Strategic Marketing Management: of Sony - Case Study Example

Strategic Marketing Management Table of Contents Executive Summary -------------------------------------------------------------3 Introduction--------------------------------------------------------------------4 Vision of Sony-----------------------------------------------------------------5 Mission of Sony----------------------------------------------------------------6 Strategic Objectives-----------------------------------------------------------7 Customer Analysis------------------------------------------------------------8 Competitors Analysis---------------------------------------------------------9 Industry Analysis-----------------------------------------------------------10 SWOT Analysis------------------------------------------------------------11 Conclusion------------------------------------------------------------------12 References------------------------------------------------------------------13 Executive Summary Sony is one of the largest electronic manufacturers in the world and produces different variety of electronic gadgets which matches the need of different segment of customers. Sony has launched different types of handy cams, plasma, television, laptops, computers, cameras etc. The company has relied on providing a quality product with the best available features so that they are able to keep themselves ahead of competitors. Sony has looked towards endorsing its brand by highlighting quality and superior products in comparison to others. The report presents the mission and vision of Sony that they deal in. This helps to identify the long term opportunity that it has. The industry analysis brings forward the fact that Sony has been able to be successful to ensure growth in business. This is presented through the internal analysis. The customer analysis deals with the buyer behaviour and the targeted audience the area that they need to work on to grow their market share. The external analysis thereby brings forward the opportunities that is applicable to Sony. The report also has the analysis of the competitor which shows the manner it faces competition and despite it the electronic giant has been able to sustain its customers. The SWOT analysis also brings forward the electronic giant has. The report thereby dwells on the various opportunities Sony can look towards and working on those will help to increase the market share. This is on the back drop that Sony needs to ensure that they look to satisfy the customer through service and products to ensure steady customers. Introduction Sony is one of the largest electronic manufacturers in the world and produces different variety of electronic gadgets which matches the need of different segment of customers. Sony has launched different types of handy cams, plasma, television, laptops, computers, cameras etc. The company has relied on providing a quality product with the best available features so that they are able to keep themselves ahead of competitors. Sony has looked towards endorsing its brand by highlighting quality and superior products in comparison to others. The report looks into the marketing aspect of Sony by analyzing the situational analysis by looking into the manner the internal environment has an effect on the working of the company. Along with it the mission of the company, its promotional strategy and the present strategy has been looked into. Analyzing these factors will help to understand the present strategy of Sony and understand the marketing strategy adopted by the company. The report understands the customer that been targeted by looking towards analyzing the customers along with the effect external environment has on Sony. Understanding the external environment will help to find out the manner in which external factors influences internal environment. The report also dwells on the industry analysis and understanding the manner it has an influence on the marketing strategy of Sony so that the company is able to build a pool of customers who are loyal. Vision of Sony The vision statement for Sony is to provide and develop new products which helps to increase consumer experience by providing cutting edge products which looks to match with the latest technology (Sony Vision, 2011). The statement looks towards developing and designing new products which helps to enhance the experience and also eases the life as it makes it easy for users to simplify their lives. Mission of Sony Sony has a mission statement where they look to present before the public the joy and benefit that the user will experience when they look to use technology for the benefit of public (Sony Mission, 2011). This statement looks towards ensuring that Sony provides quality products which helps to enhance the experience for the customers. Strategic Objectives Objectives helps to determine the manner in which business helps to understand the steps for the future that the company looks towards following to achieve the strategic objectives of the business (Cateora, Mary & Graham, 2009). This helps to identify the short and long term objectives of Sony Corporation which is shown below A Short Term Objective To improve the brand image of the organization by focusing on the environment and highlighting the manner in which the business has been using equipments and products which are environment friendly (Green Management, 2010) Improving the marketing aspect by looking towards improving the advertising and promotional campaign so that the company is able to attract more customers and increase their customer base (Czinkota & Ronkainen, 2004) Key Performance Indicator: This will help Sony Corporation to build a differentiation in their brand by providing the customers that Sony Corporation is considering the environment hazards due to the electronic equipment and looking towards contributing towards the environment by taking the necessary steps. Long Term Objectives Improve the brand image over a long period of time by looking towards building a base of a loyal customer within a period of 3-5 years Diversifying into the non-consumer segment by developing equipments which are high on technology and quality so that the longevity and variety of the products increases (SWOT Attack, 2005) Key Performance Indicator: To ensure that Sony Corporation achieves its objective the organization should ensure feedback from the marketing executives in the market along with other responsible persons to ensure that they develop promotional campaign that highlights the advantages from using the product. Sony Corporation strategy has a linkage with their vision which will ensure that the company is able to work towards accomplishment of the same. Sony Corporation need to look towards understanding the risk management strategy so that they are able to control risk which will ensure Sony Corporation better results (Fletcher & Crawford, 2011) Customer Analysis The different advertisement campaign launched by Sony helps to identify the target market the company will look at. The advertisements bring forward the fact that Sony looks towards households, youngsters, business class and others who like electronic gadgets as the advertisements involves this. The target market of both the company looks towards eying customers who are loyal to the brand and people who are most likely so switch to the brand by giving up some other brand (Philip & Gary, 2001) Sony looks to target a lot of customer of different age because the company looks to attract people who have a love and desire to procure different electronic gadgets which simplifies life for the users (Luther, 2011). This helps to identify the target market of Sony as follows Customer Aimed at Age Classification of purchaser Purchaser requirements Rural 5 - 70 years Upper Class Middle Class Quality product Advanced features and high resolution Semi-Urban 5 - 70 years Middle Segment Products matching the price and purchasing power Businesses also habe to ensure that their strategy matches with those of the competitors so that they are able to move along with competition and look toward gaining a move forward (Ireland, Hoskisson and Hitt, 2007, P. 162). This will help the players to ensure better strategies for the market and face competition in a better way thereby helping to build better strategies (Bangs, 2002, p. 61) This helps to further segregate the market of Sony based on geographic, demographic and behavioral factors as shown below Geographic Urban, Sub-Urban, Small Town & Rural Demographics Youngsters within the age bracket 18 years to 45 years Social Economic Status Middle & Upper Middle Class Rural market through wholesale Psychographics People who are concerned about new features and ease of use The different advertisement campaign highlights the same and shows the way the company is looking towards having loyal customers at the same time providing new variants to attract more customers who become loyal to the company. Competitor Analysis Sony faces competition from different electronic manufacturer which looks towards tapping a similar market. Sony faces competition from Samsung, Videocon and all other electronic manufacturer in the market. Every player looks to supply similar product and has no differentiation thereby intensifying the level of competition. This makes all players towards replicating same strategies thereby making players fight for a smaller market share (Koranteng, 1999). The effect of local players have a different effect as they are looking to eye the price conscious customers by having electronic equipments which are cheaper so that they can capture the lower segment of the customer. A comparison of the competitors is as follows Sony Samsung Videocon Philips Aims at upper segment of the population Aims at all people Aims at all people Aims at upper segment of the population Offers variety at different prices Offers variety at different prices Offers variety at different prices Offers variety at different prices Wide range of products Store formats to sell the products Wide range of products Store formats to sell the products Wide range of products Store formats to sell the products Wide range of products Store formats to sell the products The comparison of the different players performing in the electronic market reflects that all the players offer similar products with little differentiation making it difficult for any player to capture a large market. Industry Analysis Understanding the industry analysis helps to find out the effect external environment have an influence on the working of Sony and will help to find the steps that needs to be taken for growth. The analysis is Political The political situation of a country affects business as all the rules and regulations determine the manner in which the organization will perform. Stability ensures that rules are framed towards growth and changes in government leads towards changing policy which is controlled Stable government ensures uniform laws especially retalted to taxation matters which helps the business to be conducted efficiently Economic The economic condition has a vast role to play in the growth of any organization that is performing in the economy Slower growth rate (Mullins, 2009) due to recession is affecting demand for products and services Different barriers of entry has made it difficult for the organization to perform uniformly Increase in operation cost and inflation has also affected the spending mechanism as people look towards cheaper things Social The social culture prevalent in an economy determines the buying habits and has an influence on the manner the economy will perform in the long run. Changes in purchasing habit (Mullins, 2009) has led towards consumer looking for products which are more trendy and make life simpler Growth in the population of generation Y (Mullins, 2009) has led towards a change in purchasing habit as the generation prefers technology in comparison to others Technological The technological changes witnessed by economy has an effect on the way organization performs as shown below The manner in which services have undergone changes (Mullins, 2009) due to changes in technology has made consumer look towards gadgets which improves services Having different gadgets which permits use of internet over the devices has increased the growth of the electronic equipments. Environmental Environmental changes impact the decision making of organization and needs to considered The increased importance being laid on environment and steps taken to ensure that the environment is safe has made organization look towards developing products and services which has little harm on the envoronment. Legal Legal changes impact the economy greatky which leads to an effect on the organization performing in the economy Rules regarding wages which ensures minimum wages has increased the cost for businesses and if wages are paid less the workers look towards strike which makes it important to ensure equality for all. Sony by ensuring sufficient safety facilities for users of the smart phones have ensured every mechanism to take care of it. SWOT Analysis This will help to ake strategies and help Sony to understand the areas they need to work on. Strengths Sony is a powerful brand because it has been providing quality products over a long period of time. (SWOT, 2011) Sony has varied products for all section of the customers (Ferell, 2002) Sony has looked towards improving supply chain which has made it easy to sell their products even at far off places (Ferrell, 2002) Increasing population has helped Sony to improve their market share by providing quality product (Sony SWOT, 2011) The company acting as a global brand (SWOT, 2011) has empowered the company to be able to market its product widely. The company with a customer base of around 30 million has been able to create themselves as a global brand. “The flexibility nature” (SWOT Analysis, 2009) and looking into the local needs of the public has helped Sony to revolutinize its products and make timely changes The sound financial result signifies the corporate policies and soundness in policies. Also the ability to meet its debt and obligation highlights the growing popularity of Sony among investors and creditors (SWOT, 2011) Weakness Rising shipping cost for the company (SWOT, 2011) is an area of concern Increasing cost of creating brnad has increased the cost of marketing (SWOT, 2011) Adding new categories to their business has diluted the working culture for Sony (SWOT, 2011) Increased dependence on external to agency to provide the goods as well as sourcing the goods to the customers (Sony SWOT, 2011) Opportunities Merging and acquiring the small business working with the same model. (Ferrell, 2002) Developing strategy and design which increases interface (Ferrell, 2002) and ensure growth Moving into new market with innovative products Develop special relationship centres which helps to improve the customer satisfaction by solving their queries (Sony SWOT, 2011) Threats Increasing transportation cost and storage cost (Ferrell, 2002) is an area to be watched for Increasing competition from players(Ferrell, 2002) Huge dependence on technology to sell their products might making it difficult to capture the markets of developing countries (SWOT, 2011) Conclusion The paper thereby helps to indentify the manner in which the marketing of Sony has been affected due to different factors which are both in the control of the organization and external to the organization. Sony needs to look towards using these factors as it will help to improve the manner in which business is conducted and will thereby help to increase its market share. The paper also identifies the target custome that the company needs to aim at for its different products. This will help to devise marketing strategies accordingly and will ensure maximum efficiency in its operations. The report also looks into the external environent and brings forward the different points that Siny needs to look into. This will help the company to ensure that the external environment has little effect on the working conditions and will help to improve its business. The report also explains the need to develop loyalty programs and strategies which will ensure that the organization is able to have a customer base which looks towards the company. This will ensure that Sony is able to market itself well and increase the penetration level by having products aimed for different section of the customers. References Bangs, D. 2002. The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin:McGraw-Hill. Czinkota, M.R. & Ronkainen, I. A. 2004, International Marketing, 7th edn. South-WesternPublishing:Australia. Fletcher, R. and Crawford, H. 2011, International Marketing: An Asia-Pacific Perspective,PearsonAustralia. Ferrell, G. 2002. SWOT Analysis for Sony. Orland, Dryden Press Green Management. 2011. Green Management. Retrieved on October 26, 2011 from http://www.sony.net/SonyInfo/csr/environment/management/gm2015/index.html Ireland, R. D, Hoskisson, R. E, and Hitt, M. A, 2007. Competing for advantage, Cengage Learning Koranteng, J. 1999. Sony takes early lead in the competition. Advertising Age International, Volume 24, Issue 37, page 63-71 Luther, W. 2011. The Marketing Plan: How to Prepare and Implement It, Fourth edition, AMACOM Div American Mgmt Assn Mullins, K. 2009. Critically examine the main drivers for Sony growth. Free Press. New York. Phillip, K. & Gary. A. 2001. Principles of Marketing, 9th ed. Upper Saddle River, NJ: Prentice Hall, p.245 SWOT Attack. 2005. Sony Company Profile, History, Culture & SWOT. Retrieved on October 26, 2011 from http://www.echeat.com/essay.php?t=27662 SWOT. 2011. SWOT Analysis Sony. Retrieved October 26, 2011 from http://www.marketingteacher.com/swot/sony-swot.html Sony SWOT. 2011. Sony SWOT Analysis. Retrieved October 26, 2011 from http://www.businessteacher.org.uk/business-resources/swot-analysis-database/sony-swot-analysis/ Sony Vision. 2011. Sony Vision Statement. Retrieved October 26, 2011 from http://www.sony-europe.com/article/id/1178278971157 Sony Mission. 2011. Sony Mission Statement. 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