Sony Style

Prepared by: Sophilea Soloman,

Ong Zhong Hong, Afizz b. Adlan and Sia Tin Jiu.

Background

•Sony is established in 1946• Dealing with TVs, DVD players, and other electronics•Small company owned Sony-Style Shop•Sales reached $740 million in 2006• Annual revenues are in the range of $1 billion

Features: Sony Style Stores• Convenient Stores Location – Can be located in up-scale shopping centers• Small sized format retail – Small if compared to other electronics retailers• Targeting at Woman- aisles designed to accommodate strollers / opening stores near female-oriented firms•Training and concierge services- each shoppers can be greeted

Sony Style Stores

Sony Style Stores

Sony Style Stores

Question 1

• Identify the pros and cons of Sony small stores format.

Question 1 : Answers

• PROS:o Shoppers friendly product displayo Convenience / Store Locationo Personalized Customer Serviceo Customer Feedbacko Hands-on Experienceo Well educated staffs

Question 1 : Answers

• CONS:o Limited Product Range – Focus on High Return Profit itemsoHigh operating costso Limited size of stores – Considering : Store layout, Merchandise assortment and fixtureso Lack of attention – Consumer may not notice them

a) Should sony use prototype stores?

b) Should it use rationalized retailing?

Question 2

Question 2: Answers

Prototype Stores Defined :Multiple outlets conforms to relatively uniform construction, layout and operations standards.

Question 2: Answers

Prototype Store

Question 2: Answers (a)

Should Sony use prototype stores?Prototype stores can make:a) Centralized management control easierb) Reduce construction costc) Standardized operationd) Facilitate the interchange of employees among outletse) Allow fixtures and other materials to be bought in quantity. (Cost Saving)f) Display a consistent chain image

Question 2: Answers (a)

However, relying on prototypes may lead to:

- Inflexibility- Failure to adapt to or capitalized on customers need- too little creativity

Question 2: Answers (b)

Rationalized Retailing Defined:

combined a high degree of centralized management control with strict operating procedures for every phrase of business.

Question 2: Answers (b)

Should Sony use Rationalized Retailing?

- virtually identical- Rigid control and standardization (easy to enact and manage)- Add significant numbers of stores

Question 3

a) Pro’s and Con’s of a top-down space management approach by Sony

b) Pro’s and Con’s of a bottom-up space management approach by Sony

Question 3 : Answers (a)

Top down space management defined:With a top down space management approach, a retailer starts with its total available store space (by outlet and for the overall firm, if a chain), divides the space into categories, and then works with the product layout.

Question 3 : Answers (a)

Top down space management

Question 3 : Answers (a) Pro’s and con’s of top down space management approach by Sony:PROs:-Quick and easy to implement-Easier to manage- Greater impactCONs:-Provides limited coverage in the first phases-The implementation costs is likely to be higher

Question 3 : Answers (b) Bottom-up space management defined:A bottom up space management approach begins at the individual product level and then proceeds to the category , total store and over-all company levels.

Question 3 : Answers (b) Bottom-up space management

Question 3 : Answers (b)

Pro’s and Con’s of a bottom-up space management approach by Sony:PROs:

-Higher impact to the organization

- User and business awareness of the product (benefits are realized in the early phases)

CONs:

-Practicality :- Some consumers may prefer to have a “showroom” like the top-down space management. Its easier for them to get the whole concept of Sony product.

Question 4

Discuss the inventory management issues Sony needs to understand in managing its stores.

Question 4: Answers

Definitions:Inventory :-goods or materials held available in stock by a business.

Inventory management :-primarily about specifying the size and placement of stocked goods.

Question 4: Answers

Issues Sony Needs To Understand:

Purchasing Plan:-Hold products in stock at the moment products are needed. -Purchasing requires advance planning.-Avoid last minute panic orders.-Must determine how long the inventory will last.

Question 4: Answers

Issues Sony Needs To Understand:

Controlling Inventory:- Visual Control - Tickler Control - Click Sheet Control - Stub Control - Control Of Outside Agency

Question 4: Answers

Issues Sony Needs To Understand:

Developments In Inventory Management :- Material Requirements Planning - Just-in-time

ReferencesWolf, Alan. 2007. “Toys 'R' Us Opens Sony Shop”.Twice.

http://www.twice.com/article/260207 Toys_R_Us_Opens_Sony_Shop.php (accessed September 2)

Sony.2011.http://store.sony.com/webapp/wcs/stores/servlet/ContentDisplayView?hideHeaderFooter=false&storeId=10151&catalogId=10551&langId=1&cmsId=sony_retailer_landing (accessed September 2)

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