SONY CORPORATIONS

SUBMITTED BY GROUP 5

Project on Marketing

Introduction

Company Name: Sony Corporation Founded : May 7, 1946 Headquarters : 1-7-1 Konan, Minato-ku, Tokyo 108-0075,

Japan Chairman, CEO and President : Howard Stringer Vice Chairman : Ryoji Chubachi

History

In 1945, after World War II, Masaru Ibuka started a radio repair shop in Tokyo.

The next year, he was joined by his colleague Akio Morita and they found a

company which translates in English to Tokyo Telecommunications Engineering

Corporation. The company built Japan's first tape recorder called the Type-G.

In early 1960s, Ibuka traveled in the United States and heard about Bell Labs’

invention of the transistor. He convinced Bell to license the transistor technology

to his Japanese company. In August 1955, Tokyo

Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio.

Masaru Ibuka, the co-founder of Sony.

Akio Morita

  In May 1956, the company released the TR- 6, which featured an innovative slim

design and sound quality capable of rivaling portable tube radios. It was for the

TR-6 that Sony first contracted "Atchan", a cartoon character created by

Fuyuhiko Okabe, to become its advertising character.   In 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, the

smallest (112 × 71 × 32 mm) transistor radio in commercial production. It was a worldwide commercial success.

  The name "Sony" was chosen for the brand as a mix of two words. One was the Latin word

Sonus which is the root of "sonic" and "sound" and the other was "sonny", a familiar term used in 1950s America to call a boy. Morita pushed for a word that does not exist in any language so that they could claim the word "Sony" as their own.

At the time of the change, it was extremely unusual for a Japanese company to use Roman letters instead of kanji to spell its name.

Sony portfolio

Sony’s principal business units

Sony Corporation,

Sony Pictures Entertainment,

Sony Computer Entertainment,

Sony BMG Music Entertainment,

Sony Ericsson,

Sony Financial Holdings.

Business summary

Sony Corporation together with its subsidiaries, engages in the development, design, manufacture, and sale of electronic equipment & instruments internationally.

The company's products include audio and video equipment, liquid crystal display televisions, personal computers, monitors, semiconductors, components, mobile phones, CDs, DVDs, Blu-ray discs and playstations.

Sony Corporation also engages in the entertainment business like home entertainment production, acquisition, and distribution, digital content creation and distribution, channel investments, studio facilities operation and filmed entertainment distribution.

Business summary- continued

Additionally, Sony Corporation operates an animation production and marketing business and an advertising agency business.

Further, it engages in various financial service operations such as insurance, banking, leasing and credit financing.

Sony: The Leader in Product Innovation 

The new millennium is here and Sony has plenty to celebrate. The company’s approach – doing what others don’t – has paid off, in the form of great products that people covet.

Throughout its history, Sony has demonstrated an ability to capture the imagination and enhance people’s lives. The company has been at the cutting edge of technology for more than 50 years, positively impacting the way we live. Further, 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. Today, Sony continues to fuel industry growth with the sales of innovative Sony products, as well as with the company’s convergence strategy. 

Marketing

4p’s of marketing as classified by Prof. E. Jerome McCarthy which are:

i. Productii. Priceiii. Place (Distribution)iv. Promotion.

Products

Sony has a variety of products ranging from electronic devices, games and entertainment. So, briefly Sony products can be categorized in the following major product categories:

1. Home Video 2. Home Theatre System3. Digital Photography 4. Television & Projector5. Computer & Peripherals6. Game7. Mobile Phones8. In-Car Entertainment9. Battery & Charger10. Accessories11. Playstations

SONY Time Line

Television & Projector

In the section of Sony products , it has further subdivided its products in different models, style and performance. In this category we have several other sub categories and designs which are as follows:

1. BRAVIA LCD TV2. Projector3. Public Display Panel4. TV & Projector Accessories

Sony has developed a myriad of Television and Projectors, as well as accessories, to cater to all types of lifestyle and business needs. Those seeking the latest in technology can look to our cutting edge LCD TVs, whereas conventional TV appreciators can pick from our range of CRTs that embody simplicity and functionality. If you wish to enjoy a home theatre experience, select from our Home Theatre Projectors or Projection TVs.

Home Theatre System

Depending on the customer needs, usage and budgets, Sony has provided

several home products ranging from small packages to big audio systems.

They boast on their Hi-Fi which delivers rich music, made richer with preset

equalizer settings. Among other features which Sony boast to offer are like,

multiple disc changers which for putting many discs at a go. Also, some even

house additional features such as the ability to handle multiple formats, track

programming and repeat and random play.The home audio products categorized by Sony are:1. Hi-Fi Systems2. Home audio accessories. E.g. Digital media port

Digital Photography

In terms of digital photography, Sony has produced a variety of imaging devices depending on the users and their professions. For example for a casual user or girls there are slim cameras which can be easy to carry or put on the purse. For real photograph enthusiast and professionals there are more sophisticated cameras with advanced features like digital SLR camera. And also they have produced photo printers and frames.

The sub-categories of these are:1. Digital SLR2. Cybershot Digital Camera3. Digital Photo Printer4. Digital Photo Frame

Computer and Peripherals

Combining function and the latest in technology, Sony provides a range of IT and computing devices. In case of the computer devices Sony has produced a variety of laptops with different price ranges and performance to meet the demands of the users like home users, students and businessmen.

The sub-categories of these are:1. VAIO laptops and computers2. VAIO accessories3. Memory Stick

GAMES

Sony offers games of all genres to match customers gaming preference. Also,Sony has produced Powerful consoles which are accompanied with compelling games.

The games produced by Sony include:1. Playstation 32. Playstation 23. PSP (Playstation Portable)

Mobile Phones

With Sony Ericsson, Sony has produced a varietyof mobile phones for various

people, lifestyle, usage, budget and profession. Also a series of mobile phone

accessories have been produced by Sony so that customer can spruce up their

mobile phones appearance, prevent them from damage, or enhance their

usage.Among the subcategories are:1. Phones2. Phone Accessories

In-Car Entertainment

Different in-car entertainment products have been produced by Sony. Apart from the normal car radio and CD changer devices, Sony has produced more entertaining devices to view different media like video and television.

Among the products subcategorized in this category are as follows:

1. Xplod CD Receiver2. Xplod in Car Visual3. Xplod Cassette Receiver4. Xplod Amplifier5. Xplod Speaker/Subwoofer

Promotion

Sony has advertised its products through many different ways in media.

Sony uses some events to promote its products as well: Sony has signed an eight-year agreement with FIFA giving it

worldwide marketing and promotional tie-ins for events between January 1, 2007 and December 31, 2014 including the flagship FIFA World Cup™ events in 2010 and 2014.

Sony has advertised its games like Playstation 3, Playstation 2 and PSP using sports like football in England premiere league.

Promotion-contd…

Sony uses some events like Miss India 2008 to promote its product.

Through newspapers like Gulf News & Khaleej Times, Sony has advertised a wide range of products it offers to its customers.

And also through posters a message has been sent to a lot of people to be aware of the products which Sony offers.

Promotion…

promotion

Check Sony pavilion forexciting offers at Gwalior Mela!

Sony has advertised its products through many different ways

Direct – Response advertising. Sony also uses direct – response advertising. This is type of

advertising that encourages the consumer to respond either by providing feedback to the advertiser or placing the order with the advertiser either by telephone, mail or the internet. Such advertising is done through direct mail or catalogues.

Co-operative advertising Sony incorporates co-operative advertising in its advertising

process. Sony Corporation provides the dealers (e.g. Sony World) with the materials and guidelines to develop ads for print, television or radio commercials. This ensures that message is in line with, what the manufacture wants to communicate. The company and the dealers usually share the media costs and hence, the name ‘co-operative advertising’.

Distribution(Place)

Sony Distributes its products through follows ways:1. Zero Level Channel2. One Level Channel 3. Two Level Channel In India Sony has used the method of one level distribution channel.

This means that, customer buys their Sony product from the retailer recognized by Sony, and these retailers buy the products directly from the company itself.

Manufacturer

Retailer

Customer

Price

Pricing decisions are almost always made in consultation with marketing management.Price is the only marketing mix variable that can be altered quickly. Price variables such as dealer price, retail price, discounts, allowances, credit terms etc. influence the development of marketing strategy, as price is a major factor that influences the assessment of value obtained by. Sony being a company which emphasizes product quality tends to sell its products with price range from moderately-high to high-prices, depending on the use and the targeted customers.

SAMPLE LIST OF PRICES: Sony Bravia X Series LCD TV Price:

Rs.20,00,000 Sony DSC W80 Price : Rs

10,900 to 14,900 Sony Vaio VPCW216AG/P,/T,/W Price: Rs. 24,750/- DVD Home Theatre System DAV-TZ210 Price: Rs. 12,990 In-Car Entertainment Xplod™ CD Receiver Price : 12,990

Segmentation

Geographic • RegionDemographic • Age, sex

• Income, occupation, educationPsychographic • Social class

• Lifestyle type• Personality type

Segmentation-contd

Behavioural • Product usage - e.g. light, medium ,heavy

users• Brand loyalty: none, medium, high • Type of user, price sensitivity

Targeting

Making good on a promise made earlier the year 2007, Sony has apparently made available a duo of cheaper, smaller LCDs to

discount retailer Target as it attempts to cater to a different sect of customers. 

SONY targeting kids in new PSP ads & campaigns

Up until now, Sony's seen fit to market the PSP primarily to older teens and young adults - people with additional income more likely to spend extra on an advanced, slicker-looking piece of tech. But, according to a new article on game industry website Gamasutra (via New Media Age), Sony will soon look to target players aged 8-15 - usually the demographic territory of the stalwart Nintendo DS. Sony's European branch has taken the initiative, launching pspinyourhands.com, a community website that encourages readers to upload images and videos to share with other PSP users.

North America will also be receiving some youth-themed PSP promotions, as well. System bundles with Hannah Montana and Petz games are currently planned, and we're sure there will be appropriate advertising to go along

with them. Seeing as how most young kids can't spend $199 of their own money on a PSP, we think the effects of the advertising will likely be passed on to those holding the pursestrings - you, the parents - in the form of asking for a present.

Sony Targeting Core & Casual Gamers For PlayStation Move

Sony Computer Entertainment Worldwide Studios boss Shuhei Yoshida has said that Sony will equally target both casual and hardcore gamers for the motion controller. Titles such as Move Party are mainly suited for casual gamers and games such as Socom 4 aimed at hardcore gamers.

Sony’s focus was split between making Move appeal to a wider consumer base on a 50:50 basis.

The precision of the Move system allows game designers to create games as simulations and games with much more depth than other motion-based game experiences.

Sony Targeting Core & Casual Gamers For PlayStation Move

Sony Ericsson Targeting Youth

Sony has realized the importance of the development of the series which are more popular among the youth. The thing is that this is the exactly the group which will help to promote Sony Ericsson devices around. The group of the young people are always trying to get something which will combine all of the things that are necessary to fulfill their desires.

Thus it's not a surprise that Sony Ericsson's Walkman series has such a great popularity among youth. They enjoy their smartphone together with the most of interesting features of MP3 player and much more. These series are quite attractive also due to the style and of course the variety of bright colors.

Positioning

Positioning involves ascertaining how a product or a company is perceived in the minds of consumers

Sony positions its brand as ‘make believe’ in its prospects’ minds.

Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.