Project Report on

MARKETING STRATEGIES OF SONY

CORPORATION

Submitted by

PRIYA S. KALAMBE

MASTERS IN COMMERCE SEM-IV (business

management)

ACADEMIC YEAR 2016-2017

Roll No.1615517

Project Guide

Prof.SHREE VARAHAN

Submitted to

UNIVERSITY OF MUMBAI

MULUND COLLEGE OF COMMERCE

S.N ROAD, MULUND (W)

MUMBAI 400 080

1
 DECLARATION

I, Ms. Priya S. Kalambe, the student of MULUND COLLEGE OF

COMMERCE, S.N Road, Mulund (W), Mumbai 400 080, studying in M.Com

part-II (Business Management) here by declaring that I have completed this

project Marketing Strategies during the academic year 2016-17. The

information submitted is true and original of best of my knowledge.

Date: Signature:

Place: MUMBAI

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 CERTIFICATE

I, Prof. Shree Varahan, here by certify that Ms. Priya S. Kalambe of

MULUND COLLEGE OF COMMERCE, S.N Road, Mulund (W), Mumbai

400 080, studying in M.Com part-II (Business Management) here by declaring

that have completed this project Marketing Strategies of Sony Corporation

during the academic year 2016-17. The information submitted is true and

original of best of my knowledge.

Signature: (Project Guide) Signature:

(Principal)

Mr.Shree Varahan Dr. Mrs. Parvathi

Venkatesh

Signature: (Co-Ordinator) Signature (External

Examiner)
Mr. Shivaji Pawar

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 ACKNOWLEDGEMENT

It was a enriching and learning experience for me to do this Project. I

would like to acknowledge all those people who have continuously guided me

throughout and helped me in completion of my project Marketing Strategies

of Sony Corporation

I would like to thank our principle Dr.Mrs. Parvathi Venkatesh and

also our and project co-ordinator Mr. Shivaji Pawar.

I am really thankful to my project guide Prof.Shree Varahan for their

complete help and support to complete this project.

I am also thankful to our non-teaching staffs of my college especially the

library staffs for their help.

I would also like to thank to all the respondents who have helped me

for collection of data, for their honest participation in the Research and helped

me directly or indirectly in successful completion of this study for their help and

cooperation throughout the project.

Date: Name:
Reg. No. Signature:

4
 DECLARATION BY THE LEARNER

This is to declare that I have carried out this project work myself in

part fulfillment of the degree MASTER OF COMMERCE (Business

Management) PART-II under the guidelines of UNIVERSITY OF

MUMBAI

The work is original, has not been copied from anywhere else and

has not been submitted to any other university/Institute for an award of any

degree/diploma.

Date: Signature:

Place: MUMBAI Name:

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 EXECUTIVE SUMMARY

Sony Corporation, a leading Japanese manufacturer of electronics, game, and

entertainment products, has reported losses for four consecutive years. The
company announced a record annual net loss of 520 billion yen ($6.4 billion)
for the year ends in March 2012. Sonys main strategic problem lies in its
numerous product lines that serve too many parts of the entertainment value
chain. The empire-building strategy not only caused the companys
innovation and operation to slow down, but also impaired their competitiveness
in all of the market segments they are engaged in. In addition to the problem of
dis-synergies among Sonys product lines, they also face other external and
internal challenges. Externally, the appreciation of the Japanese Yen adversely
affected the purchasing power of Sony products by non-Japanese consumers,
and thus reduced the overall demand for Sony. The global economic crisis
starting in 2008 further aggravated Sonys profitability as consumer spending
dropped significantly during the recession. Sony also experienced bad luck with
the Great East Japan Earthquake. The initial calamity and its aftermath
disturbed Sonys operations and caused excessive restoration costs. Within the
electronics and game industry, increasing competition made it difficult for Sony
to retain market share. Facing these external challenges, Sonys management
team was relatively conservative. Restructurings were done on a small scale,
and mergers and acquisitions were rarely conducted. Finally, Sonys
technological innovation gradually lost their edge against their competitors. All
of the above factors caused investor confidence in the company to drop
dramatically, with Sonys stock price falling by more than half in 2011. After
reviewing Sonys business model, history and financials, and conducting a

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Porters Five Forces Analysis and a SWOT analysis, we propose some strategic
recommendations for Sony. We first recommend Sonys management team to
find a market segment to focus on and develop their competitive advantage
within that segment. In addition, we recommend that Sony acquire more
aggressively within that segment to increase market share, reduce
manufacturing costs, and access new technologies and patents. Furthermore, we
recommend that Sony refine their quality control system in response to their
recent quality scandals and increasing reliance on 4 external business partners.
Lastly, we suggest that the financial services division hedge the macroeconomic
risks that Sony Corporation as a whole is facing.

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 TABLE OF CONTENTS

CONTENTS PAGE

Declaration

Certificate

Acknowledgement

Declaration By The Learner

Executive Summary

Table of contents

Chapter-1 Introduction 9

Chapter-2 Objective Of The Project 11

Chapter-3 Research Methodology 12

Chapter-4 Overview 13

Chapter-5 Company Outline 15

Chapter-6 Porters five forces Model 16

Chapter-7 Strategic Analysis 19

Chapter-8 SWOT Analysis 21

Chapter-9 Sonys Marketing Strategy 25

Chapter-10 Assessment of Sonys Marketing Strategy 31

Chapter-11 Marketing Mix 34

Chapter-13 Observation 42

Chapter-14 Recommendation 44

Conclusion 45

Bibliography 46

1.INTRODUCTION
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Sonys humble beginning started in Japan in 1946 from the sheer determination and
hard work of two bright and enterprising young men. Both Masaru Ibuka and Akio
Morita joined hands in making their dream of a successful global company a reality.

At Sony, our mission is to be a company that inspires and fulfills your curiosity. Our
unlimited passion for technology, content and services, and relentless pursuit of
innovation, drives us to deliver ground-breaking new excitement and entertainment
in ways that only Sony can. Creating unique new cultures and experiences.
Everything we do, is to move you emotionally.

Sony's Story

It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of
passionate and committed group of employees started to build Tokyo Tsushin

9
 Kenkyujo (Totsuko), or Tokyo Telecommunications Research Institute into the
billion dollar global conglomerate that it is today. The main objective of the
company was to design and create innovative products which would benefit the
people.

From early attempts at creating products like the rice-cooker to the later success of
creating Japans first magnetic recorder, the innovative company went on to create
other hit products which won the company widespread recognition and international
acclaim as a truly global company known for its quality and innovative products.
Significant product milestones included Japans first transistor radio (1955),
Trinitron colour television (1968), Walkman personal stereo(1979), Handycam
videocamera (1989), PlayStation(1994), Blu-ray Disc recorder (2003) and
PlayStation 3 (2006).

The company name of Sony was created by combining two words of sonus and
sonny. The word sonus in Latin represents words like sound and sonic. The
other word sonny means little son. Used in combination, Sony is supposed to
represent a very small group of young people who have the energy and passion
towards unlimited creations and innovative ideas. With the far-sight of expanding
worldwide, it was in 1958 that the company formally adopted Sony Corporation as
its corporate name. Easy to pronounce and read in any language, the name Sony,
which has a lively ring to it, fits comfortably with the spirit of freedom and open-
mindedness.

2.OBJECTIVE OF STUDY

The objective of the project is to study the marketing strategies of Sony

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 To analyse the marketing strategies of Sony

To observe the type of products provided by Sony

SCOPE OF STUDY

The scope of the study is to extend the knowledge about the marketing strategies of
Sony

3.RESEARCH METHODOLOGY

Information collected from Sonys website and various books.

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 4. OVERVIEW

One of the most recognized brand names in the world today, Sony Corporation,
Japan, established its India operations in November 1994, focusing on the sales and
marketing of Sony products in the country. In a span of 19 years, Sony India has
exemplified the quest for excellence in the world of digital lifestyle becoming the
countrys foremost consumer electronics brand. With relentless commitment to
quality, consistent dedication to customer satisfaction and unparalleled standards of
service, Sony India is recognized as a benchmark for new age technology, superior
quality, digital concepts and personalized service that has ensured loyal customers
and nationwide acclaim in the industry.

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Withbrandsnamessuch
as BRAVIA, Xperia, Alpha, Headphones, Handycam, Cyber-shot,Xplod, Sony
hi-fi, Memory stick and PlayStation, Sony has established itself as a value leader
across its various product categories of Audio/Visual Entertainment products,
Information and Communications, Recording Media, Business and Professional
products

Sony India is one of the most recognized consumer electronics brand in the country,
with a reputation for new age technology, digital concepts and excellent after sales
service. In India, Sony has its footprint across all major towns and cities in the
country through a distribution network comprising of over 20,000 dealers and
distributors, more than 300 exclusive Sony outlets and 25 branch locations. Sony
India also has a strong service presence across the country with 365 service outlets.
Manned by customer friendly and informed sales persons, Sonys exclusive stores
Sony Center are fast becoming the most visible face of the company in India. A
distinctive feature of Sonys service is its highly motivated and well-trained staff that
provides the kind of attentive and sensitive service that is rare today.

Sony is committed to ensuring that both the products and the marketing activities
employed truly make a difference to peoples lifestyles and offer them new
dimensions of enjoyment. Relentless commitment to quality, continuous dedication
to customer satisfaction and unparalleled standards of service is what differentiates
us from countless competitors and reflects a true image of all that is Sony.

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 5. Company Outline

Company: Sony India Pvt. Ltd.

Managing
Mr. Kenichiro Hibi
Director:

Date of
Establishment November 17, 1994
:

Location: A-31, Mohan Cooperative Industrial Estate, Mathura

Road, New Delhi - 110044, India.

Staff
900
Strength:

Share Capital: INR 554 Million

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Share
100% subsidiary of Sony Corporation, Japan
Holding:

Branch Delhi, Mumbai, Bangalore, Chennai, Kolkata,

Offices: Hyderabad, Jaipur, Chandigarh, Lucknow, Pune,
Ahmedabad, Indore, Cochin, Coimbatore, Ghaziabad,
Ranchi, Mangalore, Guwahati, Gurgaon,
Bhubansehwar, Vijaywada, Nagpur and Ludhiana (23
Direct Branch Locations)

Business Marketing, Sales and After-Sales Service of electronic

Activities: products & software exports Products: LCD
Televisions, Video and Digital Still Cameras,
Notebooks and Business Projectors, Personal Audio,
Audio Video Accessories, Hi-fi Audios and Home
Theater systems, Car Audio and Visual Systems, Game
Consoles, Mobile Phones, Recording Media and
Energy Devices.

6.Porters Five Forces Model for SONY

Threat of New Entrants Intensity of competitive rivalry Threat of substitute products

or services Bargaining power of customers (buyers) Bargaining power of suppliers

Intensity of competitive rivalry

Since Sonys market segment includes Electronic, Game, Pictures, Financial

Services and Joint Ventures. For the past 5 years, among Sonys existing and
potential competitors like Samsung, Apple, Foxcon and Hitachi.

Within Electronic segment has lost much of their market in audio. MP3 players and
iPods have replace Sonys Walkman. Blu- Ray competes directly with HD-DVD

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 technology, while Blu-Ray offer crisper picture and more storage capacity, this
technology is twice expensive than HD-DVD. PlayStation sales has problem with
cost, even though it offers superior graphic, Nintendo and newer version of android
games witness faster sales then Play Station.

Sony leads market with Bravia line of LCD TV. They hold competitive cost over
the rest of LCD market.

Segment analysis indicate that Sony will suffer loss in profit. The rivalry will not
show any weakening sign in near future.

Sony needed to focus on technological innovation, high end design and product
differentiation from the rivalry. Sony also need to reduce cost and keeping the price
low like the achievement they have gain in producing LCD market. Sony should
improve loyalty amongst customer as customer purchase is not uniformly across
Sony products. HIGH

Threat of New Entrants

Profitable markets that yield high return will attract new firms. However, not many
company will seek to compete with Sony because of the cost will be too high to
compete with the electronics giants that already exist.

A small player will also require strong relation with suppliers and efficient
manufacturing processes otherwise they could not produce at low cost.
Sony is currently the 4th rank in The 100 Most Loved Companies by APCO
worldwide and it is also one of the top 10 Best Global Green Brands that consumers
associate with environmental conservation and sustainable business practices. This
may attract consumer to be loyal to Sony brands and attract new buyer of those who
support green product. This is a competitive threat for new industries to attract
customer loyalty to establish brands.

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 Patent right and government regulation keeps the threat of new entries low. LOW

Threat of substitute products or services

Although Sony has tries to differentiate their products through modern design, high
quality graphic and superior technology, they still have threat of substitute product
like iPod over Sony Walkman, iPad or Android or Tablet Game over Sony
PlayStation, and HD DVD over Blu-Ray.

Substitution like music download or streaming cause an effect on Sony recording

music industry.

Since the price is high consumer switching to other products which is close to the
substitute.

Sony needs to think about competitors and customer loyalty too, so people can
choose Sony over other substitute. HIGH

Bargaining power of customers (buyers)

Customers have a choice of electronics product that they want to choose.

Beside Sony there are plenty of electronic business that are doing the same product
as Sony like LCD, PlayStation, Music Recording, Tablets and also Notebook.
Therefore customer bargaining powers are very high. HIGH

Bargaining power of suppliers

The company that support and supplies parts for Sony.

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 There are a lot of company that sells electronic parts which Sony can choose from.
These companies rival with others to propose with lower price of parts. Therefore
the bargaining power is very low. LOW

7. Strategic Analysis
Generic Business Level Strategies
Differentiation:
Sony differentiates itself from other companies by offering moderately priced, high
quality products. Sony also sets itself apart by offering a choice for everyone. Sony's
product quality, service and supply chain activities are extensive. "

Prestige:
Sony has strong brand quality .Their involvement does not end with a customer's
purchase of a Sony product. Rather, it continues until the product has been recycled
or has been completely disposed of. Sony is encouraging their employees engaged in
product planning to take this long relationship into consideration. As product

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features and customer needs evolve over time, they will adjust their product
communications accordingly to best serve their customers," (Sony Corp Info, 2009).

Quality Control Program:

The quality control program is used to monitor how consumers respond to
company's products and services. Sony is ahead in contributing social activities to
help address the needs of communities in the regions around the world where Sony
conducts its business. Sony offers many ways to get in contact with their technical
support. Sony offers many ways to get into contact with their technical support i.e.:
emails, letters, through contact us option on website. It also offers repair and support
service. The automated tutorials, news alerts, what is new in updates are also on
website.

Superior Quality:
As product features and customer needs evolve over time, they will adjust their
product communications accordingly to best serve their customers," (Sony Corp
Info, 2009). Sony offers a more for more deal and also a more for same. Their
products, especially televisions, are marketed as being a high quality product;
therefore, if a customer is expecting more from one specific product, s/he has to
expect to even pay more. However, on the turn side, they may offer more for same,
because in today's economic crises, more and more companies like Sony are offering
more for the same.

Competitively High Prices:

Sony offers a more for more deal and also a more for same. Their products,
especially televisions, are marketed as being a high quality product; therefore, if a
customer is expecting more from one specific product, s/he has to expect to even pay
more. However, on the turn side, they may offer more for same, because in today's
economic crises, more and more companies like Sony are offering more for the
same.

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Rapid Innovation:
Sony is company of first and famous for innovative products

High Customer Service:

On a corporate level, Sony uses the Internet to keep track of all its stores and their
performance. The Internet creates an open communication line between customers
and stores, stores and corporate and even suppliers and stores. Customers can go to
Sony's website when surfing online and do anything from downloading drivers to
purchasing new products. Some resell stores have access to corporate entities
through email and Sony's own website where each store can upload information on
their financial situations, indicating which items are selling better than the others,
like TVs or electronics, etc. Finally, reseller stores that sell Sony products can use
the Internet to connect with any of their when purchasing materials like TVs, gaming
systems, etc.

8. SWOT Analysis
Strengths

Substantial Brand Identity

Sony is a corporate brand whose identity is deeply rooted and very well established
in the minds of potential customers. The brand remains healthy despite dropping
from 25th to 29 in name recognition according to InterBrands 2009 ranking.
Interbrand valued Sony brand at $11 million.

Projected Growth in the Consumer Electronics Market

The Consumer Electronics Market is expected to grow at a rate of 7.2% annually to

reach a value of $136,700 million in 2014. Sony is uniquely positioned to take

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advantage of this increase. As one of the largest global companies in the industry
Sony has the capacity to tap into changes in consumer demands as they emerge.
Sonys recent reorganization has put digitally savvy and globally experienced staff in
positions to maximize the potential seen in growth projections.

Strong Positioning in Emerging Economies

Sony is firmly entrenched in the so-called BRIC economies (Brazil, Russia, India
and China). These regions are emerging markets and represent over 40% of the
worlds population. The firm plans on following its model of success experienced in
India where it emphasized its television film, and music product content. The
company has a goal of doubling its revenues in the BRIC markets.

Threats

The Continued Economic Slump

The negative economic conditions in The United States, Japan and Europe have had
a disastrous impact on Sony. The company receives approximately 74% of its
revenues from these markets. As the economic slump lingers, consumer confidence
remains low and Sony has felt the impact in decreased revenues. Sony leadership has
acknowledged that the downturn exposed weaknesses and vulnerabilities in the firm
that have needed addressing for some time.

Impact of Strong Japanese Yen

Sony is vulnerable to fluctuations in foreign currency exchange rates and exposed to

fluctuations in the value of the Japanese yen, the US dollar and the Euro. Recently,
the Japanese Yen appreciated significantly against the US dollar and Euro. A
stronger yen makes Sonys products appear expensive in comparison and cuts into

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the value of overseas earnings. The firm acknowledges the need to implements
effective hedging strategies to counter foreign exchange translation effects.

The Impact of the Black Market

Smuggled goods and counterfeit products have really plagued the electronics
manufacturing industry in recent times. Counterfeit goods are projected to double to
18% of total world trade by 2010. In addition, Chinas growing share of electronics
production represents an increase in the number of potential counterfeit products in
the market. These knockoffs, although cheaper and of less quality still the potential
to divert revenues from Sony.

The Impact of Compliance Regulations

Environmental, health and safety compliance laws which impact Sony operations
and production may be burdensome and have a negative impact on profits. To
maintain compliance the firm must incur capital and other expenditures. Potential
expenditures related to regulations are not limited to compliance, but may also be
felt in fines and penalties in the wake of non-compliance.

Weaknesses

Downward Trending Revenues

Four major Sony division experienced revenue losses in 2009, specifically

Electronics down 17%, Games down 18%, Pictures down 16.4% and Financial
Services down 7.4%. In the U.S Revenues were down 15.4 %, while revenues in
Japan fell 15.2%.

Poor Proximity of Production to Customers

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Sonys production facilities are located far from its customer base. Approximately
60% of the annual production in Japan must be distributed to for other regions. In
FY2009, the group produced 50% of the electronics segments total annual
production in Japan.

Substantial Retirement Benefit Commitments

The unfunded status of the pension liabilities (approximately $3.6 billion) increased
at a rate of 62% over 2008. Sizeable unfunded post retirement benefits would force
the company to make periodic cash contributions, diverting money away from
production related uses.

Opportunities

Joint Ventures and Strategic Acquisitions

Sony benefits from the flexibility to enter into key join ventures and execute key
corporate acquisitions. For example, established a joint venture project with Sharp to
produce and sell large-sized LCD panels and modules. Another example includes its
alliance with Taiwans Hon Hai Precision Industry for the production of LCD TVs.
Among recent acquisitions are the purchase of a TFT liquid crystal display (LCD)
business from Epson Imaging Devices and Convergent Media Systems, which
makes video integration solutions for the enterprise market.

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 9. Sonys Marketing Strategies
. Sony Target Market

1. Demographics
Sony is a diverse brand that provides products and services for a wide variety of
people.

Sony will focus on expanding their segments in the women's market.

Women make up over half the sales in consumer electronics and influence over 80%
of purchases.

Sony Differentiation
Quality:
Sony strives on innovative products that are easy for consumers to use.

Market Leader:
Sony is the market leader in electronics. In particular Sony is the number one leader
in television market share.

Sony Positioning:

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Sony is one of the world's greatest brands in the eye of the consumer. Sony products
are considered to be high quality, unique, and convenient. Mainstream culture has
embraced Sony's innovation.

Sony Promotional Strategies

Company's pricing Strategy

Sony TV's pricing strategy follows market-skimming, product line pricing and
product bundle pricing. The price range of Sony TVs starts from $400 to more than
$20,000. Sony starts with high prices to sell its new TVs and then gradually lowers
price. Sony sets different levels of prices for Televisions with different features.

Factors affecting Pricing Strategy

Different factors affect pricing policy of Sony i.e.; internal and external. Sony use
skimming price strategy for its high priced high quality products, and maintains its
high prices, rather than following strategy of lowering its prices over time to skim
successive market segments.

Internal factors:
Marketing objectives, Marketing mix strategy, cost and organization goals.

External factors:
Nature and demand of market, competition and some other aspects. The nature and
demand of market comes for demand for new TVs and LCD or HD TVs. As
competition drives the pricing, and Sony is always in competition to offer best
innovative quality products, the company of firsts, Sony website. These entire
factors drive the high price for Sony quality products.

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Discounts
Discounts are based on a corporate decision or the store that runs a sales promotion
on the Sony Discounts are offered sometimes during the peak seasons like
Christmas, Sports seasons, and seasonal discounts are provided as well. When
competition is heavily involved, such as around Black Friday, Christmas, etc., these
promotional discounts are a "steal."

Recent offers are:

Reward points on shopping, 5 Sony reward points per $1 spent at SonyStyle.net and
Sony Style Stores

Offer a $ 50 Card credit after purchase of $ 249 or more

Offers reward points, more savings, and prizes, free music downloads more savings,
more prizes and more fun with Sony Card. Get instant approval and a $50 card credit
after your first qualifying purchase of $249 or more1.

Sony offers financing services partnering with GE Money, the financing ranges from
6 months to 36 months

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Save big on selected BRAVIA EX700 series HDTVs; get free BDV-E5705.1Channel
Blu-ray Disc.

No interest and no payments for 24 months if the customer applies for the new Sony
Financial Services Card at point of purchase.

Save up to $360 when they bundle the BRAVIA XBR9 series LCD HDTV with the
new BDP-S360 Blu-ray Disc Player ($299.99 retail

$360 for the 55", $300 for the 46", $280 for the 40"

Promotion
This section describes the different sales promotions offered by Sony.

Advertising:
Sony Electronics advertises through direct mail, TV advertisements, newspapers,
magazines i.e.: Business week, Times, Wall-Mart, Best Buy, Target, and leading
news papers worldwide.

Customer relationship management (CRM):

Sony is strong believer in communication with customers through personal
interaction. Market research and marketing strategy is based on feedback from
customers. Sony provides opportunity to its customers to send feedback about the
products they purchased. Sony offers instruction manuals on all products. Marketing
is not an event but an ongoing process, Sony uses customer feedback to improve
their products. Sony welcomes complains, suggestions and ideas from customers and
all the information received through feedback is sent to planning and design group.

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Public relations:
PR department of Sony Corporation works directly with the executive team to create
strong relationship with public. This creates people to be more customers based and
involved with customers and their interest, likes dislikes and needs.

Web marketing:
Web marketing is the most dominate feature of Sony. It offers different Videos and
pdf brochures to help customers understand their business and products. There is
Sony a reward program which offers credit card and opportunities to win prizes and
save on Sony products, participates in entertainment games and earns additional
points, (Sony Rewards, 2009).

Place/Location
Geographically, Sony produces and distributes to places all over the world.

E- Business:
Sony's objective is to construct strong customer relationship marketing and direct
communication with their customers. To achieve this target Sony has incorporated e-
business.

Today Sony communicates with its customers, individuals, resellers, and corporate
customers through the internet. This technology has created an open communication
line between customers and stores, stores and corporate and also between stores and
suppliers.

Sony is looking forward to capturing the voices of every customer for better
customer satisfaction and effective communicate with them.

On the corporate level, Sony uses the internet to keep track of all its stores and their
performance.

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Customers can go on Sony website online and do anything from information on
products to purchasing or products and downloading drivers for Sony products.

Resell stores have access to corporate entities through email and Sony's website
where they can upload information on their financial situation and also compare sell
of different items.

Building Customer Relationship:

Marketers at Sony corporation have found a new way to with customers, i.e.: online
courses to enhance customer's total Sony experience. The online tutorials provide
courses to online visitors in personal computing, home entertainment, digital
photography and business solutions.

The result of online tutorials had been outstanding; Sony has received more than
90% rating from its customers. Those who attend the course were more likely to buy
the products as compared to those who have never attended course.

Sony E- Commerce program

Sony Electronic started an e-Commerce program to create a customizable world
class internet platform for direct sales of electronic and its solutions.

The project's focus was to increase direct sales in new and established markets and
establish the customer relationship at all points of the customer life cycle. Markets,
Business-business (B2B), and business- consumer (B2C) was targeted.

With this e-Commerce program Sony Electronics got new direction and 60% of their
direct sales are online. With the help this program Sony Electronics reacted into new
segments in a number of markets from small to large business, governments, and
education.

The credit of the success of this program goes to Catapult System that helped Sony
Corporation to complete this very important goal in efficient and timely manner. The

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success of this program allows Sony to move with great confidence in e-Commerce
solution that fully meets with technical requirements of company

10. Assessment of Sony's marketing strategy

A) Information in marketing strategy
Sony has succeeded in proving value information to its customers through tutorial,
pdf documents download, vide steams and through e-support to the customers who
buy Sony products.

Sony's online course has been valuable source of formation regarding technology
and its use.

Sony is also active in participating community awareness through its different social
programs.

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With the support of e-business and effective management of CRM, Sony have
provided valuable information and has received constructive feedback from its
customers.

B) Sony defines business strategy for year 2010

Sony has been leader in innovative quality products and by the end of this year Sony
will launch 3D Television. Sony has reformed its organizational structured as desired
in 2009. The aim for 2010 is to bolster profitability and transform its operation s
with the aim of accelerating innovation and growth and optimize business process in
electronics. Sony achieved 80% of its targeted 330 Billion Yen (3.7 billion $) cost
reduction for past fiscal year ending March, 2010. Sony is positioned to launch
succession of competitive products by the end of 2010.

Sony will focus on use experience rather than developing products on underlying
technologies.

For further growth and to enhance profitability, Sony is implementing further

transforming measures on following four initiatives.

Target profitability in core hardware business i.e.: TV, games, digital imaging

Provide new use experiences in innovation of services and hardware

Reach out new customers and develop new geographic markets

Increase focus on environmentally conscious products and processes

Green management 2015 will come into effect in fiscal year 20100 and Sony will
disclose its progress periodically.

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Sony target an annual 5% operating income margin and 10% return on equity by the
end of fiscal year end ding March, 2010.

C) Global context in marketing strategy

Sony's Global Strategies

The vision of globalization is traced back when Mr. Morita travelled to US with the
intention to expand his business to US market. Sony, in 1958, developed pocket
radio "Sony" after acquiring licensing right of patent from AT & T .The Sony Radio
became the first model that was distributed both in Japan and US markets. After that
company established Sony Corporation of America an opened Sony showroom in
New York City. This can be considered as Sony's first move in doing global strategy.
Presently, Sony is world's most recognized Brand (Richard A, 2002). Sony develops
the global strategies from its core strategic advantages, which are innovation. By
virtue of this core strategic advantages Sony adopted it as their global strategy by
supplying innovative quality products to global market.

The innovative products are Walkman (personal stereo headphone) DVD Player,
Video camera, Trinitron televisions, play stations. All such products became more
and more recognized worldwide including Japans, Europe, US and Other Asian
countries.

Sony first started its show room s in New York and then in UK, Switzerland,
Netherlands, France, and worldwide.

Other global strategies that enable Sony to progress in global competitions are the
choice of the location, global marketing and competitive move. Innovative quality
products, strand brand and worldwide presence have made Sony a truly global
company.

Global context in Sony's marketing strategy: Sony offers same products in different
countries to serve the similar needs of worldwide consumers. This successful
strategy has derived from the strengths of Sony over competitors in terms of

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anticipating hidden consumer needs such as Walkman served worldwide consumers
for entertainment. This puts the Sony one step ahead over their competitors. As a
consequence of global availability and serviceability of Sony, it has global
recognition, which enable Sony to be familiar in every country and as a result
customers feel more comfortable.

11. Sony Marketing Mix

Four years later the company developed and produced Japans first magnetite-
coated, paper-based recording tape, called Soni-Tape. In 1955, the firm began using
Sony logo on Totsuko products. The group also launched Japans first transistor
radio, the TR-55, during the same time. In 1958, the group changed its name to
Sony.

Today Sony has developed TransferJet, a proximity wireless transfer technology

enabling the high speed transfer of large data files between electronic devices such
as mobile phones, digital cameras, YVs, digital video cameras, computers and the
company recorded revenues of JPY7,730 billion ($77.3 billion) during the financial
year ended March 2009.

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 Product

Audio Home, portable and car as well as personal navigation systems

Video Video cameras, digital cameras, DVD/Video players & recorders
Televisions LCD televisions, Projection televisions CRT-based televisions
Information and computers personal computers, printers
Semiconductors- LCD, CCD, and other types of semiconductors
Games PlayStation
Television and motion pictures
The company offers a Sony Card and a PlayStation card, these are rewards cards
credit cards which allows customers to earn redeemable points when they purchase
Sony products and services

Price

HVRA1U C-MOS 1080i HDV Camcorder Broadcast & Promotion- U.S. List price -
$2,750.00.
XCL5005 5 Mega Pixel PoCL B/W Digital Video Camera- Industrial & Professional
U.S. List price $4,377.00.
Total Performance Projector VPLDX10-2500 Lm 3LCD XGA Mobile Projector-U.S.
List Price $1,410.00.
Medical Equipment Monitors & Displays GXDL52H1 52inch Full Hd Ruggedized
LCD-U.S. Listed Price $5,700.00.
Security Systems SNCCH140 Network 720p HD Fixed Camera with View-DR
Technology U.S. List price $1,298.00.

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 Video Conference Devices PCSG70S 4 Mbps High-End Video Communication
System (Codec Only) U.S. List price $8,200.00

Place

Sony has an online presence in several formats, for

examplehttp://pro.sony.com/bbsc/home.do provides information on products and
their prices. The site also has information on corporate applications for its offerings.
Sony Product distributors that sell selling to VARs + System Integrators include: ASI
Corp, Avnet Inc. and Bell Microproducts, Microland Electronics Corp.
Wholesale distributors of Sony Products include but are not limited to : Best
wholesale co. Ltd, Dongsheng International Trade Co. Ltd, Denzuke Network Sdn.
Bhd., Front-Page Trade Co., Ltd.

Promotion

The company offers a Sony Card and a PlayStation Card, these are rewards cards
credit cards which allows customers to earn redeemable points when they purchase
Sony products and services.
Sony implements a discount coupon program offering 25% to 50% discounts on
products such as PC speakers, Blue-Ray Disc Players, notebooks and laptops.
Sonys Rebate Zone website provides rebates such as the following $500.00 rebate
(by mai)l following the purchase of a Sony HVR-V1U HDV Camcorder or a Sony
HVR-DR60 Hard Disk Recorder/Player or a $300.00 rebate by mail following the
purchase of a Sony HVR-A1U HDV Camcorder.

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 Process

Sony employs an umbrella branding strategy by placing the product name along with
corporate name. This strategy lets the product to assume its own identity and
positioning, but also draws strength of the corporate brand. The goal is to bolster
consumer confidence in the product. Sony has used this strategy to launch new
products.
The companys focus on its research and development (R&D) activities is evident in
its expenditure of over $5 billion in 2009. The strong focus on R&D helped the
company to launch technologically innovative products in the market. The strong
focus on R&D would thus enable the group to revive its product base as needs are
indicated by customers. Examples of this strategy include the introduction of
BRAVIA, ZX1, a thin, lightest LCD TV featuring LED edge lighting; The VAIO P
Series notebook computer (the worlds lightest 8-inch notebook PC) and the Cyber-
shot HX1 compact digital camera (which allows users to capture wide-angle of 224
degrees views).
Sony operates from a philosophy it labels uniquely Sony. The company seeks to
facilitate the development of its staff but spurs employees to manage their own
career and but to avoid pigeon-holing. This is a microcosm of the companys desire
to foster adaptability. The companys broad outlook extends to its corporate
responsibility.
The desire to make its hardware and interfaces that are easy to use was a catalyst
behind recent reorganization of electronics into Personal and Home categories.
The company has reaffirmed its commitment to make the Home category more
user-friendly.
Sony has adopted a Company of Committees governance system in order to go
beyond minimum compliance with legal requirements and to add additional
transparency. To accomplish this, the company has revised some Directors functions
to facilitate the proper functions of statutory committees.
Sony has a recently reorganized in order to further improve responsiveness and
customer service. It has established a network of services tailored to the needs of
local customers. The move acknowledges the growing complexity of its products.
The company formed Sony Customer Services, Inc and has intiated special

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 employee training to enhance its ability to respond to customers inquiries and
requests.
Sony seeks to instill corporate social responsibility policies throughout its supply
chain. For example Sony established the Green Partner Environmental Quality
Approval Program for Sony suppliers. Sony maintains a common global quality
standard for parts by purchasing electronic parts only from suppliers who have
passed an audit and have been certified as Green Partners.

Physical Evidence

Sony Corporation Headquarters is located at 1-7-1 Konan, Minato-ku Tokyo

Other locations of subsidiaries include Sony Corp of America at 550 Madison Avenue
in New York, Sony Electronics of Latin America 5201 Blue Lagoon Dr Suite 300,
Miami Florida, and Sony Electronics 12451 Gateway Dr, Fort Myers
Florida
In 1994 Sony opened its Wonder Technology Lab which is a free interactive
technology and entertainment museum located at 56th street and Madison Avenue in
New York City. The Museum is open to all ages.
Sony Plaza at 56th Street and Madison Avenue in New York City. The company
compliments the facility with a website at http://wondertechlab.sony.com/index.html
Sonys main company website provides helpful information ranging from service and
support, music, electronics and gaming as well as a range of shopping alternatives.

People

Howard Stringer is Chairman, CEO and President of Sony

Hiroshi Yoshio is Executive Deputy President of Consumer Products & Devices
Group (NPSG).
Kazuo Hirai is Executive Vice President of Networked Products & Services Group
Sony employs 167,900 people world wide
Sony has an ongoing talent development initiative . In 2008, the company created 13
global talent directors who are assigned to identify promising individuals in all
businesses and regions and develop them into future business leaders. This initiative

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also includes a job rotation project with individuals moving through a schedule of
job assignments designed to give them exposure to a variety of businesses and
regions.

Here's Sony's business strategy

A pair of 3D glasses is displayed in front of Sony Corp's new 3D Bravia televisions
during an unveiling in Tokyo March 9, 2010.
Sony revealed a new business strategy that is ambitiously targeting an operating
profit of at least $4.3 billion in the company's 2017 fiscal year (ending March 31st
2018).

This is a huge leap from the 20bn operating profit predicted for the current year,
ending March 31st. Indeed, the company still expects to register its sixth net loss in

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seven years during the present period, albeit by a smaller amount than it previously
anticipated. Sony said it will use a goal of 10% return on equity (ROE) as the main
indicator by which it will measure its profit target.

Fewer products

The Japanese electronics firm believes the key to selling its profit and ROE base is
to focus on a narrower band of products. Primarily, Sony has said it will no longer
look to pursue growth in business areas where intense competition puts it at a
disadvantage. Smartphones are one such example, and the company has struggled to
compete with Samsung and Apple, as well as budget smartphone manufacturers such
as Huawei and Xiaomi.

Although Sony will still make smartphones and TVs, it will not "rule out considering
an exit strategy" in these areas. A possible spinoff or partnership for these divisions
seems likely. The strategy will therefore see Sony shift to more profitable business
areas, such as camera sensors, videogames and entertainment products.

Three businesses

Sony's CEO, Kazuo Hirai, has divided up the company into three sectors. The
potentially profitable business areas have been categorised as the company's
"Growth Drivers". This covers Devices, Game & Network Services, Pictures, and
Music. Sony will employ aggressive capital investment in these areas, with the aim
of achieving sales growth and profit expansion. There will be increased investment
in image sensors, as well as enhanced R&D in the area, expanding their applications
in everything from smartphones to medical treatment.

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Meanwhile, Sony will work to expand the installed user base of the PlayStation
platform. In Pictures, Sony will focus on increasing its audience, and for Music it
will centre growth on burgeoning areas such as the streaming music market.

Next comes the "Stable Profit Generators" sector. Here, Sony will prioritise the
generation of steady profit and positive cash flow for Imaging Products & Solutions,
and Video & Sound. By capitalising on its existing technological expertise in these
areas (rather than engaging in large-scale investment), and by optimising fixed costs
and enhancing inventory control, Sony will target a profit maximisation and return
on investment.

Lastly, the laggards are those areas focusing on "Volatility Management"; namely
TV and Mobile Communications. These businesses operate in markets characterised
by high volatility and challenging competitive landscapes. By carefully selecting the
territories and product areas it targets, Sony will seek to limit its capital investment
and establish a business structure capable of securing stable profits. To achieve
stability, the company is aiming to spin off its Video and Sound business unit in
October 2015, establishing it as a wholly-owned subsidiary. Sony says it will also
explore potential alliances with other companies.

An achievable goal

Sony's optimistic profit target belies the tumult that the company has suffered in
recent years. Indeed, even now it is still restructuring, selling off its PC division and
spinning off its TV business, as well as cutting thousands of jobs. However, many in
the technology industry have praised Sony's trajectory over the past year, which has
seen its share value increase by over 80%. This growth has been partly attributed
both to the recent appointment of Kazuo Hirai to company CEO, and to the
appointment of Kenichiro Yoshida as his Chief Strategy Officer in late 2013.

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As this announcement suggests, the pair are likely to continue to aggressively pursue
restructuring over the short to medium term. During Mr Hirai's recent strategy
presentation, he placed particular emphasis on profitability over volume, securing
business unit autonomy with a focus on shareholder value and providing a clearer
definition of each business unit's position within Sony's overall business.

13.OBSERVATION
The new millennium is here and Sony has plenty to celebrate. The company's
approach - doing what others don't - has paid off, in the form of great products that
people covet.

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Throughout its history, Sony has demonstrated an ability to capture the imagination
and enhance people's lives. The company has been at the cutting edge of technology
for more than 50 years, positively impacting the way we live. Further, few
companies are as well positioned to drive the digital age into homes and businesses
around the world for the next 50 years and beyond.

Sony innovations have become part of mainstream culture, including: the first
magnetic tape and tape recorder in 1950; the transistor radio in 1955; the world's
first all-transistor TV set in 1960; the world's first color video cassette recorder in
1971; the Walkman personal stereo in 1979; the Compact Disc (CD) in 1982; the
first 8mm camcorder in 1985; the MiniDisc (MD) player in 1992; the PlayStation
game system in 1995; Digital Mavica camera in 1997; Digital Versatile Disc (DVD)
player in 1998; and the Network Walkman digital music player in 1999.

Today, Sony continues to fuel industry growth with the sales of innovative Sony
products, as well as with the company's convergence strategy. Examples include:
VAIO notebooks that raise the bar in both form and function; digital cameras that
capture pictures on a floppy disk, CD-R or Memory Stick; a handheld device that
lets you store and view photos as well as moving photo; MiniDisc recorders with a
digital PC Link to marry high quality digital audio with downloadable music;
DVD/CD multi-disc changers that playback both audio and video; digital network
recorders that pause, rewind and fast-forward "live" television using a hard-disc
drive; and Hi-Scan flat screen TVs that deliver near HDTV picture quality through
Digital Reality Creation (DRC) circuitry.

But Sony is not just the market leader in consumer electronics.

Through research and development, the company has made considerable inroads in
the areas of professional broadcasting (with the creation of the Betacam, DVCAM,

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HDCAM and 24P formats); mobile communications (with digital phones and the
CLIE handheld); PCs (with VAIO notebook and desktop computers); storage and
media (with the invention of the floppy disk, AIT and DTF drives, and the Memory
Stick) and, now, the Internet.

Sony's future brand success will be determined by how the company meets the
challenges of change. Sony has always led the market in terms of innovation. But in
a digital networked world, products will no longer be developed with just hardware
in mind. The convergence of technologies - consumer electronics, computing and
telecommunications - is a reality, with new competitors forming and consumer
mindshare up for grabs.

14. STRATEGIC RECOMMENDATIONS

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Based on the analysis, the most significant challenges for Sony are competition and
macro-risks, including currency, disaster, and economic downturn. In this section,
we propose strategic recommendations for Sony.

The first aim is to develop Sonys competitive advantage.

The second recommendation is to maintain Sonys reputation and control lawsuit

damages.

CONCLUSION
Since their foundation in 1946 as a telecommunication company, Sony has
successfully expanded into various business segments, including Electronics, Game,

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Pictures, Music, and Financial Services. While the variety of segments has increased
Sonys recognition and diversified their product lines, it has also scattered Sonys
resources, such as R&D, marketing, and customer service into unrelated areas.
Facing highly specialized competitors within each segment, Sony has not been able
to establish their competitive advantage in any segment. Therefore, we propose that
Sony find a segment focus and restructure the company around the focused segment.
Sony will benefit from this restructuring because it allows the company to apply
most of their resources in the most productive segment. The least profitable
segments will either be shut down or integrated into the main segment. The
restructuring will also propel the company to develop a proprietary product
collection, or rather, an exclusive group of Sony hardware and software products that
are to be used together, much like the current Apple products. The main segment will
be the centerpiece of that collection. Sony will then have an advantage over their
competitors because no other firms have comparable experience in the variety of
segments in which Sony currently operates. Moreover, the restructuring will be a
strong signal to the market, hopefully reversing the current downward trend in
consumer and investor confidence. The focused segment should have the certain
features. It has to be currently one of the main segments, namely either the
Consumer, Professional & Devices segment or the Networked Products & Services
segment. It should also have the potential to integrate most of the remaining
segments so that Sony can leverage most of their current resources. Competition
should be moderate in this market segment.

BIBLIOGRAPHY
Name of author: Philip Kotler

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Name of book: Marketing Management- A South Asian Perspective

Name of Publisher: Pearson Education

Edition: 13th

Year of edition: 2009

Name of author: Ramaswamy Namakumari

Name of book: Marketing Management- Indian Context Global Perspective

Name of Publisher: McGraw Hill Education Private Ltd New Delhi

Edition: 5th

Year of edition: 2013

WEBLIOGRAPHY
Sony Global Corporate History,
http://www.sony.net/SonyInfo/CorporateInfo/History/history.html#list6

http://www.sony.co.in/article/211980/section/sonycompanyoutline

http://www.sony.co.in/

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