Panasonic Brand Report Nitin Jindal (11131)
Table of Contents
Abstract ................................................................................................................................................... 3
Brief History of the Company ................................................................................................................. 4
Panasonic Brand History ......................................................................................................................... 5
Brand Evaluation .................................................................................................................................... 7
Decline .................................................................................................................................................... 8
Repositioning .......................................................................................................................................... 9
Repositioning Efforts in India ............................................................................................................... 11
Conclusion ............................................................................................................................................ 14
References ............................................................................................................................................. 15
Abstract
The term paper on ‘Panasonic’ presents information regarding Panasonic brand, its history,
development, success and reasons for the brand decline, as well as review the reasons,
advantages and disadvantages for repositioning of Panasonic brand.
Panasonic was well built up by Konosuke Matsushita over the years. It has a robust legacy
which has earned equity for the brand Panasonic. Panasonic was the one of the brand present
in the family of brands under the company Matsushita Electric Industrial Co., Ltd. Later the
all the brands came under the umbrella corporate brand Panasonic. Organization name was
also changed to Panasonic Corporation.
Company suffered several losses and started declining in 1990’s. Its products reported
defects. Company suffered in 1990 recession and reported heavy losses. It could not recover
until many years. Panasonic was unable to develop imaginative products. The period opened
up the firm to criticism and set off soul searching within the company. Panasonic was hit too
bad by the earthquake and tsunami in 2011 as most of its factories were well out of harm’s
way. But the company staged a comeback with a strategy which would position Panasonic as
its main global brand in order to strengthen brand competitiveness worldwide. A new global
brand campaign was launched with a new brand slogan 'Panasonic ideas for life' that reflects
the customer-focused strategy behind the development of Panasonic products.
The brand now needs a consistent approach to communications and dialogue worldwide.
Brief History of the Company
Panasonic was founded in 1918 by Konosuke Matsushita as a vendor of duplex lamp sockets.
In 1927, it began producing bicycle lamps; the first product which it marketed was under the
brand name National. It operated factories in Japan and other parts of Asia through the end
of World War II, producing electrical components and appliances such as light
fixtures, motors, and electric irons.
After World War II, Panasonic regrouped and began to supply the post war boom in Japan
with radios and appliances, as well as bicycles. Matsushita's brother-in-law, Toshio Iue,
founded Sanyo as a subcontractor for components after WWII. Sanyo grew to become a
competitor to Panasonic, but the rivalry settled down and Sanyo eventually became a
subsidiary of Panasonic in December 2009.
In 1961, Konosuke Matsushita travelled to the United States and met with American dealers.
The company began producing television sets for the U.S. market under
the Panasonic brand name, and expanded the use of the brand to Europe in 1979.
The company used the National trademark outside of North America during the 1950s
through the 1970s. (The trademark could not be used in the USA, probably because it was
already in use by the National Radio Company who was operating in a closely related
product area.) It sold televisions, VHS VCRs, hi-fidelity stereo receivers, multi-
band shortwave radios, and marine radio direction finders, often exported to North America
under various U.S. brand names. The company also developed a line of home appliances such
as rice cookers for the Japanese and Asian markets. Rapid growth resulted in the company
opening manufacturing plants around the world.
The company debuted a hi-fidelity audio speaker in Japan in 1965 with the brand Technics.
This line of high quality stereo components became worldwide favourites. Throughout the
1970s and early 1980s, Panasonic continued to produce high-quality specialized electronics
for niche markets such as shortwave radios, as well as developing a successful line of stereo
receivers, CD players, and other components.
On November 3, 2008, Panasonic and Sanyo announced that they were holding merger talks,
which eventually resulted in the acquisition of Sanyo by Panasonic. The merger was
completed in December 2009, and resulted in a corporation with revenues of over ¥11.2
trillion (around $110 billion). In recent years, the company has been involved with the
development of high-density optical disc standards intended to eventually replace
the DVD and the SD memory card.
Panasonic Brand History
Panasonic produces electronic products under a variety of names, including:
Panasonic (home appliances, personal electronics, audio/video equipment,microchips,
automotive components)
Technics (music equipment like headphones and turntables, overlaps withPanasonic
branded products in some audio categories)
Sanyo became a subsidiary of Panasonic on December 21, 2009.
Ramsa Professional Audio Systems is currently the division that manufactures high
end audio equipment globally; they are most publicly used at the Olympic Games
since 2000.
Panasonic used to own Universal Studios, then known as the Music Corporation of America,
since acquiring the company in 1990 but sold it to Seagram in 1995. Universal Studios is now
a unit of NBC Universal
The Panasonic brand name was created in 1955 and was first used as a brand for audio
speakers. It is a combination of the words, "Pan", and "Sonic", sound and has a meaning of
bringing sound our Company creates to the world. National came in to existence in 1966. By
the end of the 1971 Technics brand was also introduced. In 2007, Panasonic was the
corporate logo with three sub brands Panasonic, National and Technics.
Since 2008, it is used as the corporate brand representing the Company, products and
services.
Brand Evaluation
Panasonic as a brand has a strong legacy. Matsushita, its founder began producing radio
receivers in 1930. By 1934, it was Japan's largest producer of radios. It also made electric
fixtures, cooking heaters, storage batteries, phonographs and motors as well as bicycle lamps
and batteries. In 1936, it began producing incandescent light bulbs. atsushita Corp., like every
other company in Japan, participated in war efforts during World War II. Konosuke
Matsushita was originally supposed to be ousted from Japanese industry for his involvement
in the war but was removed from the list after Matsushita employees petitioned the
Americans for his removal from the list. During the 1950s, 60s and 70s, Matsushita
expanded its consumer products divisions and began making transistor radios, televisions,
stereos, tape recorders, microwave ovens and video tape recorders. In 1952 it made its first
black-and-white television. In 1960 it produced the first color television in Japan. In 1974, it
purchased Motorola's television operation in the United States and Canada. It sold 100
million televisions by 1985; 200 million in 1998 and 300 million in 2008. Panasonic was the
first television maker to produce 300 million televisions. This history provides a robust
ground to Panasonic Brand.
Panasonic not only means products that do good to customer but also have gained internal
buyin in the organization. Panasonic prides itself on its corporate culture and looking after its
employees. A favourite catch phrase for the company is that it has built people not just
products. Matsushita was the first Japanese company to give workers a five-day work week,
provide equal pay for women and develop a corporate spiritual philosophy. It sponsors
classes in flower arrangement and meditation and other things for its employees and hosts
sporting events. Matsushita has had few labour disputes and never had a strike. Young
Panasonic workers and engineers do well in national and international skills competitions in
categories such as lathe work, machine assembly and sheet metal working. In the machine
assembly category, competitors produce about 10 machine parts and assemble them time
within seven hours based on an assigned design. A trade school in Kadoma Osaka trains
workers and engineers for these competitions.
Panasonic had a legendry leadership that defined what it is known today.Matsushita was
known as "the god of management." Among Matsushita's sayings were: “Do not sell what
customers like. Sell what would do the customers good.” The word to the Panasonic song
goes something like this:
For the building of a new Japan
Let's put our strength and mind together
Doing our best to promote production
Sending our goods to the people of the world
Endlessly and continuously
Like water gushing from a fountain
Grow industry, grow, grow, grow!
Panasonic is known for its environment friendly products. Panasonic make sure that they are
contributing the society as well. This has given meaning to the brand at the core. Brand is
known for the products that do good for the people. Following is the snapshot of how they
source keeping CSR in mind.
Decline
Panasonic has long had a reputation for being slow to move and adapt and lacking
innovation. It instead copied designs and products of competitors and introduced its versions
as the products became popular. n the mid-1990s, malfunctions in a series of Panasonic
products prompted the company to inspect and repair 430,0000 defective refrigerators and
televisions for problems. At the same time Panasonic was unable to develop imaginative
products. The period opened up the firm to criticism and set off soul searching within the
company. During the recession of the 1990s, Panasonic fortunes began to decline and the
company’s long cherished principals were changed. The company began moving more and
more of its operations overseas, particularly to China, and shifting employees to profitable
sectors. There was a discussion of laying off workers but a great effort was made to get
employees to change their work habits and modernize or take early retirement rather than lay
them off. There was even some talk that Panasonic might move its headquarters from Osaka
to Tokyo.
In fiscal 2001-2002, Panasonic announced huge loses of more than $1 billion due to sluggish
demand for electronics. It responded by laying off workers, closing factories and overhauling
product lines. ob cuts and higher sales of DVD players and video camera helped Panasonic
post a profit in 2002. Panasonic president Kunio Nakamura was chosen by Forbes magazine
as Asian Businessman of the Year in 2003 spearheading the company’s recovery and
upstaging rival Sony. Panasonic posted impressive sales figures in 2004 due to demand for
flat-screen televisions, digital cameras and DVD recorders. Panasonic profits rose almost 30
percent to ¥281 billion in fiscal 2007-2008 amid strong sales of Lumix digital cameras and
flat-screen televisions. Panasonic lost $3.8 billion in fiscal 2008-2009 and $5.3 billion in the
April-to-June quarter in 2009 during the global financial crisis and responded by closing13
domestic and 14 overseas production bases in 2009 and cutting 15,000 jobs by end of fiscal
2009-2010. In addition to a drop in demand caused by the economic crisis in 2008 and 2009,
Panasonic also suffered as result of competition in the flat screen television sector and decline
in sales of digital camera and audio equipment. Vivendi bought Panasonic’s stake in
Universal Studios. During the economic crisis Panasonic urged its employees to “Buy
Panasonic” with most employees urged to buy products valued over $1,000 and managers
and above purchasing products valued at $2,000 and above. The company’s top executives
took 30 percent pay cuts in fiscal 2009 to take responsibility for the company’s poor
performance during the crisis.
Panasonic was hit too bad by the earthquake and tsunami in 2011 as most of its factories were
well out of harm’s way. Operations at factories hit by the recent Japanese earthquake were
recovering steadily, but disruptions in its supply chain were still affecting output.
Repositioning
Matsushita Electric Industrial Co., Ltd., known for its Panasonic and National brand names,
announced on 22 April 2011 that the company would position Panasonic as its main global
brand in order to strengthen brand competitiveness worldwide. A new global brand campaign
would be launched with a new brand slogan 'Panasonic ideas for life' that reflects the
customer-focused strategy behind the development of Panasonic products.
The slogan will be incorporated in all of the company's corporate communications and
advertising messages worldwide. The change in brand strategy comes from the company's
strong needs to consolidate its brand communications efforts under the 'Panasonic' brand
which covers over 90% of sales outside Japan. The brand slogan, 'Panasonic ideas for life',
represents the commitment of all the employees, from R&D and manufacturing to marketing
and services, to supply products and services based on valuable ideas that can enrich people's
lives and advance the society. Matsushita Electric adopted the brand name 'National' in Japan
in 1927 at the initiative of the founder, Konosuke Matsushita. The 'National' brand name
became a very popular household name in Japan and was also increasingly used in overseas
markets. The Panasonic brand was first introduced in 1961 in the U.S. where the 'National'
brand name had been registered by others and therefore, could not be used. Building on the
successful brand recognition of Panasonic in the U.S., the company started using the
Panasonic brand name in Europe in 1979 and in other regions in the late 80's for products
other than home appliances for which 'National' brand name continued to be used. Under the
new global brand strategy, the brand name for all home appliance products in Southeast Asia,
the Middle East and China will be changed to 'Panasonic' from 'National' by the end of March
2004. The 'National' brand will, however, continue to be used in Japan where the brand was
originally born.
New communication campaign designed to bring attention to the brand's broad scope of
products and solutions designed to meet consumer, business-to-business, and industrial
needs. The campaign would also underscore Panasonic's global commitment to becoming
the electronics industry's leader in green innovation by its 100th anniversary in 2018.
The multi-faceted campaign will showcase a series of print, on-line advertising and TV
commercials featuring the theme, "Just another way we're engineering a better world for
you." The combined marketing effort, which began July 27, represents Panasonic's
highest advertising investment in a sports event in its history. At the center of the
campaign are three TV commercials – 30- and 60-second spots -- including an anthemic
commercial highlighting the brand's extensive range of products and solutions for
consumers and business, as well as a commercial spotlighting Panasonic's comprehensive
business solutions and a Smart VIERA HDTV commercial featuring US Women's
National Soccer Team player Alex Morgan.
The anthemic commercial will spotlight both products the company is well known for,
including Viera flat-panel internet and 3D-enabled TV's, and Toughbook computers, as
well as its Lithium Ion batteries to power electric and hybrid vehicles, in-flight
entertainment and communications systems and energy-saving solar panel arrays at
stadiums and other sports centers. It also profiles an entire planned eco-smart community
called Fujisawa Sustainable Smart Town, which Panasonic is developing in Japan to
demonstrate a model for sustainable living. The new campaign is designed to complement
and be true to that legacy by communicating Panasonic's intention to engineer ways for
people to enjoy better and more sustainable lives around the world.
By changing its name to Panasonic Corp. this fall, Matsushita Electric Industrial Co.
expects to create a strong corporate image and boost its standing on the global market with
a wide range of products unified under the Panasonic brand name. The name Panasonic
has a history of nearly 50 years in the audiovisual equipment area, but it has yet to be
widely recognized. Taking advantage of the image of state-of-the-art technology that is
already associated with the Panasonic name, the company must also build up a new image
that will provide the sense of assurance and trust that have been associated with the
National brand
Repositioning Efforts in India
Electronic Products from Panasonic can be classified into three main categoriescomprising a
variety of products under them.
Washing Machine, Mini Compo Audio, Home Theatre, Movie Camera, Projection TV
,Plasma TV
GSM Mobile Phones, Special VS edition of Slim Mobile Phones is the latest range.
Business Products: ITS -Basic Speaker Phone 2-Line With Speaker Phone, Caller ID,
Fax-Thermal, Plain Paper, Cordless, Laser ,All-in-one- Copier, Laptop, Projectors
The recently launched Panasonic Products in the Indian consumer electronics market are
mainly targeted at the younger generation. These include:
VIERA range of plasma TV's that is projected to be a breakthrough for better image
quality, innovative technology, enhanced reliability and great value.
E.cam - Digital Movie Camera
Lumix- Digital Still Camera. It is priced at Rs. 13,990 onwards and has first of its
kind mega OIS (Optical Image Stabilizer) and LIECA DICOMAR Lens
Branding Through Ad - Agency
IBD India, a Percept-Hakuhodo company, has recently won the creative duties for two
Panasonic brands – Viera and Lumix. The media duties for these two brands would be
handled by Percept’s in-house media agency Allied Media Network.IBD India is a total
communication solutions agency specializing in advertising, films, identity management and
interactive media. Panasonic is planning an aggressive marketing push in India for its Viera
range, which comprises LCD and plasma televisions, and Lumix, which comprises digital
cameras. Commenting on the account win, Rahul Gupta, Managing Director, IBD India, said,
“It is a wonderful opportunity to work with a global giant like Panasonic. Even more thrilling
is the fact that India will be the regional hub for developing strategy on both brands. We
demonstrated a deep understanding of the Panasonic brand and worked out a strategy based
on fresh consumer insights. Our work on the brand will move beyond advertising into
innovative brand-building activities.”“The high visibility campaign for Viera and Lumix will
be launched in the coming festive season. The campaign will use print, television and outdoor
media as well as a host of below-the-line activities. The TVC will break in next 10 days’
time,” Gupta informed. He further said, “In the new campaign, we will focus on the unique
feature of faster moving images and more clarity of Viera TVs. For Lumix digital cameras,
we willhighlight their unique inbuilt wide angle lens, which allows one to capture more.”
Advertisement of Panasonic
IBD (integrated brand development) India, Percept out-of-home (POOH) and Percept
Knorigin which are divisions of Percept Limited kick started the Panasonic “Sound for India”
campaign in July 2010. IBD India has handled the creative duties in terms of
print,online and retail design; Percept Out-Of-
Home has done the OOH & on groundactivation while Percept Knorigin has created the
website
Commenting on the campaign, Rahul Gupta, MD, IBD India said, “Panasonic wanted to
reach out to dominant middle class in Tier II & Tier III cities with LCD TVs having superior
sound output. IBD partnered with Panasonic to heighten the ‘Sound’ advantage. We
positioned the TV as the perfect choice for the Indians who are passionate about sounds. The
Sound for India campaign celebrates the sounds that represent India. A common platform of
contests has seamlessly collaborated online, traditional & on road efforts to communicate the
message across town classes. The Sound for India contest is a unique engagement activity
and is running across 70 cities in India. With the kind of response we are receiving, I am sure
the judges will have a tough time!”For the OOH campaign as part of an eye-catching
innovation, LCD Cut outs which protrude out of the Hoardings have been used on prominent
Locations in Delhi to create an impact of an actual television. Panasonic has used more than
1,000 sites for outdoor advertisements. Sanjay Pareek, President, Percept OOH, said, “The
client brief was, to announce a new LCD developed for better viewing experience through
superior speaker quality and design in the VIERA range of TVs with a Bang’. We gave their
TG a ‘Big announcement’; we used about 20 different mediums and didn’t just stick to Bill
boards since the OTS were high. It is for the first time that Panasonic has used the
outdoor medium to announce a launch with such a high budget.” We have used innovation at
all the landmark sites by putting the cut out for enhancing the recall and placing the product
on the pedestal thereby staying ahead from the other products in the category.”The inspiration
and motive for the campaign is based on the consumer insight which demands low energy
consumption for Electronic products. Panasonic with this campaign intends to revolutionize
the essence of LCD TV in Indian households.
Ranbir Kapoor roped in as brand ambassador for Panasonic India. He is the young star face
selling Pepsi and now Ranbir Kapoor has become the brand ambassador for consumer goods
giant Panasonic India as well, his second endorsement deal so far.“We conducted a research
and wanted that our brand ambassador should meet fivedimensions –
he should be an established personality, should be able to createexcitement, should have a
competent personality, should be a premium brand himself and should be seasoned. For us,
Ranbir’s cool and trendy image was a perfect match,” Sharma told reporters. As the brand
ambassador, Ranbir would be involved in “communicating the brand values of the company
through multi-media campaigns”, the company official said.
Panasonic to Focus on Black in Advertising Campaign
In their latest advertising campaign, Panasonic is emphasizing on the color black to promote
their latest range of VIERA Neo Plasma TVs. It is also trying to impress on people that the
way black is rendered can make a lot of difference to the overall viewing experience. The
latest advertising campaign for Panasonic has been designed by The Campaign Palace. It
aims to focus on the way black color is represented in its new range of VIERATVs. Cameron
Hoelter, Creative Director of The Creative Palace stressed that the depth of black can tell the
difference between a good and an average TV. He also claimed that
thenew campaign will stress on the clarity of black color and everyone will also beimpressed
by the new range of Panasonic VIERA Neo Plasma TVs. Panasonic is also claiming that it
has incorporated a lot of improvements in its latest range of Plasma TVs and people will be
instantly able to get a better picture and color quality from these TVs. It will significantly
improve the overall viewing experience for the viewers and they will be able to see better
images whether they are watching 2D or 3D TV. The latest round of advertising campaigns
will be starting from the current week.
Panasonic Unveils Eco Ad Campaign
Panasonic has launched a print and television advertising campaign that highlights the
company’s eco-initiatives for energy-saving products and products that can be more easily
and completely be recycled. Panasonic unveiled its “Green Plan 2018” environmental action
plan in October, aimed at stepping up its efforts to meet environmental goals in time for the
company’s 100thanniversary in 2018.
Panasonic’s “Connecting with the Earth” campaign features five different ads that will appear
in the print and online editions of the New York Times, USA Today, Wall Street Journal, and
Washington Post and networking Websites such as Linked In, Facebook and Panasonic’s
Twitter site. The five ads target different “green” products for home and business,
including: –Panasonic’s line of VIERA Full HD 3D TVs that feature an Energy Star 4.0
rating. –Panasonic’s work on the development of solar energy panels, whole-house fuel cells,
super-efficient LED light bulbs that use 6.9 watts of energy, and next-generation battery cells
to power electric vehicles. –Panasonic’s Tough book line of laptop computers that meet or
exceed many of the world’s strictest environmental standards, according to the company.
Panasonic says all Tough book computers are manufactured in Clean Factories where at least
98 percent
of generated waste is recycled. Toughbook computers are also ISO14001 and RoHS-
compliant, Energy Star-qualified, and rated either Gold or Silver on the EPEAT registry. –
Panasonic’s High Definition Visual Communications system enables businesses to conduct
meetings in Full HD over the Internet, which eliminates the need to travel to meetings. –
Panasonic’s line of home ventilation fans, which feature a green manufacturing process,
were awarded the 2010 Energy Star “Partner of the Year Award.”
Conclusion
Panasonic, the Japanese multinational electronics organization, is in the process of
reinventing itself. Incoming President, Kazuhiro Tsuga, has called for “a return to the basics,”
putting customers at the heart of the Panasonic business and ruthlessly eliminating any
measures that do not create value. From solar panels and lithium ion batteries to a full
consumer electronics line-up equipped with “EcoNavi” energy-saving features, Panasonic
boasts industry-leading technologies and is well on its way to achieving a key objective:
becoming the number one greenest company in the electronics industry by 2018.
Demonstrating this commitment, Panasonic’s Eco Solutions North America has joined forces
with Renewable Social Benefit Funds (RSB Funds) to finance, build, and maintain solar
photovoltaic projects in the public, private, and non profit sectors. By integrating and
managing energy generation, storage, and use, Panasonic is aiming to offer comprehensive
solutions that significantly reduce consumers’ impact on the planet, while simultaneously
allowing everyone to enjoy a higher standard of living. It is a worthy goal, and one that
combines Panasonic’s strengths into an offer that competitors will struggle to match.
Panasonic has a wealth of good stories to tell, and a strong stance on corporate citizenship.
Under its “Sharing the Passion” slogan, Panasonic served as an Olympic Partner during the
2012 London Games. The brand now needs a consistent approach to communications and
dialogue worldwide.
References
http://panasonic.net/ir/annual/2012/pdf/panasonic_ar2012_e.pdf
http://panasonic.net/history/museum/index.html
http://www.interbrand.com/en/best-global-brands/2012/Panasonic
http://www.japantimes.co.jp/text/nb20080226a2.html
http://articles.economictimes.indiatimes.com/2003-07-11/news/27518040_1_brand-strategy-new-
brand-national-panasonic-india
http://visiblebusiness.blogspot.in/2011/08/panasonic-brand-strategy-2011.html
http://www.prnewswire.com/news-releases/matsushita-electric-to-strengthen-global-brand-
strategy-by-focusing-on-its-panasonic-brand-name-70896957.html
http://factsanddetails.com/japan.php?itemid=916
http://retailingtoday.com/article/panasonic-launches-major-brand-awareness-campaign
Top Related