RETAIL MARKETING

PROJECT REPORT

Submitted To- Submitted By:

Mr AJS Batra RATTAN 1720982034
Prof. Retail Marketing PRIYA 1720982032
 About Sony
 Sony Corporation is a Japanese multinational
conglomerate corporation headquartered in Kōnan,
Minato, Tokyo.
 Its diversified business includes consumer and
professional electronics, gaming, entertainment and
financial services.
 The company owns the largest music entertainment
business in the world, the largest video game console
business and one of the largest video game
publishing businesses, and is one of the leading
manufacturers of electronic products for the
consumer and professional markets, and a leading
player in the film and television entertainment
industry.
 Sony was ranked 97th on the 2018 Fortune Global
500 list.
 History
 Sony began in the wake of World War II. In 1946,
Masaru Ibuka started an electronics shop in a
department store building in Tokyo.
 The company started with a capital of ¥190,000 and a
total of eight employees.
 In May 1946, Ibuka was joined by Akio Morita to
establish a company called Tokyo Tsushin Kogyo (
(Tokyo Telecommunications Engineering
Corporation).
 The company built Japan's first tape recorder, called
the Type-G.
 In 1958, the company changed its name to "Sony
 Mission and Vision

Sony’s Mission Statement

 Sony’s corporate mission is to be “a company
that provides customers with kando – to move
them emotionally – and inspires and fulfills
their curiosity.
 ” The mission highlights the importance of
kando and what it does for customers.
 Sony’s mission statement has the following
components:
a) Provides customers with kando
b) Inspires and fulfills their curiosity

 In its mission statement, Sony Corporation

focuses on the concept of kando. Such focus
aligns the corporate mission to the vision
statement. To effectively apply the concept,
the mission statement requires that Sony must
develop products that evoke emotion that
moves customers. For example, the
PlayStation attracts and retains customers
 through an emotional bond based on gaming
experience. In relation, the second component
of Sony’s mission statement focuses on what
the business must do for customers. In this
case, the company must inspire and fulfill
customers’ curiosity.

Sony’s Vision Statement

 Sony states, “Our vision is to use our
passion for technology, content and services
to deliver kando, in ways that only Sony
can.”
 In this vision, emphasis is on the concept of
kando.
 The following components are present in
Sony Corporation’s vision statement:

a) Deliver kando
b)Use our passion for technology, content and
services
c)Ways that only Sony can
 Competitors
Top Sony Competitors in Consumer Appliances
1) Samsung- Samsung is a South Korean company
that was founded in 1938 and has its headquarters
in Seoul, South Korea. By the end of the year 2016,
its revenue was around 175 billion dollars, the total
number of employees approximately 490,000 and a
market capitalization of 311 billion dollars.
Samsung, like Sony, does not have a specific
product niche but has diversified in the
manufacture of durable electronic products. Some
of its TV Models include; QLED, 4K UHD, Full
HD, and HD. Samsung has presence in most of the
products where Sony is present and hence it is the
topmost amongst all Sony Competitors.
2. Life’s Good (LG) Like Samsung, LG Corporation is
also a South Korean Company that was founded in the
year 1947 with its headquarters in Seoul, South Korea.
Yearly, LG generates over 100 billion dollars in terms
of revenue. Worldwide, its employees are over 210,000
across 80 countries in all its major subsidiaries i.e. LG
 Electronics, LG Solar Energy, LG Chem and LG life
sciences among others. In the Television Industry, LG
TV sets are energy efficient and advanced in terms of
technology and style. Some of its Models are; OLED
TV 4K, ‘UHD TV 4K’ FHD and Super UHD TV 4K’
among others. Like Samsung, LG has a wide range of
products and most of them are Sony Competitors.
3. Panasonic
Panasonic Corporation is a multinational that was
founded in Japan in the year 1918. As an electronics
and semiconductors manufacturer, it has since grown to
be a major competitor alongside Toshiba, Sony, LG and
Hitachi in electronics production. In the year 2012,
Panasonic was the 4th largest manufacturer of TV sets
in the world. In the last financial year, its revenue was
68 billion dollars with a market Capitalization of 33
billion dollars.
It also employs more than 255,000 people globally.
Panasonic TV sets i.e. LED, FHD, LCD and the new TH
are all manufactured under the ‘customer-centric policy’
concept.
Sony Competitors in Laptops & peripherals
1. DELL
Dell Inc. was founded in 1984 in Texas, USA. Dell
manufactures and sells computers, Data storage devices,
computer peripherals, computer software, HD televisions,
network switches and servers among others.In terms of
Market Share, dell is the 3rd largest at 16% after HP Inc.
and Lenovo.
Again, early this year, only HP and Lenovo had more PC
sales to Dell. Its revenue by the end of the financial year
2016 was 65 billion dollars and the market capitalization
was 14 billion dollars. In terms of production, Dell is the
world’s largest computer manufacturer. And has
approximately 120,000 staff around the world.
2. APPLE
Apple Inc. was founded in 1976 and has its
headquarters in California, USA. It specializes in
computer hardware and software, semiconductors and
digital electronics among others. As a multinational,
Apple Inc. had 230 billion dollars revenue in the last
financial year, a market Capitalization of 900 million
dollars and an operating income of approximately 62
billion dollars.
Apple has retail stores in more than 500 major cities in
the world and it employs over 115,000 staff globally.
As a Sony Corporations’ competitor, its products
include Macintosh, iPad, MacOS, iOS, iLife and iWork
among other products. Apple Inc. Enjoys customer
loyalty and is regarded as the most valuable
electronics brand.

3. HP
Hewlett Packard (HP) is an IT company that was
founded in 1939 with headquarters in California, USA.
In the last fiscal year, HP had 50 billion dollars’ worth
of revenue and a market capitalization of 30 billion
dollars. Around the world, it employs around 195,000
people.

In 2015, Hewlett Packard split into HP Enterprise and

HP Inc. HP Enterprise trades as a newly formed
company whereas HP Inc. maintained the old Hewlett
Packard Image. HP Inc. provides software solutions and
computer products to its consumers throughout the
world. It also has business involvements in education
and health sectors, printing and enterprise services.

Sony Competitors in Photography

1. CANON
 Quite clearly the leader of Sony competitors when it
comes to digital photography – Canon Inc. is a
Japanese company with headquarters in Tokyo,
Japan. It was founded in the Year 1995 and it
specializes in the Manufacture of optical products
e.g. Camcorders and Digital Cameras, printers,
scanners, flash units, projectors and medical
equipment.

It employees around 200,000 people around the globe

and by the end of 2016, its operating profit was more
than 145 billion yen. Trading in the Tokyo share
market, Canon was ranked among ten largest
companies in Japan in terms of market capitalization.
It also forms part of the TOPIX index in the New
York Stock Exchange. CanonInc. also has
subsidiaries in Axis Communications and Océ

2. NIKON

Nikon is Japanese Company that was founded in

1917 and specializes in imaging products and Optics
with its headquarters in Tokyo, Japan. Its annual
revenue exceeds 3 trillion yen and had an operating
income of around 230 billion yen by the end of 2016.
Being a multinational, Nikon Inc. has around 198,000
employees.
 It also has subsidiaries in Nikon UK and Optos Plc.
Some of its products include; binoculars, digital SLR
cameras, underwater film cameras, spotting scopes
and Camera Lenses among others. In the year 2006,
Nikon ceased production of almost all its film camera
models to commit to the digital camera market.

Sony Competitors in Gaming

1. XBOX
XBOX is owned by Microsoft and was first introduced
in the market in 2001. It represents online streaming
services and application games. By the end of 2006,
more than 23 million XBOX units had been sold. Its
second Console i.e. XBOX 360 was introduced in the
market in 2005 and has so far made more than 150
million sales worldwide.

So far, the latest brand XBOX ONE has been

introduced in more than 30 markets and most of its
features are internet based. I.e. with Xbox one, a player
can not only stream but can also record gameplay. A
slimmer version of Xbox One referred to us Xbox one S
is also available
 Sony’s Organizational Structure

Sony Corporation has a balanced matrix organizational

structure. Even though geographic divisions are present,
the corporate structure is primarily based on business
function and product/business type. Some executives
head multiple divisions or groups.
For example, Sony’s Research & Development group,
Energy Business, and Storage Media Business are
under the same executive. The following are the
characteristics of Sony’s organizational structure:

A. Function-based groups
B. Business type divisions
C. Geographic divisions

A. Function-Based Groups. This structural feature

involves Sony’s business functions. For
example, Research & Development functions are
grouped together. The objective is to use the
corporate structure to support functional
efficiency and effectiveness. Sony has the
following function-based groups in its
organizational structure:

1. CEO
2. Finance
3. Research & Development
4. Legal, Compliance, Corporate
Communications, CSR, External Relations,
Information Security & Privacy
5. Manufacturing, Logistics, Procurement,
Quality & Environment
6. Engineering
 7. New Business (Strategy)
8. Sales & Marketing
9. Human Resources & General Affairs

B. Business Type Divisions. In its organizational

structure, Sony maintains divisions based on
business type or product type. For example, the
Storage Media Business is responsible for
producing storage devices. The company now
focuses on three main business segments,
namely, (1) Devices, Game and Network
Services, (2) Pictures, and (3) Music. However,
the business type divisions that compose the
segments in Sony’s organizational structure are
as follows:

1. Energy Business
2. Storage Media Business
3. Imaging Products and Solutions Business
4. Game & Network Services Business
5. Pictures Business
6. Music Business
7. Home Entertainment & Sound Business
8. Mobile Communications Business

C. Geographic Divisions. This structural

characteristic is the least significant in Sony
Corporation’s business. The company uses
geographic divisions for finance, planning and
strategic decision-making. For example,
geographic divisions are used in financial
reports. Sony uses the following geographic
divisions:

1. Japan
2. United States
3. Europe
4. China
5. Asia-Pacific
6. Other Areas
Sony Corporation’s Marketing Mix Analysis

 Sony Corporation’s Marketing mix or 4P (Product,

Place, Promotion & Price) effectively support
global business operations.

 The marketing mix defines how a firm executes its

marketing plan and specifies strategies and tactics
specific to the business.

 In the case of Sony’s marketing mix, these

strategies and tactics are based on the conditions of
the global consumer electronics, gaming,
entertainment and financial services markets.

 The company’s diverse business operations require

complex considerations in developing the
marketing mix. Nonetheless, Sony maintains a
marketing mix that comprehensively satisfies the
 organization’s needs in reaching its target
customers.

A.Sony’s Products (Product Mix)

Sony has products in the consumer electronics, gaming,
entertainment and financial services markets. However,
the company uses a different categorization to properly
group its various products. This element of the
marketing mix is called the product mix, which
identifies the firm’s products or organizational outputs.
The following are the main product lines in Sony
product mix:

1. Mobile communications
2. Game and network services
3. Imaging products and solutions
4. Home entertainment and sound
5. Devices
6. Pictures
7. Music
8. Financial services
9. Others
Sony’s Pictures products include motion pictures,
television productions, and media networks. PlayStation
units and related content are grouped under Game and
Network Services.
The company’s batteries, semiconductors and recording
media are included in Devices. Disc manufacturing is
included in Others.
This element of Sony’s marketing mix shows
considerable diversification of the business, in line with
the business-type divisions in the company’s corporate
structure. Such diversification limits the effects of market-
based risks.
B. Place/Distribution in Sony’s Marketing Mix
Sony employs a variety of places for delivering its
products to target customers. This element of the
marketing mix identifies the places or venues that the firm
uses to transact with customers, to distribute and deliver
products, or to allow customers to access the products.
Sony uses the following places or venues:
1. Sony Stores
2. Authorized sellers
3. Cinemas and media networks
4. Official websites
Sony Stores sell genuine products and accessories,
including Cyber-Shot digital cameras, batteries and
television units. These stores are also significant in
promoting the brand, considering their name.
The company also earns through authorized sellers, such
as computer stores and smartphone stores. Motion picture
products (movies) are delivered to target customers
through cinemas and media networks. Sony also has
official websites for devices, PlayStation content and
other products.
In this element of the marketing mix, Sony maintains a
variety of places to distribute its products effectively and
to have a wider market reach.
C. Sony’s Promotion (Promotional Mix)
 Sony promotes its products in a variety of ways and
forms. This element of the marketing mix identifies
the promotional mix or the methods that the firm uses
to communicate with its target customers.

 The following promotion methods are used in

Sony’s business:
1. Advertising (most significant)
2. Public relations
3. Direct marketing
4. Sales promotion
5. Personal selling
 Advertising is the most significant promotion method
in Sony’s business. For example, the company
advertises its products through online media and print
media.
 In addition, public relations are used as a way to
build brand awareness and enhance corporate image.
For example, the company sponsors sports events,
music festivals, and other events. Direct marketing is
applied to establish deals with organizations that use
Sony products. On the other hand, sales promotions
are used to attract customers based on discounts.
 For instance, the company implements discounts for
its PlayStation gaming products for Black Friday.
Employees use personal selling at Sony Stores to
persuade target customers to purchase the company’s
products. This element of the marketing mix
highlights activities that support the company’s
market penetration efforts (Read: Sony’s Generic
Strategy & Intensive Growth Strategies).
D. Sony Corporation’s Prices and Pricing Strategy
 Sony is known for high quality products. However,
these products are typically sold at relatively high
prices. This element of the marketing mix determines
how the company sets its prices. Sony applies the
following pricing strategies:
1. Premium pricing strategy
2. Market-oriented pricing
3. Value-based pricing
 The premium pricing strategy involves high prices.
Sony’s products are typically priced higher than the
market average.
 The high prices support a premium brand image,
which aligns with the company’s differentiation
generic strategy. On the other hand, the company
applies market-oriented pricing for some of its
products.
 This pricing strategy ensures competitiveness, based
on the prices of competing products. Sony also
implements value-based pricing to determine the
appropriateness of some premium prices, based on
actual product value and customers’ perceived value
of the products. The strategies in this element of the
marketing mix show the importance of high prices to
ensure high profit margins and to support a premium
brand image.
 SONY SWOT ANALYSIS
Sony’s Strengths
Sony’s business strengths are outlined in this aspect of the
SWOT analysis. Strengths are internal strategic factors
that support business growth and profitability. The
following strengths contribute to profitability in Sony’s
case:

1. Strong brand
2. Diversified business
3. Popular profitable products

 Sony Corporation has one of the strongest brands in

the markets where it operates. A strong brand enables
the business to easily attract customers to new
products and current offerings. In addition, Sony has
a diversified business.
 For example, the company has electronics and
gaming products, as well as financial services and
entertainment products. This diversification limits
market-based risks and improves the stability of
Sony’s business.
 On the other hand, the company benefits from its
popular profitable products, such as the PlayStation.
 This is one of Sony’s strengths because it ensures
profits despite competitive rivalry.
 Based on this aspect of the SWOT analysis, strengths
ensure continuing business success. Still, Sony must
improve these strengths to remain effective against
competitors.
Sony’s Weaknesses
This aspect of the SWOT analysis identifies Sony’s
weaknesses or the internal strategic factors that limit or
reduce the company’s performance. Weaknesses create
barriers to business growth. Sony’s weaknesses are as
follows:

1. Lack of dominant mobile devices

2. Vulnerability of databases and networks
3. Imitability of some products
 The lack of dominant mobile devices is a major
weakness in Sony’s business. The company’s devices
are low performers in the market, compared to those
from companies like Samsung and Apple (Read:
SWOT Analysis of Apple, Inc.).
 Also, with increasing reliance on online services,
Sony’s must solve the vulnerability of its databases
and networks. This factor is a weakness because it is
 a concern for the business and its customers in terms
of data security.
 Another one of Sony’s weaknesses is the imitability
of some of its products. For example, competitors can
imitate the company’s cameras and home theater
equipment.
 In this aspect of the SWOT analysis of Sony
Corporation, weaknesses pose significant barriers to
growth. Addressing these weaknesses can increase
the company’s competitiveness and profitability.
Opportunities for Sony Corporation
Sony has opportunities to further grow its business, as
shown in this aspect of the SWOT analysis. Opportunities
are external strategic factors that can boost business
growth and profits.
In this case, Sony has the following opportunities in the
electronics, gaming, entertainment, and financial services
markets:

1. Further business diversification

2. New product development
3. Rapid innovation
 Further business diversification can increase Sony’s
growth. For example, building on its current
 competencies, the company can explore opportunities
in related industries.
 In addition, Sony has the opportunity to develop new
products to create new income streams. Furthermore,
rapid innovation can boost the company’s
competitive advantage, especially when considering
the high level of competitive rivalry in the industry.
 This aspect of the SWOT analysis shows that the
company faces opportunities to raise its profitability
in current and new industries.
Threats TO Sony Corporation
Sony must overcome and solve threats to its electronics,
gaming, entertainment, and financial services businesses.
Threats are external strategic factors that potentially bring
down business performance. Sony faces the following
threats in its external environment:

1. Cyber attacks
2. Competition
3. Software piracy
 Cyber attacks are a major threat against Sony,
especially because the company is increasing its
reliance on online databases and networks.
 Competitive rivalry is also a threat that concerns the
business, as other firms are aggressive in markets
 worldwide. Software piracy presents challenges in
terms of maintaining profitability.
 For example, imitation can decrease revenues from
Sony’s gaming and related products. Thus, it is
essential for the company to develop solutions to
protect its software products. As emphasized in this
aspect of the SWOT analysis of Sony, measures must
be implemented to prevent or mitigate the effects of
threats to the business.

RECOMMENDATIONS
 There are a number of key issues shown in this
SWOT analysis of Sony Corporation. The lack of
dominant mobile devices is a significant weakness.
While the company already offers mobile devices, a
recommendation is to apply aggressive marketing
and further enhancement of these products to help
grow the business.
 These actions are significant, especially when
considering high profit potential in the global mobile
devices market. Also, Sony must address the
vulnerability of its databases and networks, whose
security is a determinant of customer satisfaction.
 A recommendation is that the company must apply
continuous improvement to keep such security
abreast of current technologies. This recommendation
 also addresses the threat of cyber attacks. In addition,
it is recommended that Sony must implement rapid
innovation alongside new product development to
expand the business.
 For example, rapid innovation can increase the
company’s market share and potential profits in the
mobile devices market. This SWOT analysis
indicates a number of steps that Sony can take to
overcome its weaknesses and address the most
significant threats in the electronics, gaming,
entertainment, and financial services markets.