Marketing Assignment

Table of Contents

Introduction pg 3Company Profile pg 4Brand pg 5Executive Summary pg 6PEST Analysis pg 7 Political pg 7 Economical pg 8 Social pg 9 Technological pg 9SWOT Analysis pg10 Strengths pg10 Weaknesses pg10 Opportunities pg10 Threats pg 11 Market Segmentation pg 12Introduction to New Product – DIRECT 3D pg 13 Target Segmentation Strategies pg 14 Marketing Mix pg 15

Product pg 15Price pg 16Place pg 16Promotion and Marketing pg 17

4 C’s of New Product pg 21Consistency pg 21Credibility pg 21Competitiveness pg 22Clarity pg 22

Conclusion pg 23References pg 24

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Executive Summary:

Global demand for 3D TVs in 2013 is estimated to reach around

15.6 million units from an estimated 1.2 million this year. In 2018 the figure

could well reach 64 million, when total revenues are expected to meet $17

billion. The foremost objective is to make sure that 3D BRAVIA® models

will cover up at least 10% of more than Twenty five million LCD TVs that

Sony will sell in its coming year and aims even for a higher percentage of

revenue. This will help SONY immensely to reinstate its leadership in the

television industry.

My new product will make sure that it will meet the proposed target as

it will be a monopoly to Sony as the only company producer to produce 3D

HDTV without glasses. Additionally, My new product will also save money

of customers who use to buy additional 3D glasses while watching 3D

content on TV with there family and friends which will also help to achieve

desire targets to some extent.

TELEVISION INDUSTRY

Television (TV) is the most widely used telecommunication medium for

transmitting and receiving moving images that are

either monochromatic ("black and white") or color, usually accompanied

by sound. "Television" may also refer specifically to a television

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set, television programming or television transmission. The word is derived

from mixed Latin and Greek roots, meaning "far sight": Greek tele, far, and

Latin visio, sight (from video, vis- to see, or to view in the first person).

Commercially available since the late 1920s, the television set has become

very common in homes, institutions and businesses, predominantly as a

source of news and entertainment. Since the 1970s the availability of video

cassettes, laserdiscs, DVDs and now Blu-ray Discs, have resulted in the

television set commonly being used for viewing recorded as well as

broadcast material. From past few years Internet television has seen the rise

of television accessible through the Internet.

Company Profile of Sony:

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Sony Corporation (Sony), founded in 1946, is the world's second-largest

consumer electronics maker after Samsung, with Financial Year 2009

revenues exceeding $82.57 billion. Its diversified operations are spread

across entertainment, electronics, games, and financial services categories.

The group is headquartered in Tokyo, Japan and employed about 171,300

people as of March 2009. The company operates globally in over 200

counties across Europe, Japan, North America, and Asian countries. The

company's present slogan is “Make Believe”

Over the years, the company has established a strong brand image in global

markets, which increases its bargaining power and makes its entry into new

product segments easier. Sonyʼs Brands include: BRAVIA®, Cyber-Shot®,

Vaio® and PlayStation®

BRAVIA® is the brand Sony uses to promote its high-definition

LCD televisions, projection TVs and front projectors, along with its home

cinema range under the sub-brand BRAVIA® Theatre. The BRAVIA®

name is an short form of "Best Resolution Audio Visual Integrated

Architecture". In North America Since 2005 all Sony high-definition flat-

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panel LCD televisions have carried the BRAVIA® logo. The BRAVIA®

brand uses the slogan "Color like no other."

3D TV is a standard term for a display technology that lets home

viewers experience TV programs, games, movies, and other video content in

a stereoscopic effect. It adds the illusion of a third dimension, depth, to

present TV and HDTV display technology, which is typically limited to only

height and width ("2D"). To get true 3D content, it also requires 3D glasses,

access to 3D movies, a 3D Blu-ray disc player, and 3D broadcast

programming.

A wide range of exciting 3D content will be crucial for accelerating the

growth of 3D entertainment in the home, and Sony plans to

Offer a broad range of 3D home entertainment content to appeal to the

widest potential audience.

PEST Analysis of Sony Corporation

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Political factors:

Political factors for Sony Corporation can be changed at any time.

The Government holds the authority to amend any regulations and policies

which may affect Sony at the time. The recession and the credit crisis might

get reduced, consequently resulting in better business for Sony Corporation.

However the same advantages apply to Sony’s competitors as well. It

indicates that Sony must come up with new ideas to stay ahead of its

competitors. The laws consist of new international policies may affect Sony

Corporation. Internationally the Government might change or increase

trading restrictions which would more or less change the working pattern of

Sony, as it needs to trade. In future, if Government imposes it power to

change tax, VAT, minimum wage, etc. These factors must be taken into

consideration in advance so that Sony is ready for any major worldwide

changes. Also, minimum wage would also increase as the past trends

suggest that since 1999 it has increased from over 3 pounds to 5 pounds.

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At present the condition of, Sony Corporation economy is in a bad

position. From all the past recessions, Sony Corporation is currently reported

to be in the worst one. The economic growth has reduced which means that

the growth of the economy is not positive. The credit crunch and the

recession may be deducted over the coming year.

Economical factors:

Economically, due to this several changes may arise such as the

interest and exchanges rates. Because of the recession being deducted in the

near future, exchange rates are also expected to drop off, however gradually.

Sony must remain alert of any trading restrictions the Government has made.

Since Sony is a global company the exchange rates may vary from country

to country in which they trade in. If the exchange rates in various countries

have changed, Sony would need to figure out what costs are their products

being sold and should they continue on the same price or to change it.

Social factors:

Socially, Sony Corporation would be predicted to do well. The

company has already earned lot of reputation because of the services and

quality products they provide. Technology has been improved by leaps and

bounds. Sony may get tough competition from new competitors which can

have some kind of impact on them that’s why Sony should make sure that

they stay ahead of technology. They must be able to generate innovative

equipment for people because that’s what will help the company to stay

ahead in the race. Companies such as Apple and Microsoft would also do the

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same. Sony must learn that people follows certain kind of trend so

accordingly, they may create products which people can relate to. For

example, many youngsters likely to listen to music; therefore Sony would

produce products which may attract people to listen to music wherever and

whenever they want to. Different people will have different tastes of trends,

styles, activities etc. Sony must also enhance their ideas of working so that

they can still gratify their customers which they have adapted with the

ageing of the company.

Technological factors:

Technological factors for Sony Corporation are very essential to

understand. Sony Corporation works very closely for the use of technology

every day. It is heavily relied on technology so that it could provide

professional productivity of work worldwide. Sony would exercise upgraded

and latest technology to boost its productivity level to make sure they are not

behind of its competitors. To conduct its research and development, Sony

would need to bring into play new technology which would encourage its

business to generate new products by using information of customer and

also by conducting market research.

SWOT ANALYSIS of Sony Corporation 3D LEDTV

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STRENGTHS:

Only company completely emerged in the 3D value chain: distribution, content and display.

High curiosity level for 3D after success of 3D motion pictures such as Alice in Wonderland, Avatar, Piranha.

Joint endeavors with other companies for 3D content.

Strong present Eco System through PS3 and Sony Online Network.

Special 3D Research facility setup in California.

Sony Retail outlets.

WEAKNESS:

Not adequate amount of market data available for 3D preferences.

Latest hardware is required for 3D.

Switching from present day 2D to 3D will be costly.

Fewer 3D content.

Viewing experience may be uncomfortable.

Last key company to launch 3D TV.

OPPORTUNITIES:

3D Gaming.

Academic and Professional applications.

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Medical Applications.

3D TV sport content.

3D Advertising content.

3D PCs – Vaio.

Other 3D consumer electronics like camcorder, cameras.

THREATS:

PC graphic chip producers can offer the same 3D technology at a lower price.

Long term exposure to 3D may involve health hazard.

Too few cost/benefit proofs may lead to adoption.

Competitors such as LG, Panasonic, and Samsung have already. launched their 3D TVs in the market.

Newer, better technology could transpire.

SEGMENT CUSTOMERS

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Target segment for 3D HDTV: New television buyers and Current Sony

product consumers.

Buyers of 3D Television:

In this segment, I suppose that the customer already posses a high

definition television. The test is to convince and make them realize of the

benefits to upgrade to a 3D television to make best use of the viewing

experience. Prominence will be given on superior viewing capabilities as a

“complete viewing experience,” keeping in mind the increase in number of

offerings of 3D channels and viewing options that are forthcoming from

cable operators and networks. Sonyʼs product will be perfectly position as a

“total 3D solution” for experiencing enhanced programming, such as

movies, sporting events and other entertainment events like concerts etc.

Existing Users of Sony Products:

In this segment, individuals are already familiar with Sony branded

products and, in most of the cases, will already be owners of gaming devices

for e.g.: Playstation or Sony home theater apparatus, such as Sony Blu-ray

disc players. In conjunction with presenting the advantages of 3D television

without glasses in general, this segment would be targeted distinctively to

recognize the ease of incorporation with the Sony product into their existing

Sony devices.

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Introduction of new product: (3D HDTV without glasses)

I am introducing new product in Sony TV called as “DIRECT 3D”

It will give a complete viewing experience at home and ‘guess what’? That

also without wearing 3D glasses, unlike other company’s 3D product where

consumers find a huge problem to watch 3d content with their glasses on.

According to a study by Nielsen Company found that the glasses required

for viewing 3D television which includes 3D gaming emerge to be the tech's

greatest barrier. About half of those surveyed said the glasses were not

comfortable or a hassle, while 89 percent said the glasses made it difficult to

do other things while watching TV.

Another big problem with 3D glasses are that if members of family or

a group wants to watch a 3D content together than all have to wear glasses.

My new product will solve this problem as there will be no need to wear

glasses and everybody can watch 3D HDTV together without any problem.

This will be a big breakthrough in led TV industry, as no companies has

yet launched a 3D HDTV product without glasses.

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My new product “DIRECT 3D” will give consumers a joyful ride of

watching TV consisting of 3D content at their home.

TARGET SEGMENT CUSTOMERS

My qualitative research supports a preliminary target, for an ideal

customer, as a 25 to 35 year old innovator male who regularly uses his

television to watch movies and network programming, possibly gaming. He

is technologically savvy, has disposable earnings and believes himself an

innovator when it comes to purchasing the latest devices. He most likely

owns a video gaming system and has an above ordinary home amusement

system. He will likely be bachelor or lately married and may have young

children.

A secondary market will not be a gender centric, targeting the age

group of 35 to 45. These will be young married couples with very young

children but who already owns a home entertainment or home gaming

system at their place. These people will also be innovators, but with a target

focused partially concerned with family entertainment and partially towards

education.

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MARKET POSITIONING

Impact of Positioning of “DIRECT 3D” on Marketing Mix

PRODUCT

BRAVIA® 3D HDTVs without glasses are to be positioned as luxury

electronics. Their top quality is communicated by a stylish design and

perfect attention to detail. The current line up has 3 series (the HX800,

HX900, and LX900) that come in six sizes (40”, 42”, 46”, 50”, 52”, and

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60”), for a sum of eight different SKUs. My belief is that there should be one

model in small, medium and large sizes, slot in the most popular size of 46”.

PRICE

Current pricing strategy has Sony 3D HDTV’s kept somewhere between

that of Panasonic and Samsung. Panasonic was successful at selling its 50”

bundle for $2900, Sony’s pricing is considerably higher and rightfully so as

it will be the only company to offer 3D HDTV without glasses, When this

approach is applied, it will become easier to communicate the value through

the price, price in itself becoming an promising sign of the product’s quality.

PLACE

Consumers may purchase the product at their nearest convenient

electronics store or consumer chain, by an online retailer, or directly from

Sony Style, Sony’s online store. It is important to pull out retailers to the

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prestige of carrying Sony BRAVIA® televisions and in no way subsidize the

in-store product demonstration. One of the goals is to make the Sony 3D

Experience valued by the consumer; hence stores that include a new Sony

3D Experience home theater room can expect to see increased foot traffic.

The role of retailers is not to be underestimated. Their assistance with

the company’s efforts to position the brand is crucial, since a large number

of consumersʼ first direct contacts with the product occur in their stores. Best

deal, among others, should naturally feel inclined to Sony home theater

experience in the best possible light so that they can be in line with

consumers expectations.

PROMOTION and MARKETING STRATEGY

The promotional plan outlined in the following pages is at the heart of

the proposed marketing mix. We have concluded that the real consumer

value proposition is in the wonder and an awe that is produced by

experiencing 3D content on 3D Sony equipment. The consumer is less

concerned with the technological specifications, because they expect them to

be the best quality possible.

My plan brings the Sony 3D Experience without glasses to the

consumer directly, not considering of their demographics. I will use a

shotgun approach to create enthusiasm about the experience in a large

number of people at public places, thus boosting the targets tremendously.

Once the common public perceives a Sony 3D television as a genuine luxury

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(“Itʼs a Sony!”), our targets will be motivated to approve the product due to

its buzz and public demand.

With these keeping in the mind, I propose a countrywide, promotion

focused strategy build around a mobile campaign to showcase the 3D Sony

Experience without glasses in a home theater environment. Although it is a

challenge, but the plan lays the capability to effectively coordinate and

handle a number of promotional companies. The model name for the

initiative is “Sony 3DZONE”

Marketing strategies for promotion

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The Sony 3DZONE environment is created by partitioning a recycled

metal shipping container into two soundproofed rooms where all the Sony

3D products will be placed systematically, the containers are then decorated

with Sony branding, and than placed into trucks and then sent throughout the

country.

A countrywide advertising campaign joined with local promotions, will

aware the public that at what time and which places they will be able to go

to the Sony 3DZONE. Current consumers of Sony Club and other

individuals who are in the CRM records will be informed well in advanced

and will be given a VIP tickets for events and special screenings. The non

members may have to book tickets online quite early, as limited numbers of

seats are there, though a VIP pass can be taken by registering online with

Sony or by a mobile phone.

The containers are decorated with Sony branding, loaded up onto

semi-trailer trucks and then sent out across the country.

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The trucks will travel from places to places and it will stop wherever

there are large crowd of people like city centers, malls, concerts, sporting

events, campuses, fairs, etc. The events will be promoted with great display,

and will include staff that will be dressed elegantly, as well as have clean

and orderly execution. As soon as audiences enter into 3DZONE, they must

thoroughly have a wonderful experience of it, the audiences must feel that

they have entered totally into a new world. It will be helpful to exploit

Sony’s Universal Pictures talent to endorse the tour stops and cross brand

3D pictures with the home theater experience.

A PR campaign will accompany the truck tour where some famous

celebrities of local and national television or well known personalities of

radio will be invited to the 3DZONE stops. These events will give a desired

amount of stir in public. I propose the incorporation of Sony 3D production

tools into these events. For example, letting personalities see themselves in

3D.

Lastly, the 3DZONE will require special content produced for the

showcase. Whether for in store demonstration or on the street, this Content

has to be high to match up Sony standards.

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4 C’s of DIRECT 3D

Consistency:

The consumer needs to desire to have a Sony 3D television, a Sony

surround sound system, Sony Blu-ray disc player, and PlayStation 3 while

they consume the 3D content produced and distributed by Sony and made

with Sony equipment. That is to say, the consumer must want a complete

Sony 3D experience. All tough that is very hard to achieve, the consumer

can at least start feeling close to the Sony 3d products by purchasing a Sony

3D television and proudly saying, “It’s a Sony”

Credibility:

The consumer public must come to correlate unparalleled quality in 3D

entertainment as exclusive to the Sony BRAVIA® brand, in this way

regaining the sense of esteem that came with owning a Sony television.

While the ‘Made In Japan’ tag doesn’t carry the same ‘sense of pride’ as it

did a some decade’s back, the ground can be recaptured by effectively

communicating to the consumer Sony’s market position as the only start-to-

finish 3D Company.

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Competitiveness:

Sony is the only company in the space that can create a complete 3D

environment using solely its own equipment and content. That is its largest

competitive advantage and needs to be leveraged to the maximum when

communicating the value proposition. This needs to be done on a mass scale,

with publicity and public excitement.

Clarity:

My plan will be to involve a pre evaluation of the consumer mental

space as it is directly proportional to the brand of Sony 3D and especially to

the Sony BRAVIA® 3D HDTV product. After the implementation, updates

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will be made regularly. Retail order response and qualitative feedback will

be another important measure to be taken care off for the success.

Conclusion:

Sony Corporation is a well renowned company and has branches

in over 200 counties across Europe, Japan, North America, and Asian

countries. Over the years, the company has established a strong brand image

in global markets, which increases its bargaining power and makes its entry

into new product segments easier.

The project is aimed to launch a new product of Sony’s, which is

called “DIRECT 3D” –no glasses, It will provide consumers to watch 3D

content on television without need of wearing special 3D glasses. With

‘DIRECT 3D’ the customer will be able to watch 3D at their home

comfortably without any hassle of wearing 3D glasses and that also not

paying much extra in fact it will save money on 3D glasses which

consumers have to bear when they watch 3D content with there family and

friends.

Initially Sony Bravia’s will set the price of The ‘DIRECT 3D’ to be

little higher than its other common selling products. Which is justifiable as

this is a new innovation and company has invested lot of money in R&D.

Sony is a multinational company with very large sales department which is

working in many different countries; hence ‘DIRECT 3D’ can be promoted

to different countries using its existing sales forces.

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Hence, The Impact of ‘DIRECT 3D’ would be huge on Sony Bravia.

The new product would give strong hold on the market and over its

competitors like Samsung, LG, Vizio etc.

References:

Television. Available: http://en.wikipedia.org/wiki/Television. Last Accessed on 11 Nov 2010.

Archie Lopez. (2009). Brand Bravia. Available: http://articlesadv.com/shopping/sony-s-bravia-aRtIx9A3.html. Last accessed 12th Nov 2010.

Company profile. Available: http://www.provigator.com/sony-corporation. Last accessed 12th Nov 2010.

Legal and financial problems. Available: http://en.wikipedia.org/wiki/Sony_BMG_CD_copy_protection_scandal. Last accessed 15th nov 2010.

Price. Available: http://www.nextag.com/sony-hdtv-55-nx810/compare-html. Last accessed 15th nov 2010.

People don't like 3D glasses. Available: http://www.buzzbox.com/news/2010-09-10/glasses:nielsen/?clusterId=1827915. Last accessed 16th nov 2010

Product. Available: http://www.sony.com.au/productcategory/tvp-lcd-tv. Last accessed 16th nov 2010.

George Bevir. (15 December, 2010 ). 3D TV sales. Available: http://www.broadcastnow.co.uk/technology/3d-tv-sales-to-hit-100000-in-a-year/5021625.article. Last accessed 16th nov 2010.

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