Sony

Jennifer Busacca, Trevor Helms, William Logan, Stephen Remillard & Stephen Giusti

Group No. 7

 In the past year. and Asian countries   Sony Company Background .Sony Corporation has been a leader in motion picture. The company operates globally in over 204 countries across Japan. annual sales in the fiscal year end of March 31.500 people worldwide. music and online businesses. television. With a high level of brand awareness amongst most consumers.7 billion. 2008 estimated $88. North America. computer entertainment. Europe. Sony has become a widely recognized global brand. and it employs 180.

there is a great opportunity for Sony to capture a large share of this market.S. despite the economic down turn in the U. Sony Marketing Objective . as well deliver corporate value to their customers and partners. Because the electronic consumer market is such a large industry.Our marketing team is focused on increasing sales for Sony’s electronic products.

Overall. this has resulted in size reduction of TV screens.Sony has experienced declining sales in consumer electronics. has forced the company to respond to the declining unit price. as well as fierce price-cutting competition.  Elimination of more than 16.000 jobs. which in-turn. Joint-ventures including Sony Ericsson Mobile Communications & Samsung LCD panels. Sony Marketing Challenge . and a shutdown of a total of six production bases.   Price increases in both raw materials and parts will be a challenge to manufacture electronic devices and maintain competitive pricing.

and information technology products Innovative quality products ◦ “Sony’s innovation has become a part of mainstream culture” ◦ Long list of First   Diversification across markets Sony SWOT ANALYSIS: Strengths . video. communications. One of the world’s largest manufacturers of electronics.

 Decline in product competiveness  Inefficient manufacturing structure  Consumer Satisfaction Sony SWOT ANALYSIS: Weaknesses .

2 billion for 2009 • • Sony Opportunities . withdraw from certain areas ◦ Large scale.• Business Reorganization ◦ Allocate management resources ◦ Divest. and trust Expand Consumer Electronics Market ◦ Industry expected growth of $171 billion in 2009 ◦ Blu-Ray DVDs expected sales more than $1. downsize. world wide layoffs Partnership with FIFA ◦ Sponsorship includes 2010 & 2014 World Cups ◦ Enhance brand awareness. recognition.

 Integration of joint ventures & alliances ◦ Aligned with Samsung to market S-LCD panels ◦ Result was net loss of $100 million for fiscal year 2005-2006  Increasing price of raw materials ◦ Unstable supply & demand conditions ◦ Currency exchange risk ◦ Expected increase of $350 million for 2008-2009 fiscal year (little Sony can do about it)   Counterfeit goods Intense competition (more on next slide) Sony Threats .

 Huge competitors in every business at every level (consumer electronics. profit. movies. operating profit ALL increased in fiscal year 2007-2008 Sony operating income down 57. games) Low PBR (price-to-book ratio) LCD TVs are Sony’s leading revenue driver ◦ At a disadvantage since they don’t make LCD panels (all their competitors do)     Toshiba and Sharp top competitors in Japan Panasonic net income. music industry.2% for same period  Sony Competitor Analysis .

• • Sony Sony has been a leader in motion picture. TV shows. music and online businesses. television. computer entertainment. which delivers exceptionally crisp and detailed images by quadrupling the frame rate of conventional LCD TVs. Product Strategy . The product that demonstrates this leadership is Sony’s new BRAVIA XBR9 series televisions. – Full HD vibrant screen – Sony’s new Motion flow 240Hz technology. and sports out there. Major Features: – Ethernet connection that gives the largest selections of free and premium movies.

99 for 40” The price of the XBR9 series is designed and priced to be competitive with Samsung and LG HDTV’s  Sony Pricing Strategy .599.99 for 52” ◦ $3.799. The suggested retail price will be: ◦ $3.99 for 46“ ◦ $2.099.

Sony Marketing Strategies .

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Sony Target Market . ◦ Sony will focus on expanding their segments in the women’s market.  Women make up over half the sales in consumer electronics and influence over 80% of purchases. Demographics ◦ Sony is a diverse brand that provides products and services for a wide variety of people.

 Market Leader ◦ Sony is the market leader in electronics.  In particular Sony is the number one leader in television market share. Quality ◦ Sony strives on innovative products that are easy for consumers to use. Sony Differentiation .

and convenient.Sony is one of the world’s greatest brand in the eye of the consumer.  Mainstream culture has embraced Sony’s innovation.  Sony products are considered to be high quality. unique.  Sony Positioning .

$300 for the 46”.99 retail ◦ $360 for the 55”. No interest and no payments for 24 months if the customer applies for the new Sony Financial Services Card at point of purchase. $280 for the 40”   Introduction of a new tagline created to target LG Electronics tagline “Life’s Good” ◦ “Now Life’s Better” Sony Promotional Strategies . Save up to $360 when they bundle the BRAVIA XBR9 series LCD HDTV with the new BDP-S360 Blu-ray Disc Player ($299.

Sony Managerial Implications & Recommendations . which will provide an opportunity to capture a large share of the electronic market. and capture the growth opportunities in technology developments . and overall marketing attitudes to suit different demographics. •Digital Cameras & Camcorders •Mobile Phones •LCD Televisions •Semiconductor Innovation.•Sony will have to retool their products. •Computer/handhelds & Peripherals. •Bring a strong presence to e-products & innovative devices. •Decrease the number of materials and parts required to manufacture. and keep costs down.

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