Review of Consumers Existing and Potential and Situation Analysis Environmental Audit of Sony - Case Study Example

Sony management report Table of Contents 1.Review of Advertising Brand and competitors 2 2.Review of Consumers Existing and Potential 3 3.Advertising Strategy Complete proforma 3 4.Creative Solutions Campaign executions 4 5.Media Solutions Strategy and Plans 4 6.Other Ideas As recommended 5 7.Timetables Production and Media 5 References 6 Bibliography 7 Situation Analysis Environmental Audit A comprehensive understanding of the internal and external factors that govern the operations of a firm is required so that its mission and objectives can be aligned accordingly to maximize profitability and to achieve the desired results. “Situation analysis is an attempt to reduce the many environmental influences to a pattern which is capable of being understood and acted upon by the managers”(Khosrowpour, 1996, p.134). Situation analysis includes five important aspects of a firm. The ‘5c’s: are ‘Company, Customer, Competitors, Collaborator and Climate’. All of them are discussed in the context of Sony. The brand name of Sony and its ability to produce innovative products is its greatest strength. Sony’s online gaming portal ‘station .com’ has a wide array of games meant specifically for the ‘tech savvy’ young generation. Though its popularity is increasing, yet it is facing stiff competition from other big players like, Sega, Microsoft Game Studio and Nintendo Wii (SOE, n.d.). This competition is likely to increase with new companies entering the global arena. 1. Review of Advertising Brand and competitors Sony Online Entertainment (SOE) is one of the most promising leaders in the global online gaming sector. However, its competitors too are far from being complacent. With brand names like XNA Games Studio, XNA Creators Club Online, MSN Games, Games on Windows Live Messenger, Microsoft Casual Games and Xbox LIVE, its rivals too are struggling for the lion’s share in the global market (Microsoft Game Studio, n.d.). Apart from these major competitors, Sega, Electronic Arts (EA Sports), Disney Interactive Studios Inc., Eidos Interactive, Epic Games Inc., etc are prominent online gaming competitors of SOE. A report of NDP group ranks Microsoft’s Xbox-360 as the most famous online gaming with 50% online players and Nintendo Wii as the second most popular online player with 29% market share followed by PlayStation 3 of Sony (Kuchera, 2009). 2. Review of Consumers Existing and Potential The online gaming industry does not have any geographical boundaries as this video game is internet based. Therefore, all the key players of this industry enjoy the presence of the global consumers. Sony Online Entertainment is one of the top three online gaming service providers having a large customer base. Customers from Asia Pacific and Europe constitute the major chunk for SOE. However, there are also large number of potential customers for SOE. “The average age of the person who makes the actual purchase of games most often is 39” (ESA, 2009). In US, there has been a 27% increase in the number of “internet users playing online gaming” in 2009(Comscore, 2009.). Cheaper technology equipment and the ‘tech savvy’ young generation are the potential customers of SOE. 3. Advertising Strategy Complete proforma The advertising strategy of Sony Online Entertainment should focus on its potential and target customers. These include the children, teenagers, and young adults, i.e. primarily the gadget freak young generation people. The advertising strategy should be aimed at making the potential customers aware of its existing features. The choice of media should also be attuned with the preference of the target customers. Integrated marketing communication is likely to be the best tool for its advertising strategy as it not only includes all the activities of promotion but also develops a smooth communication system among all the departments of a firm and the consumers. As this gaming industry is an online service industry, SOE should give special emphasis on publicity and public relations. 4. Creative Solutions Campaign executions After designing its advertising objective and advertising strategy, SOE must start executing the campaign thus planned. The process of campaign execution should be divided into three steps. Firstly, it needs to frame the message that SOE wants to convey to the targeted customers. The message must be impressive and influential for the online game players and the pre-decided message must meet the expectation of potential customers. This should be followed by the development of a basic theme that encompasses the wide range of new innovative online games. The theme should be in accordance with the image of SOE and its online games. The theme must include attractive logos or characters which will act as a metaphor for the values that SOE incorporates. Finally, it should decide the media plan for communicating its message and theme to the targeted customers. 5. Media Solutions Strategy and Plans The media planning and formulating process for SOE should include four steps. First of all, it should set media objectives as per the pre-designed advertising objectives. The media objective must be chosen to introduce the uniqueness of online games offered by SOE. Next, it should develop a set of strategies for implementing the media objectives. The media strategy must be used in order to introduce the brand of SOE. Then, to achieve the media strategy, media tactics should be designed. Lastly, SOE should keep evaluating the effectiveness of its media planning and strategy. It should rectify the flaws in the process of drafting and executing the media strategies. 6. Other Ideas As recommended There are certain areas that must be considered before drafting the media strategies. First, the media mix should be framed in such a way that it brings optimum output for the company. Next, mediums should be used according to particular time frame so that each of medium can influence the targeted customers. Lastly, the expenditure to be incurred on each medium should be distributed as per their importance. Since all the mediums cannot reach out to the target customers with the same effectiveness, it becomes imperative to assign specific mediums to a specific section of customers. 7. Timetables Production and Media Much like the projected financial budgets, the advertisement strategy must be planned before introducing a product or service. SOE must understand the demography of the targeted customers. SOE must identify the specific time periods when the demand for online gaming is on the surge. Most often it is during holidays or festive seasons. Advertising strategies should ideally be framed 10 months before launching the new online game after which the products should be formally announced. The last 5 months should be dedicated to intense campaigning where glimpses of the online games should be made available. The promotional activities should start days before launching the product. During the promotional activities, SOE should take special initiatives to make the target customers aware of the new product by showing them visual presentations. References Comscore. July 10, 2009. Online Gaming Continues Strong Growth in U.S. as Consumers Increasingly Opt for Free Entertainment Alternatives. [Online]. Available at: http://www.comscore.com/Press_Events/Press_Releases/2009/7/Online_Gaming_Continues_Strong_Growth_in_U.S._as_Consumers_Increasingly_Opt_for_Free_Entertainment_Alternatives/%28language%29/eng-US. [Accessed on July 26, 2010]. ESA, 2009. Annual Report Fiscal Year 2009. [Pdf]. Available at: http://www.theesa.com/about/ESA_2009_AR.pdf. [Accessed on July 26, 2010]. Khosrowpour, M. 1996. Information technology management and organizational innovations: proceedings of the 1996 Information Resources Association International Conference, Washington, Part 3. Idea Group Inc (IGI). Kuchera, B. 2009. Online gaming drops on PC, Wii beats out PS3. [Online]. Available at: http://arstechnica.com/gaming/news/2009/03/npd-group-online-gaming-rising-wii-beats-out-ps3.ars. [Accessed on July 26, 2010]. Microsoft Game Studio. No date. Microsoft Game Studios Partners. [Online]. Available at: http://www.microsoft.com/games/. [Accessed on July 26, 2010]. SOE. No date. About SOE. [Online]. Available at: http://corporate.station.sony.com/soe.vm. [Accessed on July 26, 2010]. Bibliography Coe, J. and Coe. J. M. 2003. The fundamentals of business to business sales and marketing. McGraw-Hill Professional. Hansen, F. and Christensen, S. R. 2007. Emotions, advertising and consumer choice. Copenhagen Business School Press DK. Philip J. Kitchen, P.J. and Pelsmacker, P.D. 2004. Integrated marketing communications: a primer. Routledge. Surmanek, J. 1996. Media planning: a practical guide. 3rd Edition. McGraw-Hill Professional. . Read More