Sony's vision is innovating something new, to create more drams and to make them real. Sony's mission is to create things for every kind of imagination and involve them in people's daily life. In addition, an interconnected multimedia technology is always Sony's promise to the people and tries to win their Trust.
As we know Sony is one of the leading manufacturers of electronics, video, communication, video game consoles and information technology products for the customer and professional markets, which developed the company into one of the world richest companies. The Sony group is basically focused on the Electronic (such as AV/IT products and components), Game (such as PlayStation), Entertainment (such as motion pictures and music), and Financial services (such as insurance and banking) sectors. Not only does SONY represent a wide range of businesses, but SONY remains globally unique. Their aim is to fully leverage this uniqueness in aggressively carrying out their convergence strategy so that SONY can continue to emotionally touch and excite their customers.
As a semiconductor maker, Sony is among the Worldwide Top 20 semiconductor Sales Leaders. The company's slogan is ‘make Believe'.
Estimated number says that in 2008, 163,000 employees working for Sony corporations. Today's Sony positioned among the top five global brands worldwide with $8.87 trillion a year. “Sony's sales performance for the next year is expected to see revenues rise by 1 percent to $9 trillion” (Sony revenue and profits increasing in as Europe Becomes Biggest Games market, 2008).
Some other interesting points about Sony are that they recently opened a Sony Archives museum, which requires a reservation to visit and is located at their head quarter in Japan. Entrance is free and there is no museum guide. They recommend that you allow for about an hour to view the exhibit. In hence Sony's always believe to provide excellent service to the customer and full fill their needs and expectation form us. If we talking about Sony's competitors than we can see surrounded us, used competitors are there. Sony's main competitors is always giving tough competition to the company and trying to defeat us but Sony's excellent service is; Sony's ‘Power' that why Sony's one of the Top leader in the market. Sony's major competitors market should be evaluated to grant a better product and uphold the position in the market. And in a market economy, it is only through competition that the true price of anything can be determined. Among Sony's competitors comprise the Dell Company with Ultra-slim Adamo Notebook, HP with HP pavilion G60-120US and Apple with its Mac book Wheel, Microsoft with XBOX 360 etc competing in the laptop and Electronic brand in the Market.
Sony's is one of the Top highest leader in the market and on the basis of their service and quality of Brand product, they gives satisfaction to the customer and trying to full fill their expectation of needs; that is reason they are leading World Entertainment Market.
In past last 30yrs carrier, Sony's faced so many difficulty and problem but always overcome on that obstacle, make good reputation and provided excellent service to their consumer. Sony should use its know-how for high end business and office equipment. They are also taking advantage from some Asian countries, where they are hiring workers in low wages and using resources which is comparative to the current market very cheap with SWOT analysis and Porter's competitive forces model, PEST, BCG Matrix and DOG etc. we can vie that the market is much more competitive with less profit margins and lead-time for product innovation. However Sony's high technology filled with gadgets electronic goods and innovation. This innovation makes Sony's greatest company that started in post-war Japan. Sony has used its creation in building markets out of thin air, created a multibillion, multinational electronic empire with product such as the transistor radio, the Trinitron, the Walk in and the VTR. This brand Shows Sony's great status in the competitive market and declare Sony's Leadership in the World wide.
Marketing Environment and Target market:
‘Key view of marketing environments is affecting management's ability to build relationships with Target Markets'.
v Macro Factors: Factors that influence an organisation out of their direct control.
v Micro Factors: Environment influencing the organisation directly.
v Macro Environment:
A) Each country has their minimum wages rights, which applicable on all people in the country. Government minimum wages rates are higher compare to cost of sale. It's mean less profit for company.
B) Sony's facing trade barriers by politically, it is difficult expand
Brand product one country to another.
A) Interest rates are decreasing drastically.
B) World economy now is in bad shape because of recession that why Sony's also facing inflation rate problem in the market.
A) Basically Sony's products mostly are good source of education and entertainment, its give people knowledge with Entertainment and increase literati in social area.
B) As we know that we are mainly concentrating on entertain the people, so we can simply say that we emergency disaster relief.
A) Sony's technologically giving more consideration on Research and Development and open innovation that's why Sony's invested 497.3 billion yen on R&D last year.
In the Sony's corporation legal requirement is very strong because of each country have their own low and order. Under of law Sony's always following country right, which existing Consumer law, Employment law, health and safety law etc.
v Micro Environment:
Customer satisfaction is most important for the business, if we failure to satisfy customer, that means disastrous of business.
In business good relation is very important because of if we make our suppliers unhappy then how they will think to full fill our needs. In hence we make good closer relationship with suppliers instant of they will provide us best quality of products.
If in the market good competitors are there we can scan their success key and generate better idea than them. It's also source of innovation, we compete with competitors and develop our quality of product and services for consumers.
We are team of Sony Corporation, this is important to get better training in our workplace, so we can encourage company profitability and decrease cost of sale. In competitive edge we can give tough challenge to our competitors.
Marketing strategy is reason to use in business because we can improve our services and quality of product, which is existing Marketing Mix. Marketing mix is a model of crafting and implementing marketing strategy in the Business.
Marketing Mix variables as classifies by Prof. E. Jerome McCarthy which are 4P's:
Marketing Mix 4p's:
3. Place (Distribution)
In the Marketing, Company product is important element of business; where consumer attention first considers on company product. It is meaning customer is thinking about is product satisfy our needs? Is product capable to full fill our needs?, Why should we buy this product?, Is this affordable.
Following giving some Sony's product categories, they are very useful to satisfy customer needs and wants.
i. Television and projectors.
ii. Home video.
iii. Home Audio
iv. Home theatre system
v. Digital Photography
vi. Hand cam video camera
vii. Computer Peripheral
viii. Portable Audio
Promotion is a key element of marketing program and is concerned with effectively and efficiently communicating the decision of marketing strategy. Promotion is only element effect on both side Customer and Company, while promotion makes changes of profitability of company and other side gives knowledge about product and importance of product. So basically promotion is very essential for the marketing.
As per we all know about importance of place but it is make importance for the product because consumer are looking for place where they can get their in an easy way and comfortably. Wherever Sony's distributing their marketing they always think about place, where they can make good contact with customer and satisfy their needs and wants.
As we knows Sony's providing long lasting and durable product, so considerably it depend on where we can sale more product and increase our sale. One of the country like India, where people like buy product long lasting and durable; they are not too think about function of product. India is place, where people wanted to buy their on this circumstance and our product is suitable for them to full fill their needs. Sony's marketing strategy is one level, which is determined following in graph:
Sony's considering their price of product on the basis of functional category, its mean take example of VAIO laptop, if we are selling in UK and USA cost structure is high because of people like. To use advanced function that why Sony's product price are high in USA and UK. Basically Sony's brand product always moderate high because of they are providing advanced function compare to other company product. But if you comparing to India same product price is low because of for India Sony's not gives too value on function of product.
SWOT Analysis on Sony Corporation:
§ Employee's talent in Sony are creative; loyal and hold the same Sony's dream.
§ Vast and strong financial capabilities that enables Sony to expand their offices into US in 1960 with capital investments of US $500,000.
§ Vast pool of talented engineers in Sony
§ Expanded their nature of business form electronics to entertainments (Sony music/Sony pictures), and even a bank for middle class Japanese.
§ Strong innovation culture within the company and among the employees.
§ Great and successful marketing efforts for their products.
§ World wide recognised brand top leadership.
§ The dream that Sony envisioned has yet to be realised. It may be a negative public image for Sony as stakeholders see that Sony is unable to full fill their promises.
§ Sony's biggest and most recent weakness is their lack of innovation with PS3. Which Sony has recently lowered by $100?
§ Sony executive make it clear that they know need to do more than lower prices to woo consumer back to its flagging video game brand.
§ Lack of promotion, which means Sony's promoting their product on high level on the market, so it's difficult to reach to middle class and basic people.
§ Sony's giving high price product.
§ Sony seeks a lot of opportunities that utilize their strengths of innovation, at Sony Ericsson; design is about more than just a good looking product.
§ Sony's reader, a device the consumer electronics giant hopes is an early draft of how the world will read books in the future, is another innovation that Sony is using as an opportunity to enter a new market.
§ One of the other CSL projects most likely to succeed was a nifty little piece of graphics software for cell phones by Ivan Poupyrev. It might not sound like much, but the ability to draw realistic icons and avatars directly on a standard phone.
§ There was a clear emphasis on what many predict will be the boom technology by Sony, because of Sony's trust of customer very strong impact on future.
§ The cost of a dell notebook computer seems to have a lower price tag than many of Sony's VAIO models.
§ Sony's top competitors in the gaming industry are Nintendo and Microsoft. The play Station e sales have fallen behind recently in 2007.
§ In the LCD television market, Sony excels but still faces some strong competition, including Samsung, sharp, Panasonic and many more of these same brands appear in the DVD player market that Sony has to compete with.
§ Sony most recently has to make a public apology concerning the use of a backdrop in a violent video game, ‘Resistance: Fall of Man'.
§ In market some other companies form China are giving same standard of products, which is price of product very low. So there is threat to Sony's about customer are switching other companies.
Porter's 5 force
how its deal with different factor of Sony Corporation:
v Porter's 5 forces are following given in points:
1. The Rivalry Among Existing Competitors
2. The Threat of New Entry
3. The Threat of Substitutes
4. Buyer Power
5. Supplier Power
1. The Rivalry among Existing Competitors:
§ Numerous and rather equally balanced competitors.
§ Short product life Cycle
§ High investment on Research and Development
§ Lack of differentiation or switching costs
§ Imitation of technology
§ Counterfeit products
§ Low profit margins
§ High exit barriers
2. The Threat of New Entry:
§ Economies of scale is low
§ Product differentiation is low
§ Capital requirements is low
§ Witching to other company cost is low
§ Some countries Government policy is low
3. Threat of Substitutes: Product with similar function limits the prices firms can charge.
§ There are few substitutes form other industries
§ Most of them seem to be obsolete or have on foot out of door.
i) Digital camera in the place of film camera.
ii) Fax machines in place of overnight mail delivery
4. Bargaining power of Buyers: Buyers compete with the supplying
Industry by making bargaining down prices and forcing for Make higher quality.
§ Products are fairly undifferentiated
§ Buyers face few switching costs
§ Online shopping has increased the bargaining power of buyers
§ Buyers are price sensitive and demand high quality
5. Bargaining power of Suppliers(Low): Sony's suppliers expert power
In the industry by threatening to raise prices or to reduce quality of product and some powerful suppliers can squeeze industry profitability if firms are unable to recover cost.
§ Suppliers are forced to cut their prices or go out of business.
§ Direct negotiation with suppliers in order to encourage e.g. reliable supply, faster supply, Lower prices.
§ Many suppliers start to produce their own components in house.
Personal Research Opinions:
§ Sony can gives Franchisee opportunities to other people, it will help to the company expand their business in world wide.
§ Now Sony's delivering their product parts from some specific country, it is increasing selling cost and waste of time. In hence they are open brand parts in local areas; will good effect profitability because of customer can get their Sony's brand parts easily and in lowest cost.
§ Sony's manufacturing their product by using hard and non-recycle agent instead of it; can use recycle agent which give Sony's Reduction cost of sale, promotion of Re-manufacture, promote Keep Environment clean etc.
§ They have to minimise their cost of sale because of that, Sony's brand are expensive in the market compare to other Brand.
Business Tack ties of Sony Corporation:
§ Sony's promoting to the people, currently they are providing 90% of our Electronics products categories are network-enable and Wire-less in world wide area.
§ Sony's trying to get attraction from customer that's why they have announced in newspaper. Sony's have had invested 497.3 Billion yen for Research and development to upgrade their quality of product.
§ One of the Business Tacked is now they are going to introduce 3D entertainment on ‘Online service'.
§ Sony's always makes promises with customer about best quality and long lasting service of product.
Gantt chart on Sony's Report:
Report Topic, Introduction
Marketing Environment and Target Market
Marketing Strategy: 4p's, SWOT analysis, Porter's 5 forces
Personal Research opinion, Business Tack ties
Gantt chart, Recommendation, Conclusion
Ø Sony's company is to be dynamic and pragmatic, by applying analytical tools like 4p's, SWOT analysis, Porters 5 forces, can determine what strategy an organisation can develops to changing trends and also meet world business.
Ø In Market, so many competitors are there but only one reason gives Sony's top leadership in Entertainment, which is Satisfaction of Product.
Ø In hence it is important for companies to understand their competitors, on how they conduct marketing and marketing strategy and how they are reacting to implement strategies to the changing trends in environment, Sony's can use analytical tools like, SWOT, PESTEL, Porters Five Forces, Porters Generic strategies, Boston Box analysis, Balanced score card, Generic electric matrix, competitors analysis, environment scanning, to develop strategies not only in the present but also in the long term for their Marketing. These recommended sources are very useful to make leadership in the Competitive market and after uses you can see that success of Sony Corporation; will be Top of World market.
Overall Sony Corporation is providing Advanced Brand product and giving best quality with long life product to the Customer. Sony's marketing strategies giving tough competition to competitors and constantly leading Market.
On balance, as a globally operating company in consumer electronics, Sony is a successful company with a good brand image with victorious products, we talked about in the beginning. It had ups and downs as any other company in its marketing practices all over the world.