Ned Bunnell was appointed president of Pentax Imaging Company in October 2007. An industry veteran, Bunnell is also an avid photographer who operated two studios in the past, most recently Bunnell Photography in San Clemente, California. He has said in his blog, “I’m very fortunate to have a day job that combines my love of photography with marketing cameras.”

We asked Ned to share with us his vision for Pentax, and the challenges that face this venerable brand.

JG: As the new president of Pentax Imaging, what is your greatest challenge?

NB: Understanding the realities of the U.S. camera market, we need to position Pentax as an excellent niche brand. Our goal is not necessarily to be the best selling brand in the DSLR category or the point-and-shoot category. However, we have products with outstanding features, and we want to be sure that our target customers and dealers recognize we are a really good choice when it comes to well-designed cameras and great lenses.

What might surprise dealers about Pentax?

I think there are some misconceptions about Pentax among dealers that we need to address. First of all, we were late to the digital camera market, and we lost an awful lot of shelf space; it’s tough to come back late in the game and recapture that space. Second, we haven’t really had consistent programs that were tailored to the needs of our photo dealers, so there was concern whether Pentax was going to be a viable player.

The good news is that the recent acquisition by Hoya is very positive for the Pentax brand. There were lots of rumors of Hoya wanting to acquire Pentax solely for our medical business. However, Hoya spent $980 million for Pentax, and most of that value was for our camera business. With this kind of investment, Hoya is very committed to maintaining and growing the Pentax camera brand.

For example, the new K20D and K200D digital SLRs are important brand “ambassadors.” Dealers will continue to see strong products from us, along with support programs. It’s our signal to them that we’re back and we want to work with them.

Who is your target audience for your line of cameras, and how are you trying to reach them?

Looking at the DSLR market, we think the value propositions of the K20D and K200D are ideally suited to advanced amateurs and serious photographers. For the dollar, we’re offering truly advanced features you wouldn’t normally see from other manufacturers. We’re striving to deliver cameras for those photographers who want the flexibility and control over how they shoot a given scene or subject, by offering in-camera tools and functions that can be customized to match each photographer’s approach.

Of course, the target customer for our compact line is a bit different; the Optio waterproof series is the best example whereby we’re not trying to go after the widespread “commodity” demographic. We’re focusing on outdoor enthusiasts. The W series is used by surfers, snowboarders, kayakers, skiers, vacationers, so we’re trying to appeal to the outdoor niche with products that deliver benefits specifically geared for their lifestyle.

Pentax is an old-line brand that has tried to break through in the digital arena. How do you update a classic brand in today’s environment?

There’s nothing wrong with our brand; Pentax is a great company with a long tradition of camera innovations. But on Main Street America today, many people under 40 do not know enough about who we are. So, we have to increase awareness about the Pentax brand to a younger demographic. During the past few years, we have shifted the average purchaser age of our waterproof Optio W-series cameras down to the early 20s to late 30s. We’re using these products to help our brand resonate with a younger target audience and more active lifestyles.

Another way to update our brand relevance among a new audience is to offer new “breakthrough” products that will help change the perception of the company. We started to do this last year with the K10D; we offered a serious advanced camera with great features, and it created a lot of buzz and garnered industry awards as the most advanced DSLR under $1,000. The new K20D, which replaces the K10D, adds even more advanced options and functionality, and it is a clear example that we’re very serious about this market. Offering features like our 14.6 CMOS sensor, the highest resolution in its class, an abundance of shooting and image controls, and weather sealing shows we’re listening to our users’ needs. We believe we’re delivering products that will withstand the scrutiny of demanding photographers, dealers, analysts and photo Web forums, signaling to everyone we are back and Pentax cameras should be considered a worthy addition to anyone’s camera bag.

The DSLR business is hot, but it’s tough to break through to the top of the pack. What are your goals in this market?

First and foremost, we know we have to think and market like a niche player. We have no intention of trying to unseat the big two players in DSLRs. We’ve seen claims by other well-established brands that optimistically state they intend on capturing 20 percent or more of the market in the next few years, which means there will be tremendous competition and money spent on securing and holding on to the top three spots. We believe we can be successful and profitable if we can grow our digital SLR share in the U.S. from 4 percent to 8 or 10 percent by 2010. Using a car analogy, we need to act more like a Subaru—offer the right features, know who our customers are and market to an audience through dealers that understand our value.

For example, being a niche player, we accept we can’t participate in the big-box stores. We don’t represent the volume they require. So in 2008, we have to find those specialty dealers who value what Pentax offers and make sure they’re able to communicate to customers coming in that they should consider the Pentax brand—be it a DSLR, Optio compact camera or binoculars. If a customer coming into a store can hold a Pentax DLSR, feel the ergonomics and appreciate its features, the photo specialty dealers will help us move people to a Pentax. And we think specialty dealers will appreciate not having to compete with the big-box stores for our business.

The Pentax K1000 was “the” student camera in the 1970s and ’80s. Are there any plans to try to recapture the younger market?

I don’t think it’s relevant to compare the K1000 to what’s happening in the digital marketplace today—times are different. And, despite the fact that Pentax had great success with the K1000 in the ’70s and ’80s, as the photography student’s first SLR, when it was time to upgrade, many of them moved up to another brand. So we never gained a long-term relationship with these customers. With that in mind, we’re taking a different approach this year.

If you look at the K200D, which is priced at $799, we are clearly not positioning this as a bare-bones entry-level camera. While other companies are releasing lower cost DSLRs, they are very limited in the advanced features they offer. They’re really point-and-shoot cameras in an SLR body. What we tried to do in the K200D is to combine easy-to-use shooting modes and advanced camera features, all in one body, rather than going just for a price point. Our feeling is that someone who is new to using a DSLR can explore and expand their photography skills with our K200D. And as they become more accomplished as a photographer, they’ll appreciate all the advanced features they can take advantage of in the K200D, rather than having to buy a new camera body.

Is that good for the dealers?

If we can demonstrate there is a big difference between a $499 camera and a more advanced, featured $799 camera that a customer will be able to grow with, it will help our dealers increase their margin—and allow them to show a growth path by selling additional accessories. So, the margin opportunity is better for the dealer, and it gives the customer the ability to come back in a few months and look for lenses, filters, tripods and other higher margin products that help dealers grow their business.

How are you looking to position your Optio line in the compact digital market?

With compact cameras becoming more of a commodity, we’re trying to focus on certain niches. For example, our Optio waterproof line offers cameras that satisfy a very specific need for those who want to photograph in inclement weather. Most compacts would not be able to survive this user experience, and this is a unique value we can attribute to the Pentax brand. From a channel standpoint, it makes no financial sense for us to compete for volume in the compact camera business. Therefore, we’re going to be reducing the number of outlets we sell our compact cameras through. We want to work with those dealers who have an interest in supporting the full line of Pentax products, including digital SLRs, Optio compact cameras and binoculars. You’ll see us going narrower and deeper, with products that fit very well with our DSLRs and represent a total opportunity to sell the complete Pentax story.

What is Pentax’s great challenge and its greatest threat?

Our greatest challenge is growing our business in this market as a niche player, where we can focus on those customers who value us as a real choice, and do it in a way that is self-sustaining. We have to grow our share and do it in a way that makes sense for the dealers who work with us. Our greatest threat is continuing to be a camera company with great products that not enough people know about, so we need to increase the number of people who walk into stores asking for Pentax. We’re going to do that by working with dealers in local markets and customizing programs for them to help bring people into their stores asking for Pentax, and at the same time delivering marketing programs aimed at increasing awareness and creating Pentax loyalty.

What keeps you up at night?

Knowing that Pentax is a great brand, with a strong heritage, and understanding that we need to reestablish our brand as a viable player in the U.S. For me, this is a very exciting time. I love the challenge and I love the opportunity. There are so many things to work on that I don’t have much time to sleep.