Thursday, October 24, 2019
Sony Marketing Plan
A Company Profile Leslie Siedlak Marketing 470 Professor Schramm February 13, 2013 Executive Summary Sony is a global manufacturer of electronics both for consumers and professional markets. SonyÃ¢â¬â¢s most popular products include digital cameras, televisions, personal gaming systems, and personal computers. Sony competes with many other companies in the consumer electronics market including Samsung, LG, and Apple. Current Market Situation In the consumer electronics market, competition is at an all time high.With new technologies emerging constantly (3D TVs), it has become increasingly important to be the first and most innovative company. According to Yahoo Finance and MarketResearch. com, in 2014 the consumer electronics market is forecasted to have a value of $289. 5 billion, an increase of 14. 1% since 2009. SWOT Analysis Strengths: * Founded in 1946, Sony has become one of the well-known brands in the consumer electronics market. * History of innovation. From the Walkman to the Blu-Ray disc. * The Playstation, a home gaming system, is one of the companyÃ¢â¬â¢s most popular products on the market.The Playstation been successful since inception and still has tremendous consumer demand. According to TechCrunch. com, sales of the Playstation 3 reached over $70 million in cumulative sales since its inception in 2006. * Not only is Sony in the consumer electronics market, but it has its own recording label and Sony Pictures Entertainment, which produces television and films. Weaknesses: * The high cost of media production has affected SonyÃ¢â¬â¢s pricing strategy. As a result, the company is losing an increasing amount of money and market share. * Too much diversification.Many consumers are confused as to what Sony produces. With music labels and entertainment/film studios, Sony has shifted from its core competency as a consumer electronics brand to a brand with too many forks in the fire. Opportunities: * To integrate its product line, Sony can take ad vantage of both its music and entertainment ventures and incorporate their gaming systems to deliver value added content. * Since SonyÃ¢â¬â¢s acquisition of $645 million in Olympus, Sony has the opportunity to enter the healthcare industry. Olympus has a 70% global market share in endoscopes.Since Sony provides image sensors to Olympus, Sony could benefit even more by acquiring these stakes. Threats: * Price competition from competitors such as Apple, LG, and Samsung * Hackers have been known to invade the Playstation network, which resulted in stolen customer information such as credit card numbers and addresses. Objectives SonyÃ¢â¬â¢s objectives focus on society and reducing impact on the environment. Reducing the impact on the environment includes all parts of R&D, especially finding ways to reduce waste in product packaging and distribution.Sony believes in full disclosure of product information and performance of the company. Marketing Strategy SonyÃ¢â¬â¢s marketing strat egy includes invigorating a brand that was once so popular in the market. Creating solid customer loyalty is also a large part of the Sony marketing plan. Action Plan Sony has developed a series of slogans over the years including Ã¢â¬Å"The One and Only,Ã¢â¬ Ã¢â¬Å"ItÃ¢â¬â¢s a Sony,Ã¢â¬ and Ã¢â¬Å"Like No Other. Ã¢â¬ Currently SonyÃ¢â¬â¢s slogan is Ã¢â¬Å"Make. Believe. Ã¢â¬ The current slogan is representative of SonyÃ¢â¬â¢s commitment to reinvigorating the brand.It wasnÃ¢â¬â¢t until 2009 that Sony launched its first advertisement. Sony has used several celebrities in their marketing strategy in the past. To show how real 3D looked, Sony used Peyton Manning and Justin Timberlake targeting both sports fans and music fans alike. Slogans like SonyÃ¢â¬â¢s make consumers believe they are purchasing a product that is superior to others on the market and helps consumers to develop a deeper brand loyalty. To increase market share and awareness, Sony continues to use popular celebrities to endorse their products.From Taylor Swift to previously mentioned Justin Timberlake, Sony understands that targeting younger consumers leads to a deeper brand loyalty. Financial Projections In Quarter 2 of 2012, Sony slashed its financial forecast due to slow game sales and less than stellar sales of its new gaming system, the Playstation Vita. The original forecast was projected at 16 million units sold of both Vita and Playstation Portables worldwide. Today, Sony has cut that projection by a large amount, down to just 10 million units by March 2013, which will result in a total financial loss of $198 million Implementation ControlsImplementation control is designed to assess whether the overall strategy should be changed in light of unfolding events and results associated with incremental steps and actions that implement the overall strategy. Ã¢â¬ After the security breach if SonyÃ¢â¬â¢s Playstation, Sony launched a Ã¢â¬Å"Welcome BackÃ¢â¬ campaign af ter countless customers private information was hacked. Sony presented customers with 4 new games to show their appreciate for their loyalty during the hacking. Summary Analysis Sony is diversified in the market both in consumer electronics and those for professional use; this leads to a tremendous opportunity for growth.Sony also focuses on a wide variety of products from cameras to gaming systems, which could lead to domination of the consumer electronics market. Sony however, is not doing very well in marketing their products to the consumer. They are too diversified in comparison to successful companies such as Apple, who stick to a few products in the same realm and have created tremendous customer loyalty over the years. Sony seems to be confused on what to do, whether to be in consumer electronics or marketing towards professional markets. Sony should focus on one market in order to gain profits and develop a stronger following.