Developing a Marketing Plan - Assignment Example

SONY CORPORATION Marketing Plan Institute SONY CORPORATION Marketing Plan Company Overview Sony’s main industrial facilities are situated in Asia Japan. Founded in 1970, Sony is involved in the manufacture, design, development, and sale of many kinds of electronic equipment, and devices. Sony also employs third-party producers brands. Sony is a worldwide company that operates in over 204 nations. Sony is involved in the production, development, marketing, and manufacturing, and distribution of image-based software, together with motion picture, television products, and home entertainment units. According to Stringer, CEO of Sony, Sony`s goal is to grow into a leading worldwide supplier in the sector of network user electronics, and entertainment. Sony’s products are advertised through the world by sales companies and unaffiliated suppliers as well as direct trades via the Internet. Sony is also involved in advertising agency business and network services business in Japan among so many other activities. This paper seeks to establish Sony’s current industrial status in the market share and unearth the company’s secrets of success. Principally, the sole intention of this treatise is to bring into focus the Marketing Plan for Sony Corporation (Fujiwara, 2006). Competitive Analysis for Sony Corporation Porter’s Five Forces 1. Risk of New Entry by Competitors With many main products reputable and substantial market share, one can note that it is improbable for new competitors to overcome product identities that are conventional to maintain consumer trustworthiness. The copyrights that are possessed by Sony are a resilient obstacle since competitors find it costly to enter the same industry of production due to placement of patents and licenses and raised prices for the product. 2. Bargaining Power of Dealers Sony Corporation, for a long time, has been, and still is, dominant in the electronic business. With its capacity to deliver durable and high-end products, Sony has built long-lasting relationships with their dealers. Their high business uniqueness and a worldwide network of business entities has enabled them establish a bargaining power of the suppliers and dealers like no other company. Because of this, dealers have found it hard to bargain down prices due to their loyalty, and high quality products produced by Sony. The introduction of the new Sony LED TV and the quality that comes in this product, is an example as to why dealers have lowered their bargaining power thus increasing level of Industry profits. 3. Bargaining Power of end-users The bargaining power of retailers and suppliers will depend mostly on the bargain power of end-users. This chain is what makes this phenomena a threat and may force a company to lower its prices that might lead to reduced profits to the company. During the Production and distribution of the new Sony LED TV, the company has made sure that this chain does not occur by opening up its own stores all around the world such that end-users can purchase directly from the company. (Bearne, 2008). 4. Threat of Substitute Products Many Instances recorded validates the necessity to stay pioneering within the high-tech industry. The release of more LCD technology TV sets by other companies challenged Sony to the LED Technology and they came with the new Sony LED TV. 5. The Intensity of Rivalry among Competitors in the Industry The presence of tough rivals such as Samsung and Panasonic have brought about a scuffle for market shares in most electronic products. However, Sony has gained an upper-hand over its competitors since it has invested more on the LED technology by producing Sony LED Smart TV just to add a pinch of salt to the LED TV production and ultimately on its vast collection of electronic products. (Ramstad, 2005). On this particular production, Sony invested on high capital costs and worldwide overcapacity just to win over new customers. (Sony Annual Report, 2009). SWOT analysis of Sony Corporation Strengths Brand image is one of the greatest outstanding strengths of Sony television. Sony has managed to instill a perception of reliability and quality globally through its new invention of LED (Light Emitting Diode) television sets. Sony has a reputation and an attached symbolic meaning attached to its products and has made it difficult for consumers to shift to another product. This has been brought about by the constant delivery of quality Sony has offered to its customers over the years. Weakness Within the past years, Sony Corporation has been making many losses to poor management and poor communication within various departments in the organization. The sales of its products were seemingly starting to slow down. Opportunities The company has increased the staff in various departments i.e. in the marketing department, therefore, increasing advertising techniques to attract new customers. In addition, the company has increased staff in the engineering department thus leading to hard work. Most of the companies tend to copy from its competitors, but Sony is known for not copying from the competitors. Threats Most of Sony’s’ products have been counterfeited and have been branded fake and forged meaning that the company’s reputation is decreased. Sony has been taken aback because of this situation but most governments now are trying to help stop counterfeiters (Moon, 2007). PEST Analysis The government has the authority to change any regulations and policies; thus, these changes may affect Sony at any given period. PEST analysis gives an insight on political factors, economic factors, and social cultural and technological factors. Political factor Counterfeits have been a major problem in the electronic industry. Over the past few years, Sony has suffered losses due to the emergence of counterfeits. However, the government has launched severe by-laws and bodies that overlook manufacturers and retailers of counterfeit electronic equipment especially the LED TV sets. Economic factors Cost of plastics and materials used to make LED TV sets have gone up. This has brought major a concern, and the company has been forced to outsource and import cheaper plastic materials. In addition, the depreciation of the U.S Dollar has been a major blow to the company since the Asian countries currencies have declined hence affecting the outsourcing business. Social factors Inflation has brought about low income that has in turn interfered with the consumer purchasing power. Since LED TVs are made of plastic and inorganic materials, major concern environmental concerns have been brought to the table in terms of disposal of unused, broken, or unwanted equipment. Technological factors The change in Technology and the introduction of new interventions has boosted the company’s production of cutting-edge LED TV sets. The invention of LED smart TV that can access and browse the internet are exemplary technological changes that has shaped the LED Technology. Sony has taken advantage of its ability to exploit new interventions and has pushed its designers to come up with products that will influencing customer behavior. Consumers have found it almost impossible to resist these new sleek designs of LED TV. Introduction of Sony LED smart TV has also brought about reduced electric consumption giving a costumer another reason for buying from Sony (Miller, 2011). Marketing Tools and Techniques The ability to of Sony to remain at the top of their game for a long time has given the company the loyalty that it deserves. Because of the strength of its name, Sony has seen the need to enter the market of other related products. Research and brand name has enabled Sony to enter unexploited markets such as Music and Movies Production. This exemplary marketing tool and technique has seen Sony receive additional income to the company. The key is, as always, in how consumers perceive a brand. If they define it narrowly, one may not be able to move out of the current category without diluting the brand’s identity. If they see the brand representing a broad quality, such as innovation or comfort, or safety, one may have many opportunities ahead. Market research is necessary to know consumers perceptions and one may even test the viability of specific product extensions. Sony has gone from Trinitron to WEGA to Bravia and now Sony LED. This transition has been made possible through Market research extending the brand and outdoing its competitors through this powerful marketing tool. These market research techniques are designed to gain insights into the present situation and for short-term forecasting of the results of immediate decisions. It is noteworthy that, in order for Sony to anticipate the impact of discontinuous change on brand value, Sony should use a more future-focused technique. Such include information acceleration, which identifies tomorrow’s most likely strategic environments; discrete choice analysis, which models the economics of these environments; lead-user analysis, which learnt from consumers who already live in the future; and the Delphi technique, which taps diverse, expert opinion (Bensoussan, 2012). Conclusion Lessons learnt The tools and techniques of creating a favorable market image already discussed in this report are available to all managers. However, proper implementation can only take place where the culture of the organization, through its layers of executives and managers, permits innovation and risk taking. Those cultural characteristics, which ultimately translate to a corporate image, are not just contained within the corporate walls. The outside dimensions of the Corporate culture are displayed in the attitudes, market sensitivities and mindsets of individuals as they observe opportunities around them even in at “cocktail" setting. One must use the lessons of image research and go beyond the corporate walls into the streets where one can observe costumer’ needs and see opportunities overflow. If there is one major shift in marketing initiatives, it is away from driving sales to winning customers for life, with high customer service emphasis, high customer commitment, and high customer contact just like Sony. It is pertinent to note that marketing research is the heart of maintaining and developing brand value. Marketing Research is predicated on the notion that a customer represents not merely the next sales opportunity but rather a lifetime revenue stream. References Bensoussan, E., Analysis without Paralysis: 12 Tools to Make Better Strategic Decisions. FT Press, 2012. p288 Fujiwara, T. Sony (in Japanese). Nihon Keizaishinbum, July 24, 2006, p. 8. Miller, P., & Vandome, F., Pest Analysis. VDM Publishing, London Feb 27, 2011 Moon, I. Samsung is having a Sony Moment: The Korean Titan is Showing Signs of Compliancy—and Results Are Suffering. BusinessWeek, July 30, 2007, p.38. Ramstad, E. Standing Firm: Despite Pressure, Samsung Resists Changing Its Ways; Some Directors, Shareholders Want Better Disclosure As Electronics Giant Grows; Mr. Lee Runs a "Lonely Race." Wall Street Journal March 16, 2005, p. A.1. Sony 2006 Annual Report, p. 7. Read More