Marketing case of sony
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SONY Corporation
Case studyPresentation
Contact UsKeiko, Shankar, Toto, Roger, AndyTeam Two
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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BackgroundSONY Corporation
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company name: SONY Corporation
Founded: May 7, 1946
Head quarter: Tokyo, Japan
Major Products:
• Audio, Video, Information and Communication
• Television
• Components, others.
Market dominance in Television industry in 1968s
Facing a strong decline in TV market
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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Market analysisTelevision Market Segments
LCD PDP RPTV
SONY O O O
SHARP O
PHILIPS O O
LG O O O
MATSUSHITA O
SAMSUNG O O O
Market fragmentation Strong players create high competition
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Market analysisLCD Price
competition36 – 46 inches
30 – 36 inches
21 – 29 inches
10 – 20 inches
SonySharpPhilipsSamsungLG
High competition in supply SONY positioned by premium prices in large screen TVs
Price: Ave. price of all modelsScale: No. of models
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Market analysisPDP Price
competition
57 – 66 inches
47 – 56 inches
37 – 46 inches
SonyMatsushitaPhilipsSamsungLG
High competition of models SONY positioned by premium price
Price: Ave. price of all modelsScale: No. of models
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Market analysisRPTV Price
competition
57 – 66 inches47 – 56 inches
37 – 46 inches
SonySamsungLG
> 66 inches
Less competition in the segment SONY positioned by relatively high price
Price: Ave. price of all modelsScale: No. of models
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Market analysisProduct Sales results
984290
950166917207
2000 2001 2002 2003 2004 -
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
135,000
140,000
145,000
150,000
155,000
160,000
165,000
170,000
LCDPDPCRT
Sony Sales
LCD & PDP increase rapidly while CRT drops significantly SONY losing sales in television industry
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Market AnalysisSONY Developing process
1960s 1968 1990s 2000 2003 2004•B&W TVs•CRT TVs
•Trinitron •EDTV•HDTV
•FPD TVs •Wega engine•Qualia•LCD TVs
Blooming of Digital tech
Level of Competition
Industry leader
Losing in competition
Market is fragmented and high competitive SONY losing position in the industry
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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Portfolio AnalysisBCG Matrix
Relative market share
Mark
et
gro
wth
rate
High Low
Hig
hLow
LCD
PDP
RPTV
CRT
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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Marketing issuesInternal problems
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Premium price strategy
Market forecast problems
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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SWOT AnalysisExternal & Internal
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
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SWOT AnalysisExternal & Internal
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
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PresentationCONTENT
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Company background
Market Analysis
SONY Portfolio analysis
Marketing issues
SWOT Analysis
What to do?
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What to do?ANSOFF Matrix
Focus on developing product in current markets Strengthen big screen in RPTV segment
Market Penetration
Product Development
Market Development
Diversification
Current Product New Product
Current market
Newmarket
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What to do?Marketing Mix
Improving Marketing Mix
Marketing Mix
ProductImproving Product
quality and innovativeness
PlaceBroaden distribution
network to cover market
PromotionNon-cash promotion
to high-end customers
PriceMore competitive
prices in lower segments
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What to do?Other activities
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
Sony’s difficult position caused by the wrong marketing strategies and high competition of the industry. Erroneous forecast of the time:
FPD TVs would take-off only by 2005.
High competition of the industry :Technology innovation in high end market Low cost manufacture in low end market
Always try to lower manufacturing costs, but the industry is in the period of technology-orientation. Sony went against the industry trend by 2001.
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What to do?Other activities
Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy
How to eliminate trouble ? -- Sony’s core value: Innovation
The first transistor radio:Establish a global presence
Micro TV: Gain respect and earna reputation for quality
Sony trinitron TV:Set the quality standard for television manufacturersworldwide.
Sony’s successes always kept in line with its product innovation.
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What to do?Market forecast
LCD segment expanding rapidly Other segments remain stable
Focus more on LCD segment
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SONY Corporation
THANK YOU
Contact UsKeiko, Shankar, Toto, Roger, AndyTeam Two