Macro-environmental Analysis of Sony TV - Case Study Example

Macro-environmental analysis Demographic Four demographic developments will increase the demand for consumer products like Sony OLED: an increase in local population; an increase in registered marriages; an increase in household spending on leisure and recreation goods; and, the country's growing young population due to a high immigration of young families. Australia's population has more than doubled over the last 50 years from a resident population of 9 million in 1955 to over 20 million in 2005. (Australian Bureau of Statistics). This increase in population will increase the demand for television sets such as Sony as families look for daily entertainment. Australians are generally overweight, less likely to marry, and consuming more goods and services. (Australian Social Trends 2007). As their household income increased, household spending also rose. Since 1985-86, real (i.e. adjusted for inflation) household final consumption expenditure per person has increased on average by 2% each year (from $17,500 in 1985-86 to $26,100 in 2005-06). The largest increases have been on communication services and goods for recreation and culture. The Sony television set falls under the goods for recreation and culture. Australia has experienced an increase in marriages registered. In 2006, there were 114,222 registered marriages, representing an increase of 4,899 (4.5%) from 2005. (Australian Bureau of Statistics). This signals the most significant increase in the number of registrations from 1999. This increase in registration numbers is consistent across all states and territories. New South Wales contributed the highest increase in registrations at a national level, reporting a rise of 2,144 (6.0%) marriages from 2005 to 2006. Consequently, Australia's total fertility rate has increased, reaching 1.81 babies per woman in 2005. This constitutes the highest level of increase from 1995. The main source of this increased spending are women aged 30 years and over. The immigration rate has also increased. There are 86,000 immigrants from Asia who move to Australia each year for the last five years. The new immigrants are mostly young families from other Asian countries who will need forms of recreation and entertainment within the family home. Economic Economic growth and development has been steady at 7% per annum. Australia forms part of the developed country block. International trade has quadrupled as businesses produced various goods and services for export to the United States, Japan and South America. Agricultural commodities and machinery constitute a significant portion of outbound trade. Industrial goods also form a sizeable component of Australian export. Imports are made up of raw materials and tools for industrial production. Natural The Australian government, business sector and civil society have banded together to push for the adoption of adaptation and mitigation efforts given the global climate change. Many local companies have implemented efforts to save energy and to reduce carbon dioxide emissions. The legislature is studying proposals on how to speed up the reduction of carbon dioxide emissions. The Australian government had ratified the Kyoto Protocol. This enabled Australia to be active in international negotiations on climate change for the first time. The new government has set a long-term target of a 60% reduction in emissions by 2050, with a national emissions trading scheme to be implemented by 2010 to enable it to reach the target. The signatories to the Kyoto Protocol have committed to achieving certain emissions targets on average over this 5 year period. Technological Sony is selling a thin TV (just over 3 millimeters thick). The new televisions have an 11-inch screen and cost 200,000, or almost $1,800. The Sony TV which is known as the XEL-1, features saturated colors and superlative slimness due to the emerging technology of organic light-emitting diodes, or OLEDs. OLED displays are produced not by the fluorescent bulbs of LCDs, but by organic chemicals deposited on film that shine brilliantly when a current passes through them. (International Herald Tribune, December 23, 2007). Political The Australian government has been very stable for many years. Local elections are peaceful. There is peace and order in all communities. The crime rate has been steady at 2% and convictions with respect to crimes have registered a 95% success. Local enforcement officials have maintained a climate of business stability and respect for companies established as a result of foreign direct investment. The rule of law prevails in official and business transactions. Social participation is part and parcel of the Australian psyche. Individuals help make their communities safer and stronger. Ideas about social attachment and social capital have fostered renewed interest in which people are supported by links with family and friends. The citizens take part in informal socializing and they undertake community-oriented activities such as volunteering. Cultural There is a lot of Australian culture content in all aspects of broadcasting. The media business are aware of their responsibility to engage their respective audiences to create cohesive communities. Audiences come together around content, and communities come together around ideas. Australian content is mandatory in the field of media and entertainment. There is also a censorship board which governs all broadcasts from TV stations and programs. The Australian Television system features consistently content from documentaries and drama and new platforms like reality-based shows. Time and place shifting is favoring the delivery of a highly personalized TV experience. A significant part of the network content will be delivered online. The TV stations form part of the national conversation and acts as the social glue. Public broadcasting provided a place for Australian voices and stories across platforms. The main effort is to maintain the availability of Australian content on digital platforms. Overview of the product The Sony 40 inch OLED (Organic Light Emitting Diode) Digital Television to the Australian market television has been launched with a recommended price of approximately $6,799.00 (AUD) Australian dollars. It is a product which utilizes high technology applications. It also boasts of thinness and superior visual quality. Market segmentation and target market overview The Sony TV brand is geared to the upper class Australian consumer group who values superior visual quality and exceptional functionality of their home television. This group prefers a higher value for their money and they are willing to shoulder extra costs for a quality experience. The middle class consumer purchases the Korean brands of television. This group focuses on cheaper goods at a reasonable price. The lower class citizens prefer to purchase Chinese made television sets. This group focuses on basic functionality and basic features of a television set. Media consumption has increased dramatically. The middle class and upper class citizens have spearheaded this growth in media consumption. Australians work for around 112 hours per week, and they spend on average 84.4 hours per week across a range of media and leisure activities. This constitutes an increase of 71.4 hours compared to the previous month. Men spend 2.5 more hours per week online and 1.5 more hours watching television than women. Women spend an additional hour more per week reading and 1.6 hours more listening to the radio online. The phenomenon of cross-media consumption has risen considerably. More than half (58%) of Australians internet users said they have watched TV while being online. Another 48% of the respondents have used the internet while listening to the radio. From 2005 to 2007, the Australians have been increasingly consuming more than one medium at a time, which resulted in their having a fragmented span of attention. Australian internet participation (80%) has also reached saturation levels. Basic internet statistics show that Australian internet users have home access (92%) and only one-third (34%) have accessed the internet from work. There are several highly popular online activities. Email is the most popular online activity. It is used by 98% of those online. Banking is the second most popular activity. The third popular online activity is accessing news, sport and weather updates as reported by 72% of the respondents. Hotel accommodation bookings and instant messaging are services which are projected to register a high 20% growth rate in 2008. (Nielsen Media Consumption Report, 2007). Mobile phone ownership is attaining saturation levels. Approximately, 92% of Australian internet users own a mobile phone. In terms of the actual use of mobile phone functions, less than 50% or (45%) of those with a mobile internet-capable phone have used the device to go online. Camera functionality is used by about 84% of the respondents. Finally, mapping and directions information access is the main area of mobile content access growth at 144% growth, tapping 39% of users by the end of 2008. Positioning strategy Sony television can be geared towards the older market particularly those with the over-40 audience. Recent consumption media statistics that showed that TV viewing was up with the over-40 audience (Nielsen Media Consumption Report, 2007). In addition, the marketing group of Sony TV can target the youth who are doing a lot of activities concurrently such as listening to music and going online. The youth's second most favorite activity was watching TV and hanging out with friends. The marketing group can target corporate accounts for Sony television such as airports, airplanes, company headquarters, hotels and motels. The marketing staff has to think and cooperate differently. They also have to know how to allocate marketing resources strategically. Application of a Cultural Factor that may affect consumer behavior In general, consumers look for Australian culture content in various aspects of broadcasting. The Australian media businesses are aware of their responsibility to engage their respective audiences to create cohesive communities. Audiences come together around content, and communities come together around ideas. Australian content is mandatory in the field of media and entertainment. The importance of new and emerging reality-based shows such as the Amazing Race and The American Idol can increase the demand for Sony OLED television sets as young viewers try to log on continually to view the weekly television series. The young students can demand they have their television inside their rooms so they can watch their television shows. Consumer behavior The first step is the consumer gets to read a print ad of Sony OLED 40" inch television. The next step is that the consumer goes to his friends and asks them about the latest electronic stuff. The third step is when the consumer checks the product among his friends or in the local store. The fourth step is when the consumer checks on other brands and prices and compares it with his purchases. Then he compares for quality and service and maintenance facilities. The fifth step is when the consumer decides and buys the product. Product strategies This type of consumer product falls under the home entertainment segment of the visual materials sector. In marketing this product, Sony can offer a raffle prize system to generate sales of the product. Sony can offer up to three grand prizes such as a dream car, a house and lot and a Sony TV for those who are the lucky winners of this raffle. Another product strategy is for the consumers to make a jingle out of the product and the winner from the consumers will receive cash prizes. Radio ads requiring the appropriate audience to state the features of the Sony OLED Television with a corresponding prize can also be implemented. The Sony television can also hold plant visits to enable high school students to visit the plant and help the students understand the production of high quality television sets. Young students are open to stunning television sets. Conclusions The Sony TV faces a strong demand due to many factors. Four demographic developments will increase the demand for consumer products like Sony OLED: an increase in local population; an increase in registered marriages; an increase in household spending on leisure and recreation goods; and, the country's high immigration of young families. Sony TV falls under the home entertainment and electronic components segment which is a huge industry. Recommendations This study has the following recommendations. In terms of the target market, Sony OLED Television can promote aggressively in schools, airports, hotels, subways. This high visibility will spark consumer interest in the product. In terms of competitors, Sony OLED television only has to apply more marketing promotions in order to stay ahead of the other Japanese television brands. It has to establish a strong marketing presence in the major shopping malls. In terms of positioning, Sony OLED television will target young families with young children and young professionals and students who belong to the same age groups who spend the most time watching television shows and drama for entertainment purposes. WORKS CITED Australian Social Trends, 2007. Australian Bureau of Statistics. Eisenberg, Anne. "Slim Sony TV uses new technology." International Herald Tribune. December 23, 2007. Nielsen Media Consumption Report 2007. Nielsen Media Group of Australia. Online Sources SONY Website. Available at URL: WEB SITE http://www.sonystyle.com/webapp/wcs/stores/servlet/ProductDisplaycatalogId=10551&storeId=10151&productId=8198552921665327724&langId=-1 Australian Bureau of Statistics. Available at URL: http://www.abs.gov.au/Websitedbs/c311215.nsf/20564c23f3183fdaca25672100813ef1/72d63376a903a452ca2572650016785c!OpenDocument#Australia's%20recent%20population%20and Read More