marketing case of sony

SONY Corporation

Case studyPresentation

Contact UsKeiko, Shankar, Toto, Roger, AndyTeam Two

PresentationCONTENT

Team Two Contact UsKeiko, Shankar, Toto, Roger, Andy

Company background

Market Analysis

SONY Portfolio analysis

Marketing issues

SWOT Analysis

What to do?

BackgroundSONY Corporation


Company name: SONY Corporation

Founded: May 7, 1946

Head quarter: Tokyo, Japan

Major Products:

• Audio, Video, Information and Communication

• Television

• Components, others.

Market dominance in Television industry in 1968s

Facing a strong decline in TV market

PresentationCONTENT


Company background

Market Analysis


Marketing issues

SWOT Analysis

What to do?

Market analysisTelevision Market Segments

LCD PDP RPTV

SONY O O O

SHARP O

PHILIPS O O

LG O O O

MATSUSHITA O

SAMSUNG O O O

Market fragmentation Strong players create high competition

-500

500

1500

2500

3500

4500

5500

6500

7500

8500

Market analysisLCD Price

competition36 – 46 inches

30 – 36 inches

21 – 29 inches

10 – 20 inches

SonySharpPhilipsSamsungLG

High competition in supply SONY positioned by premium prices in large screen TVs

Price: Ave. price of all modelsScale: No. of models

0

5000

10000

15000

20000

Market analysisPDP Price

competition

57 – 66 inches

47 – 56 inches

37 – 46 inches

SonyMatsushitaPhilipsSamsungLG

High competition of models SONY positioned by premium price


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Market analysisRPTV Price

competition

57 – 66 inches47 – 56 inches

37 – 46 inches

SonySamsungLG

> 66 inches

Less competition in the segment SONY positioned by relatively high price


Market analysisProduct Sales results

984290

950166917207

2000 2001 2002 2003 2004 -

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

135,000

140,000

145,000

150,000

155,000

160,000

165,000

170,000

LCDPDPCRT

Sony Sales

LCD & PDP increase rapidly while CRT drops significantly SONY losing sales in television industry

Market AnalysisSONY Developing process

1960s 1968 1990s 2000 2003 2004•B&W TVs•CRT TVs

•Trinitron •EDTV•HDTV

•FPD TVs •Wega engine•Qualia•LCD TVs

Blooming of Digital tech

Level of Competition

Industry leader

Losing in competition

Market is fragmented and high competitive SONY losing position in the industry

PresentationCONTENT


Company background

Market Analysis


Marketing issues

SWOT Analysis

What to do?

Portfolio AnalysisBCG Matrix

Relative market share

Mark

et

gro

wth

rate

High Low

Hig

hLow

LCD

PDP

RPTV

CRT

PresentationCONTENT


Company background

Market Analysis


Marketing issues

SWOT Analysis

What to do?

Marketing issuesInternal problems


Premium price strategy

Market forecast problems

PresentationCONTENT


Company background

Market Analysis


Marketing issues

SWOT Analysis

What to do?

SWOT AnalysisExternal & Internal


PresentationCONTENT


Company background

Market Analysis


Marketing issues

SWOT Analysis

What to do?

What to do?ANSOFF Matrix

Focus on developing product in current markets Strengthen big screen in RPTV segment

Market Penetration

Product Development

Market Development

Diversification

Current Product New Product

Current market

Newmarket

What to do?Marketing Mix

Improving Marketing Mix

Marketing Mix

ProductImproving Product

quality and innovativeness

PlaceBroaden distribution

network to cover market

PromotionNon-cash promotion

to high-end customers

PriceMore competitive

prices in lower segments

What to do?Other activities


Sony’s difficult position caused by the wrong marketing strategies and high competition of the industry. Erroneous forecast of the time:

FPD TVs would take-off only by 2005.

High competition of the industry :Technology innovation in high end market Low cost manufacture in low end market

Always try to lower manufacturing costs, but the industry is in the period of technology-orientation. Sony went against the industry trend by 2001.

What to do?Other activities


How to eliminate trouble ? -- Sony’s core value: Innovation

The first transistor radio:Establish a global presence

Micro TV: Gain respect and earna reputation for quality

Sony trinitron TV:Set the quality standard for television manufacturersworldwide.

Sony’s successes always kept in line with its product innovation.

What to do?Market forecast

LCD segment expanding rapidly Other segments remain stable

Focus more on LCD segment

SONY Corporation

THANK YOU

Contact UsKeiko, Shankar, Toto, Roger, AndyTeam Two

marketing case of sony

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