SONY

SITUATION ANALYSIS and Product Extension

This Video presentation has been prepared as a

part an obligation for MBA Coursework for LSBF,
Market Management.
Discussion Points
• Company and Mission
• Current Product:
– Marketing Mix
– Positioning
– Target Market
– External Forces
• Product Extension
• Conclusion
Company and Mission
• Started in 1946
• Introduced the first
– Transistor radio (makes Sony famous for music
yet)
– Direct view portable TV
• In the recent past holds the reputation for
the
– Thinnest TV
– Quality picture output
Company and Mission contd...
• Company Head office in Japan, Sub office
in United States, Research and
Development offices in both places
• 167,000 employees worldwide
• Company was making losses a few years
before 2009 and recovered after
introducing its latest product Bravia TV.
• Has over 7 other product ranges like Music
sets, cameras, Video players, MP3s,
Computers etc.
Company and Mission contd...
MISSION STATEMENT
“Sony is committed to developing a wide range
of innovative products and multimedia
services that challenge the way consumers
access and enjoy digital entertainment. By
ensuring synergy between businesses within
the organisation, Sony is constantly striving
to create exciting new worlds of
entertainment that can be experienced on a
variety of different products.”
Current Product – MARKETING MIX
Product Specification:
• Bravia TV range
• Screen sizes 22” to 60”
• Top Features: Full HD, LED, 3D, Free view,
Free HD
• Presence sensor – power off

Price
- Price range - £280 to £3,500
Current Product – MARKETING MIX Contd..
Product Life Cycle:
• 1 – 4 years
• 3 product-line extensions between 2009
and 2010: HDTV, 3D, Internet TV
• Continuous innovation imperative for
sustainability

Place
- present in the markets of 92 countries with
its own/rented outlets
Current Product – MARKETING MIX Contd...
Promotions:
• +++ Advertisements
• Sponsorships/Charities
• Promotions – FIFA
• Competition quests during FIFA

People
• Present in the markets of 92 countries with
its own/rented outlets
Current Product – POSITIONING

• Differentiator - high quality, high price

Current Product – TARGET MARKET
Customer and needs:
• Middle and upper level income groups;
Professionals, businessmen, Executives
– relaxation, status, After work, in the evenings
• Sports (especially Football) enthusiasts who want
to have some quality and excitement
– Excitement Sports men – Love for sports -
Quality those could not be there in the stadium
due to logistics and financial reasons
• Parents (who could afford) especially for children
– Entertainment, education
Current Product – TARGET MARKET Contd...
Competitors:

• Main competitor Samsung (picture quality

lower, but released 3D TV ahead of Sony)
• Others; LG, Panasonic, Sharp, Philips
Current Product – TARGET MARKET Contd...
Potential Market: Figures in Values

Forecast of potential TV market

2010 - 2015

8,000,000
6,000,000
4,000,000
2,000,000
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Data source: ITVE.or- (
http://www.international-television.org/tv_market_data/international_television_market_report_2009.html)
Current Product – EXTERNAL FORCES
Political:
• US and Europe together form the largest consumer for
TV and the buying decision could be politicised.
• Change of government in the manufacturing site that
may impose changes to the method of current
manufacturing or standard of emissions.
Environmental:
• Global warming! Sony produces quite some waste and
emissions. New standards and trends for the
minimum emissions.
• Sony has started already to reduce CO2 and to reduce
waste. It has mapped its process in order to reduce
this in the future to come.
Current Product – EXTERNAL FORCES Contd...
Social/Culture:
• Aging generation who does not care innovation, Therefore,
Sony’s older generation need to be kept happy – means
continuing the expertise for services for older TVs.
Technology:
• Due update with the latest technology developments for its
products
• Unable to find spares due to technological change
Economic:
• Recession, Inflation and exchange rates, increase in
production costs in the current lowest market
Legal:
• Misuse of patent law – blue ray case, 2007.
Product Extension
Extended Brand:
• Bravia – Natural

Description:
- Includes additional 4 sets of lights works with a
control from the sensor from the TV
- The 4 lights setup in the room will adjust the
lights in the room to give the consumer a natural
view with extended pictures out of the TV
- The rest of the settings remain the same as
Bravia
Product Extension
Price:
• NO change
– No quality reduction
– Price would have been dropped anyway, if no
more value was added to Bravia
– With the new value addition the price could be
retained at the same level

Promotion:
- Olympics 2012 will be used to release the
product
Current Product – SWOT
STRENGTHS WEAKNESSES
 The sub-office of Sony is in US, which gives  No core competence as the product
a feel of ethnocentrism. This is important could be imitated by the
as US is the biggest target market for competitors/new entrants
Bravia-Natural.  High-quality is admirable but the
 Bravia-Natural comes in varying sizes, high-price makes some people left
which makes those who’d like quality but out; gives a feeling that product is not
cannot afford a bigger TV still go for a for everyone!
smaller size.
 Sony is well-known for its after sales
services, which is useful for Bravia-natural
 Product Owner, Sony manufacturing its
products with a concern for the
environment.
Current Product – SWOT Contd....
 The main Brand “Sony” is known for
over half a century, which brings
confidence in the potential
customers.
 Growing product line
OPPORTUNITIES
 Threat of imitators, who spoil the
name of the brand image with
poor quality.
 Current main competitor
“Samsung”, increases its quality
and buts sells at a lower price.
 Recession hits worse and the
estimation for the potential TV
market falls.
THREATS
Conclusion/Recommendation
The option is viable given the
• Image of Sony, as a company and its outlets
all over the world
• Supports Sony with its continuous innovative
strategy
• Market share and thus the life cycle for
Bravia increases
• Competitive advantage retained over
competitors.

Bravia-Natural will
Bravia-Natural will be viablebe
andviable
a very
profitable option
and a very profitable option
THANK YOU