TABLE OF CONTENT

EXECUTIVE SUMMARY 1COMPANY DESCRIPTION 3STRATEGIC FOCUS AND PLAN 3

MISSION/VISION & GOALS 3CORE COMPETENCY 4SUSTAINABLE COMPETITIVE ADVANTAGE 4ORGANIZATIONAL STRUCTURE 5

SITUATION ANALYSIS 5S.W.O.T. ANALYSIS 5INDUSTRY ANALYSIS 6COMPETITOR ANALYSIS 6CUSTOMER ANALYSIS 8

MARKET-PRODUCT FOCUS 9MARKETING AND PRODUCT OBJECTIVES 9TARGET MARKETS 10POINTS OF DIFFERENCE 12POSITIONING 12

MARKETING PROGRAM 12PRODUCT STRATEGY 12PRICE STRATEGY 15PROMOTION STRATEGY 18PLACE (DISTRIBUTION) STRATEGY 21

WORKS CITED 22APPENDIX 24

EXHIBIT 1 – EMAIL CORRESPONDENCE 26EXHIBIT 2 – NIKON CORPORATE STRUCTURE 28EXHIBIT 3 – NIKON S.W.O.T. 29EXHIBIT 4 – PENTAX S.W.O.T. 30EXHIBIT 5 – CANON S.W.O.T. 32EXHIBIT 6 – SONY S.W.O.T. 33EXHIBIT 7 – TARGET TABLE 1 34EXHIBIT 8 – US DEMOGRAPHY 35EXHIBIT 9 – MEDIA FLOW CHART 36EXHIBIT 10 – HOUSTON SYMPHONY RATES 37EXHIBIT 11 – DIGITAL PHOTO PRO COVER 38EXHIBIT 12 – DIGITAL PHOTO PRO RATES 39EXHIBIT 13 – PC PHOTO COVER 40EXHIBIT 14 – PC PHOTO RATES 41EXHIBIT 15 – OUTDOOR PHOTOGRAPHERWEB SITE AND E-NEWSLETTER RATES 42EXHIBIT 16 – DISTRIBUTION FLOW CHART 43EXHIBIT 17 – UPS SUPPLY CHAIN SOLUTIONS 44

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EXECUTIVE SUMMERY

The purpose of this marketing plan is to increase awareness of the new NikonD300S, with the goal to distribute and increase sales in the Houston, Texasarea within 2010. To reach this objective, G.R.C. Marketing Group proposesthe following strategy.

The marketing plan is divided into the following sections, and will be discussedin detail in each corresponding section.

• Company Overview - includes Mission, Vision and Goals,Core Competencies and Competitive Advantage.

• Situation Analysis – includes SWOT and PEST analysis.• Market-Product Focus – includes Industry, Competitor,

and Customer Analysis.• Marketing Program – includes product description, promotion, price

strategy, distribution methods and media buy strategies.

The Nikon Corporation is a well-established Japanese company founded in1917 and has its core competency in precision optic manufacturing. Otherproducts produced by the firm medical devices and optics, semi-conductor andwafer technology, survey and measuring equipment, photographic lens andcamera products. Nikon is a global company with subsidiaries across, Asia, theAmericas, Europe and Australia.

When it comes to photographic equipment, Nikon’s goals are to:

• Increase satisfaction and trust from their customers• Provide products and services that have superior levels of

quality and safety• Enhance and enrich the enjoyment of photographs• Minimize impacts on the environment from production of

products and services• Build products that conform to international safety standards.

“Safety Design Principle” (Nikon | Corporate Info)

The company’s sustainable competitive advantage and strengths encompassits roots in optical design expertise and corporate culture, long-term developmentof optical and camera technology, continuous collection of data and research,superior customer service with its techniques to discover customer needs andrapid customer response system.

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Competitors such as Pentax, Canon, and Sony have comparable products, butbecause of a robust pricing structure, coupled with Nikon’s established brand anddistribution channels, these firms do not pose any serious competitive advantage.

The new Nikon D300S has an outstanding list of features ranging from itselectronics and sensor systems to high-quality HD video capability; it alsoincludes a unique dual-slot memory card set up to separate pictures fromvideo capture. Its affordable and competitive price makes this camera a highlyattractive product for individuals who either want to seriously enter the worldof digital photography or are professionals who want to upgrade from theirpresent equipment.

Based on our customer analysis and research, we recommend the followingpromotional strategy and targeted media campaign, exclusively for Houston,Texas, in conjunction with the FotoFest event in April and May of 2010. Theoverall goal with this campaign is to raise sales by 2% for 2010 in the Houstonmarket.

To reach the market we crafted two major campaigns for print and onlinemedia. The first is a continuous campaign, starting in January and runninguntil December. The second is a shorter campaign starting in January continuinguntil the end of the FotoFest event in May.

Both campaigns are designed to utilize local print publications, online bannerads and search engine marketing tactics, with FotoFest being targeted on anational level to reach potential customers who plan to travel to Houston forthe event. The second campaign would be a Nikon sponsored campaign inconjunction with participating local retailers.

In addition to the print and online campaigns we propose several bundledand/or rebate offers to attract customers. These offers range from camera andselected lens bundles to upgrades of memory cards at purchase.

We recommend that Nikon continue its relationship with UPS as a cost effectivedistribution channel for the new D300S and that the firm count on this firm tomaintain positive relationship with Nikon’s established specialty retailers.

To achieve these goals, Nikon budgets $500,000 for all marketing initiatives.They include printed advertising in the Houston local publications, severalnationally distributed trade magazines, online banner campaigns on Google,Yahoo!, publication web site, and a direct mail campaign and targeted emailblasts to customers on local retailers’ mailing lists.

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COMPANY DESCRIPTION

Nikon began in 1917 when three of Japan’s leading optical equipmentmanufacturers merged to form Nippon Kogaku (Japan Optics), offering a fullrange of optical products. The company’s core competency was research andproduction of optical glass. Their product line included cameras, microscopes,binoculars, surveying and measuring instruments, and ophthalmic lenses. In1946, they named their first cameras Nikon. In 1952 they established theNikkor Club with its mission to promote a photography culture (Nikon-About-History). Nikon’s first single lens reflex camera (SLR), the Nikon F, was firstintroduced in 1959.

The Nikon Optical Co. was the first subsidiary to open in the United States in1953. In the following decades, their lines of products would expand drastically.Some of these products included: in the 1960s the all weather camera, in the1970s sunglasses, the 1980s introduced the first auto-focus compact cameraand color printers, and in the 1990s the first underwater SLR camera andelectrochromic sunglasses (they had the ability to change color depending onthe surroundings brightness). Subsidiaries would also open all over the worldin countries such as the Netherlands, Switzerland, the U.K., Germany, Canada,Hong Kong, France, Taiwan, Sweden, China, Thailand and Hungary.

In 2007, Nikon’s aspirations were defined: Meeting Needs, ExceedingExpectations (Media Information). Nikon’s innovative company continues todevelop and introduce new cutting-edge consumer-based products to theworld today.

STRATEGIC FOCUS AND PLAN

MISSION, VISION AND GOALS

“…Our determination and goal: Transforming imagination into creativity”(Nikon).

Nikon’s philosophy of “Trustworthiness and Creativity” defines the company’sfocus on meeting the needs and expectations of their consumers.

Nikon’s mission is based on the company’s responsibility to positively servetheir customers and the global environment. Nikon’s overarching goal is toachieve loyal customer satisfaction by producing efficient high quality products.Nikon takes its role as stewards of the environment seriously as evidenced bytheir very own “Safety Design Principle” (Nikon | Corporate Info).

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Nikon’s overall corporate goals can be summarized in the following:

• Increase satisfaction and trust from their customers• Provide products and services that have superior levels

of quality and safety• Enhance and enrich the enjoyment of photographs• Minimize impacts on the environment from production

of products and services• Build products that conform to international safety standards

as guided by “Safety Design Principle”

NIKON CORE COMPETENCY

The Nikon Corporation is a complex organization with a multitude ofsubsidiaries, products and service offerings. Hence, their core competenciesexist on many layers. However, there is one basic core competency that spansacross all products and services — Nikon glass — from which all precision opticallenses are crafted. From the raw silicon to the final coating, Nikon glassproduction is considered both a science and an art form (Media Information).

NIKON SUSTAINABLE COMPETITIVE ADVANTAGE

The Nikon Corporation’s competitive advantage can be broken into several keycomponents:

• Its roots in optical design expertise, corporate culture, and vastknowledge of and deep respect for all things photographic

• Long-term research and development of optical technology, cameradevelopment, processing technology forged by history and preservedtradition

• Continuous collection of data and responses, plus research anddevelopment at its Core Technology Center

• Customer service, customer satisfaction, and customer retention —all of which are vital to the success of the firm and at which thecompany excels

• Integrated solutions to discover customer needs and concerns, in order to address them as quickly as possible

• A rapid-response system that was implemented in 2006 that allowsNikon to respond to customer inquiries within 5 hours — a time 600%faster than prior to implementation of this customer service strategy(Nikon’s competitive edge) (See exhibit 1 – Email correspondence)

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NIKON ORGANIZATIONAL STRUCTURE

The Nikon Corporation is a global organization with a multitude of subsidiariesand product divisions across Asia, the Americas, Australia and Europe (Nikon,Fact Book). (See exhibit 2 – Corporate Structure)

SITUATION ANALYSIS

NIKON S.W.O.T. ANALYSIS

The Nikon Corporation’s primary strength lies in its roots in optical devicemanufacturing and optical lens development. Its network of subsidiariesenables Nikon to penetrate many markets to help maintain its position as theleader in photographic equipment manufacturing and in the field of semi-conductortechnology. The implementation of processes to enhance internal communicationand consumer relations aided Nikon in establishing a corporate culture thatfosters motivation and customer satisfaction. Also, the integration of anadvanced CRM (Customer Relationship Management) system helps Nikon toeffectively collect, evaluate and manage information to benefit business operations.

Potential weaknesses that could be improved upon are its pricing structure,exploring opportunities to produce high quality but less expensive products,and the firm’s need to raise awareness of areas of expertise other than thedevelopment of precision optics and cameras.

Areas of opportunity include the expansion and positioning of Nikon in thesemi-conductor technology manufacturing space; embrace Web 2.0 technologyand utilize the social media trends and the promotion of My Picturetown®, anonline photo sharing and distribution application.

Serious threats exist due to fierce competition by the alliance of ASML andZeiss Company. Less serious threats are in the area of camera equipmentproduction, as Nikon also faces continuous competition with the developmentof cheaper and comparable products, for example: Canon and Pentax digitalSRLs with video capability for the consumer market. Additionally, the recentless favorable economic climate contributes to lower consumer spending andawareness to price conscious end users. (See exhibit 3 – S.W.O.T. Chart)

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INDUSTRY ANALYSIS

PEST ANALYSIS

• Political factors include government regulations and legal issues. In thecase of Nikon Digital SLR cameras, the only restriction we couldencounter, are tax policies and trade restrictions and tariffs. Nikon isstaying ahead by implementing eco-friendly regulations in theircompanies before legislation requires.

• Economic factors that could affect a successful marketing initiative arethe current economic down turn, difficulty in qualifying for a loan,potentially high interest rates. In a depressed economy, consumers aremore cost conscious and may not want to invest in new cameras or accessories or replace older equipment until absolutely necessary. Atthe same time, potential expansion of the secondary market in today’ssociety demands for higher quality images and with Nikon’s expertise inthat area, the firm could experience increased marketability.

• There are no real Social factors that would negatively impact thecompany. Nikon’s “Vision Nikon 21” and “Safety Design Principle” providethe company a solid image in the social responsibility and environmentalconscious platforms.

• Socially, consumers perceive that an individual wielding a Nikon camera is a serious photographer and knows what he/she is doing.

• Technological factors in respect to Nikon Digital SLR marketing such as R&D activities, automation, technological incentives and the rate oftechnological change will not be a problem because of continuous research and innovation to stay ahead of the competition. Pending Patents is being assigned continuously with Nikon keeping them on theedge of technology.

COMPETITOR ANALYSIS

PENTAX S.W.O.T. ANALYSIS

Similar to Nikon, the Pentax Corporation has its roots in the optical deviceresearch and manufacturing sector. Only two years after the foundation ofNikon in 1919, Pentax started developing high-quality lenses and began buildingits core competency in lens polishing technology.

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Historically, Pentax developed and continues to develop cameras and lenssystems at a very fast rate. Pentax also is exploring other industries, suchas the development of digital scopes and precision surgical optics. Pentax alsorecognized the potentials of the Internet and the influence of social mediaand customer behavior, and the company launched two web sites:pentaxian.com and pentaxphotogallery.com, both intended for sharing anddistributing imagery.

Pentax’s major (current) weakness, however, is its fragile corporate andmanagement structure caused by the merger with the HOYA Corporation in2006. Consequently, the firm continues to struggle in stabilizing its businessinfrastructure. (See exhibit 4 – S.W.O.T. Chart)

CANON S.W.O.T. ANALYSIS

The Canon Corporation has been an established company for nearly three-quarters of a century. When it comes to cameras, they are a household name.The firm began in the 1930s with their focus on developing quality cameras.Only one other company is at their level of notoriety: Nikon.

Today’s society has become a very “Green” conscience world, and Canon hasjoined that following. Factor 2’s goal is make lighter, smaller, more energyefficient products with the goal of reducing greenhouse gases (Canon:Corporate Info). Canon‘s focus on environmental concerns makes them verydesirable to the earth-conscience society we live in today. That strong focus,though environmentally friendly, may not be so consumer friendly. Focus oncustomer service should be a priority as well. Canon’s price point remainscompetitive with its top competition, Nikon.

Though, to keep up with Nikon in the market place, further expansion globallycould be useful. Also, in today’s declining economy, expansion could increasebuyers. Digital SLR’s are not an inexpensive product and cannot be affordedby all. (See exhibit 5 – S.W.O.T. Chart)

SONY S.W.O.T. ANALYSIS

SONY’s strengths lie in the social platform arena and the company’s contributionto society at large. Corporate entities such as the Sony Life Insurance Co., Ltd,Sony Institute of Higher Education Shohku College, Sony Corp of America, andSony de Mexico S.A de C.V. create a solid foundation and structure for Sonythat could be expanded on within Japan and other countries.

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With their brand widely known within several retail areas, SONY proves to beproficient within their marketing capabilities. Their low price point of theirproducts seem to be sufficient to customers’ needs, making Sony one of themost affordable brands among the competition from Nikon and Canon. SONYhas the ability to enhance their brand through careful planning of low materialcost and high operational efficiency.

Company weaknesses are in customer service and sales service satisfaction,which has the potential to drive away long-term customers and convert brandloyalists.

An area of opportunity that can be improved is in environmental responsibility.Marketing their products globally, with the emphasis on product safety as wellenvironmental philosophy could bring SONY closer in competition with Nikon’s“Safety Design Principle.”

Major threats to SONY come from Nikon’s “Vision Nikon 21” customer servicestrategy, and Nikon’s “Safety Design Principle.” Both programs are extremelyimportant to Nikon’s success and retention of customers and to create brandloyalty. (See exhibit 6 – S.W.O.T. Chart)

NAICS CODES

• Primary SIC Code: 3861 - Photographic equipment and supplies• Primary UK SIC Code: 33.403 - Manufacture of photographic and

cinematographic equipment• Primary NAICS Code: 333315 - Photographic and Photocopying

Equipment Manufacturing

The Nikon Corporation specializes on a variety of products and services thatspan different industries. The above NAICS codes reflect all photographicequipment in which Nikon is involved.

CUSTOMER ANALYSIS

MARKET SEGMENTS INTRODUCTION

G.R.C. Marketing Group identified two sectors of the digital SLR camera space,the consumers and the professionals. We segmented the consumers intostudents, teachers, individuals, and amateur/hobby photographers, withstudents being the target group for lower mega-pixels and lower cost digitalSRLs. Teachers, individuals and hobby photographers are the targets for the

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10 to 12 megapixels and higher cost range. Cameras are purchased eitheronline or at retail stores. Cost is a significant factor for these consumer segments.Cameras are purchased throughout the year with possible spikes before andafter the summer period. Special sales programs could be before summervacation and before start of school and at the year-end start of holiday season.Other considerations are competitor activities. The primary target markets is the U.S.

The professional sector is divided into educational organizations, photo studios,advertising agencies, researchers, and government or military, with focuson the 12 and 24 megapixels cameras, because of the higher cost of thepurchase and need of use. No special timeframe is designated for thesesegments. Purchase will happen according to need any given time of the year.A possible spike in purchase of high-end models could be 4th quarter, as budgetsare either planned or need to be spent.

For the consumer sectors, cost is major factor in purchase decision, whereasthe professional sector is driven by need. Other significant reasons forpurchase in both sectors could account for the prior purchase and availabilityof interchangeable Nikkor lenses and accessories for older 35mm Nikon camerasby brand loyalists who are switching to digital photography.

Based on the assumptions in Table 1, we will focus marketing efforts towardsthe 10 and 12 mega-pixels range digital SLRs, for both the consumer andprofessional sectors. Targeted advertising campaigns will be deployed in latespring and early fall, for both print and online media, including coupon offersand / or special bundled items for added value depending on geography.(See exhibit 7 – Market Segments - Table 1)

MARKET-PRODUCT FOCUS

MARKETING AND PRODUCT OBJECTIVES

Nikon’s main focus is marketing to professional photographers by having thehighest quality and most technically advanced photography equipment on themarket. The current D series SLR cameras offer features such as EXPEEDmotion cancellation, high megapixel format, and low noise ISO sensitivity. Thequality of a final image is what the photographer is most concerned with, andNikon gives them the tools they need to capture any photo, in any condition.

Nikon also extends their products to the more avid consumer interested inphotography as a side hobby or future career interest. Long battery life,

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in-camera image editing, more advanced help menu features and a reasonableprice tag are things this market is interested in, and Nikon meets their needswith models such as the D300S.

Because of the ever-growing technological advancements in the industry,Nikon keeps their products as up to date as possible. New models are releasedregularly introducing features and additions being demanded by customers,and less frequently an entire new product with an entirely new feature willbe released.

TARGET MARKET

PRIMARY MARKET

PROFESSIONAL PHOTOGRAPHERAge 18-50College educatedCaucasian, Asian, and other ethnicitiesMaleNo children 0-17Income $100,000+ annuallyGeographic location: United StatesEmployed

The primary purchaser of a Nikon D-SLR camera is a professional photographer.He is male, between the ages of 18 and 50, and a college graduate. He livesin the United States, has no children, and makes upwards of $100,000annually, placing him in the Upper class.

SECONDARY MARKET

CONSUMER PHOTOGRAPHERAge: 18+Sex: Male/FemaleIncome: $30 – $100kEducation: Some college/college graduateRace: AllSocial Class: Middle/ upper classFamily Size: No children 0-17Geographical: United StatesLifestyle: Two income, single parent incomes, student

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Nikon’s secondary market targets both males and females 18 years of age andolder. This group would usually consist of people with a college backgroundwho consider photography as a hobby and/or may be studying the field ofphotography for a potential career opportunity. All races are included. Thesecondary group has an income average of $30-$100k, establishing themselvesas the middle/upper class group.

According to the Nikon Quantcast Audience Profile for Nikon, “No Kids In HighSchool” best describes the family size. It is also reported that this particulargroup has a high interest in Consumer Electronics, Technology, Sports/Outdoors,and Consumer Goods. The above characteristics were partially determined usinggraphs showing web traffic. (See exhibit 8 – U.S. Demographics)

TRADE ASSOCIATIONS – NIKON

CONSUMER ELECTRONICS ASSOCIATION- CEA(HTTP://WWW.CE.ORG/)

The CEA mission statement: “CEA's mission is to grow the consumer electronicsindustry” (About CEA) Their members receive access to market research,networking opportunities, educational programs, regulatory and legislativenews and exposure in promotional programs. Over 2000 companies have beenunited by CEA to achieve this. They have online forums, meetings and conferencesto help members stay in touch with such people as government representatives,buyers, industry leaders and the media. For 75 years they have been providingobjective market research, and are accredited by the American NationalStandards Institute.

‘The voice of the U.S. standards and conformity assessment system’ (AboutANSI) Their Technology and Standards program consists of about 1900participants and 30 working groups, committees and subcommittees. Theworld’s largest consumer technology tradeshow is produced by the CEA: theInternational CES. United at this conference are press from over 140 countriesand over 100,000 distributors, manufacturers, importers, exporters, retailbuyers and market analysts. If a member were to have an exhibit at the showthey would receive benefits and discounts.

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POINTS OF DIFFERENCE – NIKON D300S

Nikon has many qualities within their operations that allow them to outshinethe competition

• Nikon announces a new product one to two months before releasing it,allowing consumers the option to wait for the new and improved modelThis never leaves their customer in the position of feeling their purchasewas obsolete.

• D-Movie Mode with sound: Record 720p HD movie clips enhanced byNIKKOR interchangeable lens quality and versatility. Offers the mostcutting edge optical products in both the commercial and consumer market.

• Vari-angle color LCD monitor: Position the 3 -inch monitor freely forfresh shooting perspectives. Screen flips inward for safe keeping.

• GPS Geo-tagging: GP-1 GPS unit (optional) automatically identifies andrecords every image’s latitude, longitude and altitude, with satellitetime-of-day.

• Built-in Flash unit: up to 17 feet range.

• Affordable and competitive pricing. (Nikon D300S Points of Difference)

POSITIONING

Nikon’s new D300S is the DSLR camera that delivers patented EXPEEDprocessing technology and dual memory card slots only because Nikon is theleader in quality and performance.

MARKETING PROGRAM

PRODUCT STRATEGY

The Nikon D300s has a remarkable number of features that will draw thebuyer in. These features are what make this camera unique and a “must have”for any photographer.

• 12.3 megapixel, high resolution, and low-noise image, creating sensorThis is a sensor that offers 1,005-Pixel 3D Color Matrix Metering II, theonly system that meters the colors in your shot to make exposuresmore brilliantly accurate.

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• The ISO range is 200 to 3200, and also offers a Lo-1 and Hi-1 optionwhich are equal to having a 100 and 6400 ISO allowing for a high rangeof lighting variations and still create incredible images.

• The 920,000-dot, 100% accurate, LCD Monitor is a full 3 inches andcapable of One-Button Live View help for challenging shoots andreviewing them afterward.

• When taking pictures of people it is important to make sure that theyare in focus, so Nikon has implemented its Face Detection System. Thisworks during playback, and it zooms in directly onto the face in theimage so you can check for its sharpness.

• Nikon has a 51-point Auto-focus system and utilizes 3D Focus Tracking,which is a system designed specifically for moving subjects. This systemfollows the subject while the shutter is pressed half way down, thenwhen the lapse between the shutter being pushed and the picture istaken. The camera predicts where the object will move to ensure aclear image.

• Nikon’s patented EXPEED processing technology produces your imageswith amazing precision at fast speeds and while also using less power.

• In continuous shoot mode, 7 frames can be shot per second and withthe included EN-EL3e battery fully charged; up to 950 pictures canbe taken.

• This camera not only shoots HD video, but it shoots at a cinematic 24frames per second rate. When you are done shooting a video, PictureControls allows you to trim the video or modify its tone and color. These same controls are used for still images allowing adjustments ofSharpening, Contrast, Brightness, Saturation and Hue, as well ascustomizing 9 capture preferences in addition to the 4 alreadyavailable: Standard, Neutral, Vivid and Monochrome.

• High contrast situations are a challenge for professional photographers,usually something that must be remedied in post processing softwarethat leads to degradation of images, Nikon’s Active D-Lighting in theD300S takes care of this problem by bringing back the highlight andshadow details by centralizing tonal control. Wedding photographerswho photograph white dresses and black tuxedos will truly appreciate this aspect of this product.

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• Another feature regarding lighting with the D300S is its built-in flashthat is compatible with Nikon’s Creative Lighting System. This systemmakes it possible to control remote flash units for wireless lighting. Thisparticular camera can control up to two units. The built-in flash also hasa wider coverage than most cameras with coverage for a 16mmwide-angle lens.

• The D300S includes a Virtual Horizon Graphic Indicator which eliminatesthe purchase of a separate hot shoe level for those times you need tomake sure you are trying to get that perfect landscape shot, it can beleveled through either the viewfinder or the LCD monitor. (Nikon D300SFeatures and specifications)

The Unique Selling Proposition of the Nikon D300S is its dual memory cardslot. One slot is for Compact Flash mass storage card (CF cards) and the otheris for a Secure Digital non-volatile memory card (SD cards). These two-memorycard slots help organize images while shooting. If you are shooting video andpictures, you can separate the two by putting the videos on one and the stillimages on the other. Also, if you are shooting JPEGs and raw files, theycan also be separated by memory card. Images or videos can be copiedand pasted between cards. If you are shooting a video, the card with themost memory left on it can be calculated to make sure that video is placedon that card.

Since it is the features that sell the camera, and when a purchaser is makingtheir decision they are looking at the camera itself and not the box, thepackaging will be kept simple to keep costs down. A simple box with the labelof the type of camera in the box is all that is necessary.

Nikon offers a standard 1-year parts and labor Limited Warranty as well as atoll-free number that can be called for additional support. When in-personsupport is necessary, Nikon has local retailers and distributors that it partnerswith for help that can be easily contacted.

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PRICE STRATEGY

Unit Cost and profit per unit for Nikon D300S

Cost Break up per unit (Unit price $500)

Materials $ 250Fixed Cost (Salary) $ 125Misc. Fees (Legal) $ 50Total Cost per unit $ 425

The D300S will be sold for $500 to the wholesalers. Based on this model,profit per unit will be $75.

BREAK-EVEN ANALYSIS

The following calculations are based on estimated fixed and variable costs,for 1 Million D300S cameras to be sold.

Cost Breakdown (Fixed Cost)

Marketing/Advertising/Graphics $ 500,000Facility (12 months) - $20,000 monthly(Lease, Rent, Property Tax) $ 240,000Overhead (Utilities, Phone, Water, etc.)12 months - $5.000 monthly $ 60,000Salaries & Benefits (related to D300S personnel) $ 1,000,000Patent & Legal Fees $ 100,000Subtotal $ 1,900,000

Fixed cost per unit: $ 1,900,000 / $ 1,000,000 = $ 1.9

Cost Breakdown (Variable Cost) for 1 Million Units

R & D $ 1,000,000Materials — $250 per unit $ 250,000,000Transport Fees — $5 per unit in bulk $ 5,000,000Tax & Tariffs — based on assumed 20% for each unit $ 50,000,000Subtotal $306,000,000

Variable cost per unit: $ 306,000,000 / $ 1,000,000 = $ 306

To break even, Nikon needs to sell 9,793 units of the D300S camera.

1,900,000 / (500 [unit price] – 306 [variable cost]) = 9,793 units

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SUGGESTED RETAIL PRICE STRUCTURE FOR THE NIKON D300S

Cost Breakdown

Materials $ 250Fixed Cost (Salary) $ 125Misc. Fees (Legal) $ 50Total Cost per unit $ 425

Profit based on $500 sold per unit ($75)

Tax & Tariffs (based on 20% of $500) $ 100Transport (bulk shipment per unit) $ 5Sub total ($500 +$100 + $5) $ 605

Wholesaler Mark up (estimated) $ 605Retailer Mark up (estimated) $ 605

Total Unit Cost (Suggested retail price) $1,815

PROMOTION STRATEGY

CREATIVE PRICING STRATEGY AND TACTICS

• Odd-even Pricing—retail price of 1799.95

• Quantity Discount Pricing—For schools or photography businessesoffer a discount when purchasing more than one camera.

• Offer trade-in discounts: up to so much off ($300) of your D300Swith the trade-in of your used D-SLR

• Seasonal Discount—Christmas and Thanksgiving offer an additionalpercentage off

• Offer Package deals that could possibly include: one or more lenses,carrying case, tripod, extra battery, memory card(s), a flash, or alens cleaning kit.

• Offer Instant Rebates ($150) on other Nikon products with thepurchase of a Nikon D300S

• Student Discounts—with student ID receive 30% off

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CONTROL PLAN

In the event that Nikon does not reach its financial goals for the year due topossible deviations, Nikon has already created possible solutions.

POSSIBLE DEVIATION

• Sales suffer a great decrease due to the suffering economy.

• There is a sudden increase of product substitution from competitors.

• Sales decline due to the lack of advertising of the product.

POSSIBLE SOLUTIONS

• Due to the suffering economy, Nikon sales can potentially drop. If thisscenario should arise, Nikon will then search within a field for potentialfuture growth where their distribution network can be used. They willmake necessary means to expand worldwide by identifying potentialregions where a promising increase of sales numbers can be expected.

• If there is an increase of product substitutes by competitors, Nikonwill search different approaches to make their product more efficient.Nikon will search opportunities in the high-tech industry and visualimaging field to capitalize on their product.

• Product sales that may decline due to a lack of advertising, Nikon willhave the opportunity to embark on several business promotions outsidethe Nikon Group. Nikon will search for elements outside the companyto expand promotion with promoting tie-ups, alliances, mergers, andseveral acquirement.

PLACE STRATEGY

Nikon has several affiliates, but our product is mainly seen in specialty storessuch as Houston Camera Exchange and Wolf Camera. To reach potentialconsumers and maximize the distribution channels, we recommend that Nikondo a co-op promotion with the specialty stores in order to help maximize theirbudgets as well as get them to feature this camera in their promotions.

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PROMOTIONAL STRATEGY

As part of the promotional strategy for the Nikon D300S, G.R.C. proposes twomajor marketing campaigns for print, online and mass media. The first isdirected towards families and individuals planning for their summer vacationwho want to capture their memorable moments, as well a special campaignfor the Houston FotoFest, starting in April 2010. This group of consumerscould be first-time purchasers of a digital SLR, or hobby photographers whowant to make the switch from traditional 35 mm film cameras to digitalcameras, or for photographers who plan on upgrading their currentD-SLR camera.

The second campaign would be initiated in mid-to-late fall and would bedirected towards professional photographers, businesses and organizationsthat plan on purchasing new equipment to take advantage of the fourth quartercorporate spending as well as the following year’s tax incentives. A tertiarytarget group is present for the fall campaign – students, especially those inthe field of photography, who choose to purchase their own equipment.This could be combined with a targeted campaign towards educationalorganizations only.

There are two key strategies for each campaign, which could be potentiallycombined:

• A special offer of bundled components, such as the D300S and an18-to-135 mm lens.

• A coupon reimbursement offer that would allow capturing consumerbehavior data for future targeted online marketing.(See exhibit 9 – Promotion Details)

G.R.C. Marketing Group proposes a media and advertising campaign for theNikon D300S camera, which will be focusing on the Houston, Texas, area.Media channels include print advertising in local newspapers and magazines,with a special national ad campaign sponsored by Nikon, in several trademagazines such as Digital Photo, PC Photo, and Outdoor Photographer. Thisspecial campaign will be targeted towards the FotoFest event in March 2010in Houston, and is part of an integrated marketing strategy that will utilizeonline banner space to increase awareness nationwide prior to the arrival ofvisitors and participants. Our secondary goal is to set a foundation for othercities to join for similar events across the U.S.

19

MEDIA PLAN

Magazine

• Houston Symphony – Monthly advertising in several different spotsand sizes. They include 12 Back cover, Inside Front cover, 1/2-page,and Center spread in color, and 1/3-page in black & white ads.

• Digital Photo Pro – 3 monthly issues – February, March and April of2010. Ads will start running one month prior the Photo Fest eventstart in Houston, Texas, and will end when the event ends on April 25,2010. Ads include 3 Full page, Cover 2, 1/2-page in color, and 3 1/3page in black & white.

• PC Photo – 3 monthly issues – February, March and April 2010. Adswill start running one month prior the FotoFest event in Houston,Texas, and will end, when event ends on April 25, 2010. Ads include 3 Full page, Cover 2, 1/2-page in color, and 3 1/3 page in black & white.

Newspaper

• Houston Symphony – Monthly advertising in several different spotsand sizes. They include 12 Back cover, Inside Front cover, 1/2-page,and Center spread in color, and 1/3-page in black & white ads.

• Houston Press – Weekly (52) Jr. Premium print advertisements for12 months.

Email Blast and Direct Mail

Both email and direct mail strategies will be a combined deployment of localretailers with co-op support from Nikon. Combined US mailings and emailblasts will contain special incentives for potential customers: for example, buythe camera and get an upgraded memory card. Direct mail postcard will besent in February, and the e-mail blast will be sent in September.

Online Banner Campaigns

We allocated $60,000 for Google (Ad Words) and Yahoo! ad placements andwill monitor and control deployment at various times of the day and week,as well as the number of clicks. The banners for Google and Yahoo! will berunning the entire year for constant exposure.

A more focused banner campaigns will be deployed before the HoustonFotoFest. Banners include Leaderboards at 728x90 pixels, for 4 issues of

20

e-newsletters of each. Outdoor Photographer, PC Photo, and Digital Photo Pro(Werner Publishing) magazines, and their corresponding home pages,measured at 200,000 (CPM – Cost per thousand). They will be deployed startingin January, and will run until the end of April. Cost for each e-publication is$2,395. The budget for each of the three publication web sites is allocatedat $18,000.

The following is a detailed break down of the various print and onlineadvertising components:

Line Item Budget

Magazine & Newspaper Print Advertising

Digital Photo Pro (3x – various sizes and cover) Nikon co-op sponsored $ 65,455 PC Photo (3x – various sizes and cover)Nikon co-op sponsored $ 43,365 Houston Symphony (12x – Full Page Backcover & Inside) $ 16,530Houston Press (Junior Premium -52 Weeks) $ 91,468Direct Mail (Co-Op withlocal retailers) $ 30,000Postcards (estimated) $ 50,000

Online Email Blasts (Co-Op with local retailers)

Campaign Monitor bulk mailing (100,000 recipients@ 0.8 cents) $ 80,000

Online Banner Advertising

Yahoo! (Depending on imprints and clicks) – sponsored $ 30,000Google Ad Words (Depending on imprints and clicks)Nikon co-op sponsored $ 30,000Werner Publishing (4 x Banner Ads for newsletter)Nikon co-op sponsored $ 7,185Werner Publishing (Banner Ads on home pages)Nikon co-op sponsored $ 54,000Total Advertising Cost $498,003

(See exhibit 9 – Media Buy Flow Chart)(See exhibit 10 to 15 – 2009 Advertising Rates & Samples)

21

PLACE (DISTRIBUTION) STRATEGY

Nikon partners with UPS Supply Chain Solutions to provide a solid distributionnetwork. The network includes; supply chains, logistics, transportation, andfreight & customs brokerage services. Nikon is responsible for keeping skilledcustomer service primary, and keeping distributors and retailers updated onproduct availability. With UPS Supply Chain Solutions, Nikon will reach its salesgoals of $5 million by distributing in areas within the United States, LatinAmerica, and the Caribbean.

Nikon's merchandise starts at manufacturing centers in Korea, Japan, andIndonesia. Air and ocean freight, and customs brokerage are managed by UPSSupply Chain Solutions which are all forwarded to UPS's global operations andlogistics center main campus in Louisville Kentucky. Here, Nikon's products are"kitted" with batteries, chargers, and with any type of needed accessory. Theproducts is then repackaged to meet the requirements of Nikon's in-storedisplay arrangements and are shipped for export within the United States, toLatin American and Caribbean retail outlets and distributors for customerspurchase.

To keep track of their products, UPS Supply Chain Solutions provides “SKU-Level” visibility and provides Nikon with advance shipment notificationsthroughout the U.S, Caribbean & Latin American markets. This method givesNikon a glance of the supply chain that rivals their performance. (See Exhibit16 – Distribution Flow Chart)(See Exhibit 17 – UPS Supply Chain Solution)

22

WORKS CITED

(2009). About Us/Overview. Retrieved August 17, 2009, from American CityBusiness Journal

Nikon | About Nikon | Responsibility / Safety Design Principle. RetrievedJuly 14, 2009, from http://www.nikon.com/about/csr/customers/product-safety/index.htm

Nikon’s competitive edge. Email correspondence. Retrieved July 16 2009.Exhibit 1a and 1b

Peppers & Rogers Group, "Turning Customer Experiences Into CompetitiveEdge:Nikon's Journey to Leadership." (2006): 5. Print.

"Nikon|Corporate Info|Nikons Philosophy." Nikon. 2008. Nikon Group.16 Aug 2009 <http://www.nikon.com/about/info/philosophy/index.htm>.

Nikon | Corporate Info | Products History (Corporate / Cameras / Movie andDigital Imaging Equipment and Others). (n.d.). Retrieved July 14, 2009,from http://www.nikon.com/about/info/history/products/index.htm

Nikon, Fact Book 2008 English Edition 16. Print. Exhibit 2

Nikon Instruments Inc. | News | US News | Company Backgrounder. (n.d.).Retrieved July 17, 2009, from http://www.nikoninstruments.com/News/US-News/Company-Backgrounder

Nikon | Responsibility | Production of Safe Products. (n.d.). RetrievedJuly 16, 2009

http://www.nikon.com/about/csr/customers/product-safety/index.htm

Nikon | Responsibility | Quality Control. (n.d.). Retrieved July 15, 2009,from http://www.nikon.com/about/csr/customers/quality-control/index.htm

Nikon | Responsibility | Relationship with Customers. (n.d.). RetrievedJuly 15, 2009, from http://www.nikon.com/about/csr/customers/index.htm

Nikon | Responsibility | Role in Society. (n.d.). Retrieved July 15, 2009, fromhttp://www.nikon.com/about/csr/society/index.htm

About PENTAX - Company History and Timeline. (n.d.). Retrieved July 25,2009, from http://www.pentaximaging.com/about/history

AnnualReports.com. (n.d.). Retrieved August 8, 2009, fromhttp://www.annualreports.com/About

23

CEA: About CEA - About CEA. (n.d.). Retrieved August 8, 2009, fromhttp://www.ce.org/AboutCEA/default.asp

Canon : Corporate Info. (n.d.). Retrieved July 24, 2009, fromhttp://www.canon.com/corp

Canon | Environmental Activities | Vision for 2010 : Factor 2. (n.d.).Retrieved July 24, 2009, fromhttp://www.canon.com/environment/vision/factor2.html,

http://www.canon.com/environment/vision/vision.html

Census Bureau Home Page. (n.d.). Retrieved July 29, 2009, fromhttp://www.census.gov

Canon | Environmental Activities. (n.d.). Retrieved July 24, 2009, fromhttp://www.canon.com/environment

Feldman, D. S. (n.d.). Business Activity Code, NAICS Code, SIC Code &Industry Search. Retrieved July 29, 2009, from http://www.naicscode.com

"Examples Of Positioning Statements." Business Plans to Start and Growyour Business.. 15

Aug. 2009 <http://www.growthconnection.com/Examples-Of-PositioningStatements.htm>

IR Solutions. (n.d.). Retrieved August 8, 2009, fromhttp://www.irsolutions.com/irSolutions-productsservices.html NAICS & SICUpdates, Manuals, Reference Files & Database

Enhancements. (n.d.). Retrieved July 29, 2009, from http://www.naics.com

Nikon Competition . (n.d.). Retrieved July 25, 2009, from

corptv.datiq.net/asml/Q22009/index.html nikon.com - Quantcast AudienceProfile. (n.d.).Retrieved July 31, 2009, fromhttp://www.quantcast.com/nikon.com#demographics

Nikon’s competitive edge. Email correspondence. Retrieved July 16 2009.Exhibit 1a and 1b

Peppers & Rogers Group, "Turning Customer Experiences Into CompetitiveEdge:Nikon's Journey to Leadership." (2006): 5. Print.

"Nikon|Corporate Info|Nikons Philosophy." Nikon. 2008. Nikon Group. 16Aug 2009 <http://www.nikon.com/about/info/philosophy/index.htm>.

24

Nikon | Corporate Info | Products History (Corporate / Cameras / Movie andDigital Imaging Equipment and Others). (n.d.). Retrieved July 14, 2009,from http://www.nikon.com/about/info/history/products/index.htm

Nikon, Fact Book 2008 English Edition 16. Print. Exhibit 2

Nikon Instruments Inc. | News | US News | Company Backgrounder. (n.d.).Retrieved July 17, 2009, from http://www.nikoninstruments.com/News/US-News/Company-Backgrounder

Nikon | Investor Relations. (n.d.). Retrieved July 15, 2009, fromhttp://www.nikon.com/about/ir/index.htm

Overview. (n.d.). Retrieved August 8, 2009, fromhttp://www.ansi.org/about_ansi/overview/overview.aspx?menuid=1

Nikon | Responsibility | Production of Safe Products. (n.d.). Retrieved July16, 2009, from http://www.nikon.com/about/csr/customers/product-safety/index.htm

Nikon | Responsibility | Quality Control. (n.d.). Retrieved July 15, 2009,from http://www.nikon.com/about/csr/customers/quality-control/index.htm

Nikon | Responsibility | Relationship with Customers. (n.d.). RetrievedJuly 15, 2009, from http://www.nikon.com/about/csr/customers/index.htm

Nikon | Responsibility | Role in Society. (n.d.). Retrieved July 15, 2009, fromhttp://www.nikon.com/about/csr/society/index.htm

PENTAX Photo Gallery. (n.d.). Retrieved July 24, 2009, fromhttp://www.pentaxphotogallery.com/home

Pentax - Wikipedia, the free encyclopedia. (n.d.). Retrieved July 25, 2009,from http://en.wikipedia.org/wiki/Pentax

"PEST Analysis." Strategic Management. 2007. 17 Aug 2009

<http://www.quickmba.com/strategy/pest/>.

Sony Complaints. (n.d.). Retrieved July 23, 2009, from http://www.com-plaintsboard.com/bycompany/sony-a12607.html

Sony Global - Affiliated Companies(Japan). (n.d.). Retrieved July 27, 2009,from http://www.sony.net/SonyInfo/CorporateInfo/Subsidiaries/index.html

Sony Global - Procurement and Purchasing. (n.d.). Retrieved July 23, 2009,from http://www.sony.net/SonyInfo/procurementinfo/index.html

25

"PEST Analysis." QuickMBA: Accounting, Business Law, Economics,Entrepreneurship, Finance, Management, Marketing, Operations, Statistics,Strategy. 2 Sep. 2009 <http://www.quickmba.com/strategy/pest/>.

(2008). Nikon | News | Vision Nikon 21. Retrieved August 31, 2009, fromNikon Web site:

http://www.nikon.com/about/news/2000/principal.htm

Nikon D300S Points of Difference. Retrieved September 24, 2009, from

http://photo.net/equipment/nikon/D300s/preview/,

Product brochure (PDF )

Nikon D300S Features and specifications. Retrieved September 24, 2009, fromhttp://imaging.nikon.com/products/imaging/lineup/digitalcamera/slr/d300s/

"UPS Supply Chain Solutions - Nikon Consumer Goods." 2005. UPS/NIKON.7 Sep 2009

Yahoo! Online advertising - http://adspecs.yahoo.com/index.php

Email Blast - http://www.campaignmonitor.com/pricing/

26

APPENDIX

27

EXHIBITS

Exhibit 1 - Email Correspondence

Ron Tayyab <rontayyab@gmail.com>

Nikon's competitive edgeFasano Edward R. <efasano@nikon.net> Thu, Jul 16, 2009 at 12:10 PMTo: Ron Tayyab <ron.tayyab@gmail.com>

Ron,

I'm afraid that time is an extremely valuable commodity that collides with a surprising number of requestssuch as yours. Still, we are flattered that our brand is occasionally viewed as a model for study. In any case, Ioffer the following, albeit brief and less than ideally ordered responses to your question.

Nikon Inc., a wholly-owned subsidiary of Nikon Corporation in Tokyo. We are one of NikonCorporation's major marketing centers (a Kyoten), with sales, marketing and service responsibilities forNorth and South America and the Caribbean.

As the historical information on various Nikon websites indicates, the company's roots, and arguablyone of its core competencies is considerable expertise in optical engineering, combined with theessential resources and infrastructure to execute against that expertise.

However, optical design expertise does not, by itself, necessarily provide an ideal foundation for thedesign, manufacture and marketing of photographic products. This is where another layer of corecompetency comes into play. As obvious as it may sound, Nikon (unlike many competing consumerelectronics companies, and even some competing photographic manufacturers), has a vast knowledgeof, and deep respect for, things photographic. And because optical design, as it relates to thedevelopment of interchangeable lenses, is sometimes as much art as it is science, this combination ofcompetencies, mixed with protected values contributes to perhaps our most important unique sellingproposition—NIKKOR interchangeable lenses. This USP, stemming from core competencies, yields aspecial (if not unique) sustainable competitive advantage.

Certainly though, Nikon's expertise is not limited to optics. SLR cameras (once film and nowoverwhelmingly digital), Speedlights and system accessories, together with NIKKOR lenses contributeto the strength of the photographic brand that is Nikon. Nikon is, by no means, a small company. But,we are smaller than our nearest competitor. Some would say (and I have) that our brand is bigger thanwe are. We work very hard, and often make some challenging decisions, to sustain that.

The Nikon brand, for what it represents; combined with the Nikon photographic system for itscapabilities, come together to create something against which, competing in a meaningful way, is noeasy task. At the same time, it is no easy task (for those of us at Nikon) to remain intensely focused on,and to aggressively protect the fundamental values that helped get us to where we are. But, thepotential (and historically-proven) reward for doing so is the ability to remain a brand against whichcompeting is difficult.

Much of the above substantiates a fascinating business culture, within which both the brand andphotography itself are held in exceptionally high regard. Nikon's core beliefs go beyond missionstatements on a plaque or platitudes in company newsletters. When a majority of employees share asimilar mindset as a matter of course, it has a natural and positive effect on decision-making at virtuallyevery level. More times than not, this decision-making effect leads to decisions that are (1) correct and(2) serve to protect the brand and the corporation’s values.

Clearly, Nikon has meaningful competition. That competition makes us a better company. And I would

Gmail - Nikon's competitive edge http://mail.google.com/mail/?ui=2&ik=329c5a3db3&view=pt&ca...

1 of 3 7/17/09 6:18 PM

28

Exhibit 1 - Email Correspondence

submit that they would admit that we also make them better company. An important result of this isbetter value and higher performance for discriminating photographers and casual picture takers alike.

When occasionally asked, from a marketing perspective, what is the single most important thing amarketing manager can and should do; my response is always the same. Before all else, protect yourbrand.

One important way in which we protect the brand is our deep appreciation for the images that ourproducts are capable of generating.

Another and much more tedious way in which we protect the brand is linked to truthfulness. Asurprising number of photographic images used in the advertising of photographic merchandise(visually suggesting or plainly stating the capabilities of the hero product) weren't captured with thathero product. In many instances, stock images are selected and licensed with little, if any regard forwhat equipment was used for their capture. And in other instances, a manufacturer may useprofessional-grade equipment to produce images that will ultimately be used to demonstrate thecapabilities of much lesser products. Nikon end-result images that appear in advertising, on packaging,point of purchase materials, websites and more, must first meet the stringent requirement of havingbeen captured with the product to which they are being associated. Candidly, we get little credit for this.Still, it is something that we feel is (1) right and (2) is one of those elements that protects the brand. Inthe end, it also helps us sleep better at night.

I'm going to guess that this series of scattered responses may not be what you expected, but I hope that theyoffer you some insight that will allow you and your team to refine your own conclusions.

Good luck with your studies and your business future.

Edward R FasanoGeneral Manager, Marketing, SLR System Products

Nikon Inc.1300 Walt Whitman RoadMelville NY 11747-3064

Office: 631-547-4003Fax: 631-547-0309

efasano@nikon.net

www.nikonusa.com

From: rontayyab@gmail.com [mailto:rontayyab@gmail.com] On Behalf Of Ron TayyabSent: Wednesday, July 15, 2009 12:23 PMTo: Fasano Edward R.Subject: Nikon's competitive edge

[Quoted text hidden]

Gmail - Nikon's competitive edge http://mail.google.com/mail/?ui=2&ik=329c5a3db3&view=pt&ca...

2 of 3 7/17/09 6:18 PM

29

Exhibit 2 - Nikon Corporate Structure

16

Structure of Nikon Group

As of July 1, 2008

Corporate Auditors/Board of Corporate Auditors

Tochigi Nikon Corporation Sendai Nikon Corporation Nikon Imaging japan Inc. Nikon Inc. Nikon Canada Inc. Nikon Europe B.V. Nikon AG Nikon GmbH Nikon U.K. Ltd. Nikon France S.A.S. Nikon Nordic AB Nikon Kft. Nikon s.r.o. Nikon Polska Sp.z o.o. Nikon Hong Kong Ltd. Nikon Singapore Pte LtdNikon (Malaysia) Sdn. Bhd. Nikon Imaging (China) Sales Co., Ltd. Nikon Australia Pty Ltd Nikon India Private LimitedNikon Imaging Korea Co., Ltd. Nikon (Thailand) Co., Ltd. Nikon Imaging (China) Co., Ltd.Nikon International Trading (Shenzhen) Co., Ltd. Guang Dong Nikon Camera Co., Ltd. Hang Zhou Nikon Camera Co., Ltd.

Kurobane Nikon Co., Ltd. Nikon Instech Co., Ltd. Nikon Instruments Inc.Nikon Instruments Europe B.V. Nikon Instruments S.p.A.Nikon Instruments (Shanghai) Co., Ltd.Nikon Instruments Korea Co., Ltd.Nanjing Nikon Jiangnan Optical Instrument Co., Ltd.

Nikon Business Service Co., Ltd. Nikon Tsubasa Inc.

Internal Audit Department

Corporate Planning Department

Financing & Accounting Department

Corporate Communications & IR Department

Affiliates Administration Department

Business Development Headquarters

Information System Headquarters

Intellectual Property Headquarters

Business Administration Center

Instruments Company

Customized Products Division

Glass Division

General Shareholders’ Meeting

Board of Directors

Mito Nikon Precision Corporation Zao Nikon Co., Ltd. Tochigi Nikon Precision Co., Ltd. Sendai Nikon Precision Corporation Nikon Tec Corporation Nikon Precision Inc. Nikon Research Corporation of America Nikon Precision Europe GmbH Nikon Precision Korea Ltd. Nikon Precision Taiwan Ltd. Nikon Precision Singapore Pte Ltd Nikon Precision Shanghai Co., Ltd.

Executive Committee Representative Director, President, CEO & COO

Precision Equipment Company

Sales Headquarters

Development Headquarters

Production Headquarters

LCD Equipment Division

Core Technology Center

Research & Development Headquarters

Production Technology Headquarters

Imaging Company

Marketing Headquarters

Development Headquarters

Production Headquarters

Hikari Glass Co., Ltd. Nikon Optical Shop Co., Ltd. Nikon Vision Co., Ltd.Nikon Engineering Co., Ltd. Nikon Americas Inc. Nikon Holdings Europe B.V.

Nikon Systems Inc.

Nikon-Essilor Co., Ltd. Nikon-Trimble Co., Ltd.

30

Exhibit 3 - Nikon S.W.O.T. Analysis

Strengths WeaknessesCore competency: Manufacturing ofprecision optics and high-qualitylenses (NIKKOR).Expertise: Long-term research and development in optical technology,camera development, processing technology and other technologicalinnovations forged by history andpreserved tradition. Continuouscollection of data and responses,research and development at its CoreTechnology Center.Market share: Global marketpenetration with subsidiaries in Asia,the Americas, Europe and Australia.Quality: Almost 100 years ofreputable brand building.Client relationship: Vision Nikon 21 -superior customer service strategy bylistening to the needs of customers and improved response rate.Corporate culture: Motivating corporate culture radiation outwardsand environmental-friendly manufacturing process.Business operation: Rapid management response system to quickly adapting to frequentlychanging business climate.

Pricing structure: Nikon photographic products are relatively expensive to the average consumer.Often competitors such as Canon and Pentax develop comparableproducts that are packed with moreadvanced features.Product awareness: Nikon isknown for its development ofphotographic equipments. HoweverNikon is a competent player in many other areas, especially in thedevelopment of semi-conductortechnology, and / or in areas ofElectron Projection Lithography.

31

Exhibit 3 - Nikon S.W.O.T. Analysis

Opportunities ThreatsNiche market development: Semi-conductor wafer technology.Web 2.0 integration:my Picturetown® – online imagestorage, viewing and distribution application, enabled through Wi-Fitechnology.Growing emerging markets:Affordable consumer products in thefield of photography for both thecasual and professional user and shortening the product replacementcycle.Broader features and advancedtechnology: Shift from digital picturetaking to HD video capabilities,broadened field for development to post-photography image processing and viewing.Sales regions: Will widenconsiderably with growth in marketsfollowing economic development in emerging markets.

Serious ThreatsSemi-conductor technology:Long-term continuing shrinkage.Fierce competition: ASML/ZeissAlliance in optical technology in thesemi-conductor sector; CANON and PENTAX camera development ofaffordable HD video able D-SLRs.

Probable ThreatsPricing structure: Nikon photographic products are relatively expensive to the average consumer.Often competitors such as Canon and Pentax develop comparableproducts that are packed with moreadvanced features.Economy: Global economicdownturn, hence less consumerspending.

32

Exhibit 4 - Pentax S.W.O.T. Analysis

Strengths WeaknessesCore competency: Manufacturing ofprecision optics, superb lens polishing technology and cameras.Expertise: Long-term research and development in optical technology and camera development. Branching offinto medical and surgical opticaldevice development and scopes forrecreational use.Market share: Global marketpenetration with strong foothold theU.S., Asia and Europe.Quality: Almost 100 years ofreputable brand building (like Nikon).Business operation:Rapid development of products and ability to adapt to the fast changing business environment.Pricing structure: Affordable high-quality equipment.

Business operation: Internalturmoil caused by recent mergersand management turnover.Availability of lenses: a) highdemand and not being able to produce, and b) range of lensproducts.

Opportunities ThreatsNiche market development:Medical and surgical productexpansion. Riflescopes and digitalbinocular manufacturing.Web 2.0 integration: pentaxian.comand pentaxphotogallery.com –viewing, sharing and distributionapplication.Growing emerging markets:Affordable consumer products forphotographic cameras, for both thecasual and professional user. Digitalcompact camera market expansion.Technology: Broader features and advanced technology. Shift fromdigital picture taking to HD video capabilities.

Competition: Nikon and Canon camera development of HD video able D-SLRs.Economy: Global economicdownturn, hence less consumerspending.Business Operation: Shareholderinput and pressure.

33

Exhibit 5 - Canon S.W.O.T. Analysis

Strengths WeaknessesExperience: 72 yrs.Striving to improve on safety ofpeople who produce our products andimproving on the products themselves.The Global Environment StrategicExpert Committee: goal to strengthenenvironmental management.Expansion: people connected to thecompany and the regions Canon resides in increases daily.Energy Conservation: Factor 2 introduction-energy saving equipmentbrought into production facilities aswell as products being produced thatare more efficient, smaller and lighter.Competitive pricingMain Product Focus: frominception; cameras.Corporate Culture: San-ji which means Three Selves: self-motivation,self-management, and self-awareness

Pricing: D-SLR’s are a higher-end,more expensive product, notaffordable by all.Technology Based Corporation:Ever changing technology, mustalways keep up.Global: not as Global as maincompetitor, NikonCustomer relationship: strongerfocus on environment and employeeconcerns.

Opportunities ThreatsPossible merger with competing companies to reduce competition.Acquiring experts with knowledge to help improve products more efficiently and quickly.Expansion of advertising to createknowledge to potential customers.

Potential decline in demand.Nikon is extremely strong competition-technology expansion similarly paced.Construction delays forprospective expansion.Unforeseen lawsuits

34

Exhibit 6 - Sony S.W.O.T. Analysis

Strengths WeaknessesAffiliates: expansion with severalcompanies within and outside ofJapan. Ex: Sony Life Insurance Co.,Ltd, Sony Institute of HigherEducation Shohku College, Sony Corp of America, and Sony de Mexico S.Ade C.V.Customer and Supplier Loyalty:High level of expectation with customers and suppliers from allbackgrounds.Prices: Lower product prices vs.Nikon and Canon product prices.Procurement Activities: EnhancingSony Brand Equity, CompetitiveProducts, and Strengthening Profitswith lower material cost and greatoperational output

Customer Service: Lack ofcustomer service / sale servicesatisfaction. This important factorcan drive away long-termcustomers.Environmental: Lack of an established environmental safety plan for production of their products

Opportunities ThreatsCorporations: Offer marketablecorporations such as banking opportunities or higher education learning worldwide.Environmental: Market theirapproach globally of environmentalresearch and safe production

Production Safety: Nikon'scustomer satisfaction and environmental approach for theirproducts. (Nikon's 'Safety Design Principle').Customer Service: Nikon's 'Vision Nikon 21'. SONY's lack in customerservice satisfaction can damagecustomer loyalty

35

Exhibit 7 - Market Segments - Table 1

MARKETS

SECTOR SEGMENT

Consumer

Professonal

Students

< 10 MP* 10 MP 12 MP 24 MP

Teachers

Individuals

Amateur

Studios

Education

Agencies

Research

Gov./Military

PRODUCTS

*MegapixelsTable 1

36

Exhibit 8 - U.S. Demographics

37

Exhibit 9 - Media Buy Flow Chart

38

Exhibit 10 - Houston Symphony Rates

THE

HOUS

TON

SYM

PHON

Y–

WHE

REYO

URM

ESSA

GEM

EETS

MIL

LION

AIRE

S…AN

DM

ORE!

Read by elite, luxury consumers of high-end goods and services

Hand-delivered at every Houston Symphony performance – more than 100 annually

0% newsstand waste

Pass-along readership 625,000

Attract business owners and executives, loyal arts patrons, high-wealth Houstonians

Year-round distribution at prestigious Jones Hall

ADVERTISING RATES

Circulation: 250,000Pass-along: 625,000

Frequency: Monthly

DEMOGRAPHICS • 1 in 6 patrons are millionaires. Average income: $180K• 70%+ CEOs, business owners, executives, decision-makers• 88% own stocks and bonds• 21% own second homes• 81% visit galleries and museums• 61% dine out frequently each week

FOUR COLOR 2X 4X 6X 12X

BACK COVER 5,890 5,595 5,305 4,620

INSIDE FRONT COVER 4,855 4,615 4,370 3,810

INSIDE BACK COVER 4,450 4,230 4,005 3,490

FULL PAGE 3,600 3,420 3,240 2,825

2/3 PAGE 2,680 2,545 2,410 2,100

1/2 PAGE 2,120 2,015 1,905 1,665

1/3 PAGE 1,505 1,430 1,355 1,180

1/6 PAGE 1,155 1,045 990 860

CENTER SPREAD 7,725 7,335 6,600 5,605

BLACK AND WHITE 2X 4X 6X 12X

FULL PAGE 2,585 2,450 2,325 2,020

2/3 PAGE 1,890 1,760 1,670 1,455

1/2 PAGE 1,525 1,405 1,340 1,165

1/3 PAGE 1,080 1,010 955 830

1/6 PAGE 725 670 640 555

PRICING FOR PREFERRED POSITIONS AVAILABLE UPON REQUEST

OFFICIAL PROGRAM GUIDE OF THE HOUSTON SYMPHONY

39

Exhibit 11 - Digital Photo Pro Cover

40

Exhibit 12 - Digital Photo Pro Rates

GENERAL ADVERTISING RATES

BLACK & WHITE

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $11,175 $10,740 $10,320 $9,910 $9,505 $9,125

2/3 Page 8,515 8,170 7,835 7,525 7,240 6,965

1/2 Page 6,485 6,210 5,970 5,730 5,495 5,295

1/3 Page 4,940 4,740 4,540 4,360 4,185 4,025

1/4 Page 3,760 3,585 3,450 3,330 3,185 3,065

1/6 Page 2,855 2,730 2,635 2,515 2,435 2,330

1/12 Page 2,195 2,090 2,020 1,915 1,855 1,775

1-inch 1,120 1,065 1,015 965 950 895

BLACK & 1 PROCESS COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $12,725 $12,225 $11,750 $11,275 $10,820 $10,385

2/3 Page 9,705 9,290 8,935 8,575 8,240 7,915

1/2 Page 7,360 7,085 6,785 6,530 6,265 6,030

1/3 Page 5,600 5,380 5,175 4,975 4,760 4,580

1/4 Page 4,260 4,105 3,925 3,780 3,640 3,475

FOUR-COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $14,895 $14,315 $13,765 $13,205 $12,650 $12,150

2/3 Page 11,335 10,895 10,465 10,025 9,625 9,250

1/2 Page 8,630 8,285 7,955 7,625 7,335 7,020

1/3 Page 6,550 6,285 6,050 5,815 5,575 5,360

1/4 Page 4,995 4,775 4,595 4,425 4,240 4,060

COVERS

1 time 3 times 6 times 9 times 12 times 18 times

Cover 2 $16,680 $16,025 $15,395 $14,775 $14,180 $13,600

Cover 3 15,805 15,160 14,555 14,000 13,420 12,885

Cover 4 17,880 17,165 16,505 15,825 15,190 14,590

SPECIAL CLASSIFICATIONBLACK & WHITE

1 time 3 times 6 times 9 times 12 times 18 timesFull Page $7,765 $7,460 $7,165 $6,885 $6,625 $6,3352/3 Page 5,905 5,695 5,450 5,240 5,015 4,8301/2 Page 4,495 4,345 4,165 4,005 3,825 3,6901/3 Page 3,425 3,285 3,165 3,040 2,925 2,8051/4 Page 2,610 2,515 2,395 2,310 2,235 2,1351/6 Page 2,000 1,915 1,840 1,755 1,675 1,6401/12 Page 1,520 1,480 1,400 1,355 1,305 1,2551-inch 780 765 705 680 660 645

BLACK & 1 PROCESS COLOR1 time 3 times 6 times 9 times 12 times 18 times

Full Page $9,005 $8,650 $8,320 $7,980 $7,680 $7,3602/3 Page 6,865 6,605 6,335 6,070 5,835 5,6001/2 Page 5,210 5,015 4,815 4,615 4,425 4,2601/3 Page 3,985 3,810 3,665 3,520 3,385 3,2301/4 Page 3,025 2,910 2,790 2,685 2,570 2,470

FOUR-COLOR

1 time 3 times 6 times 9 times 12 times 18 timesFull Page $10,555 $10,150 $9,745 $9,365 $8,990 $8,6302/3 Page 8,035 7,715 7,405 7,120 6,845 6,5501/2 Page 6,125 5,890 5,650 5,410 5,190 4,9951/3 Page 4,665 4,475 4,280 4,120 3,945 3,8101/4 Page 3,545 3,400 3,270 3,145 3,025 2,910

MARKETPLACE

1 time 3 times 6 times4.75-inch $1,610 $1,545 $1,4903-inch 1,360 1,310 1,12502-inch 1,000 965 9201-inch 640 610 590

CLASSIFIEDS

Words $35 eachRed Words 50 eachBorders 65

WERNER PUBLISHING CORPORATION • 12121 WILSHIRE BOULEVARD, SUITE 1200, LOS ANGELES, CA 90025PHONE: (310) 820-1500 • FAX: (310) 826-5008 • WWW.DIGITALPHOTOPRO.COM

Rate Card #8Effective January 2009

2009RATES

®

Bleed covers and body units are an additional 10%. No charge for gutter bleed only. Oversized material that requires bleed handling will be charged the bleed premium.

41

Exhibit 13 - PC Photo Cover

42

Exhibit 14 - PC Photo Rates

GENERAL ADVERTISING RATESBLACK & WHITE

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $14,970 $14,365 $13,800 $13,245 $12,715 $12,205

2/3 Page 11,380 10,930 10,485 10,070 9,660 9,280

1/2 Page 8,655 8,310 7,975 7,655 7,345 7,055

1/3 Page 6,580 6,315 6,070 5,820 5,585 5,365

1/4 Page 5,000 4,800 4,605 4,430 4,250 4,075

1/6 Page 3,810 3,655 3,505 3,370 3,230 3,110

1/12 Page 2,895 2,780 2,670 2,565 2,465 2,365

1-inch 1,450 1,395 1,340 1,290 1,240 1,190

BLACK & 1 PROCESS COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $16,840 $16,160 $15,515 $14,900 $14,305 $13,730

2/3 Page 12,800 12,290 11,805 11,325 10,870 10,435

1/2 Page 9,730 9,340 8,970 8,610 8,265 7,930

1/3 Page 7,400 7,100 6,815 6,550 6,290 6,035

1/4 Page 5,630 5,395 5,190 4,975 4,780 4,590

FOUR-COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $22,470 $21,570 $20,710 $19,880 $19,090 $18,325

2/3 Page 17,080 16,400 15,740 15,110 14,510 13,930

1/2 Page 12,980 12,470 11,970 11,490 11,030 10,595

1/3 Page 9,870 9,475 9,100 8,735 8,380 8,045

1/4 Page 7,500 7,210 6,910 6,640 6,375 6,125

COVERS

1 time 3 times 6 times 9 times 12 times 18 times

Cover 2 $25,330 $24,315 $23,345 $22,410 $21,510 $20,655

Cover 3 24,340 23,360 22,430 21,540 20,670 19,850

Cover 4 26,220 25,170 24,175 23,210 22,275 21,385

SPECIAL CLASSIFICATIONBLACK & WHITE

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $10,995 $10,560 $10,135 $9,725 $9,340 $8,965

2/3 Page 8,360 8,025 7,705 7,400 7,105 6,810

1/2 Page 6,360 6,105 5,855 5,625 5,400 5,185

1/3 Page 4,825 4,640 4,455 4,275 4,105 3,940

1/4 Page 3,680 3,525 3,390 3,260 3,125 3,000

1/6 Page 2,800 2,685 2,575 2,480 2,375 2,280

1/12 Page 2,130 2,050 1,955 1,885 1,805 1,735

1-inch 1,070 1,030 985 955 915 870

BLACK & 1 PROCESS COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $12,850 $12,330 $11,835 $11,370 $10,910 $10,470

2/3 Page 9,770 9,375 8,995 8,640 8,290 7,965

1/2 Page 7,425 7,125 6,840 6,565 6,300 6,055

1/3 Page 5,645 5,425 5,200 5,000 4,800 4,605

1/4 Page 4,290 4,120 3,955 3,805 3,650 3,505

FOUR-COLOR

1 time 3 times 6 times 9 times 12 times 18 times

Full Page $14,675 $14,095 $13,535 $12,990 $12,470 $11,970

2/3 Page 11,160 10,720 10,285 9,880 9,480 9,100

1/2 Page 8,490 8,145 7,825 7,510 7,205 6,920

1/3 Page 6,455 6,190 5,940 5,710 5,480 5,265

1/4 Page 4,905 4,710 4,525 4,345 4,170 4,005

MARKETPLACE

1 time 3 times 6 times 9 times

4.75-inch $1,820 $1,745 $1,675 $1,630

3-inch 1,360 1,310 1,250 1,215

2-inch 1,000 965 925 895

1-inch 640 640 590 575

WERNER PUBLISHING CORPORATION • 12121 WILSHIRE BOULEVARD, SUITE 1200, LOS ANGELES, CA 90025PHONE: (310) 820-1500 • FAX: (310) 826-5008 • WWW.PCPHOTOMAG.COM

Rate Card #14Effective January 2009

® 2009RATES

Bleed covers and body units are an additional 10%. No charge for gutter bleed only. Oversized material that requires bleed handling will be charged the bleed premium.

43

Exhibit 15 - Outdoor Photographer Banner Rates

2009 Online Ad Rates & Specs

Outdoor Photographer inspires visual trips, taking visitors todestinations they never thought possible. Focusing on scenics,travel, wildlife and sports, Outdoor Photographer draws visitors whoconsistently rank among the best consumers for photo products.

• outdoorphotographer.com is the amateur and professionalphotographers’ online source for cutting-edge photo products,travel locations and how-to articles.

• outdoorphotographer.com has established itself as the onlinesource for landscape, nature and wildlife photographers lookingfor equipment and how-to information.

• Our monthly page views have increased by 137% in 2H ’08.• We expect continued double-digit growth in website trafPc in 2009.

PCPhoto focuses exclusively on the world of digital photographyand video as it relates to the enthusiast. Its website,pcphotomag.com, offers online articles with expanded tutorials andillustrations that provide digital-imaging enthusiasts with the toolsand instruction necessary to perfect their digital photography skills.

• Since the site relaunch in February ’08, pcphotomag.com hasgrown tremendously. Page views in January ’06 were 135,489;in January ’08, they were 454,894—an increase of 336%.

• Our monthly page views have increased by 76% in 2H ’08. Weexpect continued double-digit growth in website trafPc in 2009.

• Our weekly “Tip of the Week” e-mails have been very successfulin driving trafPc to the website. The database is growing daily.

Digital Photo Pro provides the essential blend of artistic inspirationand digital technology information for professional and advancedphotographers. Our website, digitalphotopro.com, is a direct extensionof digital workQow technique and technology, and is the online guide toadvanced creativity and technology, as well as the complete sourcecovering professional and advanced photographers’ equipment needs.

• digitalphotopro.com was relaunched in July ’08 and hasestablished itself as the leading authority of information andinspiration for working professional photographers.

• Page views were 10,449 in January ’06; in January ’08, they jumpedto 185,586—an increase of 1,778%.

• Our monthly page views have increased by 130% in 2H ’08. Weexpect continued double-digit growth in website trafPc in 2009.

• digitalphotopro.com offers a unique combination of beautifulimages and practical information. There’s nothing else like it.

Werner Publishing Corporation • 12121 Wilshire Boulevard, Suite 1200, Los Angeles, CA 90025Phone: (310) 820-1500 • Fax: (310) 826-5008

Werner Publishing Corp. produces upscale enthusiast publications in the photography, golf andaviation categories. Our goal is to produce media product that attracts passionate and engagedaudiences. You can reach them with the powerfulWerner Publishing Imaging Group websites.

outdoorphotographer.com

pcphotomag.com

digitalphotopro.com

44

Exhibit 16 - Distribution Flow Chart

45

Exhibit 17 - UPS Supply Chain Solutions

Nikon Focuses on Supply Chain Innovation —and Makes New Product Distribution a Snap

Top consumer goods manufacturers now recognize that success requiresmore than just making market-leading products. Having the right distribution network is just as critical. Nikon Inc. is the world’s leader inprecision optics, 35mm and digital imaging technology. So it’s no surprisethat when the company saw the next big trend in photographic technology—digital cameras—they were ready to deliver with some of the mostadvanced product designs in the marketplace. But to ensure that retailerscould meet the demand of tech-hungry consumers and professional photographers, Nikon, with the help of UPS Supply Chain Solutions,reengineered its distribution network to keep them well supplied.

Client Challenge

To support the launch of its new digital cameras, Nikon knew that customer service capabilities needed to be completely up to speed from thestart and that distributors and retailers would require up-to-the-minuteinformation about product availability. While the company had previouslyhandled new product distribution in-house, this time Nikon realized thatburdening its existing infrastructure with a new, demanding, high-profileproduct line could impact customer service performance adversely.

“In our business, it’s not enough just to produce leading-edge products,”said Arnold Kamen, Nikon’s Vice President of Operations and CustomerService. “Having the ability—and visibility—to predict how much merchandise is available and when it can be distributed makes the difference in staying ahead of customers’ needs.”

For Nikon, that meant applying its well-known talent for innovation to creating an entirely new distribution strategy and taking the rare step of outsourcing distribution of an entire consumer electronics product line.With UPS Supply Chain Solutions on board, Nikon was able to quicklyexecute a synchronized supply chain strategy that moves product to retailstores throughout the United States, Latin America and the Caribbean,and allows Nikon to stay focused on the business of developing and marketing precision optics.

Consumer Goods

case study

Nikon

GEOGRAPHIC AREA SERVED

United States, Latin America and the Caribbean

CHALLENGE

Design and implement new distribution strategy to introduce Nikon product line.

SOLUT ION

Integrated system for managing inbound air and ocean freight, repackaging and kitting productsfor final distribution.

RESULTS

• Significantly shortened Nikon’s supply chain

• Increased speed to market

• Enabled higher level of serviceto retailers

• Improved product visibilityacross the supply chain

UPS Supply Chain SolutionsSM

46

Exhibit 17 - UPS Supply Chain Solutions

Our Solution

Starting at Nikon’s manufacturing centers in Korea, Japan and Indonesia,UPS Supply Chain Solutions manages air and ocean freight and relatedcustoms brokerage. Nikon’s freight is directed to Louisville, Kentucky,which not only serves as the all-points connection for UPS’s global operations, but also is home to the UPS Supply Chain Solutions LogisticsCenter main campus. Here, merchandise can either be “kitted” with accessories such as batteries and chargers, or repackaged to in-store display specifications. Finally, the packages are distributed to literallythousands of retailers across the U.S., or shipped for export to LatinAmerican or Caribbean retail outlets and distributors, using any of UPS’sworldwide transportation services to provide the final delivery.

With the UPS Supply Chain Solutions system in place, the process calibrates the movement of goods and information by providing SKU-levelvisibility within complex distribution and IT systems. UPS also providesNikon advance shipment notifications throughout the U.S., Caribbeanand Latin American markets. The result: a “snap shot” of the supplychain that rivals the performance of a Nikon camera.

Nikon has already seen the results of its innovation in both digital technology and product distribution. The consumer digital camera sector is one of Nikon’s fastest growing product lines. In addition, supply chainperformance and customer service are measurably improved. Productsleaving Nikon manufacturing facilities in Asia can now be on a retailer’sshelf in as few as two days. While products are en route, Nikon also hasthe ability to keep retailers informed of delivery times and to adjust themas needed, so that no retailer needs to miss sales opportunities due to lack of product availability.

UPS Supply Chain Solutions is forging a broad spectrum of creative solutions to support the Nikon supply chain, including logistics, transportation, freight and customs brokerage services. Synchronizingthose pieces to work together gives Nikon a significant advantage in leveraging the competitive strengths of UPS Supply Chain Solutions.

“Through a combination of UPS services, we have been able to greatlyshorten our supply chain,” Kamen said. “Although we are achievinggreater speeds, we have better visibility of our products, which enables us to provide a higher level of service to retailers and ultimately, the final customer.” Once again, Nikon leads the market in leveraging the latestdevelopments in technology.

UPS Supply Chain SolutionsSM

“Having the ability—

and visibility—to

predict how much

merchandise is

available and when

it can be distributed

makes the difference

in staying ahead of

customers’ needs.”

—Arnold Kamen,

Vice President of Operations and

Customer Service,

Nikon Inc.

© Copyright 2005 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved. 10% Post-consumer goods ECS.SCS.CG.503 10/05

For more information please contact us 1.800.742.5727 U.S. 1.678.746.4365 Internationalinfo@ups-scs.comVisit us at ups-scs.com