Group: 1

CAREER LAB

Case Study: “Sony Targets Laptop Consumers in China”

Submitted by:

Maha Rasheed (L1F17BBAM0171)

M. Ibrahim Qureshi (L1F17BBAM7204)

Zaina Tahir Chaudhary (L1F17BBAM0156)

Faisal Shafi (L1F17BBAM0114)

Rabia javaid (L1F17BBAM0063)

Shehroz Adil (L1F17BBAM0108)

Irtiza Masood (L1F17BBAM0230)

Submitted to:

Miss. Khadija Chaudhary

Section:

(B)

Submission Date:

19th June; 2020

Key Concepts:

Marketing Segmentation, Targeting

Abstract:

The manager of the Sony VAIO personal computer in China has been given two segmentation
studies. One study is country-specific and product-specific. The other is a global segmentation
study, which covers all regions and all Sony’s many consumer electrons. Which segmentation
study should the manager rely on-or is there a way to relay on both? After deciding which study
is best, which consumer should the manager target, and with what position?

How do Chinese consumers view Sony?

Sony considered the new VAIO brand as a powerful statement. VAIO represents innovation,
style and premium quality. Sony’s revolutionary, customizable laptops were created to revive
Sony’s market aspirations VAIO computers were loaded with multimedia software, which were
missing in all competitive brands. They positioned VAIO as a breakthrough computer. They also
gave people a sense of style and belonging. The Chinese consumers see VIAO as a premium
product for which they are willing to pay extra, even though pirated copycat products are
available for a cheaper price.

Case Study Key Problems:

Richard Lopez, product manager for Sony Corporation faces three key problems while finalizing
his plan for marketing VAIO laptop computers in China:

1. Which segment of population Sony should target and how to position VAIO for this
segment?
2. Which study or combination of studies he should choose that will lead to best plan for
VAIO in China?
3. How study should be conducted, at global or at local level?
4. Looking at Exhibit 8, how many Entertainment Lovers are likely to purchase a computer
in the next twelve months? How many of these will likely purchase a Sony?
Reason for the existence of the problem:

The main reason for the existence of the problem is that the quantity of data is too much. As, it is
clearly mentioned the case that the more Mr. Lopez and his team members sifted through the
data, the more tradeoffs they perceived between the segmentation models and more uncertain
they became regarding which study to use

Impact on Organization:

• Choosing the right target market and positioning the product is very important for the
firm as it has huge impact on organization. It impacts customer experience, advertising,
branding and helps to clarify the vision to get everyone in the organization on the same
page. Preaching the product to wrong people does not only impact the organization
externally but internally also.

• Conducting the wrong study can have catastrophic impacts on organization as it will
affect the entire marketing plan and the organization will have to face the long term
consequences. Research study requires a lot of revenue so choosing a wrong study will
also affect the organization monetarily.

Responsible for Problem:

Management is mainly responsible for the problems because they are unable to manage the large
amount of data and are becoming uncertain which is creating problem for Lopez team to do
analysis and extract the irrelevant data out and focus on the relevant data. There is a conflict of
interest between the product manager and the vice president which is also creating a lot of
confusion.

Possible Solutions:

We came across many possible solutions for the above mentioned problems after the detailed
study of the case such as, if we talk about the segmentation Sony can focus on the segments such
as “Entertainment Lover” and “Family users” instead of fashion oriented segment because of the
competency between Apple MacBook. The most important reason of selecting these 2 segments
is the statistical analysis of the CLUES data which shows that 18% of the people are
entertainment lovers and only 15% are fashion oriented who buy Apple’s products just because
they are cool furthermore, the percentage of family users is highest in this chart which is 22%.
The three Core Chinese values are family, honesty and personal relations which shows that Sony
should have to position VAIO laptop as a family computer.

There are two possible solutions for the first, third and fourth problems are:
1. Firstly, if Lopez wants to segment locally he should use CLUES Report because it will
help to understand and analyze users and future consumers in China because Chinese
consumers have their own unique preferences in terms of their values, culture, beliefs,
consumption behavior, and consumption patterns. And Mr. Lopez should target the
family users group with unfussy basics since laptops are a niche market for Sony VAIO
in China. Marketing VIAO as a family laptop will play into the cultural values that are
placed in family in the Chinese culture. The segment is also companies mostly of women
who are seeking stylish and functional laptops that can be used for tracking schedules and
staying in touch with their family and friends. The downside of this segment is that only
38% of these people plan to purchase a laptop in the next 12 months.

2. Secondly, if he wants to segment globally he should use Compass Research because it

mainly helps segmenting the products such as VAIO worldwide but, Sony considered it
with the thought that it would help product managers and others to build “cross-category
cluster value” by focusing on the same consumer target and most importantly Sony is a
global firm so global segmentation is very useful for company. It has many advantages
such as more sales revenue and different resources but we also cannot ignore its
disadvantages such as it is very costly to analyze and difficult to perform.

3. Thirdly, based on exhibit 8 the Entertainment Lovers segment is 88% likely to purchase
a laptop within the next twelve months. Out of the 88% only 7% of these consumers
ranked Sony as their top brand and 36% of then believe that knockoff laptops are as good
as the branded laptops.

Best Solution:

Mr. Lopez has a lot of information to sort through and give a great recommendation to Sony to
what segment to target. I believe Mr. Lopez should interpret the findings of both studies from a
qualitative and quantitative point of view. That understanding what the customers wants and
needs are, and buy targeting the customer needs it will yield higher sales for Sony. The most
realistic Solution for Sony is to opt the combination of studies. He should use CLUES report
(local study) with the help of Compass research (global study) because this will help him analyze
the market in both ways without going deep into the data separately because, it is clearly
mentioned in the case that the vice president of Sony want product managers to utilize a new
corporate study that segment consumer at global level whereas, the main focus of the company
for now is the local Chinese market so conclusively, the study of CLUES report with the help of
Compass research will fulfill the demand of Mr. Lopez plan for marketing laptop computers
locally in china and the vice presidents demand of using new corporate study that segment
consumer at global level.