Introduction
The marketing plan of the selected company, Sony Electronics, will basically focus on some specific issues regarding the three basic questions and the representative of the whole idea. It is a Japanese company was established in May 7, 1946. Placing as an innovative image, the company has an exclusive experience in technological support that is provided to the customers. Different types of produced products are video cameras, digital still cameras, DVD – Video players / recorders, digital broadcasting receiving system, LCD Televisions, projection & CRT televisions, PC, printer system, audio, video monitors, professional equipments, LCD, CCD, semi- conductors, optical pickup, batteries, audio, video, data recording media, data recording system etc.
Here, a marketing plan has been developed on Sony Corporation which is a multinational company & the world’s largest media conglomerates having revenue of approximately $88.7 billion. Knowing that it is one of the largest manufacturers of electronics items & worldwide top 20 semiconductors leader of sales, the plan has focused on Sony’s goals, strategies, action program for the electronics goods for the forthcoming year.
Presenting a number of data including rise in operating income by ¥350 billion of operating profit with 5.4% of margin, this marketing plan will suggest a number of conditions & solution in how the company will market the required goods successfully by the year 2009 through a special attention in segmenting, targeting, positioning, branding & the other related marketing issues to serve the target customers successfully.
Thus, this plan will serially explain the company’s present condition, its targeted goal & the way to reach at the desired level. This plan will seek the way to generate a significant increase in company sales & profits over the preceding year. The targeted sales & operation revenue is ¥10 trillion with the expected sales & operating revenue of 9 trillion & net income of 130 billion. The group involves a number of product line among which the forecasting & planning of electronics items are the major concern. This increase is seen attainable through improve pricing, advertisement & distribution. The required marketing budget will be 15% increase over the last year.
Company analysis
- Market situation: – The Company is efficient in re- engineering capability in developing huge product categories. Now, the sales & operating revenue is about 9 trillion presenting a great increase of 23% than the previous years. The primary buyers are high- income & middle- income consumers, ages 20 to 40, who want to listen good music, getting good services regarding the price & product quality.
- Product situation & lifecycle:- To, exclaim the product situation, the following information are important-
Explanation-
Electronics = 65.4%
Game = 11.7
Picture = 11.7
Financial services = 7.5
Others = 3.7
- Competitive situation: – Sony’s major competitors in the electronics market are Aiwa, Panasonic, Sonic, & Philips. Each competitor has specific strategy & niche in the market. For example, Aiwa generally offers four models offering the whole price range, sales primarily in department stores, & is heavy advertising spender. It plans to dominate the market through product proliferation & price discounting.
- Environmental analysis:- About 70% of the households now have stereo components as the consumers are spending more time watching TV & videos, listening to music for which efforts must be turned to convince customers to upgrade their stereo system, recorders, cameras & so one.
- SWOT analysis.
BCG Matrix & Sony
Using the Boston- consulting group approach, the company can classify all its SBU’s according to the growth- share matrix shown below-
Here, Cash cows are low- growth, high-share businesses or products that need less investment to support the business, but Sony requires more investment.
Dogs are low- growth, low- share businesses or products but Sony electronics occupy a complete inverse position of that.
Question marks are low- share business units in high- growth market.
And finally, STAR remains in the highest position of the matrix which is perfect for Sony products as they occupy the larger market share with a better growth rate than many of its competitors.
Establishing goals & objectives
Kotler, P., Armstrong, G. (2006) expressed that while setting the marketing goals & objectives, the company should respond to the question- “Where do we want to go?” It should specify such things as market share, profits, sales, market penetration, and number of distributors, awareness level, sales promotion & advertising support.
Thus Sony should focus on some preliminary financial objectives. Such as-
- Earn an annual rate of return on earnings of 8% over the next three years.
- Strengthen the core business through the investment of ¥1.8 trillion.
- Produce a cash flow of ¥670 billion in 2008.
Stoner, J. A. F., et al (2006) argued that those financial objectives can be converted into marketing objectives. To achieve this market share, the company will have to set certain goals for consumer awareness, distribution coverage, & so on. Thus, the marketing objectives might read as following-
- Achieve total sales & operating revenue of 10 trillion in 2008. Therefore to achieve 130 billion net income by emphasizing on audio, video, TV & other general electronics items.
- Expand consumer awareness of the Sony brand from 15% to 30% over the planning period.
- Capitalization of growth in the markets that are developing through the rising economy, for example- Brazil, Russia, India & China means BRIC countries.
- Doubling the targeted revenue within the BRIC countries within 2010.
- Target of consolidated yearly return on equity by 10% at the ending period of the fiscal year 2010 based on the identified operating profit of 5% of margin.
- Strategic investment in television for the forecasted growth by the R & D efforts through the improvement of operating performance with the estimated amount of 1.8 trillion.
Defining marketing strategy
Thompson, A. et al (2007) argued that this strategy & action decision respond to the question, “How do we get there?” Some possible decisions that would be made for each variable are as following-
- Market segmentation: – Sony must decide first which segments offer the best opportunity for achieving its objectives to increase sales & profit by creating long- run customer relationship. Its market segments will consist of the buyers with different needs, characteristics, or behavior who might require separate products or marketing program. In this regard, Sony can prepare market segmentation in terms of-
- Consumers who want luxurious sound system regardless the price.
- Consumers who care mainly about price.
- Consumers who think to get high quality at a reasonable price.
Among all the options, Sony will have to decide of going forward a single or more market segments.
- Target market: – Sony’s main target market for its electronic items are upscale & middle- earning households, teenagers with particular importance on female buyers.
- Market positioning: – By using perfect positioning module, Sony can position its items in a clear, distinctive & particular way in the target customers mind relative to the competitors. Thus, it should express the distinct benefits & features of the items in the target markets. Thus it can position the electronic goods as the best quality & reliable appliances.
- Product line: – The product as the first element of marketing mix indicates a full description of the company’s products including DVD-Video players/recorders, and Digital-broadcasting receiving systems, audio/video/data recording media, and data recording systems etc. To make differentiation, Sony can provide a technical customer service over phone lines.
- Price: – Price will be fixed on value of the product that will be highly reasonable & affordable for the target customers. That means, the company will offer just the right combination of quality & good service at a fair price. It may also introduce less expensive versions of its established brand name. This can be shown as-
- Distribution outlets: – Heavy in radio & TV stores & electronic appliance stores, increased effort to penetrate discount stores.
- Service: – Quickly & widely available customer service by ensuring the following-
- Develop a training program for the employees.
- Follow – up registration cards or telephone calls to provide feedback.
- Rewarding effective employees.
- Regular contact with target customers with newsletters, telephone call, e –e mail or fax etc.
- Advertising: – Develop a new advertising campaign that supports the positioning strategy, emphasize higher – price units in the ads, increase the advertising budget by 20%.
- Research & development: – Increase expenditure by 25% to develop better styling.
- Marketing research: – Increase expenditures by 15% to improve knowledge of consumer – decision process & to monitor competitor.
Branding & brand positioning Strategy
The major brand strategy of Sony involves the following decision
- Brand positioning: – In order to place the product in consumer’s mind clearly, Sony need to position its electronic appliances as more as effectiveness. Here, the company can follow any of the following strategy.
Griffin, R. W. (2006) stated that the company’s can be better positioned by associating its name with desirable benefits. Such as, it can talk about the unique facilities, sound system & parts of the stereo system, guaranteed picture tube of TV, comprehensive advantages of the video or audio player, and long- duration of batteries & other competitive advantages of the product in the line. While positioning, the company should also build up a mission for the brand & a vision of what the brand must do. The brand contact must provide value, satisfaction, simplicity & honesty.
- Brand name selection: – It should include the following-
- Product’s benefits & qualities.
- Easy pronunciations, recognition & retrievable.
- Distinctive.
- Easily extendable.
- Registration.
- Legal recognition.
Thus, Sony Electronics for the product line should be better in this regard as Sony offers a distinctive, legal & popular brand image in consumer’s mind.
- Brand sponsorship: – The product should be launched as a manufacturer’s brand or national brand. But for future prospect, the company can also go further for co- branding for the selected product line as it has done for its Ericson mobile sets.
- Brand development: – Sony ha four alternatives when it comes to develop its brand. Those can be shown as-
Here, the company is to go with the first that describes using the successful company name for introducing additional & modified items in a given product category, that is- electronics goods, under the same brand name by new flavors, forms, colors, added ingredients or parts, package size etc.
Brand positioning map
In such case, Sony should prepare the perceptual positioning maps, which will show the consumers perception of the relative brand versus competing products on important buying decision. It is shown as below-
Selection of target market & develop marketing mix strategy
After defining market segments, it should evaluate each market segment’s attractiveness & selecting one or more segments to enter. Running through an equal speed with the major competitors, the company can also introduce niche marketing by remaking its distinguished TV, stereo set or other compact disks for specific markets. Or additionally, the company can introduce niche marketing by offering its exclusive TV, audio or stereo set to the specific market segments where many other companies have not served yet.
Sony’s target market for the electronics appliances consists of the middle & upper income level buyers who are conscious of quality & make a better sense of fair price. To select the target marketing strategy, it should consider a number of ideas-
- Position of product in the product life cycle (PLC).
- Product position in the BCG Matrix.
- Firm’s resource allocation.
- Variability.
- Competitor’s marketing strategies etc.
By considering all the aspects, differentiated marketing strategy will be better for Sony since it has the matured product categories. By using this strategy, the company will target the specific customer segment & design separate product according to the needs & wants. Thus, it can make itself a customized company.
Use of marketing mix
Product involves digital broadcasting receiving system, LCD Televisions, projection & CRT televisions, PC, printer system, audio, video monitors, professional equipments etc.
Market Metrix (2008) addressed that Price will be fixed on value basis including discounts, trade- in- allowances & credit terms. Those actions adjust prices, for the current competitive situation & bring them into line with the buyer’s perception of the good’s value. Place includes having a large body of independent dealers & company retail outlets & showrooms. Promotion includes increase the sales- promotion budget by 15% to develop a point- of- purchase display & to participate to a greater extent in dealer trade shows & Sales force expanded by 10% & introduce a national account management system. Person involves the use of efficient human & managerial resource.
Process involves technological background, performance of R & D & organizational structure. Physical ability indicates Sony’s resource availability to produce desired customized electronic appliances. All the marketing mix variables will be blended to promise a better positioning of the product in the marketplace while the company can introduce more for the same strategy for offering the consumers more benefit with same price.
Measuring the success of determined strategies
Outcomes of the proposed strategies can be measured by developing a framework of marketing metrics in which control program can be fixed by sales projection, sales reps etc. Customers can also be surveyed with their different opinions about the company’s performance against the competitors. In- depth surveys can be conducted through online or telephone to know the target customers opinion.
Innovative metrics will be helpful to understand consumer’s attitude to the product. In this regard, loyalty program strength looks for the comparative success of the brand loyalty compared to the other competitors in the industry. Successful segmentation in terms of geo- demographic, attitudinal & behavioral customer dimension & buying behavior are also helpful for having cognitive response.
Holt, H. H., (2002) stated that Flexible platform of report allows the benchmark competitor group, thus judging the company’s performance, cognitive & cognitive response, it is essential to compare such variables with leading competitors.
Financial outcomes can be measured by setting a successful budget program for the year 2009 & make pro- forma income statement, cash flows & balance sheet. In simpler term, arrangement of a marketing research program to identify whether the company is performing or not in relation of targeted goals & objectives is the better way to set control program.
Conclusion
Thus the entire marketing plan of Sony has focused on the company’s recent position in the global market, its major competitors, several strengths & weaknesses along with opportunities & threats etc. Regarding its electronics appliances product line from a number of other products & services, it has been identified that Sony’s main goals & objectives are to maximize profit through the electronics items by improving the sales, promotion, advertisement, brand development by using overall marketing mix elements. It the specific strategies that are suggested will be applied to achieve those goals, it can be predicted that the company will be ever successful in marketing the desired home appliances with long – run customer satisfaction.
Bibliography
Griffin, R. W. (2006), Management, 8th Edition, Houghton Mifflin Company, Boston New York. Web.
Holt, H. H., (2002), Entrepreneurship New Venture Creation, 6th Edition, Prentice- Hall of India Private Limited, New Delhi. Web.
Kotler, P., Armstrong, G. (2006), Principles of Marketing, 11th Edition, Prentice-Hall of India Private Limited, New Delhi. Web.
Market Metrix (2008), The Market Metrix Hospitality Index. Web.
Stoner, J. A. F., Freeman, R. E., & Gilbert, D. R. (2006), Management, 6th Edition, Prentice-Hall of India Private Limited. Web.
Sony Corporation (2007), Global Annual Report – 2007, Osaka, Japan. Web.
Thompson, A. et al (2007), Strategic Management, 13th edition, Tata McGraw- Hill Publishing Company limited, New Delhi, India.