A PROJECT REPORTON

SONY BRAVIA® 3D HDTV 2010 MARKETING AND PROMOTION PLAN

SUBMITTED TO

MR. SUDHANSHU BHANDARI[TRADE MARKTING HEAD]

SONY INDIA PVT LTD

BY

PRIYANKA SINGH & SUPRIYA SINGH(SPECIALIZATION - MARKETING)

IN PARTIAL FULFILLMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENTAPRIL, 2009-2011

TABLE OF CONTENTS

Sr.no Topics Pg .no1. SONY ADVANTAGE2. COMPANY AND PRODUCT

PROFILE3. SWOT AND COMPETITOR

ANALYSIS4. MARKETING PLAN

OBJECTIVES5. CUSTOMER TARGETS

AND SEGMENTS6. MARKET POSITIONING

7. IMPLEMENTATION GUIDELINES

8. PROMOTIONAL PLAN

9. CONCLUSION

SONY ADVANTAGE

Sonyʼs television business is uniquely positioned to thrive in today's consumer electronics marketplace. Other manufacturers have accepted the commodification of their wares, focusing on price points and generic television advertising strategies. The introduction of 3D in their eyes is another gimmick for pitching technological superiority. We propose that Sony takes advantage of this miscalculation and grabs a significant lead in consumer mental space by focusing on consumer enthusiasm generated by experiencing the immersive world of 3D.

Sony is the only company in the space that can create a complete 3D environment using solely its own equipment and content. That is its largest competitive advantage and needs to be leveraged to the maximum when communicating the value proposition. This needs to be done on a mass scale, with publicity and public excitement.

COMPANY PROFILE

Sony Corporation (Sony), founded in 1946, is the world's second-largest consumer electronics maker after Samsung, with FY2009 revenues exceeding $82.57 billion. Its diversified operations are spread across electronics, games, entertainment, and financial services categories. The group is headquartered in Tokyo, Japan and employed about 180,500 people as of March 2008. The company operates globally in over 200 counties across Japan, North America, Europe, and Asian countries. The company's current slogan is “Make.Believe

In 2010 the forefront of the company's mission will be the shift to 3D. According to Sony chairman Howard Stringer, 3D is "the next great consumer experience." Stringer said, “We intend to take the lead in 3D. We are the only company fully immersed in every part of the 3D value chain." Sony will begin

selling 3D TVs in Japan on June 10 and worldwide at about the same time. Sony said it expects 3D televisions to make up between 30% and 50% of all sets it sells in FY2012.

PRODUCT PROFILE

BRAVIA® is the brand Sony uses to market its high-definition LCD televisions, projection TVs and front projectors, along with its home cinema range under the sub-brand BRAVIA® Theatre. The BRAVIA® name is an acronym of "Best Resolution Audio Visual Integrated Architecture". All Sony high-definition flat-panel LCD televisions in North America have carried the BRAVIA® logo since 2005. The BRAVIA® brand uses the slogan "Color like no other."

3D TV is a generic term for a display technology that lets home viewers experience TV programs, movies, games, and other video content in a stereoscopic effect. It adds the illusion of a third dimension, depth, to current TV and HDTV display technology, which is typically limited to only height and width ("2D"). To get true 3D content, you will also need 3D glasses, access to 3D broadcast programming and/or a 3D Blu-ray disc player, and 3D movies

A wide selection of exciting 3D content will be vital for accelerating the growth of 3D entertainment in the home, and Sony plans to offer a comprehensive range of 3D home entertainment content to appeal to the widest possible audience.

PRODUCT CONTENT PROFILE

Sony's 3D plans revolve around gaming, movies and sports. Sony is already working on gaming with the PlayStation 3 upgrade plans and its movies division, Sony Pictures, is already producing 3D movies. "Cloudy with a Chance of Meatballs" will be the first in the catalog of 3D movies created by Sony Pictures Entertainment to be issued on Blu-ray disc, and is scheduled for release in the summer of 2010. Other movies announced this year in 3D include "Monsters vs.Aliens," and "Disney's A Christmas Carol." Sony Pictures Entertainment plans to continue the release of both its latest movie titles and previous masterpieces on "3D Blu-ray discs" going forward.

The excitement of sports is also suited to the dynamic realism of 3D, and this is another area in which Sony is concentrating its 3D efforts. Through an alliance with ESPN, the largest sports broadcaster in the U.S., Sony will cooperate in the 3D filming of sports events including "X Games" and "College Football" to deliver the full impact and excitement of 3D sports broadcasts. Sony is also driving the growth of 3D in sports such as golf and football through its previously announced 3D agreements with FIFA and the PGA Tour.

Discovery Communications, Sony Corporation and IMAX Corporation announced a joint venture to be established to develop first dedicated 3D television network in the U.S. The partnership brings together three leaders with an extraordinary collection of award winning 3D content, technology expertise, television distribution and operational strength to deliver a high-quality three-dimensional viewing experience to home television audiences.

3D programming from broadcasters will also be essential to ensuring the enjoyment of a wide variety of content on 3D compatible BRAVIA® LCD TVs. As such, Sony is working with leading broadcasters including ESPN, DirecTV, Discovery Channel in the U.S, and BSkyB in the U.K. to ensure that Sony BRAVIA® LCD TVs will be capable of receiving the 3D programming these broadcasters are currently developing.

The company's existing relationship with broadcasters through its movie division and TV production house could serve well in promoting 3D, but even if it doesn't there will be a secondary route to 3D-capable sets. Sony is expanding its PlayStation® Network service to cover its televisions and will launch a new content delivery service next year that will pump movies, TV shows and other own servers.

SWOT ANALYSIS

STRENGTHS:

‣ Only company fully emerged in the 3D value chain: content,distribution and display

‣ High interest level for 3D after success of 3D motion pictures such asAvatar and Alice in Wonderland

‣ Joint ventures with other companies for 3D content

‣ Strong present Eco System via PS3 and Sony Online Network

‣ Special 3D Research facility setup in California

‣ Partnership with ReelD, manufacturers of 3D glasses

‣ Sony Retail Stores

WEAKNESS:

‣ Not enough market data available for 3D preferences

‣ New hardware is required for 3D

‣ Switching from present day 2D to 3D will be expensive

‣ Limited 3D content

‣ Viewing experience may not be comfortable

‣ Last major company to launch 3D TV

OPPORTUNITIES:

‣ 3D Gaming

‣ Academic and Professional applications

‣ Medical Applications

‣ 3D TV sport content

‣ 3D Advertising content

‣ 3D PCs - Vaio

‣ Other 3D consumer electronics- cameras, camcorder

THREATS:

‣ PC graphic chip makers can offer the same 3D technology at a lowerprice‣ Long term exposure to 3D may involve health risks

‣ Too few cost/benefit proofs may impact adoption

‣ Competitors such as Panasonic, LG and Samsung have alreadyintroduced their 3D TVs in the market

‣ Newer, better technology could emerge.

COMPETITOR ANALYSIS

Samsung has been very aggressive with its 3D campaign as it has positioned itself as the worldʼs first LED 3DTV. They have launched a major media campaign that depicts the hardware as if it were a work of art, providing an immersive 3D experience that brings people together and enriches their lives. A second follow up campaign focused on showing a family bringing home the “wonder” of 3D entertainment. They also signed up Avatar director James Cameron for a special launch event at Times Square where they displayedtheir new 3D lineup. Pop group Black Eyed Peas also did a special performance that was shot in 3D. The concert footage would be distributed to new Samsung 3D customers.

LGʼs 3DTV plans include use of Passive 3D technology, which requires significantly cheaper 3D glasses than Active 3D technology that is being utilized by everyone else. This may attract many budget consumers to LG 3D, even though they might compromise on quality. LGʼs media campaign is targeted towards the beginning of a new era in TV viewing as it highlights the end of traditional TV. The campaign focuses on the transition of moving from traditional TV to 3DTV.

Panasonic is using Plasma technology for its choice for delivering 3D. They claim that Plasma TVs delivers a better 3D experience. Panasonic has signed an agreement with Best Buy to display their 3D technology at Best Buy retail stores. They are also offering an exclusive bundle deal at Best Buy stores that features a 50 inch TV and a 3D capable Blu ray player. Panasonic is not offering Internet connected 3DTVs whereas all other companies have models that support the internet.

MARKETING PLAN OBJECTIVES

Global demand for 3D TVs is projected to reach 15.6 million units in 2013 from an estimated 1.2 million this year. That figure could reach 64 million in 2018, when total revenues are expected to hit $17 billion. The planʼs main objective is to ensure that 3D BRAVIA® models will make up at least 10% of more than 25 million LCD TVs that Sony will sell next year and account for an even larger percentage of revenue. Secondary objective is to restore Sonyʼs leadership in

the television manufacturing marketplace.

In order to achieve the outlined objectives a number of targets need to be hit. The consumer public must come to associate unparalleled quality in 3D entertainment as exclusive to the Sony BRAVIA® brand, thus regaining the sense of prestige that came with owning a Sony television. While the “Made In Japan” tag doesnʼt carry the same cache as it did a few decadeʼs back, the ground can be regained by effectively communicating to the consumer Sonyʼs market position as the only start-to-finish 3D Company. The consumerneeds to aspire to have a Sony 3D television, Sony Blu-ray disc player, PlayStation 3, and a Sony surround sound system while they consume the 3D content produced and distributed by Sony and made with Sony equipment. That is to say, the consumer must want a total Sony 3D experience. While that is very hard to achieve, the consumer can start getting close to the feeling by purchasing a Sony 3D television and proudly saying, “Itʼs a Sony!”

The role of retailers is not to be underestimated. Their cooperation with the companyʼs efforts to position the brand is essential, since a significant portion of consumersʼ first direct encounters with the product happen within their stores. Best Buy, among others, should feel naturally inclined to showcase the Sony home theater experience in the best light possible to be in line with consumers expectations created by the planʼs campaign.The planʼs metrics will involve a before evaluation of the consumer mental space as it relates generally to the brand of Sony 3D and especially to the Sony BRAVIA® 3D HDTV product. After the implementation, regular updates will

be made. Retail order response and qualitative feedback will be another important measure of the planʼs success.

TARGET CUSTOMERS

Our qualitative research supports an initial target, for an ideal customer, as a 25-35 year old innovator male who regularly uses his television to watch films and network programming, possibly gaming. He is technologically savvy, has disposable income and considers himself an innovator when it comes toacquiring the latest devices. He most likely owns a video gaming system and has an above-average home entertainment system. He will likely be unmarried or recently married and may have young children.

A secondary market will be gender non-specific, targeting the age ranges of 35-45. These will be young married couples with children varying in ages but who have a home gaming or home entertainmentsystem in place. These individuals will also be innovators, but with a target adjusted toward family entertainment and educational concerns.

SEGMENT CUSTOMERS

We target two segments: new television purchasers and current Sony product users.

1. Purchasers of 3D Television

In this segment, we assume that the consumer already owns a high definition television. The challenge is to convince the consumer of the benefits to upgrade to a 3D television to maximize the viewing experience. Emphasis will be placed on enhanced viewing capabilities as a “total viewing experience,” focusing on the increased offerings of 3D channels and viewing options that are forthcoming from networks and cable service providers. Sonyʼs product would be position as a “total 3D

solution” for experiencing enhanced programming, such as sporting events, movies and major entertainment events (such as concerts).

2. Existing Users of Sony Products

This segment of individuals is already familiar with Sony branded items and, in most instances, will already be owners of gaming equipment (Playstation) or Sony home theater components, such as Sony Blu-ray disc players. In conjunction with presenting the benefits of 3D television generally, this segment would be targeted specifically to recognize the ease of integration with the Sony product into their existing Sony devices.

MARKET POSITIONING

PRODUCT

BRAVIA® 3D HDTVs are to be positioned as luxury electronics. Their high quality is communicated by an elegant design and flawless attention to detail. The current line up has 3 series (the LX900, HX900, and HX800) that come in 6 sizes (40”, 42”, 46”, 50”, 52”, and 60”), for a total of 8 different SKUs. Our belief is that there should be one model in small, medium and large sizes, sandwiching the most popular size of 46”.

PRICE

Current pricing strategy has Sony 3D HDTVs wedged somewhere between that of Samsung and Panasonic. Panasonic was successful at selling its 50” bundle for $2900, Sonyʼs pricing is considerably higher and rightfully so. When the 3 model approach is implemented, it will become easier to communicate the value through the price, price in itself becoming an uncompromising sign of theproductʼs quality.

PLACE

Consumers may purchase the product at their nearest high-end electronics store or consumer chain, through an online retailer, or directly from Sony Style, Sonyʼs online store. It is important to draw retailers to the prestige of carrying Sony BRAVIA® televisions and in no way subsidize the in-store product demonstration. One of the planʼs goals is to make the Sony 3D Experience valued by the consumer, hence stores that include a new Sony 3D Experience home theater room can expect to see increased foot traffic.

While not so noticeable in US, globally, Sony is in the process of rolling out flagship stores to sell its electronics. This trend is particularly noticeable in China. Considering the difficulty of ensuring retailer cooperation in promotional efforts, the development is not a surprise. We expect Sony to eventually further build on its US store portfolio and have better control of in-store pricing and display of its products

PROMOTION and ADVERTISING

The promotional plan outlined in the following pages is at the heart of the proposed marketing mix. We have concluded that the real consumer value proposition is in the wonder and an awe that is produced by experiencing 3D content on 3D Sony equipment. The consumer is less and less concerned with the technological specifications, because they expect them to be the best quality possible.

Our plan brings the Sony 3D Experience to the consumer directly, regardless of their demographics. We will use a shotgun approach to build enthusiasm about the experience in the mass public, thus leveraging it as influencer on our targets. Once the general public perceives a Sony 3D television as a genuine luxury (“Itʼs a Sony!”), our targets will be motivated to adopt the product due to its buzz and public appeal.

With these considerations, we propose a nationwide, promotion centered strategy structured around a mobile campaign to showcase the 3D Sony Experience in a home theater environment. It is a logistical challenge, and at the plan's core lies the ability to successfully coordinate and manage several promotional companies. The working name for the initiative is “Sony 3DWORLD

IMPLEMENTATION

The Sony 3DWORLD environment is created by partitioning a recycled metal shipping container into two soundproofed rooms. The smaller partition contains a a fully furnished Sony 3D gaming setup for two with a 46" HX900 BRAVIA® HDTV, a PlayStation 3, and a DAV-HDX BRAVIA® Theater System. The larger partition is a complete Sony 3D home theater for six with a 60" LX900 BRAVIA® HDTV, a BDP-S570 3D Blu-ray Disc Player, and an HT-SF470 3D Blu-ray Disc Surround Sound. The containers are then decorated with Sony branding, loaded up onto semi-trailer trucks and then sent out across the country.

A nationwide advertising campaign, coupled with local promotions, will alert the public to when and where they will be able to go to the Sony 3DWORLD. Present members of Sony Club, and individuals already in the CRM database will be given advanced notice and VIP tickets to special screenings and events. The general public might have to wait online, as seats are limited, though a VIP pass can be obtained by registering with Sony online or through a mobile device

The trucks will stop anyplace where there are large gatherings of people: sporting events, city centers, fairs, concerts, campuses, and malls. The events will be promoted with great fanfare, and will include sharply dressed staff, as well as have clean and orderly execution. The audiences must truly feel like they have entered a new world once they go through the 3DWORLD experience. It is also useful to utilize Sonyʼs Universal Pictures talent to promote the tour stops and cross brand 3D films with the home theater experience. In particular, we recommend coordination with Sonyʼs franchise Men In Black. MIB3 is currently in pre-production and should be 3D.

A PR campaign will accompany the truck tour where local and national television and radio personalities will be invited to the 3DWORLD stops. These events will be designed for maximum wow effect. We propose the incorporation of Sony 3D production equipment into these events. For example, letting personalities see themselves in 3D.

Lastly, the 3DWORLD will need special content produced for the showcase. Whether on the road, or for in store demonstration, thiscontent has to be up to high Sony standards.