Sony Corporations Marketing Plan

Parneet Pahwa
Marketing 3300.005
December 12, 2014
By:
Conrad Skidmore, Mimi Diep, Amy Vo,
Kenyon Winfield, Aashish Panjwani

Sony was founded in 1945 by partners Masaru Ibuka, (an engineer), and Akio Morita, (a
physicist), and was originally named Tokyo Tsushin Kogyo (Tokyo Telecommunications
Engineering). The firm was launched in Nihonbashi, Tokyo. From a humble beginning, Sony is
now one of the leading technology distributors and is ranked 105th on the 2014 list of Fortune
Global 500. Sony is currently one of the most comprehensive entertainment companies.

Company Description, Strategic Focus and Plan

Sony is a massive entertainment company that produces movies, television shows, video
games, music, and electronic entertainment devices such as: televisions, tablets, smartphones,
and the PlayStation 4. They also have companies that provide health, automobile, and life
insurance, as well their own online bank. Sony products are some of the most common around
the world. Their mission is to be a company that inspires and fulfills your curiosity. They seek
to be on the cutting edge and continually discover new ways to bring entertainment to the world,
and move people emotionally. Sony has won multiple awards for innovation, and is a household
name among entertainment companies. They currently have more of their products in more
homes than any of their various competitors across entertainment mediums. They are far more
widespread than any other electronic or entertainment companies.
At time of writing, Sony stock is worth nineteen dollars and 74 cents, though it has been
averaging at approximately eighteen dollars. As a whole, their enterprise is worth more than
fifteen billion dollars. However, during the last two years, Sony has suffered net losses. To
combat this, Sony has planned to leave the computer industry, restructure their television
business with a split, and continue to grow their health care and financial services. Sony plans to
eventually release a cloud based television-on-demand system. Their CEO, Kazuo Hirai, seems

to be confident in his plans to get all of Sony's businesses to earn net gains.
Sony has a lot of competitors because they reach across many fields, and some branches
of the company are more successful than others. For example, Sony's PlayStation 4 is leading the
home console market, ahead of Microsoft's Xbox One and Nintendo's Wii U. But their TV
business is struggling, and their PC business had to be dropped completely. On the entertainment
front, Sony is doing strong.
Sony is also dedicated to making a positive social impact. They have many
environmental programs that help with providing clean water and using more recycled plastics.
They have foundations for youths interested in science and music to explore their interests. Sony
seems to be a company that cares about improving peoples lives, and while they are suffering
from losses at the moment, they will probably be around a long time.

Industry Analysis
The geographic scope of the consumer electronics industry is global mainly because
electronics are sold worldwide for many different uses. The trends for the electronic equipment
industry are a growing market since the field of technology is continuously changing, striving to
provide consumers with quality electronic equipment. The BCG matrix of Sony consists mainly
of the PlayStation 3 and 4, the PlayStation Portable, and the PlayStation Motion. The PlayStation
3 is considered a cash cow in that it owns most of the market share within the industry compared
to the Microsoft Xbox. The PlayStation 4 is a star since the newest system is experiencing
extreme market growth also while owning most of its industrys market share. PlayStation
Motion has remained a question mark since its introduction in 2009 while the PSP has declined

over time and has now become a dog. The industry intends to deliver consumers with
entertainment, ease of communication, and general productivity through electronic equipment.
People utilize electronics habitually and globally. The industry aims to provide
consumers with quality cell phones, cameras, and entertainment systems so they can enjoy the
use of technology in their everyday lives. The regulatory environment greatly affects the industry
in that some governments do not allow certain types of phones, they prevent companies in the
industry to retrieve consumer data because it can be a violation of privacy, and they also restrict
goods that are harmful to consumers from being produced. These government regulatory forces
constrain the industry, however many regulations put in place are meant to protect consumers.

Competitor Analysis
As one of the top global media conglomerates in the market, Sony Corporation of
America operates in several industries and faces a multitude of competition from varying sectors.
The corporation encompasses many domains in its US based electronics and entertainment
business, which as a result, acquires different competitors. Sonys main market segments are
summarized to include electronics/accessories, gaming consoles, TV and film accessories, and
camera photography. In the domain of electronics, Sonys main competitors are Apple,
Microsoft, and LG Electronics. Similarly, in gaming consoles, Sonys PlayStation competes with
Microsofts Xbox and Nintendos Wii/DS. Samsung, Philips, Panasonic, and Sanyo compete
with Sony in the TV and viewing entertainment domain. Lastly, in the photography sector,
Nikon and Canon are prevalent competitors. Due to the apparent variation in Sonys market
products as well as its various competitors with respect to each domain, an oligopoly market is a

best fit by definition. Sony and its competitors display the characteristic of a market dominated
by a few large-scale suppliers, a high barrier to entrance and differentiated products.
According to SWOT analysis, Sonys strength parallels that of Apples and Microsofts
in terms of matured brand awareness, reputation and loyalty. Referring solely to electronics, it
can be seen that Sony and its aforementioned competitors dominate the industry. Apple and
Microsoft can stand on their own with their strengths, and even surpasses Sonys in some
dimensions. Apples strength is in its advertising and marketing capabilities, resulting in
effective spending for greater returns in revenue and recognition, as compared to Sony and
Microsoft. Both Apple is also a leader in innovative technology and alluring design, attracting
new target markets and retaining consumer loyalty with its brand. Microsoft can boast great
quality, ease of use, and strong distribution channels. Microsoft retains an almost monopolistic
power through Windows OS and Office by working with many major computer hardware
producers to have these programs already pre-installed in their product.
One of Apples weakness is found in its strength, as it choses to stick to a certain design
and appearance, Apple limits itself with lack of product breadth and high price. Consumers are
likely to find a similar replacement or substitute in product for a much more appealing price. In
addition, due to increasing component prices and innovative competitors, long-term gross margin
decline might be in the companys financial future if changes are not made. Microsofts
weakness is its heavy reliance on hardware manufacturers instead of building hardware of its
own, exposing it to a substantial loss if a cheaper and more popular alternative operating system
were to emerge. Security flaws are also apparent with Microsoft; as it is more vulnerable to virus
attacks than other OS despite the mature and enduring nature of the software.

Company Analysis
Sony is a wide range multimedia company. It short term goals include constantly creating
new innovative products and software services. Long-term goals would include becoming a
broadband entertainment company as well as always having the newest and efficient technology.
Strengths of Sony would include the fact that it is a corporate brand that has established a
reputable name in the electronics industry. That being said, Sony was listed as Asias most
valued brand in 2011. Sony is known to have contributed to many innovations including the
PlayStation, VCR, Walkman, and the Trinitron Color television. The latest innovation that Sony
is recognized for is the Crystal LED television. Other strengths within the company would have
to be its impact on the entertainment industry with Sony Music and Sony Pictures.
Though there are few weaknesses within Sony, those weaknesses immensely affect the
success of Sony within this industry. For example, its competitor, Apple, focused in on only a
few products, basically choosing quality or quantity. This reflects poorly on Sony because Sony
has such a broad spectrum of products, the quality and competency of them do not compare to
that of Apple. Assuming the competition is high, the cost of media production, especially within
the electronic pool, has not been balancing out with the income of sales.
Sony has plenty of opportunities to re-build itself and grow since the company has
separated from its Sony Ericsson brand. They can take this time to utilize its popular music and
movie business to innovate something new. Noticeable efforts towards the mobile and tablet
market have been seen, with its waterproof and shockproof technology.
The only threat Sony has to this day would be its rising competitive market, for example
LG, Samsung, Xbox and Apple. Most of Sonys profits come from its gaming industry, but with
Microsoft rising, it could really influence the future of Sony. They need to step up the inventive

and cost efficient side of the company. That is where the major threat lies. A minor problem
Sony has would be how the market feels about the PlayStation being hacked. This puts a dent in
the trust the consumers have with Sony.

STRENGTHS

Highly reputable name, known for many technological innovations

such as PlayStation, VCR, and Crystal LED TV.

Named Asias most valuable brand 2011

Much more spread out in terms of product range than competitors

WEAKNESSES

like Apple, who focus solely on quantity or quality

For many products, costs outweigh sales

After separating from Sony Ericsson, they can easily focus on

OPPORTUNITIES

rebuilding and growth

Working on waterproofing or shock proofing for mobile devices

Rising competitors like LG, Samsung, Apple and Microsoft

THREATS

Customer Analysis
Sony has an extensive reach into many different sections of the market, which makes it
one of the most diverse companies in the world. This diversity means the consumer base is
global and that makes it quite difficult to complete an extensive market research. The top four
categories that Sony has a presence in are TV/audio, photography, smartphones, and gaming.
Sonys television and accompanying audio setups create a great time for all consumers. A
consumer would buy a TV because they want to have a large visual in their living space while
the home audio & theater allows for a quality hearing and immersive experience. This need is
not currently met until the purchase of a TV. A typical consumer will consider the sale price,
resolution, and size of the TV; sale price and key features such as 3D or iPhone compatibility are
taken into account when choosing a home theater system. The competing alternatives such as
Toshiba or Samsung will be evaluated by better price for the specifications that the consumer is
looking for. Consumers will typically want a good TV and sound system as soon as possible.
Sonys photography is divided into digital and video cameras. These devices enable the
user to capture a moment and preserve it. A consumer would buy one of these devices if they are
interested in taking high quality photos or are a professional photographer. A smartphone camera
might meet this need, but they are looking for an upgrade. A consumer will consider sale price,
megapixels, storage size, zoom and color. Alternatives like Canon are compared firstly by their
sales price and then it comes down to the capability required by the user.
Sonys smartphones, under the brand name Xperia, are divided into regular Android
smartphones and unlocked phones. Smartphones allow the consumer to do many of the functions
of a computer on the go. Some of the Xperia models are also waterproof and shockproof. The
need for a smartphone may be met by having a general landline and computer, but that is no

equal. A consumer will choose their smartphone based on sale price, color, many different spec
qualifications, as well as certain capabilities like being waterproof. The dominating alternatives
like Apple will sway the purchaser greatly based on the release of new smartphones or the prices
of smartphones on the market. Brand loyalty in the smartphone arena is also a large determining
factor.
Sonys largest and most popular category is gaming consoles. The PlayStation 4, released
in 2013, has sold more than 10 million units and the number grows larger every day. The PS4
allows consumers to play next gen games with amazing graphics. The consumer need might be
met by a PS3 or Xbox 360, but are looking for an upgrade. Sale price was something to consider
at release but that is no longer a determining factor now that the Xbox One got a $100 price drop
to equal the PS4 at $400. The main determinants now are: console exclusive games, free online
gaming PS4 vs. Xbox One $60 Xbox Live charge, and the largest factor brand loyalty. The
console that the person grew up with and knows will be the biggest factor when choosing
between these relatively similar next generation consoles.
Sony does have weekly deals at their store but it is up to the customer to look for certain
deals. Sony gives a large incentive to buy directly from them online because they guarantee free
delivery on orders $25 or more, a 30-day price match to ensure the customer gets the best deal
possible, and pre-ordering allows customers to have availability to Sonys products before they
are even released to the retailers. This is true for all of Sonys products online. The price match
assures the customer that they got the best deal possible because if the price of the product drops
on Sonys website within 30 days of the receipt date, Sony will refund the difference. Consumer
satisfaction for Sony is high in part to their Pledge of Quality to deliver product quality and
customer service that exceeds their expectations.

Market-Product Focus
Sony is a diverse company with a wide range of products. One of their more known and
recent products is the PlayStation 4. It was released November 2013, and is currently in the
growth phase. At this point, Sony is well known as a videogame console developer, so it no
longer needs to gain a new audience. Its main competitors are Microsoft's Xbox One and
Nintendo's Wii U. Sony's methods of competing with Nintendo are different from how it
competes with Microsoft, however. The games that come out on the PS4 are almost completely
separate from Wii U games, to the point there is not as much competition. The Wii U focuses on
family friendly games, while the PS4 has games that are more action and violence oriented. But
it shares many games with the Xbox One. In order to compete with them, Sony emphasizes its
user friendliness.
Sony's target market within the videogame industry is primarily the customer with whom
Sony has already achieved brand loyalty. They seek higher income families and adults, as well as
professionals. However, there are several other companies that can match their level of quality at
comparable prices in all fields. Unfortunately, this makes Sony's sustainable competitive
advantage relatively weak. Their core competency is innovation, but as of late they have not
been innovating much compared to other leading competitors.

Product Strategy
Sony has a vast target market, and their diverse products can appeal to varying
demographics that are part of the electronic consumer market. Being one of the largest
manufacturers of multimedia products, Sony has been a leader in its market with its innovative
products and diversification across markets.

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Core product With such a variety in their product selection, the buyer can satisfy many
end benefits by purchasing from Sony. A laptop can bring about a useful tool for school, work,
or entertainment. A camera can be used to make memories. The buyers of Sony are purchasing
electronics to either improve their productivity or to add entertainment to their lives.
Formal product The actual physical or perceived characteristics of Sonys products,
including its level of: quality, styling, branding and packaging.
Quality Sony has positioned itself as a premium brand, both in its pricing and
performance. The quality and consistency of performance distinguishes Sony from many of its
foreign competitors. For example, the Sony PlayStation 4 competes rigorously with the Xbox
360/One. The brand is also known for pioneering many developments that would lead into
modern and widely used products today.
Styling Sony is capable of producing high quality, technologically advanced products
and still maintaining a sleek and stylish appearance. Sony has taken advantage of the trending
designs and has moved forward to appeal to consumers in not only mechanical architecture but
also in sophisticated product presentation.
Branding Originating from the Latin word, Sonus, meaning sound, Sony resonates in
the consumers mind with its simplicity while also boasting like no other in its name. Its brand
character is involved with all things electronics, from Sony Ericsson, Sony Pictures, Sony
PlayStation and Sony Vaio. Easily recognizable to the consumer and hard to imitate, Sony has
defined itself in the market.
Packaging Sony packages its products with the logo up-front and up right, with ecofriendly material to ensure proper placement and protection against damage to the product.

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Augmented product Most Sony electronics, like laptops, TV monitors, mobile

devices, home entertainment systems, etc. have accessory items and after-sales services such as
installations or warranties. This serves a purpose to ensure customer satisfaction with the
product.
Overall, the ultimate vision of Sony is to capture the consumers imagination and
enhance its visualization with its products. Its long-term history displays the industry growth in
electronics into almost every home with the vast variety of products. There is tremendous
progression from the Sony tape recorder in 1950, to the first color videocassette recorder in
1971, the Sony Walkman in 1979, Compact Disc (CD) in 1982, and the PlayStation gaming
system in 1995. And with the technology today, Sony commands a large share in the market with
high-definition sound systems, and HD-TV flat screen TVs, and next generation gaming at the
fingertips. By engaging in the production of a multitude of technology equipment, the Sony
name has become part of mainstream culture.

Pricing Strategy
Sony offers the consumers both the benefit of technology and a solution to a problem
through all product categories. Product value is not the same in all categories because some
Sony products are more successful in their respective industry than others. The following is the
mission statement of Sony:
At Sony, our mission is to be a company that inspires and fulfills your curiosity.
Our unlimited passion for technology, content and services, and relentless pursuit
of innovation, drives us to deliver ground-breaking new excitement and

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entertainment in ways that only Sony can. Creating unique new cultures and
experiences. Everything we do, is to move you emotionally.
According to the mission statement of Sony, the pricing objective is unquestionably consumer
driven, as well as quality and innovation oriented. The company is competition driven and strives
to be innovative to provide the consumer with a rich technological experience.
The pricing decision is primarily based on the cost of manufacturing the product for the
consumer. Other main factors include the quality of materials of the product, competitor pricing,
demands of the product in the market, supply of raw materials, and the reputation of company.
The company determines the right price for its products based on not only the cost of the
product, but also the level of success the product has had. Furthermore, making adjustments to
prices in the consumer electronics industry is common. Price discounts are often advertised
heavily to raise awareness for the sale.
Estimation of the demand in the consumer electronics market is difficult and requires
research on competitors product successes and failures. Sony also may conduct surveys geared
toward their target market to assess the opportunity for growth in the market. Along with
research and surveys, test markets could also be used by Sony to determine the possible success
it could have in the specific market.

Promotion Strategy
Sony utilizes numerous kinds of promotion strategies. These include sales promotions,
advertising, personal selling, direct marketing, and publicity. In addition to these, Sony even has
its own television channel called Sony TV Channel. Sony employs many different kinds of sales
promotions including rebates, coupons, sweepstakes, exchange offers, free samples, scratch

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cards, discounts, and many more. Through its use of promotion, Sony offers a Sony Card and a
PlayStation Card, which performs like a reward card. Sony implements a generous discount
program that offers up to fifty percent off products. A rebate zone website is also offered which
provides rebates for certain products only.
Public relations are an important part of advertising and marketing products. Through
Sonys website, the corporation offers all information needed about the company and its software
and products. The website offers solutions to common problems users run across to make sure
the customer is always taken care of. Because this is a website, it is accessible to customers from
all around the world. Having an easily available tool as information develops a positive rapport
with the customers.
Sony sells both directly, as well as through intermediaries. In the past two decades, Sony
has increased its direct selling through its website, phone calls, and through mail. By going
direct, Sony increases its risk of selling through retail stores, as well as other vendors who carry
Sony products.
Sony Ericsson mostly targets customers emotions through catch phrases like Make
Believe and Spark Something. It is apparent they are trying to target the consumers emotions
through motivating them about the future. Sony wants to leave the impression that its products
can make your dreams come true. Through advertising, Sony uses media and targets all the
sports and series channels to make sure all target audiences are not missed.

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Distribution/Channel Strategy
Sony is a global company and this makes the place distribution and channel of
distribution quite diverse. Place distribution strategy involves making the right goods and
services available in the right quantities and locations when consumers want them. A marketing
channel consists of individuals and firms involved in the process of making a product available
to customers. The Channel structure Sony most often uses is the indirect channel method, similar
to the firms like General Motors, involving only one intermediary, a retailers, for reaching the
end consumer.
Channel length, however, can range from 0 to 2 intermediaries, because depending on the
product Sony will distribute its products in various channels. Sony uses a mix from zero-level
channel, one level channel and two-level channel. Through online purchases, Sony uses direct
contact to the consumer, while other products can be sold at a retailer like Sears. Through the
Internet Sony has helped its customers to find the nearest retail shop where they can buy the
Sony products. It involves going to their website and specifying the product and approximate
location. It will then display all the nearest retail shops.
Depending on the nature of the product, the marketing management team decides to put
into place a network of distribution, while choosing the appropriate dealers or wholesalers. Sony
positions itself as a seller of durable and high-end products; therefore, it practices selective
distribution of its products from selective dealers. While there are literally hundreds of Sony
authorized dealers these are some of the well know retailers of Sony Products: Best Buy Stores,
L.P., Sears, Wal-Mart Stores, Inc., and Amazon.

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