C Spragg Sample 2

2011 Marketing Plan

Authors: Shaheen Bhimani | Chantal Spraggins | Iris Chung | Faith Ayers

..................................................Business Mission 3

................................................................Summary 5

..............................................................Objectives 6

...................................Situation Analysis (SWOT) 7Internal Strengths and Weaknesses 7

Internal Strengths 7

Weaknesses 11

External Opportunities and Threats 13

External Opportunities 13

External Threats 15

..............................................Marketing Strategy 18Target Market Strategy 18

Marketing Mix 21

Place/Distribution 24

Price 26

Promotion 31

Advertising 31

Public Relations 34

Personal Selling 37

Sales Promotion 39

.........Implementation, Evaluation, and Control 41Implementation 41

Implementation Table 44

..................................................Business Mission 3

................................................................Summary 5

..............................................................Objectives 6

...................................Situation Analysis (SWOT) 7Internal Strengths and Weaknesses 7

Internal Strengths 7

Weaknesses 11

External Opportunities and Threats 13

External Opportunities 13

External Threats 15

..............................................Marketing Strategy 18Target Market Strategy 18

Marketing Mix 21

Place/Distribution 24

Price 26

Promotion 31

Marketing Plan | Page 1

Advertising 31

Public Relations 34

Personal Selling 37

Sales Promotion 39

.........Implementation, Evaluation, and Control 41Implementation 41

Implementation Table 44


Business MissionSony PAVI will reorganize the modern family and home through technological advancements. The PAVI offers the contemporary family an interactive, daily experience, that facilitates internal and external communication. In 2011, the typical household of our target market has at least one or more of the following electronics: SmartPhone, Tablet, Laptop, flat screen television and Desktop computer.

The human race is interconnected through social networking, the Internet, and electronics, now more than ever. The PAVI will connect people with their homes needs, family members, current events, and work, in one central location. This convenience factor will appeal to our target market, since they lead busy lives, and would pay for the additional convenience and artificial intelligence that PAVI offers.

The PAVI is highly intelligent and capable of:• Controlling Lighting• Monitoring Security of the home and property• Reading the needs of Appliances, and generating shopping lists • Scheduling and receiving reminders for all family members• Communication• Responding to Vocal Commands• 3D Projection Capabilities (without 3D glasses)


Product MissionThe Sony PAVI is a sophisticated and sleek piece of technology that brings all elements of the home and work into one central piece of equipment, and provides the customer with advanced technological and problem-solving applications.

Economic MissionTo increase the value of the Sony brand for shareholders, continue to expand into new markets, and have a competitive edge in the LCD/AV market place.

Social MissionTo provide an essential home component and easy-to-use system that blends Smart Screen technology with security, lighting, planning, and daily communications to all customers.


SummaryTo summarize, a key focus for Sony is to strengthen its all-important electronics business and maintain market leadership

in high profile areas such as televisions, digital imaging, home video equipment and portable audio. In the efforts of

launching the Sony PAVI, Sony's mission is to achieve goals under production, marketing, economic and social objectives.

Consumers will take advantage of all of the PAVI features that include controlled lighting for residential and commercial

properties, monitoring security, constant and up-to-date organization of day-to-day tasks which may range from personal

to professional usage and essentially entertainment enhancements for audio and visual applications. The overall

recommendations for Sony is to continue to create exciting new digital entertainment experiences for consumers by

bringing together cutting-edge products with latest generation content and services. The implementation evaluation and

control of this marketing plan will allow us to determine the success and alter any necessary changes.


Objectives

Transform the company to achieve our targets of a 5% operating profit margin and a 10% return on equity (ROE) in the mid-term (by the year ending March 31, 2013). In order to be successful, we must generate growth with consistent profitability in all of our core businesses, particularly our television and game businesses as well as aggressively develop new business including network services. In the Spring of 2012, we will launch the advertising campaign for the Sony PAVI Screen. This will be an exciting new generation of entertainment and communication technology, that not only offers new forms of enjoyment through exceptional Internet integration, but will evolve over time through the application development and enhanced features. Our measurable goal is to target a 20% market share by the end of fiscal year 2013.

By 2015, PAVI will in at least 2 out 5 households in the United States, and in Europe.

To build awareness of Sony PAVI to existing and new consumers by using the target market strategy and means of aggressive advertising and sales promotion, and to remain highly reputable for producing innovative products with outstanding value and quality.


Situation Analysis (SWOT)Internal Strengths and Weaknesses

Internal Strengths

In evaluating internal strengths, we focused on the following factors: financial resources, image, brand, and technology. Family branding has allowed Sony to not only maintain competitive advantage, but production of a plethora of products outside of electronics that appeal to consumers eyes, ears, fingertips, hearts and minds. These products include movies, music, games, photos and books. “Sony will be in everyoneʼs future, because Sony i s where en te r ta inment meets technology.” (Sony, 2011)


Chart 1.1 Proportion of Sales by Business (Sony, 2011).

Financial Resources

Consumer products and devices accounted for 41% of sales generated the fiscal year of 2009, which is almost half the sales for the year. This includes products that range from televisions (34%), digital imaging (23%), Audio & Video (17%), Semiconductors (10%) and Components (16%). Chart 1.1, Proportion of sales by business offers a visual breakdown of the revenue generated by each department of Sony. Sony has the financial resources to research and develop innovative products, and present them to the public in a timely manner. This internal strength will allow the firm to expand to developing economies and achieve competitive advantage in new marketplaces. (Sony, 2011)

Strong Brand Equity

The exceptional strength of the Sony brand worldwide is surely an indication to the companyʼs reputation for producing innovative products of outstanding quality and value. Although traditional brand theory says brand essence should be narrowed down to one component, Sony commends brand diversity with BRAVIA, Trinitron, VAIO and Walkman sub-brands, to name just a few, each connecting with consumers across various lifestyle segments. Sony has the brand recognition and marketing ability to create new product categories and revitalize mature ones. The make [dot] believe brand message demonstrates our power of creativity and ability to turn ideas into reality. (Sony, 2011)


Image 1.1 Sony Slogan (Sony, 2011)

Technology Innovators

Phenomenal Glass by Corning

As the industry leader in LCD glass, Corning is ready for the 3D revolution. The dimensional stability and pristine surface quality of large-size glass substrates enables higher resolution displays, and the thinness enables the alignment of optical layers for better 3D images. Corningʼs researchers are working on flexible glass substrates, which will enable high-resolution flexible displays for consumer devices, including e-book readers. These displays consume much less power than other technologies, and have the potential to replace paper in many applications.

SONY

A new operating unit called Sony Pictures Technologies was established in late 2009, dedicated to the identification, development and implementation of technologies to support the studio in making movies, television and other content.Throughout its history, Sony has demonstrated an ability to capture the imagination and enhance peopleʼs lives. Sony has continually strived to positively impact the way we live. Furthermore, 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.

Sonyʼs innovations have become part of mainstream culture. We continue to increase industry growth with the sales of innovative Sony products.


To name just a few examples of such products: VAIO notebooks that raise the bar in both form and function, digital cameras that capture pictures on a floppy disk, CD-R or Memory Stick, a handheld device that lets you store and view photos as well as moving photo, MiniDisc recorders with a digital PC Link to marry high quality digital audio with downloadable music, DVD/CD multi-disc changers that playback both audio and video, digital network recorders that pause, rewind and fast-forward "live" television using a hard-disc drive; and Hi-Scan flat screen TVs that deliver near HDTV picture quality through Digital Reality Creation (DRC) circuitry.

All in all, a critical strength for Sony is that we are the market leader in consumer electronics. Through research and development, the company has made considerable progress in the areas of professional broadcasting, mobile communications, PCs, the Internet and now the PAVI.

Lastly, according to the CEO of Sony, “Sonyʼs future brand success will be determined by how the company meets the challenges of change. Sony has always led the market with innovation. In a digital networked world, products will no longer be developed with just hardware in mind. The convergence of technologies – consumer electronics, computing and telecommunications – is a reality, with new competitors forming and consumer mindshare up for grabs.”

Overall, Sony is able to create high quality products for their consumers and the history of our products have contributed to great brand equity. As a fierce competitor, Sony will bring the following strengths to the marketplace:

• Strong Brand Image• Worldwide Reputation• Great Market Share


• High Quality Products• Creative and Innovative Technology• Consistent investment in Research & Development Activities• Loyal Customers

Weaknesses

Downward Trending Revenues Four major Sony divisions experienced revenue losses in 2009, specifically Electronics down 17%, Games down 18%, Pictures down 16.4% and Financial Services down 7.4%. In the United States, revenues were down 15.4%, while revenues in Japan fell 15.2%.

For the fiscal year ending March 2011, Sony forecasts a net profit of 50 billion yen ($541 million), with operating profit expected to be 160 billion yen and revenue at 7.6 trillion yen. Although the recent trends indicate a decline, there is an expected return to profitability for its television business—a division which has posted a loss for six straight years. Sony is relying on 3-D TVs to help drive new interest and slow the price declines that eat into profits. It expects to sell 25 million liquid crystal display televisions the 12 months to March, compared with 15.6 million units in the previous fiscal year. One possible hurdle in reaching its TV sales target is the tight supply of LCD panels. (Wakabayashi, 2010)


Poor Proximity of Production to Customers Along with the corporate office in Tokyo, Japan, SMS has manufacturing plants in Isehara, Koki, Singapore and China. A majority of repeat customers are located in Japan, United States, and Europe. However, Sony's production facilities are located far from its customer base. Approximately 60% of the annual production in Japan must be distributed to for other regions. In FY2009, the group produced 50% of the electronics segmentʼs total annual production in Japan. (Wikipedia, 2011)

Considering this information, a weakness in PAVI may occur if there is a malfunction on the manufacturing end. The cost of replacing parts of PAVI would be very costly to SONY. Since most manufacturing plants are located in Asia, and a majority of SONYʼs customers are outside of the continent, this will increase shipping costs. The proximity of the plants to a majority of the customers could be an issue if there is natural disaster or political unrest.

Malfunctions

Since PAVI is a new product, that has not been tested in the market, there will be glitches and errors to fix. It is not in the prototype stage, but there will be room for improvement after the first model has been released. Manufacturing flaws are typical of new products. The cost of sending SONY repair employees to a customers home can be costly, if there are several issues in the product.


External Opportunities and Threats

External Opportunities

The Audio Visual and Gaming Market in the United States is expected to grow from a $69.1 million industry at a 4% annual growth rate over the next four years. Growth in the Flat-screen TV market has declined due to the maturity. In 2010, new products trends such as LED-backlit and 3D TVs were introduced to the market. Video applications account for around 80% of the total market, with TV set sales worth an estimated US $38 billion in 2011. Video applications are forecast at US $55.9 billion in 2011, and this is expected to increase to $64.3 billion by 2015. (Business Monitor International, 2011).


23%

26% 29%

21%

Sonyʼs Sales and Distribution by Geographical Regions 2009

JapanUnited StatesEuropeOther Area

AV Drivers

Most households in the US already have at least one flat-screen TV, and manufacturers will attempt to sustain growth by introducing new products and features. In 2011, there will be a growing demand for TV sets with internet capabilities, LED backlighting and 3D TV sets. Demand for larger and thinner screens will be the main driver as consumers seek a higher quality viewing experience.

Sony envisions the TV as an internet connectivity hub like the PC and phone, delivering online news and entertainment. The most popular applications for TV include watching movies and social networking services. According to data from Nielsen, more than 25% of TVs purchased in January 2010 were connected to the internet, either through their internal capabilities or external devices such as digital video boxes or gaming consoles. (Business Monitor International, 2011)

Product Innovation

To try to maintain sales volumes, vendors will focus on product innovation. Improved display quality and wider screens, as well as design and features such as internet connectivity, are characteristics that consumers will begin to look for in a TV. The need for special 3D glasses may deter consumers from buying 3D TVs. ESPN and Discovery Communications are the only networks that have the required infrastructure 3D broadcasting. At this time, the demand is not strong enough for television stations and studios to convert to 3D infrastructure. (Business Monitor International, 2011)


Energy Efficient TVs

In November 2009, the California Energy Commission approved the USʼs first energy efficiency standards for TVs. The standards, due to be implemented in 2011, require new TVs sold in California consume 33% less electricity by 2011 and 49% less by 2013. According to the commission, more than 1,000 TV models on the market today already meet the 2011 standards. Developing energy efficient televisions will not only add to the companyʼs good image, it will also benefit society and reduce our ecological footprint. (Business Monitor International, 2011)

External Threats

Sony faces several external threats. These threats may make it difficult for Sony to generate profit in presently and in the future. These threats are the January 2011 tsunami, unfavorable foreign exchange rates, and security breaches into Sony Online Entertainment. Other threats are the credit crunch and recession, new international policies, and negative growth of the economy.

Production Issues

The first threat is currently affecting Sonyʼs production. The tsunami on March 11, 2011 has caused delays in manufacturing, which are especially problematic because a majority of the production is located in Japan. Towards the end of Q1, At least ten sites were not operational due to building damages and fallout from the damaged nuclear reactors. This production loss has led to problems with supply and distribution. The infrastructure is also destroyed in many areas, causing problems with procuring raw materials. This could lead to significant losses in revenue and profitability.


Exchange Rates

The overseas market accounts for about 70.9% of Sonyʼs sales. (Sony, 2011). This makes the company vulnerable to volatility in currency exchange, of the dollar, Euro, and the yen. The yen has appreciated strongly against the dollar and the Euro following the tsunami due to speculators. “The strength of the yen implies profit erosion.” (Sony, 2011) Sonyʼs strong Japanese presence combined with the instability of the yen suggests that there will be an adverse result on financial performance.

Consumer Privacy

Data theft of customer information affected 102 million users, in which hackers stole names, addresses, and passwords. Sony has responded to the security breach by investing more into the security of their networks.

United States Recession

This recession has seriously hindered buying power in both the United States and Europe. Consumers continue to purchase commodities, but families are much more careful with unnecessary expenses.

International Policy


Another threat is changes in international policies. Many in US citizens have called for an increase in purchasing goods that are made in the United States. Unlike, many of the foreign automobile manufacturers, Sony cannot claim to be American in production. This may lead to quotas being placed on their merchandise in favor of supporting American goods.

The last threat is tied to the credit crunch/recession. Both the United States and much of Europe are in a period of negative growth. This has led to less capital available to invest in purchasing new products. Many in the United States are apprehensive about upcoming changes in the economy. About a quarter of Sony's revenue comes from Europe. As the result, if the situation (in Europe) persists, this could be a negative factor. Noting that financial institutions could tighten lending and spark another credit crisis.


Marketing StrategyTarget Market Strategy

Target Market

Geographically, there are target market locations in New Jersey, New York, Maryland, Connecticut, Colorado, Florida, Washington, Illinois, Hawaii, Virginia, South Carolina, Pennsylvania, that provide an income base satisfactory to our target market. Our target markets are based on incomes starting at $75,000, focusing on the wealthiest zip codes in the United States. Although these locations are spread throughout the country, many are concentrated in New York, California, the Northeast, Southeast, and Southwest. These particular areas have the greatest purchasing power, on a larger scale. (Brennan, 2011)

Regarding sociodemographics and behavioral characteristics, the target market tends to behave in a homogenous manner. This wealthier segment tends to purchase higher end electronics, luxury vehicles, larger homes, and focus on family experience. There may be a need to have different geographic marketing strategies, but the overall message remains the same. Cultural differences between each region can be highlighted in marketing materials. Since this is a specialty product, it may not be relevant to have a unique marketing mix.

These markets are accessible through several distribution and communication methods. Primarily, it will be important to incite desire to purchase PAVI while customers are traveling or transitioning from work to home.


These areas may include: Airport Lounges, Specialized Brochures at premier locations and high-end publications.

High & Low Opportunity Segments

The high opportunity segments are upper middle class Americans earning $75,000 annually or greater. The low opportunity segments would be quantified below this line.

Evolving Needs and Satisfactions Being Sought By Our Target Market

Ipsos Mendelsohn, in their 2011 Annual Affluent Survey, found this year, that brands marketing to the affluent family have a higher chance of seeing ROI, since the family generally buys many products all at once, particularly in the digital and consumer electronic goods industries. Their survey is based on 14,405 representative interviews with adults who have more than $100,000 in annual household income, which collectively represents 58.5 million adults.

Also, according to this research:• the affluent family has now emerged as a major marketing segment, due in part to changes observed in the

contemporary family dynamic.• Purchasing decisions are no longer made by the head of house, but are largely discussed and influenced by the

children, especially in the digital and mobile areas.• Mature affluents are looking to their tech-savvy kids for advice on electronic products like mobile phones, tablets

and laptops or computers.• Children also have become heavy influencers on vacation locations.


The Luxury Instituteʼs Wealth Report for September 2011 mirrors many of these findings. The top two luxury categories in which the wealthy indicate plans to spend more are travel (18%) and technology (16%). Driven by the success of the iPad and numerous smartphones, plans to boost tech spending are up from 13% who indicated they would be spending more last year.(Kime, 2011)

Our target customer travels on family vacations to luxury resorts and/or owns vacation homes. The mother and father

range between the ages of 30 - 55 years old, with small or teenage children. This particular family shops at high end

malls, such as Phipps Plaza, and attends private institutions, that have the latest technological advancements. To keep

the family organized, PAVI can be used in daily activities, and offer a dynamic audio visual experience as well.


Marketing Mix

60" screen measured diagonally from corner to corner

Ultraslim design (1/4" deep)

Smart capableFeatures access to Skype, Netflix, CinemaNow, YouTube, Pandora and more.

Connectivity to Security System

Voice RecognitionChange channels with vocal commands, check status of security, call, and compose email

3D technology

Intelligent Variable Contrast technologyAutomatically adjusts the brightness and LED backlight to enhance color depth, brilliance and detail in dark and light areas.

Clear DisplayProvides the highest quality progressive-scan picture possible from a high-definition source.

10 HDMI inputs

Built-in Wireless


Product Description

PAVI consists of dynamic screen technology manufactured by Sony using Corning materials. This large wall-format display glass is touch-sensitive with a seamless design. This screen comes in three different sizes, 60” (small), 72” (medium), and 12ʼ (large). PAVIʼs size is customizable, and can be custom fit to suit a customerʼs needs. Internet capability provides seamless access to Skype, Netflix, Cinema Now, YouTube, Pandora, to name a few of sites available. This interactive system has connectivity to home and work security systems, and operates through voice recognition. PAVI connects to existing media systems wirelessly. The user can change channels on the television vocally, check on building security, make calls or compose emails through simple commands. Variable contrast technology allows the screen to automatically adjusts brightness and LED backlight, enhance color depth, brilliance, and detail in dark and light areas. PAVI will facilitate creative collaborations on a global level, allowing users to connect digitally.


PAVI in a Corporate Setting

Creative businesses often collaborate with companies throughout the world. PAVI will offer integration services that will allow businesses to work simultaneously on projects. The interactive aspects of PAVI will develop a more efficient method of collaboration.


Place/Distribution

PAVI combines the latest technology and the modern lifestyle. To facilitate the growing and diverse needs of customers, Sony is able to customize the PAVI hardware and software based on customers choices. Besides the standard sizes offered, Sony can customize PAVI to fit any space (within reason).

Sony will distribute PAVI directly to customers through Sony stores throughout the world. We will offer delivery and installation, along with instructional courses for different ages. We will have a special sales force that targets not only our target market, but specifically to hotels and hospitality business, educational institutions (colleges and private schools), collaborative creative businesses (architecture firms, fashion designers, etc.), and government. By offering specialized selling, the sales team will be able to directly meet the institutions needs. Sony Stores are located in 120 countries in the world. There are 27 stores in U.S.A., 40 stores in China, 3 stores in Japan, and more throughout the world. Sony stores are typically located in large shopping malls or trading areas, and have constant traffic flow. It is very easy to locate and contact Sony stores. In March, Sony kicked off what will be a year-long


endeavor to rebrand the companyʼs retail stores and experience. This concept store is a fully functional Sony retail outlet that will be the basis of all future stores and old ones. Sonyʼs goal is to expand the Sony retail experience to many new stores, while also converting existing stores to this new layout which he hopes the company will complete by the end of 2011. (Osati, 2011)

The new-concept Sony Stores at Century City introduces a brand new customer experience from Sony, including a world-class design that truly embodies the best Sony has to offer – from our electronics products to our music, movies and games. When you walk into the Sony Store, you will be able to experience all things Sony, and can interact with knowledgeable and engaging Sony experts who are passionate about the company and eager to share their insights and expertise. In the stores customers can learn more about the products and other subjects, and have fun exploring electronics. We will develop a PAVI area in Sony stores to simulate the situations in customersʼ homes.


PAVI may be ordered online, or a customer can ask for a demonstration on the Sony store Website. There are different websites for 120 countries. Additionally, customers can communicate with technicians through chat in different languages. All PAVI devices purchased in the Sony store website come with service agreements, where that particular store will service the device should the product have an issue within the contract period.

Besides Sony stores, there are special sales departments in 120 countries. These departments consists of professional sales, designers, installers, and technology directors. These different departments will contact potential customers and perform demonstrations on site, depending on the business.

Price

Pricing decisions are almost always created with the marketing management. Price is the only marketing mix variable from the 4 Pʼs that can be quickly altered. Moreover, 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 consumers. Research shows that consumers directly relate price to quality, particularly in case of products that are ego intensive of technology based. Sony being a company, which emphasizes product quality, we tend to sell our products with price ranges from moderately high to high-prices, depending on the use and the targeted consumers.

As Sony marketers, we keep in mind that price sensitivity is the awareness of the consumer to what they perceive to be the window of cost within which they will buy a particular product or service. Moreover, it is imperative that as marketing professionals we are able to assess price sensitivity in the target market (B2B, Ivy League Institutions, Hospitality


Industry, Residences with high income) accurately because missing the "window," even by a small margin can have enormous consequences for our companyʼs bottom line. Considering this, we know that our potential consumers from our target market are not extremely price sensitive because they expect to pay the price for a high-end luxury product.

In our pricing strategy, discounts will not be offered to all consumers since the majority of our target market consists of consumers who currently earn high income and donʼt necessarily need a discount. Nonetheless, we will offer prestigious pricing for our target market in the hotel industry. Ideally, we want to be able to reach the Five 5 Alliance business hotels in cities that include Tokyo, Dubai, Washington D.C, New Delhi, Kowloon, Chicago, London, Jumeriah, New York, Singapore, Mumbai, and Rome. The prestigious pricing will help us promote the high-quality image of our product. (Five Star Alliance, 2011)

Sony accepts all major credit cards (AMEX, VISA, MasterCard, Discover), and special financing options as methods of payment. Sony Electronics is now partnered with GE Capital to bring consumers the new Sony Financial Services Card. The new card from GE Capital allows consumers to get everything you want faster and easier. Another option to pay is with the Sony Card℠ from Capital One® which is the card that lets consumers earn rewards towards their favorite Sony products. Below is how the card works:

5x Points at Sony Stores, Sony.com and Sony authorized retailers

3x Points on all dining out and movies1x Points on everything else

Get 5,000 bonus Points — enough for a $50 Sony Gift CardNew consumers get 5,000 bonus Points after their first purchase with the card.


Concerning the psychological dimensions of price, Sony has considered many factors. Although, the price may appear as rather high for many consumers at first glance, the target market research illustrates that the price for our product, PAVI, is reasonable and our potential consumers will more than likely pay the price for the product. Keeping in mind, this is the introductory stage of the product life cycle, thus, the price is generally going to be high. One reason is so that we can recover the development costs quickly. In addition, demand originates in the core of the market meaning consumers whose needs ideally math the productʼs attributes) and thus is relatively inelastic. As Sony marketers we understand that the drawback is if the target market is highly price sensitive, it may be better to price the product at the market level or lower, however while conducting our market research, we determined that our consumers will most likely not be price sensitive.

Keeping in mind the importance of the relationship of price to quality, we believe that consumers tend to rely on a high price as a predictor of good quality. We are taking into consideration that prestige pricing is the concept of charging a high price to help promote a high-quality image. In fact, a successful prestige pricing strategy requires a retail price that is reasonably consistent with consumerʼs expectations. For example, no one goes to Apple and expects to pay $450 for a MacBook Pro. Demand would fall drastically at such a low price. Apple would probably lose market share over the long run if it lowered its prices.

Research shows the price-quality relationships have focused on consumer durable goods. Some of the dimensions of the quality of our product, PAVI include ease of use, versatility (the ability of a product to perform more functions), durability, serviceability, performance and prestige. Moreover, researchers found that when consumers focused on prestige and/or durability, in which case for our target market they will, price is a strong indicator of perceived overall quality. Because we are using the prestige pricing strategy, our target market will purchase our product as a means of affirming their own self-


worth and to satisfy their egos. As for our hotel industry, we are confident that our product, PAVI will help illustrate the luxury of the hotel and their business conference rooms. Our product, PAVI will also enhance our educational institutions overall reputation and during potential candidate campus visits, students will be able to see the upgraded technology within the classroom environment and will feel more comfortable knowing their tuition is understandable. Another reason why we have established a high price for our product, PAVI is because of the hedonistic effect as our consumers pursue emotional responses by using our product such as pleasure, excitement, and a sense of high social status.

The pricing strategy we have chosen is price skimming. This market-plus approach is used to symbolize a high price relative to the prices of our competing products. Since PAVI has unique advantages, we can use this strategy and since the market is willing to buy PAVI even though it carries an above-average price, we know this strategy will work.

Essentially, since PAVI is a high-end product, consumers will have the opportunity to view and use the screens in the retail Sony stores to get a better idea, however, they will be unable to try a sample piece at an introductory price, as that is not feasible. Nonetheless, price promotions will be used as a promotional tool to increase our consumer interest and will be implemented by advertising as well as creating pre-orders. The tactic of allowing consumers to pre-order the screens before the launch date of PAVI will create hype for all consumers and further engage them in the product. Our website will have several videos that discuss how this revolutionary innovative product came about and will further illustrate all the applicable features provided within this product.


Pricing Structure

Lastly, using the markup pricing method we retrieved the price of our product, PAVI. This method allows the cost of buying the product from the producer (Corning) plus amounts for profit and for expenses not otherwise accounted for. Parker Hannifinʼs Strategy to create pricing power illustrates that classic or special products, which include custom-designed or unique product with no market competition, can increase their price by 25% or more. Since PAVI is the first to come out in the market and is extremely unique, Sony added a margin of 32% of the cost thus, per below, PAVI will be sold for the prices listed below:

RETAIL PRICE FOR 60” PAVI SCREEN = COST FROM CORNING GLASS IN ADDITION TO OTHER EXPENSES TO PRODUCE THE PRODUCT/(1-DESIRED RETURN ON SALES):

RETAIL PRICE = $6,120/1-.32RETAIL PRICE = $8,999.99


RETAIL PRICE = $7,344/1-.32

RETAIL PRICE = $10,799.99


RETAIL PRICE = $14,688/1-.32

RETAIL PRICE = $21,599.99


Promotion

Advertising

Advertising Objectives In 2011, there are several ways to communicate a product to your target audience. The typical customer finds out about the products through television, magazine, and internet advertisements. Our advertising campaigns will communicate the benefits of PAVI, and all the standard features offered. Additional information about added features can be discovered on the Sony website or in-store. We will persuade the customer to deviate from standard LCD and 3D TV purchases, and pursue a more integrated electronic system. Since this is a complex product, we will focus on personal selling to high end customers. Sales agents will use the pull strategy to promote to the consumer, and the consumer will order directly from Sony.

Advertising MediaFor our initial advertising campaign, we will use pioneering advertising to stimulate primary demand for PAVI. This product is not completely unfamiliar. It takes characteristics from the consumers daily use of electronics, and combines them into one product for convenience and ease. The average consumer will require additional assistance in using the equipment, but our target market already owns a diverse group of electronics with similar technology.


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The PAVI appeals to the audience in the following ways:

Profit, through the saving, earning, and protection of money. The customer can use PAVI in business to collaborate on projects globally, and earn revenue for their service or product businesses. Admiration can appeal to our target market. EPSN can use PAVI during their broadcasts as a way to familiarize the customer with the product. Convenience is the most important aspect of the PAVI. Not only is it an innovative, state-of-the-art piece of equipment, it simplifies the consumers daily activity by combining all communication functions in one place. The vanity or egotism appeal of PAVI may attract a portion of our customers. Some clients will feel that PAVI will elevates the standard of technology in their educational institutions, hotels, or homes, and purchase the item out of necessity. Environmental Consciousness is another important factor in households throughout the world. By developing an energy-efficient product, the Customer will be more inclined to purchase in the Sony family of products.

Execute the Message

The Slice-of-Life (Apple) style of marketing will appeal to our target audience, since it takes a daily activities, and provides realistic usage of PAVI. By focusing our messages to appeal to daily life, customers need for the product will be strengthened. The consumer can get a better feel of the tangibility of this item, and simplistic usage through lifestyle and demonstration commercials.


Types of Media used and Frequency


Type of Electronic Advertising

Frequency Outlets

Interactive Kiosks One-month per quarter Shopping Malls, Sony Stores

Advertainments Daily Sony Websites

Social Networking Daily Twitter, Facebook, Tumblr

Interactive Video Daily Sony Websites, YouTube

Electronic Mail Weekly to Monthly Sony Client Lists

Type of Transitional Advertising

Frequency Outlets

Newspapers Bimonthly The Wall Street Journal, New York Times

Magazines Monthly WIRED, Business Week, The Economist,

Advertising Strategy

For the first 3 months, we will inform the customer of PAVIʼs functions and customization. In this time period, we will increase awareness, explain how to operate PAVI, suggest new uses for the Internet-capable TV, and continue to build Sonyʼs reputation in innovation.

Over the next 9 months, we will persuade customers to purchase PAVI through encouraging brand switching, change customersʼ perception of product attributes by making them aware of the superiority of PAVI to their current television systems. With call centers in place, we will encourage customers to phone in to inquire about the product and use personal selling to build credibility.

In the following year, we will continue to remind the customer why the product is needed, where to purchase, and maintain Sonyʼs image in innovation through reminder advertisements.

Public Relations

Keeping in mind that Public relations is a broad set of communication activities employed to create and maintain favorable relationship with employees, shareholders, suppliers, media, educators, potential investors, financial institutions, government agencies and officials and society in general. Fortunately, Sony doesnʼt just rely on brilliantly executed advertising campaigns to secure consumer attention. The company utilizes world-class public relations to enhance Sonyʼs value, reputation and brand image. Communications campaigns are conducted on both an individual product and strategic platform basis. This process ensures exposure for the companyʼs most important products as well as for the companyʼs


role in key industry issues that cross multiple product categories and disciplines, including electronic music distribution and digital television.

Sony also uses the Internet to communicate with customers. Along with enhancing the content of our websites, which include product-related news and frequently asked questions (FAQ) sections, the websites offer downloads of manuals and software updates, as well as provide prompt and easy-to-understand information about products and services, including support services. The website has earned high marks in, among others, independent studies of effective support websites. For example, in Japan Sony provides services designed to give first-time personal computer users greater confidence: Operators are able to guide personal computer users while remotely monitoring their screens by way of the Internet with the users' permission. Customers can also submit a request through the Internet to have support personnel dispatched to their locations to assist with installation and setup. Sony uses customer opinion to enhance its Internet-based customer services. One recent example is the addition to the Sony website of pages that offer easy-to-understand guides on how to connect multiple devices and obtain even greater enjoyment once devices were connected.

Sony takes the extra step to accommodate all consumers. Sony Corporation provides CD versions of catalogs and audio user manuals to visually impaired users and customers who are unable to use regular catalogs and manuals for other reasons. Sony issues CD versions of catalogs twice a year with the same content that is released on Sony's website. These catalogs, which are produced by Sony Marketing (Japan) Inc. in cooperation with the Japan Braille Library, provide voice guides on the main functions of new products. For some product models, audio guides that serve as audio user manuals and text data are available on Sony's product information website.


Moreover, we will use the new-product publicity as a tool to introduce our new product, PAVI. This will help our advertisers explain whatʼs the difference about our product by prompting free news stories or positive word of mouth about it. During the introductory period, an especially innovative new product such as, PAVI needs more exposure than conventional, paid advertising affords. Our plan is to have Public relation professionals write press releases and develop videos to generate news about our product, PAVI. Additionally, the exposure of our product will appear at major events, such as the Super bowl, and on popular televisions and news shows.

Sample Press Release

If you were wondering what to get for the techie in your life who has every new gadget and yawns at ordinary releases like the Iphone 4S; the PAVI will awaken your senses. The leader in the home entertainment since the 1980ʻs has again taken the developed an innovative product, PAVI at the forefront of the Smart Screen technological revolution. PAVI, which stands for Prestigious Audio Visual Innovation, is the future of interactive computers.

This large wall-format display glass is ultra-slim, touch-sensitive with a seamless design. Users will be able to read their email, surf the internet, and watch videos on Youtube and Skype with loved ones while brushing their teeth. The voice recognition component will allow users to do everything from change the channel to protect their homes from intruders. This screen comes in standard sizes of 60” (small), 72” (medium), and 12 ̓(large). It can also be customized in size based on the customerʼs preference.

It takes the user experience to a new level by offering intelligent variable contrast technology. This technology automatically adjusts brightness and LED backlight, enhancing color depth, brilliance, and detail in dark and light areas. It has a clear display that provides the highest quality progressive-scan picture possible from a high-definition source.

Sonyʼs PAVI screens will be available online, in Sony stores, and in major retailers in time for the busy Christmas season.


Personal Selling

We will utilize traditional selling tactics and relationship selling to promote PAVI sales. Sales representatives will generate leads through advertising, publicity, direct mail or telemarketing, cold calling, internet web site, referrals, networking, trade shows, conventions and company records. After qualifying leads, sales representatives will need to probe customer needs, develop solutions, handle objections, close the sale and follow up with each client.

Along with in store and specialized sales forces, we will promote the product at Trade and Electronic Shows. We will need to provide representatives with the appropriate training, free merchandise, products for demonstrations, and funding for travel.

The Sales Manager will be faced with the following tasks:

• Define sales goals and sales process• Determine sales force structure• Recruit and train sales force• Compensate and motivate sales force• Evaluate objectives and sales performances•


Hype Cycle

PAVI will use the Hype Cycle concept to promote the product. PAVI could be considered a technology trigger, a technology breakthrough to spark a change in the current electronics industry. In order to maximize publicity, we have to show the world that Sony is the innovator of this product and compare it to the current electronics available on the market.

Peak of Inflated Expectations: Early publicity produces a number of success stories and some failures.

Trough of Disillusionment: Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters.

Slope of Enlightenment: More instances of how the technology can benefit the enterprise start to crystallize and become more widely understood. Second- and third-generation products appear from technology providers. More enterprises fund pilots; conservative companies remain cautious.

Plateau of Productivity: Mainstream adoption starts to take off. Criteria for assessing provider viability are more clearly defined. The technologyʼs broad market applicability and relevance are clearly paying off. (Gartner, 2011)


Sales Promotion

Sales promotion is a marketing discipline that utilizes a variety of incentive techniques to stimulate sales or related programs targeted to customers, trade, and/or sales levels that generate a specific, measurable action or response for a product or service. Sales promotions for example includes free samples, discount, rebates, coupons, contents and sweepstakes, premiums, scratch cards, exchange offers, early bird prizes, etc.

The goal of our sales promotion is immediate purchase; regardless of the form of the sales promotion, and thus our target customer are the loyal customers.

Sony will promote PAVI through different sales promotional strategies. For example after the release of the Sony PAVI Elite Screen, Sony will offer a bundle pack using the sales promotion to give our loyal consumers to continue their buying behavior and offer new consumers an incentive to stock up and be content with the quality of our product as opposed to the competitors line of products. This will essentially reinforce our consumerʼs behavior and increase consumption within our consumers. The bundle pack will include savings when the consumer buys the PAVI Screen and a 16GB Sony Tablet.


SAVE $1500! SAVE $1200! SAVE $1100!


!

144" Class (143.6" dia.) PAVI $21599.99

16GB Sony Tablet S $499.99

You Pay $20,099.99

ADD BUNDLE TO CART

72" Class (71.6" dia.) PAVI $10,799.99


You Pay $9,599.99

ADD BUNDLE TO CART

60" Class (54.6" dia.) PAVI $10,799.99


You Pay $7,899.99

ADD BUNDLE TO CART

Implementation, Evaluation, and ControlImplementation

Sony wishes to achieve 1% of market share increase in the high tech screen market with its PAVI product. This market share will be achieved through an aggressive marketing campaign. Marketing channels include commercials, magazine advertisements, press releases, and social media pushes on Twitter, YouTube,Tumblr, and Facebook.

Television commercials will be shown during sporting events, prime time television (ex. 30 Rock, 3 and 1/2 men, etc.), and during the evening news. This will expose the product to the upper middle class, likely male consumer who will be purchasing the product. The effectiveness of this strategy will be monitored by surveys that track where the consumer heard about the product. 10% of the budget will be spent on commercials.

Magazine advertisements will appear in magazines such as SkyMiles on airlines, GQ, and other publications geared towards technologically savvy readers. The advertisements will also appear in educational publications geared towards leaders in higher education. The success of this campaign will be tracked with surveys. 20% of the budget will be spent on magazine advertisements.

Press releases will be tied to tsunami recovery. They will detail the steps Sony is taking to stay competitive. They will appear in the Wall Street Journal, New York Times, and Washington Post. This will be both a marketing push, and an attempt to reassure shareholders.


Most of the budget will be spent on social media. These pushes will include a Facebook page with giveaways, a YouTube commercial (a day in glass), Tumblr blogs supported by Sony advertisements, and Twitter posts by paid celebrity spokespeople. This medium has the built-in bonus of being able to track success electronically. It is anticipated that Sony will generate revenue of $100 million from PAVI screens. The advertising budget will be 30% of expected revenues.

Marketing ResearchFurther marketing data is needed for the international target markets. Sony PAVI will be introduced in segments of the market that would be interested and able to purchase the product in the early stages.

EvaluationProduct EvaluationAfter customers have purchased PAVI in the Sony retail store, there will be an immediate email sent with the receipt and survey questions regarding their in-store purchase. Implement a schedule of follow-up emails with new PAVI customers.

Technician EvaluationSony will call to see if the technician was prompt to the appointment, professionalism, do you feel comfortable using the product, are you interested in free courses to learn more about the applications used with PAVI.


Website EvaluationAdd a pop-up survey to the Sony website using Survey Monkey. Online surveys to capture customersʼ information and interest in PAVI.

ControlSony Marketing Managers should evaluate the PAVI marketing strategies. The control function should be placed on high importance, as it does not only control and evaluate activity, but it assists managers in developing their skills in order to provide sound management of this function. The proven objectives and purpose of the plan are as follows:

• Are the marketing activities performed to date optimal for Sony?• Evaluate customer satisfaction based on surveys• Are the marketing objectives being met?• Was success achieved with the introduction of PAVI to the US and Global marketplace?• Can you identify the individuals that are responsible for the success or failure of the marketing plan?• What influence did the marketing mix variables have on the success of marketing activities?• Forecast future marketing strategies after evaluation PAVIʼs existing strategy.


Implementation Table

Date Activity Manager Objectives Met?

By mid November 2011 Obtain Final Product Approval Iris

By November 31, 2011 Train the sales team Faith

By November 31, 2011 Develop an incentive program for the sales team

Faith

By November 31, 2011 Construct special inbound call center for interested customers

Shaheen

December 1, 2011 Hold an official press conference/launching party

Chantal

December 1, 2011 Advertise the PAVI on Sonyʼs website

Chantal

December 15, 2011 Setup promotional meetings for third-party vendors

Shaheen

Monthly, starting January 1, 2011 Start Luxury Magazine Advertising

Iris

Daily, starting January 1, 2011 Start Luxury Website Advertising Iris

Bi-weekly, starting January 1, 2011

Start Television Advertisements Iris

February 1, 2011 Assess feedback from each advertising channel

Faith

February 5, 2012 Air Superbowl advertisement Iris

February 6, 2011 Weekly television advertisements Iris


Works Cited

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Business Monitor International. (2011). United States Consumer Electronics Industry Report Q3 2011. London: Business Monitor International.

Five Star Alliance. (2011, October 1). Five Star Alliance. Retrieved October 1, 2011, from The Five Star Alliance: http:// www.fivestaralliance.com/best-hotels/worlds-best-business-hotels

Gartner . (2011, - -). Hype Cycle Research Methodology | Gartner, Inc. Retrieved October 1, 2011, from Gartner: http:// www.gartner.com/technology/research/methodologies/hype-cycle.jsp

Kime, S. (2011, September 27). The Affluent Family | An Emerging Market Segment. Retrieved October 1, 2011, from Just Luxe: http://www.justluxe.com/luxe-insider/trends/feature-1648233.php

Osati, S. (2011, March 31). Sony Rebrands Retail Stores, Kills off Sony Style and Launches a New Store Initiative. Retrieved October 5, 2011, from Sony Rumors.net: http://www.sonyrumors.net/2011/03/31/sony-rebrands-retail- stores-kills-off-sony-style-and-launches-a-new-store-initiative/

Sony. (2011, March 31). Sony. Retrieved October 1, 2011, from www.sony.com: http://www.sony.net/SonyInfo/IR/ financial/fr/highlight.html

Wakabayashi, D. (2010, May 14). Sony Eyes Return to Profit - WSJ.com. Retrieved October 1, 2011, from The Wall Street Journal: http://online.wsj.com/article/SB10001424052748704635204575241581416539038.html? mod=WSJ_latestheadlines

Wikipedia. (2011, October 12). Sony Corporation.


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http://www.gartner.com/technology/research/methodologies/hype-cycle.jsp

http://www.justluxe.com/luxe-insider/trends/feature-1648233.php

http://www.justluxe.com/luxe-insider/trends/feature-1648233.php

http://www.sonyrumors.net/2011/03/31/sony-rebrands-retail-stores-kills-off-sony-style-and-launches-a-new-store-initiative/




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http://online.wsj.com/article/SB10001424052748704635204575241581416539038.html?mod=WSJ_latestheadlines




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