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Project Report on

MARKETING STRATEGIES OF SONY
CORPORATION

Submitted by

PRIYA S. KALAMBE

MASTERS IN COMMERCE SEM-IV (business
management)

ACADEMIC YEAR 2016-2017

Roll No.1615517

Project Guide

Prof.SHREE VARAHAN

Submitted to

UNIVERSITY OF MUMBAI

MULUND COLLEGE OF COMMERCE

S.N ROAD, MULUND (W)

MUMBAI 400 080

1

DECLARATION

I, Ms. Priya S. Kalambe, the student of MULUND COLLEGE OF

COMMERCE, S.N Road, Mulund (W), Mumbai 400 080, studying in M.Com

part-II (Business Management) here by declaring that I have completed this

project “Marketing Strategies” during the academic year 2016-17. The

information submitted is true and original of best of my knowledge.

Date: Signature:

Place: MUMBAI

2

CERTIFICATE

I, Prof. Shree Varahan, here by certify that Ms. Priya S. Kalambe of

MULUND COLLEGE OF COMMERCE, S.N Road, Mulund (W), Mumbai

400 080, studying in M.Com part-II (Business Management) here by declaring

that have completed this project “Marketing Strategies of Sony Corporation”

during the academic year 2016-17. The information submitted is true and

original of best of my knowledge.

Signature: (Project Guide) Signature:

(Principal)

Mr.Shree Varahan Dr. Mrs. Parvathi

Venkatesh

Signature: (Co-Ordinator) Signature (External

Examiner)
Mr. Shivaji Pawar

3

ACKNOWLEDGEMENT

It was a enriching and learning experience for me to do this Project. I

would like to acknowledge all those people who have continuously guided me

throughout and helped me in completion of my project “Marketing Strategies

of Sony Corporation”

I would like to thank our principle Dr.Mrs. Parvathi Venkatesh and

also our and project co-ordinator Mr. Shivaji Pawar.

I am really thankful to my project guide Prof.Shree Varahan for their

complete help and support to complete this project.

I am also thankful to our non-teaching staffs of my college especially the

library staffs for their help.

I would also like to thank to all the respondents who have helped me

for collection of data, for their honest participation in the Research and helped

me directly or indirectly in successful completion of this study for their help and

cooperation throughout the project.

Date: Name:
Reg. No. Signature:

4

DECLARATION BY THE LEARNER This is to declare that I have carried out this project work myself in part fulfillment of the degree MASTER OF COMMERCE (Business Management) PART-II under the guidelines of “UNIVERSITY OF MUMBAI” The work is original. Date: Signature: Place: MUMBAI Name: 5 . has not been copied from anywhere else and has not been submitted to any other university/Institute for an award of any degree/diploma.

4 billion) for the year ends in March 2012. Externally. Facing these external challenges. and entertainment products. Restructurings were done on a small scale. EXECUTIVE SUMMARY Sony Corporation. Sony also experienced bad luck with the Great East Japan Earthquake. a leading Japanese manufacturer of electronics. Within the electronics and game industry. Sony’s main strategic problem lies in its numerous product lines that serve too many parts of the entertainment value chain. and thus reduced the overall demand for Sony. After reviewing Sony’s business model. has reported losses for four consecutive years. Sony’s technological innovation gradually lost their edge against their competitors. history and financials. Sony’s management team was relatively conservative. with Sony’s stock price falling by more than half in 2011. they also face other external and internal challenges. The company announced a record annual net loss of 520 billion yen ($6. and conducting a 6 . The initial calamity and its aftermath disturbed Sony’s operations and caused excessive restoration costs. Finally. game. All of the above factors caused investor confidence in the company to drop dramatically. In addition to the problem of dis-synergies among Sony’s product lines. and mergers and acquisitions were rarely conducted. but also impaired their competitiveness in all of the market segments they are engaged in. the appreciation of the Japanese Yen adversely affected the purchasing power of Sony products by non-Japanese consumers. increasing competition made it difficult for Sony to retain market share. The “empire-building” strategy not only caused the company’s innovation and operation to slow down. The global economic crisis starting in 2008 further aggravated Sony’s profitability as consumer spending dropped significantly during the recession.

7 . we suggest that the financial services division hedge the macroeconomic risks that Sony Corporation as a whole is facing. We first recommend Sony’s management team to find a market segment to focus on and develop their competitive advantage within that segment. we recommend that Sony acquire more aggressively within that segment to increase market share. we propose some strategic recommendations for Sony. Furthermore. we recommend that Sony refine their quality control system in response to their recent quality scandals and increasing reliance on 4 external business partners. reduce manufacturing costs. In addition. and access new technologies and patents.Porter’s Five Forces Analysis and a SWOT analysis. Lastly.

TABLE OF CONTENTS CONTENTS PAGE Declaration Certificate Acknowledgement Declaration By The Learner Executive Summary Table of contents Chapter-1 Introduction 9 Chapter-2 Objective Of The Project 11 Chapter-3 Research Methodology 12 Chapter-4 Overview 13 Chapter-5 Company Outline 15 Chapter-6 Porter’s five forces Model 16 Chapter-7 Strategic Analysis 19 Chapter-8 SWOT Analysis 21 Chapter-9 Sony’s Marketing Strategy 25 Chapter-10 Assessment of Sony’s Marketing Strategy 31 Chapter-11 Marketing Mix 34 Chapter-13 Observation 42 Chapter-14 Recommendation 44 Conclusion 45 Bibliography 46 1.INTRODUCTION 8 .

Our unlimited passion for technology. our mission is to be a company that inspires and fulfills your curiosity. Both Masaru Ibuka and Akio Morita joined hands in making their dream of a successful global company a reality.Sony’s humble beginning started in Japan in 1946 from the sheer determination and hard work of two bright and enterprising young men. content and services. Sony's Story It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionate and committed group of employees started to build “Tokyo Tsushin 9 . Creating unique new cultures and experiences. At Sony. drives us to deliver ground-breaking new excitement and entertainment in ways that only Sony can. and relentless pursuit of innovation. is to move you emotionally. Everything we do.

the name Sony. The word “sonus” in Latin represents words like sound and sonic. Significant product milestones included Japan’s first transistor radio (1955). Walkman personal stereo(1979). Handycam videocamera (1989). 2. From early attempts at creating products like the rice-cooker to the later success of creating Japan’s first magnetic recorder. Easy to pronounce and read in any language. The main objective of the company was to design and create innovative products which would benefit the people. Used in combination. or “Tokyo Telecommunications Research Institute” into the billion dollar global conglomerate that it is today. Kenkyujo” (Totsuko). which has a lively ring to it. Sony is supposed to represent a very small group of young people who have the energy and passion towards unlimited creations and innovative ideas. the innovative company went on to create other hit products which won the company widespread recognition and international acclaim as a truly global company known for its quality and innovative products. With the far-sight of expanding worldwide. PlayStation(1994). The other word “sonny” means little son.OBJECTIVE OF STUDY  The objective of the project is to study the marketing strategies of Sony 10 . The company name of Sony was created by combining two words of “sonus” and “sonny”. fits comfortably with the spirit of freedom and open- mindedness. it was in 1958 that the company formally adopted “Sony Corporation” as its corporate name. Blu-ray Disc recorder (2003) and PlayStation 3 (2006). Trinitron colour television (1968).

11 . To analyse the marketing strategies of Sony  To observe the type of products provided by Sony SCOPE OF STUDY The scope of the study is to extend the knowledge about the marketing strategies of Sony 3.RESEARCH METHODOLOGY Information collected from Sony’s website and various books.

With relentless commitment to quality. digital concepts and personalized service that has ensured loyal customers and nationwide acclaim in the industry. focusing on the sales and marketing of Sony products in the country. consistent dedication to customer satisfaction and unparalleled standards of service. 4. OVERVIEW One of the most recognized brand names in the world today. Sony Corporation. 12 . In a span of 19 years. Sony India is recognized as a benchmark for new age technology. superior quality. Japan. Sony India has exemplified the quest for excellence in the world of digital lifestyle becoming the country’s foremost consumer electronics brand. established its India operations in November 1994.

more than 300 exclusive Sony outlets and 25 branch locations. Sony India also has a strong service presence across the country with 365 service outlets. Manned by customer friendly and informed sales persons. Relentless commitment to quality. Sony has established itself as a value leader across its various product categories of Audio/Visual Entertainment products. Business and Professional products Sony India is one of the most recognized consumer electronics brand in the country. A distinctive feature of Sony’s service is its highly motivated and well-trained staff that provides the kind of attentive and sensitive service that is rare today.Withbrandsnamessuch as BRAVIA. Sony’s exclusive stores ‘Sony Center’ are fast becoming the most visible face of the company in India. digital concepts and excellent after sales service. Xperia. with a reputation for new age technology. Memory stick® and PlayStation®. Recording Media. Sony is committed to ensuring that both the products and the marketing activities employed truly make a difference to people’s lifestyles and offer them new dimensions of enjoyment. Sony hi-fi.Xplod™. continuous dedication to customer satisfaction and unparalleled standards of service is what differentiates us from countless competitors and reflects a true image of all that is Sony. Handycam®. Sony has its footprint across all major towns and cities in the country through a distribution network comprising of over 20. Information and Communications. In India. Headphones. Alpha. 13 . Cyber-shot.000 dealers and distributors.

5. India. Managing Mr. Kenichiro Hibi Director: Date of Establishment November 17. New Delhi . Staff 900 Strength: Share Capital: INR 554 Million 14 . 1994 : Location: A-31.110044. Ltd. Mathura Road. Mohan Cooperative Industrial Estate. Company Outline Company: Sony India Pvt.

Game. Jaipur. Kolkata.Ray competes directly with HD-DVD 15 . 6. Vijaywada. Ranchi. Foxcon and Hitachi. Blu. Guwahati. Audio Video Accessories.Porter’s Five Forces Model for SONY Threat of New Entrants Intensity of competitive rivalry Threat of substitute products or services Bargaining power of customers (buyers) Bargaining power of suppliers Intensity of competitive rivalry • Since Sony’s market segment includes Electronic. Bhubansehwar. Japan Holding: Branch Delhi. among Sony’s existing and potential competitors like Samsung. Bangalore. Nagpur and Ludhiana (23 Direct Branch Locations) Business Marketing. Mobile Phones. For the past 5 years. Personal Audio. Mumbai. Car Audio and Visual Systems. Cochin. Ghaziabad. Gurgaon. Indore. Hi-fi Audios and Home Theater systems. Ahmedabad. Coimbatore. Game Consoles. Mangalore. Lucknow. Recording Media and Energy Devices. Video and Digital Still Cameras. Pictures. MP3 players and iPods have replace Sony’s Walkman. • Within Electronic segment has lost much of their market in audio. Chandigarh. Notebooks and Business Projectors. Chennai. Sales and After-Sales Service of electronic Activities: products & software exports Products: LCD Televisions. Pune. Offices: Hyderabad.Share 100% subsidiary of Sony Corporation. Financial Services and Joint Ventures. Apple.

Sony also need to reduce cost and keeping the price low like the achievement they have gain in producing LCD market. However.  Sony is currently the 4th rank in ‘The 100 Most Loved Companies’ by APCO worldwide and it is also one of the top 10 Best Global Green Brands that consumers associate with environmental conservation and sustainable business practices. They hold competitive cost over the rest of LCD market. • Segment analysis indicate that Sony will suffer loss in profit. high end design and product differentiation from the rivalry. 16 . this technology is twice expensive than HD-DVD. not many company will seek to compete with Sony because of the cost will be too high to compete with the electronics giants that already exist. PlayStation sales has problem with cost. Sony should improve loyalty amongst customer as customer purchase is not uniformly across Sony products. The rivalry will not show any weakening sign in near future. even though it offers superior graphic. • Sony leads market with Bravia line of LCD TV. while Blu-Ray offer crisper picture and more storage capacity. technology. HIGH Threat of New Entrants  Profitable markets that yield high return will attract new firms. Nintendo and newer version of android games witness faster sales then Play Station. • Sony needed to focus on technological innovation. This is a competitive threat for new industries to attract customer loyalty to establish brands.  A small player will also require strong relation with suppliers and efficient manufacturing processes otherwise they could not produce at low cost. This may attract consumer to be loyal to Sony brands and attract new buyer of those who support green product.

they still have threat of substitute product like iPod over Sony Walkman. and HD DVD over Blu-Ray.  Sony needs to think about competitors and customer loyalty too. PlayStation. so people can choose Sony over other substitute. HIGH Bargaining power of customers (buyers)  Customers have a choice of electronics product that they want to choose. Tablets and also Notebook. 17 .  Substitution like music download or streaming cause an effect on Sony recording music industry.  Beside Sony there are plenty of electronic business that are doing the same product as Sony like LCD. high quality graphic and superior technology. Patent right and government regulation keeps the threat of new entries low. Therefore customer bargaining powers are very high.  Since the price is high consumer switching to other products which is close to the substitute. Music Recording. HIGH Bargaining power of suppliers  The company that support and supplies parts for Sony. LOW Threat of substitute products or services  Although Sony has tries to differentiate their products through modern design. iPad or Android or Tablet Game over Sony PlayStation.

it continues until the product has been recycled or has been completely disposed of. As product 18 . LOW 7. " Prestige: Sony has strong brand quality . These companies rival with others to propose with lower price of parts. Sony is encouraging their employees engaged in product planning to take this long relationship into consideration. There are a lot of company that sells electronic parts which Sony can choose from. Sony's product quality. high quality products. Rather. Strategic Analysis Generic Business Level Strategies Differentiation: Sony differentiates itself from other companies by offering moderately priced. Sony also sets itself apart by offering a choice for everyone. service and supply chain activities are extensive.Their involvement does not end with a customer's purchase of a Sony product. Therefore the bargaining power is very low.

they will adjust their product communications accordingly to best serve their customers. they may offer more for same. if a customer is expecting more from one specific product. because in today's economic crises. what is new in updates are also on website. if a customer is expecting more from one specific product. more and more companies like Sony are offering more for the same. 2009). more and more companies like Sony are offering more for the same. Their products. However. on the turn side. The automated tutorials. Superior Quality: As product features and customer needs evolve over time. therefore. are marketed as being a high quality product.: emails. Sony is ahead in contributing social activities to help address the needs of communities in the regions around the world where Sony conducts its business. Sony offers many ways to get in contact with their technical support. Competitively High Prices: Sony offers a more for more deal and also a more for same. Their products. 19 . s/he has to expect to even pay more. especially televisions. Sony offers a more for more deal and also a more for same. therefore. s/he has to expect to even pay more. It also offers repair and support service. letters. they will adjust their product communications accordingly to best serve their customers. especially televisions.e. Sony offers many ways to get into contact with their technical support i. Quality Control Program: The quality control program is used to monitor how consumers respond to company's products and services. they may offer more for same. However.features and customer needs evolve over time. because in today's economic crises. news alerts." (Sony Corp Info. 2009). are marketed as being a high quality product. through contact us option on website." (Sony Corp Info. on the turn side.

etc. SWOT Analysis Strengths Substantial Brand Identity Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. etc. Interbrand valued Sony brand at $11 million.2% annually to reach a value of $136. Projected Growth in the Consumer Electronics Market The Consumer Electronics Market is expected to grow at a rate of 7. 8. reseller stores that sell Sony products can use the Internet to connect with any of their when purchasing materials like TVs. gaming systems.Rapid Innovation: Sony is company of first and famous for innovative products High Customer Service: On a corporate level.700 million in 2014. Customers can go to Sony's website when surfing online and do anything from downloading drivers to purchasing new products. Some resell stores have access to corporate entities through email and Sony's own website where each store can upload information on their financial situations. like TVs or electronics. Finally. Sony uses the Internet to keep track of all its stores and their performance. indicating which items are selling better than the others. The Internet creates an open communication line between customers and stores. stores and corporate and even suppliers and stores. Sony is uniquely positioned to take 20 . The brand remains healthy despite dropping from 25th to 29 in name recognition according to InterBrands 2009 ranking.

Recently. The firm plans on following its model of success experienced in India where it emphasized its television film. As the economic slump lingers. consumer confidence remains low and Sony has felt the impact in decreased revenues. India and China). Japan and Europe have had a disastrous impact on Sony. the US dollar and the Euro. The company has a goal of doubling its revenues in the BRIC markets. Threats The Continued Economic Slump The negative economic conditions in The United States. A stronger yen makes Sony’s products appear expensive in comparison and cuts into 21 . The company receives approximately 74% of its revenues from these markets. Sony’s recent reorganization has put digitally savvy and globally experienced staff in positions to maximize the potential seen in growth projections. These regions are emerging markets and represent over 40% of the worlds’ population. Impact of Strong Japanese Yen Sony is vulnerable to fluctuations in foreign currency exchange rates and exposed to fluctuations in the value of the Japanese yen. Strong Positioning in Emerging Economies Sony is firmly entrenched in the so-called BRIC economies (Brazil. Sony leadership has acknowledged that the downturn exposed weaknesses and vulnerabilities in the firm that have needed addressing for some time. Russia. the Japanese Yen appreciated significantly against the US dollar and Euro.advantage of this increase. and music product content. As one of the largest global companies in the industry Sony has the capacity to tap into changes in consumer demands as they emerge.

but may also be felt in fines and penalties in the wake of non-compliance. specifically Electronics down 17%. while revenues in Japan fell 15. The Impact of Compliance Regulations Environmental. The Impact of the Black Market Smuggled goods and counterfeit products have really plagued the electronics manufacturing industry in recent times. The firm acknowledges the need to implements effective hedging strategies to counter foreign exchange translation effects. Counterfeit goods are projected to double to 18% of total world trade by 2010.S Revenues were down 15. In the U. To maintain compliance the firm must incur capital and other expenditures. Pictures down 16. These knockoffs.4% and Financial Services down 7.the value of overseas earnings. health and safety compliance laws which impact Sony operations and production may be burdensome and have a negative impact on profits.2%.4%. Weaknesses Downward Trending Revenues Four major Sony division experienced revenue losses in 2009. Games down 18%. although cheaper and of less quality still the potential to divert revenues from Sony. China’s growing share of electronics production represents an increase in the number of potential counterfeit products in the market. Potential expenditures related to regulations are not limited to compliance. Poor Proximity of Production to Customers 22 . In addition.4 %.

Opportunities Joint Ventures and Strategic Acquisitions Sony benefits from the flexibility to enter into key join ventures and execute key corporate acquisitions. In FY2009. Approximately 60% of the annual production in Japan must be distributed to for other regions. established a joint venture project with Sharp to produce and sell large-sized LCD panels and modules. Another example includes its alliance with Taiwan’s Hon Hai Precision Industry for the production of LCD TVs.6 billion) increased at a rate of 62% over 2008. For example. which makes video integration solutions for the enterprise market. the group produced 50% of the electronics segment’s total annual production in Japan. Substantial Retirement Benefit Commitments The unfunded status of the pension liabilities (approximately $3. diverting money away from production related uses. Among recent acquisitions are the purchase of a TFT liquid crystal display (LCD) business from Epson Imaging Devices and Convergent Media Systems.Sony’s production facilities are located far from its customer base. Sizeable unfunded post retirement benefits would force the company to make periodic cash contributions. 23 .

Sony’s Marketing Strategies Â. In particular Sony is the number one leader in television market share. Sony Target Market 1. Sony Differentiation Quality: Sony strives on innovative products that are easy for consumers to use. Women make up over half the sales in consumer electronics and influence over 80% of purchases. 9. Sony will focus on expanding their segments in the women's market. 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. Sony Positioning: 24 .

The nature and demand of market comes for demand for new TVs and LCD or HD TVs. internal and external. Sony products are considered to be high quality. As competition drives the pricing. Factors affecting Pricing Strategy Different factors affect pricing policy of Sony i. Sony Promotional Strategies Company's pricing Strategy Sony TV's pricing strategy follows market-skimming. The price range of Sony TVs starts from $400 to more than $20.000. Mainstream culture has embraced Sony's innovation. and convenient. Marketing mix strategy. External factors: Nature and demand of market. Internal factors: Marketing objectives. unique. rather than following strategy of lowering its prices over time to skim successive market segments. 25 . Sony starts with high prices to sell its new TVs and then gradually lowers price. Sony website. cost and organization goals. and maintains its high prices.. and Sony is always in competition to offer best innovative quality products. product line pricing and product bundle pricing. These entire factors drive the high price for Sony quality products. the company of firsts.Sony is one of the world's greatest brands in the eye of the consumer. Sony use skimming price strategy for its high priced high quality products. Sony sets different levels of prices for Televisions with different features. competition and some other aspects.e.

Sony offers financing services partnering with GE Money.. Sports seasons. etc. When competition is heavily involved. more savings. 5 Sony reward points per $1 spent at SonyStyle. more prizes and more fun with Sony Card. Get instant approval and a $50 card credit after your first qualifying purchase of $249 or more1. and seasonal discounts are provided as well. and prizes. free music downloads more savings.Discounts Discounts are based on a corporate decision or the store that runs a sales promotion on the Sony Discounts are offered sometimes during the peak seasons like Christmas. the financing ranges from 6 months to 36 months 26 ." Recent offers are: Reward points on shopping. these promotional discounts are a "steal. such as around Black Friday.net and Sony Style Stores Offer a $ 50 Card credit after purchase of $ 249 or more Offers reward points. Christmas.

Best Buy. Sony provides opportunity to its customers to send feedback about the products they purchased. suggestions and ideas from customers and all the information received through feedback is sent to planning and design group.1Channel Blu-ray Disc. Save up to $360 when they bundle the BRAVIA XBR9 series LCD HDTV with the new BDP-S360 Blu-ray Disc Player ($299. TV advertisements.99 retail $360 for the 55". $300 for the 46". get free BDV-E5705. 27 . Times. No interest and no payments for 24 months if the customer applies for the new Sony Financial Services Card at point of purchase. Sony uses customer feedback to improve their products. $280 for the 40" Promotion This section describes the different sales promotions offered by Sony. Sony welcomes complains. and leading news papers worldwide. newspapers.Save big on selected BRAVIA EX700 series HDTVs. Target. Customer relationship management (CRM): Sony is strong believer in communication with customers through personal interaction. Wall-Mart. Market research and marketing strategy is based on feedback from customers. Advertising: Sony Electronics advertises through direct mail. Marketing is not an event but an ongoing process. magazines i.: Business week. Sony offers instruction manuals on all products.e.

To achieve this target Sony has incorporated e- business. Place/Location Geographically. Sony uses the internet to keep track of all its stores and their performance. Today Sony communicates with its customers. It offers different Videos and pdf brochures to help customers understand their business and products. individuals.Public relations: PR department of Sony Corporation works directly with the executive team to create strong relationship with public. This technology has created an open communication line between customers and stores. E. and corporate customers through the internet. On the corporate level. 2009). There is Sony a reward program which offers credit card and opportunities to win prizes and save on Sony products. stores and corporate and also between stores and suppliers. resellers. Web marketing: Web marketing is the most dominate feature of Sony. Sony produces and distributes to places all over the world. Sony is looking forward to capturing the voices of every customer for better customer satisfaction and effective communicate with them.Business: Sony's objective is to construct strong customer relationship marketing and direct communication with their customers. likes dislikes and needs. 28 . This creates people to be more customers based and involved with customers and their interest. (Sony Rewards. participates in entertainment games and earns additional points.

i.Commerce program Sony Electronic started an e-Commerce program to create a customizable world class internet platform for direct sales of electronic and its solutions. The result of online tutorials had been outstanding. Markets. governments. The 29 . Sony has received more than 90% rating from its customers. and education. Those who attend the course were more likely to buy the products as compared to those who have never attended course. home entertainment. Resell stores have access to corporate entities through email and Sony's website where they can upload information on their financial situation and also compare sell of different items.Customers can go on Sony website online and do anything from information on products to purchasing or products and downloading drivers for Sony products.e. With this e-Commerce program Sony Electronics got new direction and 60% of their direct sales are online. The project's focus was to increase direct sales in new and established markets and establish the customer relationship at all points of the customer life cycle. With the help this program Sony Electronics reacted into new segments in a number of markets from small to large business. digital photography and business solutions. Sony E.: online courses to enhance customer's total Sony experience. The online tutorials provide courses to online visitors in personal computing.consumer (B2C) was targeted. Building Customer Relationship: Marketers at Sony corporation have found a new way to with customers. Business-business (B2B). and business. The credit of the success of this program goes to Catapult System that helped Sony Corporation to complete this very important goal in efficient and timely manner.

Sony is also active in participating community awareness through its different social programs. 30 .success of this program allows Sony to move with great confidence in e-Commerce solution that fully meets with technical requirements of company 10. Assessment of Sony's marketing strategy A) Information in marketing strategy Sony has succeeded in proving value information to its customers through tutorial. pdf documents download. Sony's online course has been valuable source of formation regarding technology and its use. vide steams and through e-support to the customers who buy Sony products.

For further growth and to enhance profitability. 31 .: TV. Target profitability in core hardware business i.7 billion $) cost reduction for past fiscal year ending March. games. B) Sony defines business strategy for year 2010 Sony has been leader in innovative quality products and by the end of this year Sony will launch 3D Television. The aim for 2010 is to bolster profitability and transform its operation s with the aim of accelerating innovation and growth and optimize business process in electronics.e.With the support of e-business and effective management of CRM. Sony will focus on use experience rather than developing products on underlying technologies. Sony is positioned to launch succession of competitive products by the end of 2010. Sony has reformed its organizational structured as desired in 2009. Sony have provided valuable information and has received constructive feedback from its customers. digital imaging Provide new use experiences in innovation of services and hardware Reach out new customers and develop new geographic markets Increase focus on environmentally conscious products and processes Green management 2015 will come into effect in fiscal year 20100 and Sony will disclose its progress periodically. Sony achieved 80% of its targeted 330 Billion Yen (3. Sony is implementing further transforming measures on following four initiatives. 2010.

France. Global context in Sony's marketing strategy: Sony offers same products in different countries to serve the similar needs of worldwide consumers. Innovative quality products. Sony first started its show room s in New York and then in UK. Trinitron televisions. Other global strategies that enable Sony to progress in global competitions are the choice of the location. C) Global context in marketing strategy Sony's Global Strategies The vision of globalization is traced back when Mr. After that company established Sony Corporation of America an opened Sony showroom in New York City. This can be considered as Sony's first move in doing global strategy. Switzerland. developed pocket radio "Sony" after acquiring licensing right of patent from AT & T . Presently. and worldwide. play stations. strand brand and worldwide presence have made Sony a truly global company. By virtue of this core strategic advantages Sony adopted it as their global strategy by supplying innovative quality products to global market. in 1958.The Sony Radio became the first model that was distributed both in Japan and US markets. The innovative products are Walkman (personal stereo headphone) DVD Player. which are innovation. Sony is world's most recognized Brand (Richard A. Netherlands. 2002). US and Other Asian countries. 2010. Sony. global marketing and competitive move. Sony develops the global strategies from its core strategic advantages. Video camera. All such products became more and more recognized worldwide including Japans. Morita travelled to US with the intention to expand his business to US market. This successful strategy has derived from the strengths of Sony over competitors in terms of 32 .Sony target an annual 5% operating income margin and 10% return on equity by the end of fiscal year end ding March. Europe.

As a consequence of global availability and serviceability of Sony. This puts the Sony one step ahead over their competitors. the TR-55. the firm began using Sony logo on Totsuko products. called Soni-Tape. YVs. it has global recognition. In 1955. digital cameras.3 billion) during the financial year ended March 2009. the group changed its name to Sony. The group also launched Japan’s first transistor radio. during the same time. computers and the company recorded revenues of JPY7. paper-based recording tape. Today Sony has developed ‘TransferJet’. 11. digital video cameras.anticipating hidden consumer needs such as Walkman served worldwide consumers for entertainment.730 billion ($77. which enable Sony to be familiar in every country and as a result customers feel more comfortable. Sony Marketing Mix Four years later the company developed and produced Japans’ first magnetite- coated. a proximity wireless transfer technology enabling the high speed transfer of large data files between electronic devices such as mobile phones. In 1958. 33 .

these are rewards cards credit cards which allows customers to earn redeemable points when they purchase Sony products and services Price  HVRA1U C-MOS 1080i HDV Camcorder – Broadcast & Promotion. digital cameras.700.S. and other types of semiconductors  Games – PlayStation  Television and motion pictures  The company offers a Sony Card and a PlayStation card.00. CCD. 34 .  XCL5005 5 Mega Pixel PoCL B/W Digital Video Camera.S.377.S. Product  Audio – Home.00. List price – $1. List price - $2. List price – $4.00. List Price – $1.S.00.410.LCD.00. printers  Semiconductors. Listed Price – $5.  Medical Equipment Monitors & Displays GXDL52H1 52inch Full Hd Ruggedized LCD-U. DVD/Video players & recorders  Televisions – LCD televisions.Industrial & Professional U.U.  Security Systems – SNCCH140 Network 720p HD Fixed Camera with View-DR Technology U.298.750. portable and car as well as personal navigation systems  Video – Video cameras. Projection televisions CRT-based televisions  Information and computers – personal computers.S.  Total Performance Projector VPLDX10-2500 Lm 3LCD XGA Mobile Projector-U.

00 Place  Sony has an online presence in several formats.00 rebate (by mai)l following the purchase of a Sony HVR-V1U HDV Camcorder or a Sony HVR-DR60 Hard Disk Recorder/Player or a $300. Microland Electronics Corp. Bhd. Ltd. these are rewards cards credit cards which allows customers to earn redeemable points when they purchase Sony products and services. and Bell Microproducts.  Sony’s Rebate Zone website provides rebates such as the following $500.  Sony Product distributors that sell selling to VARs + System Integrators include: ASI Corp. Avnet Inc.com/bbsc/home. Denzuke Network Sdn.. Dongsheng International Trade Co. The site also has information on corporate applications for its offerings.. List price $8. Video Conference Devices PCSG70S – 4 Mbps High-End Video Communication System (Codec Only) U. Ltd. for examplehttp://pro. 35 .  Sony implements a discount coupon program offering 25% to 50% discounts on products such as PC speakers. Promotion  The company offers a Sony Card and a PlayStation Card.00 rebate by mail following the purchase of a Sony HVR-A1U HDV Camcorder.  Wholesale distributors of Sony Products include but are not limited to : Best wholesale co.S.sony. Front-Page Trade Co. Blue-Ray Disc Players. Ltd.do provides information on products and their prices.200. notebooks and laptops.

The strong focus on R&D helped the company to launch technologically innovative products in the market.  Sony has adopted a “Company of Committees” governance system in order to go beyond minimum compliance with legal requirements and to add additional transparency. This strategy lets the product to assume its own identity and positioning.  Sony operates from a philosophy it labels “uniquely Sony”.  The desire to make its hardware and interfaces that are easy to use was a catalyst behind recent reorganization of electronics into “Personal” and “Home categories.  Sony has a recently reorganized in order to further improve responsiveness and customer service. It has established a network of services tailored to the needs of local customers. lightest LCD TV featuring LED edge lighting. To accomplish this. The goal is to bolster consumer confidence in the product. but also draws strength of the corporate brand. Inc and has intiated special 36 . ZX1. the company has revised some Directors’ functions to facilitate the proper functions of statutory committees. The strong focus on R&D would thus enable the group to revive its product base as needs are indicated by customers. a thin. The company formed Sony Customer Services.  The company’s focus on its research and development (R&D) activities is evident in its expenditure of over $5 billion in 2009. Sony has used this strategy to launch new products. The VAIO P Series notebook computer (the world’s lightest 8-inch notebook PC) and the Cyber- shot HX1 compact digital camera (which allows users to capture wide-angle of 224 degrees views). Examples of this strategy include the introduction of BRAVIA. The move acknowledges the growing complexity of its products. The company’s broad outlook extends to its corporate responsibility. Process  Sony employs an umbrella branding strategy by placing the product name along with corporate name. The company has reaffirmed its commitment to make the “Home” category more user-friendly. This is a microcosm of the company’s desire to foster adaptability. The company seeks to facilitate the development of its staff but spurs employees to manage their own career and but to avoid pigeon-holing.

Minato-ku Tokyo  Other locations of subsidiaries include Sony Corp of America at 550 Madison Avenue in New York.sony. The company compliments the facility with a website at http://wondertechlab. Sony Electronics of Latin America 5201 Blue Lagoon Dr Suite 300. Fort Myers Florida  In 1994 Sony opened its Wonder Technology Lab which is a free interactive technology and entertainment museum located at 56th street and Madison Avenue in New York City.com/index.html  Sony’s main company website provides helpful information ranging from service and support. Miami Florida. Sony maintains a common global quality standard for parts by purchasing electronic parts only from suppliers who have passed an audit and have been certified as Green Partners. In 2008. music. employee training to enhance its ability to respond to customers inquiries and requests. and Sony Electronics 12451 Gateway Dr.  Kazuo Hirai is Executive Vice President of Networked Products & Services Group  Sony employs 167. electronics and gaming as well as a range of shopping alternatives. For example Sony established the Green Partner Environmental Quality Approval Program for Sony suppliers. This initiative 37 . People  Howard Stringer is Chairman. The Museum is open to all ages. the company created 13 global talent directors who are assigned to identify promising individuals in all businesses and regions and develop them into future business leaders.  Sony seeks to instill corporate social responsibility policies throughout its supply chain.  Sony Plaza at 56th Street and Madison Avenue in New York City.900 people world wide  Sony has an ongoing talent development initiative . CEO and President of Sony  Hiroshi Yoshio is Executive Deputy President of Consumer Products & Devices Group (NPSG). Physical Evidence  Sony Corporation Headquarters is located at 1-7-1 Konan.

Sony revealed a new business strategy that is ambitiously targeting an operating profit of at least $4. 2010. ending March 31st.3 billion in the company's 2017 fiscal year (ending March 31st 2018). This is a huge leap from the ¥20bn operating profit predicted for the current year. Here's Sony's business strategy A pair of 3D glasses is displayed in front of Sony Corp's new 3D Bravia televisions during an unveiling in Tokyo March 9.also includes a job rotation project with individuals moving through a schedule of job assignments designed to give them exposure to a variety of businesses and regions. the company still expects to register its sixth net loss in 38 . Indeed.

Fewer products The Japanese electronics firm believes the key to selling its profit and ROE base is to focus on a narrower band of products. Game & Network Services. videogames and entertainment products. with the aim of achieving sales growth and profit expansion. expanding their applications in everything from smartphones to medical treatment. Pictures. as well as budget smartphone manufacturers such as Huawei and Xiaomi. This covers Devices. Kazuo Hirai. such as camera sensors. and the company has struggled to compete with Samsung and Apple. as well as enhanced R&D in the area. Three businesses Sony's CEO. and Music. The strategy will therefore see Sony shift to more profitable business areas.seven years during the present period. 39 . A possible spinoff or partnership for these divisions seems likely. Primarily. The potentially profitable business areas have been categorised as the company's "Growth Drivers". has divided up the company into three sectors. Sony said it will use a goal of 10% return on equity (ROE) as the main indicator by which it will measure its profit target. Sony has said it will no longer look to pursue growth in business areas where intense competition puts it at a disadvantage. There will be increased investment in image sensors. Although Sony will still make smartphones and TVs. Sony will employ aggressive capital investment in these areas. albeit by a smaller amount than it previously anticipated. Smartphones are one such example. it will not "rule out considering an exit strategy" in these areas.

Sony will target a profit maximisation and return on investment. the laggards are those areas focusing on "Volatility Management". Sony will seek to limit its capital investment and establish a business structure capable of securing stable profits. even now it is still restructuring. the company is aiming to spin off its Video and Sound business unit in October 2015. Sony will prioritise the generation of steady profit and positive cash flow for Imaging Products & Solutions. and to the appointment of Kenichiro Yoshida as his Chief Strategy Officer in late 2013. However. Next comes the "Stable Profit Generators" sector. By carefully selecting the territories and product areas it targets. To achieve stability. These businesses operate in markets characterised by high volatility and challenging competitive landscapes. Sony will focus on increasing its audience. namely TV and Mobile Communications. Sony will work to expand the installed user base of the PlayStation platform. which has seen its share value increase by over 80%. establishing it as a wholly-owned subsidiary. and by optimising fixed costs and enhancing inventory control. Lastly. 40 . Indeed. This growth has been partly attributed both to the recent appointment of Kazuo Hirai to company CEO. selling off its PC division and spinning off its TV business. By capitalising on its existing technological expertise in these areas (rather than engaging in large-scale investment). Sony says it will also explore potential alliances with other companies. In Pictures. An achievable goal Sony's optimistic profit target belies the tumult that the company has suffered in recent years. and for Music it will centre growth on burgeoning areas such as the streaming music market. as well as cutting thousands of jobs.Meanwhile. and Video & Sound. Here. many in the technology industry have praised Sony's trajectory over the past year.

OBSERVATION The new millennium is here and Sony has plenty to celebrate. the pair are likely to continue to aggressively pursue restructuring over the short to medium term. 13. he placed particular emphasis on profitability over volume.As this announcement suggests.doing what others don't . securing business unit autonomy with a focus on shareholder value and providing a clearer definition of each business unit's position within Sony's overall business. 41 . During Mr Hirai's recent strategy presentation. in the form of great products that people covet. The company's approach .has paid off.

DVCAM. Examples include: VAIO notebooks that raise the bar in both form and function. But Sony is not just the market leader in consumer electronics. a handheld device that lets you store and view photos as well as moving photo. Sony has demonstrated an ability to capture the imagination and enhance people's lives. the company has made considerable inroads in the areas of professional broadcasting (with the creation of the Betacam. rewind and fast-forward "live" television using a hard-disc drive. the first 8mm camcorder in 1985. CD-R or Memory Stick. Digital Versatile Disc (DVD) player in 1998. few companies are as well positioned to drive the digital age into homes and businesses around the world for the next 50 years and beyond. 42 . positively impacting the way we live. the PlayStation game system in 1995. and Hi-Scan flat screen TVs that deliver near HDTV picture quality through Digital Reality Creation (DRC) circuitry. the Compact Disc (CD) in 1982. Further. the transistor radio in 1955. Through research and development. the MiniDisc (MD) player in 1992. and the Network Walkman digital music player in 1999. DVD/CD multi-disc changers that playback both audio and video. as well as with the company's convergence strategy. Today. digital cameras that capture pictures on a floppy disk. the world's first all-transistor TV set in 1960. Sony continues to fuel industry growth with the sales of innovative Sony products. Sony innovations have become part of mainstream culture. MiniDisc recorders with a digital PC Link to marry high quality digital audio with downloadable music.Throughout its history. the Walkman personal stereo in 1979. digital network recorders that pause. the world's first color video cassette recorder in 1971. The company has been at the cutting edge of technology for more than 50 years. Digital Mavica camera in 1997. including: the first magnetic tape and tape recorder in 1950.

AIT and DTF drives. and the Memory Stick) and.is a reality. mobile communications (with digital phones and the CLIE handheld). STRATEGIC RECOMMENDATIONS 43 . computing and telecommunications . But in a digital networked world. 14. Sony has always led the market in terms of innovation. storage and media (with the invention of the floppy disk. with new competitors forming and consumer mindshare up for grabs.consumer electronics. PCs (with VAIO notebook and desktop computers). products will no longer be developed with just hardware in mind.HDCAM and 24P formats). Sony's future brand success will be determined by how the company meets the challenges of change. now. the Internet. The convergence of technologies .

Game. disaster.Based on the analysis. including Electronics. and economic downturn. Sony has successfully expanded into various business segments. The first aim is to develop Sony’s competitive advantage. including currency. The second recommendation is to maintain Sony’s reputation and control lawsuit damages. 44 . we propose strategic recommendations for Sony. the most significant challenges for Sony are competition and macro-risks. In this section. CONCLUSION Since their foundation in 1946 as a telecommunication company.

It has to be currently one of the main segments. The focused segment should have the certain features. Sony will then have an advantage over their competitors because no other firms have comparable experience in the variety of segments in which Sony currently operates. it has also scattered Sony’s resources. Competition should be moderate in this market segment. or rather. Facing highly specialized competitors within each segment. Music. BIBLIOGRAPHY Name of author: Philip Kotler 45 . The least profitable segments will either be shut down or integrated into the main segment. hopefully reversing the current downward trend in consumer and investor confidence. and customer service into unrelated areas. It should also have the potential to integrate most of the remaining segments so that Sony can leverage most of their current resources. the restructuring will be a strong signal to the market. namely either the Consumer. Sony will benefit from this restructuring because it allows the company to apply most of their resources in the most productive segment. The restructuring will also propel the company to develop a proprietary product collection. and Financial Services. we propose that Sony find a segment focus and restructure the company around the focused segment.Pictures. The main segment will be the centerpiece of that collection. Sony has not been able to establish their competitive advantage in any segment. an exclusive group of Sony hardware and software products that are to be used together. such as R&D. Therefore. marketing. Professional & Devices segment or the Networked Products & Services segment. much like the current Apple products. Moreover. While the variety of segments has increased Sony’s recognition and diversified their product lines.

Indian Context Global Perspective Name of Publisher: McGraw Hill Education Private Ltd New Delhi Edition: 5th Year of edition: 2013 WEBLIOGRAPHY Sony Global Corporate History.html#list6 http://www.co.sony.sony.A South Asian Perspective Name of Publisher: Pearson Education Edition: 13th Year of edition: 2009 Name of author: Ramaswamy Namakumari Name of book: Marketing Management.Name of book: Marketing Management. http://www.in/ 46 .in/article/211980/section/sonycompanyoutline http://www.net/SonyInfo/CorporateInfo/History/history.sony.co.