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Sony AIBO Case Study
Submitted by-
B Sreenivas
Santosh Bhag
B Padmalatha
Damini Singh
Deepak Ratho
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ValueProposition
Positioning CompetitionMarketingStrategy
ReSt
Benefits
Features
Experience
No need to feed the
AIBO
Personality of real pet
Customized behavior
through training
Personality of real pet
Sensors: Touch,
Vision, hearing and
balance
Entertainment
Lovability Factor
Friend for the life
Healing and Relaxation
Fun of living creature
without hassle
Development stages
like human, eg: Child,
Teen, Adult
Lovable Factor and Companion
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ValueProposition
Positioning CompetitionMarketingStrategy
Re St
Entertainment Customization Feeding Messing He
Relativ
eLevel
Value Curve
AIBO Dog
High
Low
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ValueProposition
Positioning CompetitionMarketingStrategy
Re PStr
Stealth Positioning: Sonys positioning of the AIBO robot as a lovable pet shifted consumers attention aw
as a household aide and turned even the elderly into early technology adopters
Breakaway Positioning:2
nd
generation AIBO has the features of Wireless, Software adoptability, etc. whicategory segment.
Stealth Positioning
Classical Positioning
(Second Gen AIBO)
Product Life Cycle
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ValueProposition
Positioning CompetitionMarketingStrategy
Re PStr
Deep Decisions
Middle of
spectrumDecisions
ShallowDecisions
AIBO
Emo
tionalInvestmentAnd
CoreValuesEngageme
nt
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ValueProposition
Positioning CompetitionMarketingStrategy
Re St
Sony positioned the product as a lovable but otherwise useless pet.
Robotic Pet Category
Segment,Entertainment Robot
American
Citizen
Love
,Relaxation
healing
Brand name
SONY
Customizatio
n , Emotions
Target
Audience
Their
Need
Frame of ReferencePoint of
Difference
Reason to
Believe
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1.
Humanoid useful robots created by well-knownJapanese electronic companies, perceivedfunctional by the American consumers
2. The cheap copycats/knockoffs of the concept
at a much lower price.
ValueProposition
Positioning CompetitionMarketingStrategy
R
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Leverage the economic curve so as tobring the price
affordable to thecustomer
Know theexpectations ofUS consumers
from AIBO
Position forpeople seeking anentertainmentcompanion as wellas interested inIn formationTechnology androbotics
Go for nichemarketing instead of mass advertising in theU.S. market
NicheMarketing
HybridProduct
AffordablePrice
CustomerFeedback
ValueProposition
Positioning CompetitionMarketingStrategy
ReS
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Using Ansoff Matrix for
the American market
ValueProposition
Positioning CompetitionMarketingStrategy
ReSt
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American consumer gives more value for thetangible benefits and features in the robotic toy
market
Product should be based on product modernfeatures which can make the life of the American
consumers easier
So, the productivity part of AIBO should be highlighted.For example the AIBO Messenger software, AIBO
navigation software, AIBO Master studio, AIBO life,
wireless LAN, GPS in AIBO and more updated softwares
Market Development is needed in the US Market
ValueProposition
Positioning CompetitionMarketingStrategy
R
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Steps for successful adoptionof Innovation in the Americanmarket
Trialability
Relative Advantage
Compatibility
AIBO should
match with the
lifestyle of the
Americanpeople
Amw
is lo
ge
Customer need to
understand
the unique feature
and function AIBO
offering compared to the
competitor
ValueProposition
Positioning CompetitionMarketingStrategy
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Project theproduct
as superior
product that thecompetitor or
low casttoy cannot offer
Let the priceat $1500 to
reach the breakeven point as
soon as possible
Give a valueproposition to
the U.S customer
Applications can beprovided at a premium
Research &
Development
Some
morepoints
ValueProposition
Positioning CompetitionMarketingStrategy
RS
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ValueProposition
Positioning CompetitionMarketingStrategy
RS
Price of AIBO: $50 (Loss Leader)
Cost Leadership
StrategyDi
Cost FocusStrategy
Di
PortersStrategy
B
roadMarket
NarrowMarket
Lower Cost Diffe
Cost of $50 will result in strategy of Cost Leadership This will lead to Broad Market competitive advantage
In U.S, it can reach to many people.
Edge over the Competitors like Poo-Chi @ $40, Big
Scratch and Lil Scratch @ $59.99, Me and my Shadow @
$59.99, i-Cybie @ $150
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