PROJECT REPORT ON
USING DIGITAL WORLD FOR
CUSTOMER RELATION
MANAGEMENT IN INTEGRATED
MARKETING STRATEGY OF
SONY
SONY “Like No Others”
SUMMARY
The Indian consumer durables industry has witnessed a considerable change
in the past couple of years. Changing lifestyle, higher disposable income
coupled with greater affordability and a surge in advertising has been
instrumental in bringing about a sea change in the consumer behavior
pattern.
This industry consists of durable goods used for domestic purposes such as
televisions, washing machines, refrigerators, microwave ovens, mobile
phones etc. The growth in the consumer durables sector has been driven
primarily by factors such as the boom in the real estate & housing industry,
higher disposable income, emergence of the retail industry in a big way
coupled with rising affluence levels of a considerable section of the
population.
The company’s software strategy includes the development of new audio-
visual applications designed to personalize technology. Recent examples
include updated Open MG Jukebox music management software, and digital
video editing products, such as Picture Gear, Movie Shaker and DV Gate.
Sony’s vision is to give consumers easy, ubiquitous access to entertainment
and information anytime, anywhere – no matter whether the content comes
from cable, satellite, terrestrial, packaged media or the Internet.
SONY “Like No Others”
INTRODUCTION
Sony Corporation is a multinational conglomerate corporation headquartered
in Tokyo, Japan, and one of the world's largest media conglomerate with
revenue of US$88.7 billion (as of 2008) based in Minato, Tokyo. Sony is
one of the leading manufacturers of electronics, video, communications,
video game consoles and information technology products for the consumer
and professional markets. Its name is derived from
Sonus, the Greek goddess of sound. Sony Corporation is the electronics
business unit and the parent company of the Sony Group, which is engaged
in business through its five operating segments—electronics, games,
entertainment (motion pictures and music), financial services and other.
These make Sony one of the most comprehensive entertainment companies
in the world. Sony's principal business operations include Sony Corporation
(Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer
Entertainment, Sony BMG Music Entertainment, and Sony Financial
Holdings. As a semiconductor maker, Sony is among the Worldwide Top 20
Semiconductor Sales Leaders. The company's slogan is Sony. Like no other.
teens had begun buying portable transistor radios in huge numbers, helping
SONY “Like No Others”
to propel the fledgling industry from an estimated 100,000 units in 1955 to
5,000,000 units by the end of 1968.
Sony's headquarters moved to Minato, Tokyo from Shinagawa, Tokyo
around the end of 2006.
The consumer durables industry can be broadly classified as consumer
electronics and consumer appliances. The consumer appliances category can
be further segmented as white goods and brown goods.
With a presence spanning 36 countries, Sony has not only touched the lives
of millions but also has made a difference in their lifestyles. Visit Sony
across the world and discover how a name, synonymous with technology,
has given a totally new dimension to entertainment.
Throughout the world today, Sony stands for innovation, state of the art
technology and superior quality. Leading into its next fifty years, Sony’s
vision is to offer people exciting new products and new lifestyles and
remains committed to the challenge of creating and realizing these dreams.
The Indian consumer durables industry has witnessed a considerable change
in the past couple of years. Changing lifestyle, higher disposable income
coupled with greater affordability and a surge in advertising has been
instrumental in bringing about a sea change in the consumer behavior
pattern.
SONY “Like No Others”
This industry consists of durable goods used for domestic purposes such as
televisions, washing machines, refrigerators, microwave ovens, mobile
phones etc. The growth in the consumer durables sector has been driven
primarily by factors such as the boom in the real estate & housing industry,
higher disposable income, emergence of the retail industry in a big way
coupled with rising affluence levels of a considerable section of the
population.
COMPANY PROFILE
In a burnt-out department store in Tokyo in 1946, just after World War II,
Masaru Ibuka and Akio Morita, running a company then known as Tokyo
Tsushin Kogyo (Tokyo Telecommunications Engineering), attempted to
produce a simple electric rice cooker. It did not work too well, but it kicked-
off their desire to produce products for everyday life.
In 1958, the company name was changed to Sony Corporation and since
then, Sony has become one of the most recognised brand names in the
history of the modern world. From the outset, Ibuka and Morita strove to
develop exciting products to fulfill people dreams. From its first transistor
radio in 1955, to the Trinitron, Walkman, Betacam, Handycam, the Compact
Disc and the floppy disc .Sony has continually made things better, smaller
and more innovative than ever thought possible.
Sony Corporation now spans a range of industries including audio visual
electronics, information technology, broadcast, telecommunications,
entertainment, satellite broadcasting and even insurance and finance.
SONY “Like No Others”
Throughout the world today, Sony stands for innovation, state of the art
technology and superior quality. Leading into its next fifty years, Sony’s
vision is to offer people exciting new products and new lifestyles and
remains committed to the challenge of creating and realizing these dreams.
SONY “Like No Others”
SONY’S HISTORY
Sony was founded in 1946 by Masaru Ibuka and Akio Morita. The two
complemented each other with a unique blend of product innovation and
marketing savvy, and formed a company that would eventually grow into a
more than $60 billion global organization.
In 1950, in post-war Japan, Ibuka and Morita created Sony’s first hardware
device, a tape player/recorder called the G-TYPE recorder. Materials were in
such high demand that the first tapes were made of paper with hand painted
magnetic material applied by Sony’s first engineers.
Ibuka was a practical visionary who could foretell what products and
technologies could be applied to everyday life. He inspired in his engineers a
spirit of innovation and pushed them to reach beyond their own
expectations. Ibuka also fostered an exciting working atmosphere and an
open-minded corporate culture. In the founding prospectus, he wrote of his
wish to build a company whose employees gained satisfaction and pleasure
from their work and his desire to create a fun, dynamic workplace.
Through Ibuka’s persistence, the magnetic tape recorder evolved from the
G-TYPE recorder into the Model P (for "Portable"), which became the
company’s first profitable product.
In 1953, the company earned licensing rights to the transistor from Western
Electric. Ibuka urged his engineers to improve production methods with the
goal of creating a consumer product, the transistor radio. In 1955, the TR-55,
SONY “Like No Others”
Japan’s first transistor radio was launched. And, in 1957, Sony released the
world’s first pocket transistor radio, establishing a market leadership
position for the company.
Akio Morita was a true marketing pioneer who was instrumental in making
Sony a household name all over the world. He was determined to establish
the Sony brand. In fact, he turned down an order of 100,000 radios from
Bulova because they wanted the radios to carry Bulova’s name. Morita
responded to Bulova saying, "Fifty years from now, I promise you that our
name will be just as famous as your company name today." His words could
not have been more prophetic.
And it was after Morita’s first trip to the United States that he suggested to
Ibuka that the company name be changed from Tokyo Tsushin Kogyo to one
that was easily pronounceable and recognizable. The company name "Sony"
was created by combining two words. One is "sonus" in Latin, which is the
root of such words as "sound" and "sonic." The other is "sonny" meaning
little son. The words were used to show that Sony is a very small group of
young people who have the energy and passion toward unlimited creation.
Video innovation was also a priority for Sony engineers. The road towards
building a high quality color television set was quite a struggle, but on
October 15, 1967, a new cathode-ray tube was completed. The new color
television was named Trinitron® - derived from the word "trinity," meaning
the union of three, and "tron" from electron tube. Since its introduction in
1968, the Trinitron television has set the standard for picture quality and
design.
SONY “Like No Others”
As a proponent of global localization, Morita familiarized himself with local
economies and set up manufacturing plants all over the world. When Sony
constructed a Trinitron® color television assembly plant in San Diego,
California, in 1972, it became the first Japanese-based consumer electronics
manufacturing facility in the United States.
Further, without Morita, the world would never have known the Walkman®
personal stereo. His excitement and faith in the product’s future success was
the true driving force behind its existence.
At first, the Walkman was poorly received by retailers. Eight out of ten Sony
dealers were convinced that a cassette player without a recording mechanism
had no real future. However, the product’s compact size and excellent sound
quality attracted consumers and, ultimately, ignited the personal audio
revolution.
Kazuo Iwama was a detail-oriented person, admired for his scientific
knowledge and discipline. He was made president of Sony in 1976, and
became thoroughly involved in developing the "charged coupled device" or
CCD which paved the way for the camcorder and digital still camera. While
he was president, Sony launched the Betamax® video cassette recorder. His
tenure ended with his passing away in 1982, but not before the launch of the
compact disc player – another Sony innovation that changed the way people
listened to music.
Norio Ohga was responsible for bringing Sony into the modern age and
injecting it with a unique sense of style through product planning, stylish SONY “Like No Others”
product design and innovative marketing. During his tenure from 1982 to
1995, Sony was transformed from an electronics company into a total
entertainment company through the establishment of the music, pictures and
gaming businesses.
Sony acquired CBS Records in 1988 and Columbia Pictures in 1989, which
today form Sony Music Entertainment (SME) and Sony Pictures
Entertainment (SPE) – two of the world’s largest content producers. SME
has produced a string of best-selling albums from artists such as Michael
Jackson, Bruce Springsteen, Mariah Carey, Celine Dion, and Pearl Jam.
Blockbuster films from SPE include Sleepless in Seattle, Jumanji, Air Force
One, Men in Black and Stuart Little.
Through Ohga’s persistence, the Sony PlayStation® game console was
launched in Japan in 1994 with only eight titles. (It was launched worldwide
in 1995.) Software companies were initially reluctant to support Sony’s new
format because Nintendo and Sega were already firmly established.
However, with PlayStation and, most recently, PlayStation2, Sony has
become the most successful game manufacturer ever.
Nobuyuki Idei, current Chairman and CEO, played a key role in moving
Sony into the digital network era by emphasizing the integration of AV and
IT products. He was responsible for Sony’s image campaign, "Do you dream
in Sony?" and helped coin the term "digital dream kids." The premise of the
campaign was to provide shareholders, customers, employees, and business
partners who come into contact with Sony with the opportunities to create
and fulfill their dreams.
SONY “Like No Others”
Idei is credited with reinventing Sony’s business model for the networked
society. By complementing Sony’s core competencies with partnerships and
collaborations from other companies, Sony is on its way to becoming a
Broadband Entertainment Company.
Sony Corporation’s current President and COO Kunitake Ando is in charge
of Sony’s global electronics operation. Previously, he was responsible for
Sony’s introduction of the VAIO® personal computer in 1996, and helped
Sony become one of Japan’s leaders in information technology products.
The Leader in Product Innovation
The new millennium is here and Sony has plenty to celebrate. The
company’s approach – doing what others don’t – has paid off, in the form of
great products that people covet.
Throughout its history, Sony has demonstrated an ability to capture the
imagination and enhance people’s lives. The company has been at the
cutting edge of technology for more than 50 years, positively impacting the
way we live. Further, few companies are as well positioned to drive the
digital age into homes and businesses around the world for the next 50 years
and beyond.
Sony innovations have become part of mainstream culture, including: the
first magnetic tape and tape recorder in 1950; the transistor radio in 1955;
the world’s first all-transistor TV set in 1960; the world’s first color video
cassette recorder in 1971; the Walkman personal stereo in 1979; the SONY “Like No Others”
Compact Disc (CD) in 1982; the first 8mm camcorder in 1985; the MiniDisc
(MD) player in 1992; the PlayStation game system in 1995; Digital Mavica
camera in 1997; Digital Versatile Disc (DVD) player in 1998; and the
Network Walkman digital music player in 1999.
Today, Sony continues to fuel industry growth with the sales of innovative
Sony products, as well as with the company’s convergence strategy.
Examples include: 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. But Sony is not just the market
leader in consumer electronics.
Through research and development, the company has made considerable
inroads in the areas of professional broadcasting (with the creation of the
Betacam, DVCAM, HDCAM and 24P formats); mobile communications
(with digital phones and the CLIE handheld); PCs (with VAIO notebook and
desktop computers); storage and media (with the invention of the floppy
disk, AIT and DTF drives, and the Memory Stick) and, now, the Internet.
Sony’s future brand success will be determined by how the company meets
the challenges of change. Sony has always led the market in terms of
innovation. But in a digital networked world, products will no longer be SONY “Like No Others”
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.
BROADBAND NETWORK ERA
Sony is a corporation with convergence at its very heart. Driven by an
integrated business model, the company is well positioned to bring new
benefits to consumers by combining hardware, software, content and
services.
Sony’s approach is to make it possible for consumers to enjoy various forms
of content on both "home networks," consisting of connected electronic
devices, and "mobile networks" that are accessible through mobile terminals.
Products such as the i.LINK® interface and Memory Stick® digital storage
media provide greater connectivity between digital devices and will help
create seamless home and personal networks.
SONY “Like No Others”
SONY CORPORATION’S STRATEGY
Sony have successfully created an incredible brand name previously,
however, its legend seem to be falling apart recently. In fact, Sony’s net
profit for the July-September quarter for 2006 falling 94% to 1.7 billion
Yen, compared to 28.5 billion Yen for the same period last year (Benson,
8th Nov 2006). The major reasons for the declining profit are affected by the
critical strategic issues faced by Sony which became a main drawback for
them.
The first strategic issue faced by Sony was the inefficient manufacturing
structures which decrease Sony’s quality that badly affects their reputation
and caused a decline in product competitiveness. DeWit & Meyer (2004:
p192) argue that “the essence of most uniquely Japanese management
practice will be they productivity improvement, TQC (Total Quality
Control) activities, QC (Quality Control) circles, or labour relation – can be
reduced to one word: Kaizen”. They also argue that “the implication of TQC
or CWQC (Company Wide Quality Control) in Japan have been that these
concepts have helped Japanese Companies generate a process-oriented way
of thinking and develop strategies that assure continuous improvement”
(p192). However, in the case of Sony, they did not make any improvement
SONY “Like No Others”
or perform well in Kaizen or implement an efficient manufacturing structure
that ensure high product quality which affect their product quality and
caused a massive damage to the company. For example, there is the recall of
9.6 million Sony Laptop batteries which were liable to overheat and
potentially burst into flames where Sony even failed to fully study the
problem (Forbes.com, 2nd October 2006) and there are complaints from
Japan’s consumer about PS3’s new system (Wonova.com, 15th Nov 2006)
which will affect the compatibility and status of Sony badly.
The failure of Sony in effectively implements Kaizen or sustain an effective
manufacturing structure to ensure that they have high quality products had
damage their strong brand name and reputation which caused them to lose
their product competitiveness and competitive advantages in the market. As
Johnson et al (2005: p125) argue, “it is important to emphasize that if an
organization seeks to build competitive advantage it must meet the needs
and expectations of its customer”. The fact that Sony’s product qualities are
unable to meet the needs and expectations of their customer had completely
decreases the confident of the market and swipes away its reputation. Finlay
(2000: p295) also argue that “a good reputation is something that all
business would like to have but in some cases a good reputation is much
SONY “Like No Others”
more valuable than in others”. Reputation is one of the significant intangible
resources (Collis & Montgomery, 1999) for Sony that differentiates
themselves from the competitors for them to charge a premium price for
their excellent product and quality, as Kotler & Keller (2006) argue, good
reputation can create a positive prejudice in the mind of the customer which
make customer prefer the brand. Therefore, the diminishing of Sony’s
reputation will create a negative prejudice and weaken their core
competences which will directly affect their competitive advantages and
become a major threat for Sony.
Besides than quality and reputation issues, Sony are insufficient in
responding to the shift of market demand and losing of its competitive
advantages. The delays for the European launch of PS3 due to
manufacturing problems (BBC.co.uk, 6th September 2006) caused Sony to
become incapable of fulfilling the increasing market demands which
increase the stake for Sony as there are other strong competitors such as
Microsoft and Nintendo to have a head start in gaining market share and
enjoy first mover advantages. Besides, Sony also responds slower than
others in the increasing demand of Plasma TVs and lost ground for key
growing area. As Mintzberg et al (1999: p96) suggest, “first mover may gain
SONY “Like No Others”
advantages in building distribution channels, in typing up specialized
suppliers or in gaining the attention of customer” and “the first product of a
class to engage in mass advertising tends to impress itself more deeply in
people’s minds than the second, third or fourth”. Therefore, Sony lost its
competitive advantages and large proportion of the market shares in the
game and electronic industry; they are also unable to benefit from the first
mover advantages which left them behind of their competitors.
Currently, Sony are implementing emergent strategies from both “inside
out” – Resources Based View (Hamel & Prahalad, 1990; Barney, 1991) and
“outside in” – Positioning view (Porter, 1980 and Mintzberg et al, 1998), or
so called Market Based View (Finlay, 2000) to secure its current position.
Johnson et al (2005), Finlay (2000), Lynch (2006) and Thompson &
Strickland (2003) all suggested that an integrated approach of the resources-
based and positioning view can maximize the capabilities of organization
and sustaining more competitive advantages. Penrose (1959), Selznick
(1957) and Hatch (1997) also suggested that competitive strategy requires
both the exploitation of existing internal and external firm-specific
capabilities and of developing new ones. In the changing business
environment, Sony needs to cope with the external changes and find the
SONY “Like No Others”
right ways to deal with it by their own capabilities or resources. Markides
(2004: p9) also agreed that “unless organization take a holistic, big-picture
approach in designing the activities of the company, their efforts will
backfire”.
As for “inside out”, also called the competence-based view (Hodgson,
1998), Sony has been green-lighting asset sales to free up cash so they can
rebuild the company around a tighter core of businesses. In December, Sony
sold part of its 49% stake in retailer StyleLife Holdings to a group of
investors (Hall, 30th January 2007). This managing for value strategy which
“concerned with maximising long-term cash-generating of an organization”
(Johnson et al, 2005: p468) by disposal of assets to get more funds and
reinvest back into different business units such as R&D, production and
others can help Sony to strengthen its core competencies. As DeWit &
Meyer (2004: p326) suggest, “the real sources of advantage are to be found
in managements ability to consolidate corporate-wide technologies and
production skills into competencies that empower individual businesses to
adapt quickly to changing opportunities”.
SONY “Like No Others”
SONY IMPLEMENT TO BOOST
Another strategy that Sony implement to boost its core competence is
miniaturization (DeWit & Meyer, 2004). To bring miniaturization to its
product, Sony must ensure that technologists, engineers, and marketers have
a shared understanding of customer needs and of technological possibilities
in order to become more customer-orientated with the aim to increase
competitive advantage, as well as create more value added activities. Sony
also implement a related diversification stategy which involve adding
businesses whose value chains possess competitively valuable strategic fits
with the value chain of the company’s present business. Related
diversification among the different businesses provides Sony with sharper
focus for managing diversification and is a useful degree of strategic unity
across the company’s various business activities (Thompson & Strickland,
2003). Lynch (2000: p71) also argue that “it is the combination of resources
that delivers competitive advantage, because such a combination takes years
to develop and is therefore difficult for others to copy”.
Besides, in order to regain Sony’s competitive advantages, they appoint the
first foreign chairman, Howard Stringer to head the company with the aim to
secure Sony’s main ground and hope that an outsider will assist Sony to
SONY “Like No Others”
think outside the box. As Hamel & Prahalad (1994) suggest, intellectual
leadership are essential to develop industry foresight, anticipating which
trends are likely to emerge, so it is important to build Sony’s new core
competence to shape the industry.
However, Priem and Butler (2001) have shown that the Resources Based
View, as currently constituted, contains a theory of sustainability but not a
theory of competitive advantage (i.e., value creation).They argue that
“simply advising practitioners to obtain rare and valuable resources in order
to achieve competitive advantages and, further that those resources should
be hard to imitate and non-substitutable is not very helpful in providing
practical help” (Johnson et al, 2005: p155).
On the other hand, as for “outside in” which is the Positioning view,
Mintzberg et al (1998) argue that positioning is important and had develop
the Positioning School. Sony also believes that the external business
environment will shift the strategy of the organization. Finlay (2000; p11)
suggest that “organization alter itself and the products and services it offers
in order to match the needs of customers in its chosen marketplace which is
a market-based approach, so called because the organization looks to the
marketplace to see how it should act and how it should evolve”. Besides,
SONY “Like No Others”
based on the environmental factors, Mintzberg et al (1998) developed the
environmental school which argue people in strategic management must
consider the range of decisional powers available, given the forces and
demands of the external context. Sony insufficient in responding to the
external market had caused them to lost ground in key growing areas and
their strategy must be able to cope with the external environment.
Moreover, Porter (1991) strongly believe that making choices about how
organization position their company in its competitive environment is what
strategy is all about and emphasize on the importance of positioning view.
He argues that organization can sustain competitive advantages by
implementing the generic strategies by position themselves either being
cost-leadership, differentiation or focus (Porter, 1985). Sony had positioned
them selves with a differentiation strategy which seeks to provide products
or services that offer benefit different from those competitors and that are
widely valued by buyers (Johnson et al, 2005). Sony are rewarded with a
premium price with its uniqueness (DeWit & Meyer, 2004) that help them to
gain greater competitive advantages.
However, Bowman & Asch (1996: p36) critics that “a final criticism of
Porter’s approach stems from our experience of trying to use these concepts
SONY “Like No Others”
with top management teams wrestling with the strategies of their
organization. In addition to the lack of clarity surrounding the generic
strategies, the generic strategies present an essentially static approach to
competition”. Hamel & Prahalad (1994) also argue that “the traditional
competitive strategy paradigm (e.g. Porter, 1980) with its focus on product-
market positioning, focuses only on the last few hundred yards of what may
be a skill-building marathon.”
Finally, Sony is still in a critical position where they need to be extra caution
about all the potential crisis that they will be facing in the future. Finlay
(2000: p451) argue that “crisis control relies on both pro-active and reactive
control. It is pro-active in that, although the precise form of the crisis will be
unknown, broad elements of many crisis situations will be, and these can be
planned for through risk management and particularly contingency planning.
Crisis control is also reactive in that the specifics of the situations must be
dealt with as they unfold”. Thus, risk management and crisis control are also
essential for Sony to implement in order to stay alert and increase their
awareness to potential threats.
In conclusion, Sony must learn from their mistake and implement more
effective and efficient strategies if they want to get out from this current
SONY “Like No Others”
unfavorable situation. Besides than their current strategies, alternatives
strategies suggested above should become another major concern for Sony
to ensure that they can effectively rebuilt their poor reputation and regain
more market share in the future.
AS HARDWARE PERSPECTIVE, SONY’S STRATEGY IS
FOCUSED ON FOUR GATEWAYS TO THE NETWORKED
WORLD:
1. Digital televisions and set-top boxes;
2. VAIO personal computers;
3. Mobile devices, such as the CLIE handheld devices and digital
phones.
4. Play Station and game consoles.
The company’s software strategy includes the development of new audio-
visual applications designed to personalize technology. Recent examples
include updated Open MG Jukebox music management software, and digital
video editing products, such as Picture Gear, Movie Shaker and DV Gate.
Sony’s vision is to give consumers easy, ubiquitous access to entertainment
and information anytime, anywhere – no matter whether the content comes
from cable, satellite, terrestrial, packaged media or the Internet.
SONY “Like No Others”
In the company’s view, the Internet is an "e.Playground" where consumers
can collect, share and manage everything from data and text information, to
digital images, movie clips and music. The result: New ways to enjoy Sony
products.
Sony is also giving consumers new reasons to visit the Internet, including
the recent launch of SonyStyle.com, a new information rich, e-commerce
site for everything Sony. Designed to build a closer relationship between
Sony and its customers, the site will offer a variety of commerce, content,
community and connectivity options planned for the near future.
Other new service offerings include www.ImageStation.com and
www.eMarker.com. ImageStation.com helps consumers create, share and
enjoy digital pictures and video. The service offers free online albums and
eCards, and members can share their favorite pictures as gifts, keepsakes and
high-quality prints in a variety of sizes. Select Sony hardware and
accessories are also available for purchase in the ImageStation.com store.
eMarker.com is an online service that puts an end to the most frustrating part
of hearing a song on the radio -- not knowing the title or the artist’s name.
By pressing the button on the tiny eMarker device, people can "eMark"
songs they hear on the radio and locate the information through the site.
Sony has been at the forefront of the movement to help consumers adopt
digital lifestyles, which, in a broadband network era, means helping them
maximize the power and control found within digital technology.
SONY “Like No Others”
However, even in this broadband network era, one fact about Sony remains
the same: the company’s fundamental philosophy of providing products that
are fun to use.
Sony’s vision is not necessarily about refrigerators talking to toasters. It’s
about bringing to market products that capture the imaginations of
consumers and enhance their lives in the process.
In the future, look for Sony to create entirely new forms of entertainment,
blending movies, computer generated worlds, games and music. Sony has
the vision, technology and content to forge a direction in consumer
entertainment that no other company can match.
PROMOTING A WORLD CLASS BRAND
The phenomenal strength of the Sony brand worldwide is surely a testament
to the company’s reputation for producing innovative products of
exceptional quality and value. And while traditional brand theory says brand
essence should be narrowed down to one element, Sony celebrates brand
diversity -- with the 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 savvy to create new product
categories and revitalize mature ones. Look no further than what the
company did with the Walkman brand and for the Mini Disc format.
SONY “Like No Others”
Sony, the company that changed the way the world listens to music with the
introduction of the Walkman personal stereo, again set its sights on
transforming the portable music landscape when it kicked off a
comprehensive, integrated marketing campaign to re-launch the Walkman
brand in June 2000.
Titled "The Walkman Has Landed," the marketing campaign, which
included broadcast, print and online advertising; Internet and dealer
events/promotions; and grassroots consumer and public relations
components; strategically communicated the lifestyle attributes of the Sony
Walkman line to generation Y, its primary target market.
Additionally, the campaign brought together an entirely new product line up
comprised of CD Walkman, MD Walkman and Network Walkman personal
digital audio players.
The company knew that it needed to reinvent the Walkman brand for today’s
younger, more digitally inclined music lovers. (To many, the brand had
become generic, representing "older," analog-based cassette technology.)
Sony promoted a new Walkman ideology based on personal freedom,
independence, imagination and creativity in a way that appealed to new
techno-savvy, style-conscious consumers who favor digital downloading and
ripping CDs.
SONY “Like No Others”
The star of the television commercial from the campaign is an alien
character named Plato, who is "quintessentially diverse and knows how to
have fun." His persona offers Gen Y a bit of humor and a good dose of
enjoyment.
SONY’S ABILITY TO REPOSITION
Another example of Sony’s ability to reposition itself and its products is
found in the Mini Disc. A huge success in Japan, where it has become the
dominant recording format, MD did not become a success in the U.S. until it
was marketed as a digital music player that could record from the Internet.
With its inexpensive media and versatility (units are capable of recording
Internet music, tracks from personal CD collections and favorite songs off
the radio), MD has become a gen Y favorite. U.S. sales have increased by
more than 40% since the MD to PC link was introduced.
However, the company doesn’t just rely on brilliantly executed advertising
campaigns to secure consumer attention. The company utilizes world class
public relations to enhance Sony’s value, reputation and brand image.
Communications campaigns are conducted on both an individual product
and strategic platform basis. This process ensures exposure for the
company’s most important products as well as for the company’s role in key
industry issues that cross multiple product categories and disciplines,
including electronic music distribution and digital television.
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BRAND VALUES
When remarking about the importance of the Sony brand name, consider this
quote from Chairman of the Board, Norio Ohga: "In April of every year a
large number of new employees join the company. And what I always say to
them is that we have many marvelous assets here. The most valuable asset of
all are the four letters, S, O, N, Y. I tell them, make sure the basis of your
actions is increasing the value of these four letters. In other words, when you
consider doing something, you must consider whether your action will
increase the value of SONY, or lower its value."
In the minds of consumers, Sony is one of the world’s greatest brands -- the
company was once again rated the number one brand in the U.S. by the 2000
Harris poll. As noted, much of the brand equity Sony enjoys is rooted in
product innovations.
However, to ensure the future of its brand, the company recently embarked
on an extensive, company-wide initiative in the U.S. designed to foster a
common understanding of the Sony brand among employees, customers and
consumers. The project, dubbed Being Sony, was necessitated because of
expansive company growth, an influx of new employees, and converging
business opportunities.
Sony executives felt the need to clearly articulate the meaning and values
inherent in the Sony brand (to both internal and external constituencies),
while re-examining the unique relationship of the brand in American culture.
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Despite involvement in disparate businesses, the company’s desire is to
leverage the brand beyond the products -- the primary touch-point with
consumers, and add to the brand’s value by re-focusing it to the outside
world.
In essence, Sony, the box manufacturer, is being replaced by a new Sony – a
customer-centric entity centered around broadband entertainment, yet driven
by the venture spirit of Sony’s founding days.
SONY HELP DREAMERS DREAM
Sony is a company devoted to the CELEBRATION of life. We create things
for every kind of IMAGINATION. Products that stimulate the SENSES and
refresh the spirit. Ideas that always surprise and never disappoint.
INNOVATIONS that are easy to love, and EFFORTLESS to use, things that
are not essential, yet hard to live without.
We are not here to be logical. Or Predictable. We’re here to pursue
INFINITE possibilities. We allow the BRIGHTEST minds to interact freely,
so the UNEXPECTED can emerge. We invite new THINKING so even
more fantastic ideas can evolve. CREATIVITY is our essence. We take
chances. We EXCEED expectations. We help dreamers DREAM.
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SONY IN INDIA
Sony is not new to India. Whether it was the television, or the walkman, a
Sony always remained a must in the wish list of any Indian, returning home
from abroad This love for the brand culminated in a new relationship when
inspired by a reform friendly Indian business environment, Sony
Corporation decided to set up a 100% subsidiary called Sony India on
16th January 1995.
COMPANY MISSION
Sony India focused towards making a difference in the lifestyles in the
Indian market and open up new vistas of entertainment in the country.
Sony India remains committed towards offering new age technology and
digital concepts while working hand in hand with the Indian industry to
produce and sell excellence. Their consistent commitment towards service
has brought the company quite closer to the Indian customer.
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SONY MARKETING STRETEGY PLAN
That the world is beginning to beat a path to it might mean that media
neutral planning (MNP) is indeed the better mousetrap, or that it’s just the
current passion1. However, it is difficult to argue against using the best mix
of media for the job rather than being narrow-minded, prejudiced or
fragmented.
Customer Relationship (crm)
Integrated marketing communications (imc)
Might mean that media neutral planning (mnp)
MNP is usually either:
1. MNP is a good idea, but that is all it is because in practice it is too
difficult to implement; or
2. Since MNP is just good practice and what we are already doing, why
invent another buzzword?
There is some limited merit in these views. Implementing MNP is good
practice, and it is difficult and will often require significant improvement in
skills and organisation. Indeed, this is a key reason for the CIM making it
one of their Canons of Knowledge and a focus of this Journal, and it is why I
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suggest you may need to pay attention to it. It won’t happen without
leadership. Thus these arguments counter each other while pointing to MNP
as a new discipline and way of thinking.
It takes a wide media approach to communication planning, acknowledging
the full spectrum of possibility, from face-to-face and viral marketing to
product placement and TV, focusing on media in combinations rather than
singly. Metaphors of cocktail or orchestra replace solo liquor or instrument.
“the media shift is from passive, single medium to interactive mixes of
media. That doesn’t just mean a shift from TV to the Internet. It is a shift to
anything with anything.
Sony describe it as moving from ‘broadcast to anycast’. A big TV show now
has an interactive component and at the very least a website.”
MNP accepts that all media might achieve any objective, subject to customer
preferences, creativity, business objectives and market context, but a
creative mix based on media characteristics, the customer’s preferences and
brand touchpoints best achieves success. Media neutrality begins therefore
with insights into customers, merging disciplines in an
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open-minded and thoroughly informed knowledge of media potential and
creative characteristics.
As Kevin Bishop, IBM Northern Region Marketing Director described it in
a recent FT article, “Planning the right approach for each (type of customer)
has to start from an understanding of the customer, not a preconceived view
of the communications media. Before embarking on any kind of
communications brief, I expect my team to understand the customer, their
business issues and the way they are likely to be thinking. We then plan
what kind of experience we want them to have, where that experience is
likely to come from within IBM, and what external factors will influence it.
Only then do we start on the brief.”3
I would add that media neutral planning inevitably leads to discipline neutral
planning.
SONY INTEGRATED COMMUNICATION WORKS IN BETTER
AND NEEDS MNP TO WORK BEST
The case for focussing on MNP is based on just two points (with
considerable evidence behind them): the value of mixed media planning and
the current gaps in practicing it. Most readers will probably be aware of
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these: it is the causes and the implications for new thinking and action that
will concern them. Briefly,
The key:
1. The most effective marketing communications requires a widely
blended mix of communications types and media, using all the
communication tools to achieve synergy. Research conclusively
shows that harmonised, mixed media communication is more
effective in reach, targeting and customer impact. Simply adding one
more medium is likely to improve reach and effect by 10-20%.John
Billett’s comment that, “We have to move from the old goal to find
the best medium to finding the best combination of media for each
campaign”4 sums this up and now represents standard academic
theory as well as best practice, usually under the term Integrated
Marketing Communications (IMC)
2. In a competitive world, you therefore need to be finding and using the
most efficient and creative mix in order to achieve your objectives.
Gerhard Franz captures what many commentators and practioners
believe: “The strategic planning of the media mix is becoming even
more crucial for effective communication with the target consumer. A
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wrong decision on the media mix can lead to a serious waste of the
advertising budget.”
3. On the whole, though, marketing practice is significantly divergent
from this goal. Media planning is frequently bedevilled by historic
concepts and assumptions about the disciplines and media; by past
experiences that may no longer be as relevant but still shape decision-
making; by political infighting and commercial pressures; and by
agency/client structures, data and system planning resources that don't
make for good decision-making.
The trend towards integration and MNP will improve practice An added
dimension of the case for MNP, at least for agencies, is that it is where
practioners are going. Agencies that adopt MNP can take advantage of this
trend, and media agencies in particular see it as an opportunity to gain the
strategic high ground.
MNP LEADS THE WAY TO INTEGRATED MARKETING
Costs and media mix benefits together encourage new thinking, but the
change is more than just adding magazines to TV or radio to mail media
advertising, it is taking an integrated customer experience-based view that
blends the disciplines and media.
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Kevin Bishop (quoted earlier) described the IBM approach as “We then plan
what kind of experience we want [customers] to have, where that experience
is likely to come from within IBM, and what external factors will influence
it.” Jeremy Bullmore says, “That there has to be some communication
between a brand and its public is obvious; but its name, its packaging, its
stores if it has any, its vans and its news value, can all give people important
clues to a brand’s character – and in some instances, these non-advertising
communications media will be the all-important ones”.
This leads marketers to want new and more effective ways of
communicating holistically with customers. James Stengel, head of global
marketing, Procter & Gamble, agrees: “The consumer is different today and
we have got to be experimenting all of the time. We have to look at new
channels and new ways of connecting”. Leading agencies also agree, such as
Ogilvy with its 360 degree branding concept, while Media edge:cia
believes, “The planner of the future will have to embrace every relevant
channel which connects a brand with an audience, and will have to
understand the potential contribution of every marketing discipline. In this
way, planners can provide clients with truly objective advice. We believe
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that this makes sense, not least because this is how consumers see brands -
they do not discriminate between sources of communication"
Our research at the Centre for Integrated Marketing suggests that the future
involves integrating IMC and customer relationship management (CRM)
ITERGRATED (INTERNAL) MARKETING
MNP as the mediator between IMC and CRM within Integrated Marketing
RE-THINKING DISCIPLINES AND MEDIA
Simplistic judgements about communication tools and what they can do are
the real barrier:
Direct marketing and sales promotion create sales
Advertising builds brands
PR creates reputation
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IMC MNP CRM
Mail media is used by direct marketers
Coupons are used by sales promotion
Such beliefs, although legitimate, may also be highly limiting: expertise is
only prejudice in waiting. As Andrew Harrison noted, sales promotion can
be a tremendous way to launch the brand, as can mail media. The more you
recognise the variety of disciplines that can be used by a single medium or
communication, the more effectively you can use it. Furthermore, the very
definitions of some disciplines need to be rethought or the disciplines recast.
Take AOL’s use of mail media targeted to most homes in Britain, which
blends direct marketing, sales promotion, mass advertising, new media,
affinity marketing, word of mouth and viral marketing elements, if not
others. If AOL really took that on board the packs would get better, save
them money and produce better results.
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John Grant, whom I quoted earlier, reformulates media into seven new
categories that seem to me to be more useful than the classical ones, at least
for planning purposes:
1. Knowledge media, which include instructive books, factual TV
programmes, online or cd-rom courses, seminars, user groups and
venue based learning experiences.
2. Reality media, reflecting the importance of design
3. Dialogue media, including face-to-face service and phone lines, email,
bulletin boards and interactive systems.
4. Memetic media, in which people see what others are doing or thinking
and copy it, from casual conversation to opinion polls, musicals and
viral marketing.
5. Community media, which Grant considers to be an active version of
the dated notion of the passive target audience.
6. 6. Story media, ranging from fictional dramas to computer games to
TV ads that provide ways to research modes of life.
7. Reputation media, not only corporate advertising, PR and publications
but also “big actions by companies”
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MARKETING MIX & PRODUCT PROFILE
SONY PRODUCTS :
The first market mix element is Product. A product is anything that can be offered to a
market for attention, acquisition, use or consumption that might satisfy a need or want.
Product decision normally base on brand name, Functionality, Styling, Quality, Safety,
Packaging, Repairs and Support, Warranty, accessories and Services.
These product attributes can be manipulated depending on what the target market wants.
Also, customers always look for new and improved things, which is why marketers
should improve existing products, develop new ones, and discontinue old ones that
are no longer needed or wanted by the customer. Sony has a variety of products ranging
from electronic devices, games and entertainment. So, briefly Sony products can be
categorized in the following major product categories:
i. Television and Projectors.(Bravia LCD TV)
ii. Home video.( Blue-ray disc player,DVD Player)
iii. Home Audio.( Hi-Fi Systems)
iv. Home Theatre system.(Accessories)
v. Digital Photography.( Cyber-shot Digital Camera)
vi. Hand cam video camera.( Handycam high definition video Camera)
vii. Computer & Peripheral.( VAIO laptops)
viii. Portable Audio.( Walkman mp3 series)
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ix. Game.( PSP,PS2,PS3)
x. Storage and Recording media.( Memory Stick)
Basic Consumer Durables:
Flaunt your Cyber-shot
Make heads turn with the smart Sony Cyber-shot. With chic colours to
choose from, this trendy camera lets you capture your special moments in
style.
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Experience the Real Entertainment
Feel true picture, pure sound & smooth action with Sony BRAVIA LCD
TV.
Dress up with VAIO CS VAIO CS is an extraordinary blend of
elegance, fun and high performance with its irrestible colour range and
mystic features.
REFRIGERATOR
Side by Side Refrigerator
Frost Free Refrigerator
Direct Cool Refrigerator
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WASHING MACHINE
Dish Washer
Steam Washer Dryer
Washer Dryer
Front Load Washing Machine
Top Load Washing Machine
Semi Automatic Washing Machine
MICROWAVE OVEN
Solar Dom Microwave
Convection Microwave
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Grill Microwave
Solo Microwave
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TELEVISION
LCD TV
Plasma TV
Ultra Slim TV
Flat TV
HOME THEATRE
COMPUTER PRODUCTS
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Notebook PC
Desktop PC
Monitor
Optical Storage Devices
Projector
MOBILE PHONE
KM900
Cookie
Secret
KC550
Dynamite
All Rounder
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SONY PROMOTION
Promotion is a key element of marketing program and is concerned with
effectively and efficiently communicating the decisions of marketing
strategy, to favorably influence target customers’ perceptions to facilitate
exchange between the marketer and the customer that may satisfy the
objective of both customer and the company. A company’s promotional
efforts are the only controllable means to create awareness among publics
about itself, the products and services it offers , their features and influence
their attitudes favorably.
Sony Marketing Communication Mix: Sony India will spend Rs 200 crore in
this inancial year on advertising and promotion (Promotional Budget) of the
entire range of consumer electronics, out of which Rs 60 crore will be spent
only on digital imaging products. The major elements of promotion mix
include advertising, personal selling,sales promotion, direct marketing, and
publicity. Sony Corporation has used all of these marketing communication
mix elements.
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ADVERTISING
Advertising is any paid form of non-personal mass communication through
various media to present and promote product, services and ideas etc. by an
identified sponsor. So far, SONY has advertised its products through many
different ways and media.
Through TV we have seen different advertisements of its products such as
Bravia televisions or Sony wega TV. Sony also advertise its products by
targeting those favorable television programs, like sports, series and also it
has its own channel called
Sony TV channel. Sony uses some events like Miss India 2008 to promote
its products. Also, Sony has advertised its games like Playstation 3,
Playstation 2 and PSP using sports like football in England premiere
league.Through newspapers like Times of India, Sony has advertised a wide
range of products it offers to its customers. And also through Posters a
message has been sent to a lot of people to be aware of the products which
Sony offers.
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Sony also uses direct – response advertising. This is type of advertising that
encourages the consumer to respond either by providing feedback to the
advertiser or placing the order with the advertiser either by telephone, mail
or the internet. Such advertising is done through direct mail or catalogues.
Sony incorporates co-operative advertising in its advertising process. Sony
corporation provides the dealers (e.g. Sony World) with the materials and
guidelines to develop ads
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SONY ONLINE ENTERTAINMENT AT A GLANCE
Sony Online Entertainment LLC (SOE) is a recognized worldwide leader in
massively multiplayer online games, with millions of gamers around the
globe having enjoyed the company’s products over the years. SOE creates,
develops and provides compelling entertainment for the personal computer,
online, game console and handheld markets. The company is headquartered
in San Diego, California, with development studios in Austin, Texas;
Seattle, Washington; and Taiwan.
The primary customer support center is located within its San Diego
headquarters facility, supplemented by a partner in Delhi, India for off-hour
and overflow coverage. Both 24x7 locations utilize the same RightNow
platform. Online web self-service, email management, live text chat, and
telephone are the primary service channels, each supported by agents
organized into tiers based upon their skills, experience and product
knowledge. International language support is provided in Spanish, German,
Japanese and French. Today, SOE is supporting nine major massively
multiplayer online games, eight of which are supported using RightNow.
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BENEFITS OF IMPROVED CUSTOMER SERVICE
The benefits that drive the return-on-investment for Sony Online
Entertainment are based on an improved experience for three constituencies:
the customer, the agent, and the agent supervisor.
Customer Experience
If you’re a Dread Knight on the continent of Thestra in the ancient and epic
world of Telon—and your warhorse is unexpectedly missing—then it’s time
to get help. For such customers of Vanguard™ Saga of Heros and other
games by Sony Online Entertainment (SOE), it is important that the
experience be seamless, simple and unified.
Seamless. Because exiting an adventure and logging into a support system
presents a barrier to using a self-service solution, SOE implemented pass-
through authentication using Right Now, enabling seamless movement to the
support site without a second login and thereby encouraging individuals to
assist themselves by searching the knowledge base in the game. The
approach has proven highly successful. In 2007, for example, over 5.6
million answers in the extensive knowledge base (now containing over
13,000 articles) were viewed by players, and in only 11 percent of the cases
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was additional help requested by submitting a support ticket on the web,
using live chat, or initiating a telephone conversation.
THE EVOLUTION OF CUSTOMER SERVICE
Sony Online Entertainment (SOE) migrated from a fragmented set of
applications to an integrated and on demand customer service solution by
RightNow that provides a complete customer view, a multi-channel
customer contact center, and a single desktop for both in-house as well as
outsourced agents. The customer and the agent experience improved—and,
SOE saved an estimated $817,706 from 2004 through 2007.
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Simple. On the rare occasions when a customer does need to submit a
support ticket, the process is simplified with the use of Right Now. For
example, many of the fields in the ticket are automatically populated (e.g.,
the location in the game’s virtual world), reducing the burden upon the
customer. The status of open tickets may be viewed and updated, allowing
the customer to easily monitor the progress on the resolution of the problem.
Additionally, using business rules established by SOE, the solution
automatically routes and assigns the ticket to a tier 1, 2 or 3 support queue,
depending upon the nature and severity of the issue.
Unified. If a customer later uses live chat or calls to follow-up concerning an
unresolved problem, she or he isn’t starting anew. RightNow provides a
unified view of communications across all channels helping the agent
resolve the problem more effectively. The persistence of customer
information over time and across channels also allows one agent to reroute
a ticket to another who may have worked previously with this specific
customer or who has detailed insight into the problem at hand. If the issue is
one that has been solved through a software update to the game, SOE has the
ability to select all open tickets having that concern and proactively
communicate to those users that a solution has been implemented.
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The pattern of customer support requests is also used by SOE to identify
recurring problems. This insight informs the software development
engineers about updates that may need to be made to a game, and allows
those activities to be prioritized based upon the number of customers
encountering the problem. Collectively, all of these facets of the support
process result in an enhanced customer experience (and allow agents to be
more productive, too).
The link from service quality to customer value4 and from customer
satisfaction to profits is solid. Recent research by Harris Interactive confirms
the point, documenting that outstanding service is a marketplace
differentiator, with 51 percent of respondents stating that it is the top reason
they continue to do business with a company and 60 percent reporting that it
is the top reason they recommend a company.
AGENT EXPERIENCE
Using one integrated solution across all channels not only enhances
customer-agent communications, but it also improves agent-to-agent
interactions as well. This occurs when a support ticket needs to be forwarded
to an agent with specialized skills or subject matter expertise, or when
managing tickets between agents located in contact centers around the globe.
The result is that agent resources are utilized in the most productive manner
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possible. In all cases, the agent is presented with a single view of the
customer—a complete historical log for a currently open ticket as well as
other issues that have been resolved. For example, agents can see on a single
integrated desktop the actions that a technical support representative may
have recommended for an Internet connectivity concern. As a consequence,
the customer service function operates in a coordinated manner to achieve
maximum efficiencies. These same benefits occur whether the agent is
located on premises at Sony Online Entertainment (SOE) or at the
outsourced contact center.
Because most of the basic concerns are answered by customers using the
knowledge self-service, the questions that do arrive in the hands of the
agents tend to be about more challenging problems (e.g., “griefing” issues,
in which one player causes anguish to another in the virtual world).
Allowing agents to avoid less complicated questions in favor of these more
complex and rewarding issues improves their satisfaction and sense of
accomplishment.
Before the implementation of RightNow, agents were operationally
separated from the customer and their workflow was complicated, due to the
use of multiple nonintegrated applications.
Today, that connection is both tighter and seamless.
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Agent Supervisor Experience
Agent supervisors at Sony Online Entertainment (SOE) focus upon three
customer service dimensions—productivity, quality and customer care—all
of which are facilitated by the use of RightNow.
1. Productivity: Agent supervisors can view which agents are falling
short of or exceeding their established support ticket benchmarks,
criteria that vary by game and by the tier support level, and address
issues that may be hindering output. When spare capacity temporarily
exists, a supervisor has the ability to redirect tickets to an agent based
upon the profile of her or his expertise with games beyond the one the
individual normally supports. Additionally, supervisors have visibility
to the entire set of queues and the ability to move tickets between
them to better manage workflow. On both a weekly and monthly
basis, supervisors review reports that document the number of tickets
completed by agent, by game, and by queue.
2. Quality: Agent supervisors use RightNow to review completed tickets
against several service quality dimensions, including accuracy and the
use of proper grammar.
3. Customer care: The manner as well as the content of agents’
communications to customers is important. Customer care reflects the
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interpersonal component of the service experience, and is measured
using the survey capabilities within RightNow. Shortly after each
ticket is closed (but no more frequently than once per month), a
customer receives a brief survey via email that allows SOE to secure
feedback on overall satisfaction and timeliness of the response, and to
solicit suggestions for improvement. In those cases where satisfaction
is low, the supervisor is automatically notified so that corrective
action may be initiated.
The ability of an agent supervisor to rapidly adapt to quickly changing
customer service needs throughout the course of each day ensures that
resources are quantitatively well utilized, while always considering
qualitative facets such as accuracy and satisfaction.
ROI OF IMPROVED CUSTOMER SERVICE
The investments made by Sony Online Entertainment (SOE) in Right Now
CRM from 2004 through 2007 have already been more than recovered
through savings resulting in an estimated net benefit of approximately
$817,706. These savings arise primarily from the combination of enhanced
agent productivity and agent headcount avoidance (i.e., the ability to handle
a larger number of customer service inquiries with fewer staff than would
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otherwise have been required), yielding an impressive estimated 50 percent
ROI as measured by the internal rate of return,7 using a conservative
methodology.
COSTS:
The costs incurred by SOE from 2004-2007 include: (1) annual license fees
for Right Now together with (2) the expense of occasional software
customizations; (3) internal support, which includes the salary and benefits
of personnel required to manage the solution and the knowledge base; and
(4) fees for onsite training at the inception of implementation.
BENEFITS:
The computation of the benefits realized by SOE in 2005-2007 begins with
quantifying the number of support interactions avoided each year. This
statistic is equal to the number of answers in the knowledge base viewed by
customers, less the sum of the customer support requests received through
the web, interactive text chat, and telephone. The logic is simple: if the
answers in the knowledge base had not been easily accessible to customers,
“many” of those questions would have resulted in customer support requests
that would have required the time and talents of an agent. To be
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conservative, it is estimated that only one-in-four of the “many” questions
would actually have resulted in a support request.
The number of requests circumvented is divided by the number of
interactions handled per agent per year to yield the total agent headcount
avoided. That headcount is multiplied by the annual labor cost (salary and
benefits) for each class of agent (full-time, contractor, outsourced) in
proportion to their usage at SOE, and summed to produce the estimated
labor savings.
To be conservative, that labor savings is reduced by 50 percent to ensure that
the estimate is solely attributable to the impact of RightNow. Additionally,
hard-to-quantify (yet real and important) benefits were excluded from the
calculations, such as improved customer satisfaction, enhanced agent
retention, and more effective product development and maintenance.
Furthermore, the tangible benefits directly arising from the on demand8
architecture of Right Now were omitted in the ROI computation, such as the
initial speed of implementation, the high reliability and uptime of the
solution, the embedded security and disaster recovery protection, and the
ease of application upgrades and updates.
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SONY ELECTRONICS OVERVIEW
For more than 40 years, North America has had a love affair with the Sony
brand. During that time, Sony has created numerous products and
technologies that have helped make consumers' lives easier, more enjoyable
and more productive. At the same time, the company has earned a solid
reputation for quality, reliability, innovation and stylish design. In fact, the
Harris Poll has identified Sony as a top brand in America, as the company
has held the top three positions over the past 12 years including the number
one position for nine years.
The company is committed to maintaining a leadership position in consumer
electronics, broadcast and professional systems and information technology
products. Sony is also committed to developing new technologies that reflect
the networked convergence of audio, video and information technology.
Sony Electronics is the largest component of Sony Corporation of America,
the U.S. holding company for Sony's U.S.-based electronics and
entertainment businesses. Sony's principal U.S. businesses include: Sony
Electronics Inc., Sony BMG Music Entertainment Inc.; Sony Pictures
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Entertainment; Sony Broadband Entertainment; Sony Computer
Entertainment America and Sony Wonder Technology Lab.
Sony Electronics Inc is headquartered in San Diego, Calif. and is a leading
provider of audio/video electronics and information technology products for
the consumer and professional markets. Operations include research and
development, design, engineering, manufacturing, sales, marketing,
distribution and customer service.
The company is noted for a wide range of consumer audio-visual products,
such as the BRAVIA® HD TV, Cyber-shot® digital camera, Handycam®
camcorder, Walkman® personal stereo and Memory Stick® flash media.
Sony is also an innovator in IT products, including VAIO® personal
computers; and high-definition professional broadcast and video products,
highlighted by the XDCAM® HD and CineAlta™ lines of cameras and
camcorders, and the SXRD™ 4K digital projector. Sony also co-developed
the Blu-ray, Disc™, CD, DVD and Super Audio CD technologies. For the
latest news and information, please see our Web site at
www.sony.com/news.
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SWOT ANALYSIS OF SONY AS PER INTERVIEW
STRENGTH :
Sony has build up a good brand image & customer loyalty by his
service & quality.
Same price in all over in India is also a great attraction for customer.
Service wise Sony is the best among all his competitors, shops
ambience, environment and location is very convenient.
To provide better service Sony conducts the Service camp & Training
and keep its employee update.
WEAKNESS:
As Sony is a costly brand and this high price factor is not affordable to
Indian customer.
OPPORTUNITY:
Sony is leading brand in consumer durable market because of its
better service and quality.
It has a professionalism, good service attitude and knowledgeable
staff and employee.
Because of keen foresightedness of future demand and customer
perception, Sony can beat all the competitors.
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CONCLUSION
According to research of 30 days in Sony India ltd, it reveals that
Sony is real as well as a great leader in electronic and consumer
durable.
Sony is masters in Bravia LCD TV; Cyber shot camera, and vaio
notebooks. Sony has credibility in these products.
Sony as a brand is so popular in rich class people; they think it is
nothing but a status symbol.
Sony is facing tough competition with Samsung & LG because of
reasonable price & quality.
But when considered service attitude, one pricing policy, promotion
policy, quality of a product, professional appearance & knowledge of
staff regarding product features and function, Sony is far ahead from
Samsung & LG.
Sony plays a vital role in consumer durable market.
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