it is practicing selective distribution of its products from the selective dealers i.e. SONY World. Apart from this there are grey-markets in India and other countries where a practice of intensive market coverage is practiced, and the products in these kind of markets normally do not posses all the features and benefits which Sony offers e.g. warranty and guarantee.

Sony distributes its products in various channels. It uses Zero-level channel, one level channel and two-level channel.

In India, Sony has used the method of one-level distribution channel. This means that, customer buy their Sony product from the retailers recognized by Sony, and these retailers buy the products directly from the company itself.

MANUFACTURERRETAILER

CUSTOMER

Through the internet, Sony has helped its customers to find the nearest retail shop where they can buy the Sony products. All you have to do is to go to their website e.g. www.sony.co.in/section/shop and specify the product and location. Then it will display all the nearest retail shop available.

SONY Price

Pricing decisions are almost always made in consultation with marketing management. Price is the only marketing mix variable that can be altered quickly. Price variables such as dealer price, retail price, discounts, allowances, credit terms etc. influence the development of marketing strategy, as price is a major factor that influences the assessment of value obtained by customers.

Customers directly relate price to quality, particularly in case of products that are ego intensive of technology based. Sony being a company which emphasize product quality, it tends to sell its products with price range from moderately-high to high-prices, depending on the use and the targeted customers.

For example, Lets consider Sony series of VAIO laptops. Sony has tried to categorize the laptops according to style, user, purpose, mobility and performance, and each a corresponding price.

The laptops sold by Sony in India include a series of Sony VAIO, this are VAIO SR, VAIO FW, VAIO tokage, VAIO CR, VAIO NR, VAIO TZ and VAIO SZ.

VAIO SR, boast on the excellence in mobility and perfection in performance. This laptop was designed for businessmen and its price is around Rs. 75,000/

VAIO FW, boast of theatrical experience and world class performance. This model was designed mainly for home user or casual user of laptops who aims on media playback. The price of it is around Rs. 80,000 and Rs.1,25,000.

VAIO CR, boast on style and texture. Depending on the configuration, the prices are from Rs. 40,000 to Rs. 65,000..

VAIO NR, boast of natural, chic design. It was designed to meet customers ambiance and lifestyle. For this reason the Sony corporation has decided the price of the laptop to be Rs. 40,000 and Rs. 50,000 depending on the configuration.

VAIO TZ, boast of elite lifestyle, and high class performance. The laptop was designed purposely for business as it is light weight, high processing speed, and flash memory storage and longer backup power. For all this facts Sony has priced it to be between Rs. 1,15,000 and Rs. 1,40,000.

VAIO SZ, boast of premier mobility and executive excellence. This laptop was developed by Sony to target executives and business people who are mobile. The laptop is fitted with hybrid hard disk drive and motion eye camera and Bluetooth compatible headset with applications for increasing mobility and

video conferencing. It’s price is about Rs. 1,24,000.

Suggestion On The Current Marketing Mix

In my opinion, I think the current marketing mix which Sony Corporation has is satisfactory to customer needs. As it can be Cleary seen that Sony as a company has expanded its products and services from electronic and digital devices to television broadcasting(i.e. Sony home entertainment) and entertainments like music (i.e. Sony BMG music entertainment) and movie production and distribution (i.e. Sony Picture).

In providing a wide range of products and services with high quality, Sony has by far influenced most of the its customers perception favorably towards its products. From time the company was created till now, the quality of the products that Sony offers is improving each year, although there are some occurrence of defects like that of defect on laptop batteries which were sold and got exploded and caught fire in Japan has caused the company a great loss as it had to recall a million of those defected batters, and also this issue degraded the company’s reputation. But the overall products offered by Sony to my opinion will still be of best quality.

Even though the prices imposed by Sony seems to be fair with consideration of the quality of the products and services offered , The only problem is that, Sony has priced its products too expensively for a middle or lower class customer to afford to buy those products. Apart from that Sony has targeted its market mainly to urban customers as are the only customers who can afford such expensive products. In my opinion, I think Sony has to create also some of low end products with low prices which can be affordable to low income users.

As I have mentioned above, In the case of place (distribution), Sony has targeted its markets in the urban areas, in big cities like New Delhi, Pune, Mumbai etc. In most of all this places, Sony has more than four different distributors like Sony world and also they have Sony service centers. So, For the customers in urban areas the supply seem to be satisfactory, though the rural areas are left out.

SONY SWOT ANALYSIS

Strength

One of Sony’s greatest strengths is their ability to produce innovative, quality products. Sony’s web page states “Sony innovations have become part of mainstream culture, including: the first magnetic tape and tape recorder in 1950; the transistor radio in 1955; the world’s first all-transistor TV set in 1960; the world’s first color video cassette recorder in 1971; the Walkman personal stereo in 1979; the Compact Disc (CD) in 1982; the first 8mm camcorder in 1985; the Minidisk (MD) player in 1992; the PlayStation game system in 1995; Digital Mavica camera in 1997; Digital Versatile Disc (DVD) player in 1998; and the Network Walkman digital music player in 1999” (Sony.com/en/corporate).

PC World published The 20 Most Innovative Products for the Year 2006. Sony’s Reader was listed as number six and Sony’s PlayStation was listed as number sixteen. Sony Corporation has managed to be competitive and stay a powerful organization by learning from past failures. Sony states the following: “Sony has learnt much from previous unsuccessful products. The Sony MSX home computer, for example, did not attain a satisfactory level of success. But it did teach Sony development engineers valuable know-how that would be applied in later years. In effect, these engineers became living resources, representing latent power within Sony that did not exist in other AV companies” (Sony.net).

Another strength of Sony is their ability to be successful in several different markets. They have made an impact in the video game market, the PC market, and especially the television market and there are still numerous others.

Weakness

Sony’s biggest and most recent weakness is their lack of innovation with PS3. Sony focused on digital technology when building the PS3 and it has the ability to export video in high-definition. But this technology can only be viewed on a high definition TV so a lot of people will not even be able to see the full potential it has to offer. Another downfall to the PS3 is the price, which Sony has recently lowered by $100. Yet the weakness of the PS3 is even deeper when considering the range of video game selections. The majority of games available are all first-person shooter games, which appeal to a particular market. There are few games that appeal to a different section of video gamers. Sony executives made it clear that they know they need to do more than lower prices to woo consumers back to its flagging video game brand.

Opportunities

Sony seeks a lot of opportunities that utilize their strengths of innovation. At Sony Ericsson, design is about more than just a good looking product: it is integrated into every step of the process – intelligent features, user-friendly applications, innovative materials and, of course, attractive visual appearance. Design is the essential differentiator when comparing mobile communications products.

Sony's Reader, a device the consumer-electronics giant hopes is an early draft of how the world will read books in the future, is another innovation that Sony is using as an opportunity to enter a new market. The downloaded books generally cost 20 to 30 percent less than their dead-tree counterparts, which is also setting a standard on what is expected in regards to new products that encourage environmentally friendly devices.

One of the other CSL projects most likely to succeed was a nifty little piece of graphics software for cell phones by Ivan Poupyrev. It might not sound like much, but the ability to draw realistic icons and avatars directly on a standard (non-touch screen) phone is sure to add appeal to users of mobile social-networking sites.

Although there was far too much on display today to cover in depth here, there was a clear emphasis on what many predict will be the boom technology of the next few years – social networking in all its forms.

Threats

a common threat facing any company in sales is competition. Sony’s Vaio is its newest innovation in notebook computers. The various models range in price from $845 - $2300. However, Dell has a great reputation when it comes to laptops similar to the Vaio and has a broader range of notebooks to choose from, not to mention that Dell has also been a top seller when it comes to desktop computers. Additionally, the cost of a Dell notebook computer seems to have a lower price tag than many of Sony’s Vaio models.Sony’s top competitors in the gaming industry are Nintendo and Microsoft. The PlayStation 3 sales have fallen behind recently. In 2007, 82,000 PS3s have sold and 360,000 Nintendo Wiis.

In the LCD television market, Sony excels but still faces some strong competition, including Samsung, Sharp, Panasonic and more. Many of these same brands appear in the DVD player market that Sony has to compete with.

Competition isn't the only threat Sony is facing. Sony most recently had to make a public apology concerning the use of a backdrop in a violent video game, "Resistance: Fall of Man." Sony used the Manchester Cathedral in northwest England in this video game, which features a bloody gun battle scene between American soldiers and aliens. Sony made a formal, public apology on July 6, 2007. However, when asked to withdraw the game or make donations to community groups, they have refused.

Sony's History

Sony was founded as Tokyo Tsushin Kogyo in 1946, which manufactured telecommunications equipment. The company created a paper-based magnetic recording tape in 1950, brand named Sony, and the company became Sony Corporation in 1958.

Sony focused on magnetic recording tape and transistor radios, tape recorders, and TVs. In 1975, Sony launched its one-half inch Betamax VCR for consumers, followed by a portable CD player, called the Discman, in 1984.

The first digital camera from Sony appeared in 1988, the Mavica. It worked with a TV screen display. Sony did not create another digital camera until 1996's release of the company's first Cyber-shot model. In 1998, Sony introduced its first digital camera that made use of the Memory Stick external memory card. Most previous digital cameras had used internal memory.

Sony's global headquarters are in Tokyo, Japan. Sony Corporation of America, which was established in 1960, is loaded in New York City.

Today's Sony Offerings

Sony customers will find Cyber-Shot digital cameras aimed at beginner, intermediate, and advanced users.

SLR. Advanced SLR (single-lens reflex) digital cameras from Sony will work best for intermediate photographers and advanced beginners, with interchangeable lenses available. Prices range from about $500-$3,000 for the Sony digital SLR models.

Consumer. Sony offers its Cyber-shot point-and-shoot models with a variety of camera body types and feature sets. Ultra-thin models range in price from about $300-$400. Some larger models offer high resolutions and large zoom lenses, and these more advanced models range in price from $250-$500. Others are basic, low-end models, ranging in price from about $125-$250. Many Cyber-shot models are colorful, giving consumers many options.

Related products. On the Sony Web site, you can purchase a variety of accessories for Cyber-Shot digital cameras, including batteries, AC adapters, battery chargers, camera cases, interchangeable lenses, external flashes, cabling, memory cards, tripods, and remote controls, among other items.

Market research firm IDC released its findings about the worldwide digital camera market recently, with interesting details about the current market shares of camera manufacturers. From 2009 to 2010, Canon’s share remained perfectly constant at 19%, while #2 players Sony increased its share from 16.9% to 17.9%. Nikon also grew from 11.1% to 12.6%. The worldwide market for digital cameras is also growing — last year it increased 10% to 141 million cameras sold.

Sony Corp. (6758) and Nikon Corp. (7731) narrowed the gap to Canon Inc. (7751), the world’s largest camera maker, last year after introducing a new lineup of models.

Sony, the world’s second-biggest camera maker, controlled 17.9 percent of the market, improving from 16.9 percent a year earlier, researcher IDC said in an e-mailed statement to Bloomberg News yesterday. Nikon had 12.6 percent compared with Canon’s 19 percent, which remained unchanged from a year ago.

Enlarge image

An employee of Sony Corp., holds the Sony NEX-5D mirror-less camera at a Sony showroom in Tokyo. Photographer: Kimimasa Mayama/Bloomberg

Worldwide camera sales jumped 10 percent to 141 million units last year, helped by the introduction of new models and economic growth in markets such as China. To win new customers, Sony and Samsung Electronics Co. are among companies unveiling devices that eliminated the need for a mirror in professional- grade cameras, where Canon has the lead.

“Sony’s and Samsung’s launching new mirror-less digital cameras helped them obtain more market share,” said Masahiko Ishino, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co.

Samsung had 11.1 percent of the market last year, improving from 10.9 percent. Kodak Co., Fujifilm Holdings Corp. and Casio Computer Co. were among manufacturers who lost market share last year, according to the data.

In the market for cameras with interchangeable lens, or single lens reflex cameras, Canon controlled 44.5 percent of the market, followed by Nikon with 29.8 percent and Sony with 11.9 percent, according to the data.

Following is the table for worldwide digital still camera shipments by vendors from IDC Japan in an e-mail release yesterday.

Worldwide Digital Camera Market Shares by Vendor====================================================Vendor 2010 2009----------------------------------------------------Canon 19 19Sony 17.9 16.9Nikon 12.6 11.1Samsung 11.1 10.9Kodak 7.4 8.8Panasonic 7.6 7.6Olympus 6.1 6.2Fuji 4.9 5.4Casio 4 4.7PENTAX 1.5 1.7Vivitar 1.2 0.7Other 6.7 7-----------------------------------------------------

To contact the reporters on this story: Kazuyo Sawa in Tokyo at ksawa3@bloomberg.net; Mariko Yasu in Tokyo at myasu@bloomberg.net

History of Digital cameras

Digital camera technology is directly related to and evolved from the same technology that recorded television images. In 1951, the first video tape recorder (VTR) captured live images from television cameras by converting the information into electrical impulses (digital) and saving the information onto magnetic tape. Bing Crosby laboratories (the research team funded by Crosby and headed by engineer John Mullin) created the first early VTR and by 1956, VTR technology was perfected (the VR1000 invented by Charles P. Ginsburg and the Ampex Corporation) and in common use by the television industry. Both television/video cameras and digital cameras use a CCD (Charged Coupled Device) to sense light color and intensity.

During the 1960s, NASA converted from using analog to digital signals with their space probes to map the surface of the moon (sending digital images back to earth). Computer technology was also advancing at this time and NASA used computers to enhance the images that the space probes were sending.

Digital imaging also had another government use at the time that being spy satellites. Government use of digital technology helped advance the science of digital imaging, however, the private sector also made significant contributions. Texas Instruments patented a film-less electronic camera in 1972, the first to do so. In August, 1981, Sony released the Sony Mavica electronic still camera, the camera which was the first commercial electronic camera. Images were recorded onto a mini disc and then put into a video reader that was connected to a television monitor or color printer. However, the early Mavica cannot be considered a true digital camera even though it started the digital camera revolution. It was a video camera that took video freeze-frames.

Since the mid-1970s, Kodak has invented several solid-state image sensors that "converted light to digital pictures" for professional and home consumer use. In 1986, Kodak scientists invented the world's first megapixel sensor, capable of recording 1.4 million pixels that could produce a 5x7-inch digital photo-quality print. In 1987, Kodak released seven products for recording, storing, manipulating, transmitting and printing electronic still video images. In 1990, Kodak developed the Photo CD system and proposed "the first worldwide standard for defining color in the digital environment of computers and computer peripherals." In 1991, Kodak released the first professional digital camera system (DCS), aimed at photojournalists. It was a Nikon F-3 camera equipped by Kodak with a 1.3 megapixel sensor.

The first digital cameras for the consumer-level market that worked with a home computer via a serial cable were the Apple QuickTake 100 camera (February 17 , 1994), the Kodak DC40 camera (March 28, 1995), the Casio QV-11 (with LCD monitor, late 1995), and Sony's Cyber-Shot Digital Still Camera (1996).

However, Kodak entered into an aggressive co-marketing campaign to promote the DC40 and to help introduce the idea of digital photography to the public. Kinko's and Microsoft both collaborated with Kodak to create digital image-making software workstations and kiosks which allowed customers to produce Photo CD Discs and photographs, and add digital images to documents. IBM collaborated with Kodak in making an internet-based network image exchange. Hewlett-Packard was the first company to make color inkjet printers that complemented the new digital camera images.