A Marketing Plan On

Energy Saving & Eco Friendly

SONY BRAVIA

Submitted to- Submitted by-

Dr. Md. Kamal Uddin Course Instructor EMBA Program Department of International Business Faculty of Business Studies University of Dhaka Date of Submission: 4th August, 2010

Dr. Md. Kamal Uddin

Associate Professor

Department of International Business

Faculty of Business Studies

University of Dhaka

Faisal Bin Alam ID-80116018

Razaul Karim ID-80116010

Tanvir Mahamud ID-80116008

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4th august, 2010

Dr. Md. Kamal Uddin Course Instructor EMBA Program Department of International Business Faculty of Business Studies University of Dhaka Subject: Submission of Assignment. Dear sir, With due respect We would like convey to your knowledge that as per our EMBA Program, we have prepared our assignment under mentioned topics. Now we like to submit it to you. We have tried our level best to prepare the paper in consistence with the optimal standard under your valuable direction. We request you modestly to accept our paper as it may suffer from some shortcomings. Therefore, We hope that this will meet the standard of your judgment. Thanking you for your kind supervision Sincerely yours

Faisal Bin Alam ID-80116018

Razaul Karim ID-80116010

Tanvir Mahamud ID-80116008

Department of International Business EMBA Program University of Dhaka

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ACKNOWLEDGEMENT

We are deeply indebted to prepare the term paper of Principles of Marketing on

“Preparing a Marketing Plan: A perspective of Sony Bravia 3D HDTV ” topic.

We would like to mention our gratitude to honorable Course Coordinator, Dr. Md. Kamal

Uddin, Course Coordinator, EMBA Program, Department of International Business,

University of Dhaka, for letting me to prepare this paper.

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Table of Content

Executive Summary Page-5

Company Profile Page-5 Origin of Sony Page-6

Vision Page-6

Mission Page-6

Category of Products Page-7

Current Marketing Situation Page-7

Market Description Page-8

Target customer Page-8

Segment Customer Page-9

Product Features Page-9

Competitive Review Page-13

Channels & Logistic Review Page-13

SWOT Analysis Page-15

Strength Page-15

Weakness Page-16

Opportunity Page-16

Threat Page-16

Marketing Objective Page-17

Marketing Strategy Page-18

Positioning Page-18

Product Page-19

Price Page-19

Place Page-19

Promotion & Advertising Page-20

Conclusion Page-21

Bibliography Page-22

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Executive Summary

World renowned company, Sonyʼs television business is uniquely positioned to thrive in today's consumer electronics marketplace. Other manufacturers have accepted the commodification of their wares, focusing on price points and generic television advertising strategies. The introduction of 3D in their eyes is another gimmick for pitching technological superiority. We propose that Sony takes advantage of this miscalculation and grabs a significant lead in consumer mental space by focusing on consumer enthusiasm generated by experiencing the immersive world of 3D.

Sony is the only company in the space that can create a complete 3D environment using solely its own equipment and content. That is its largest competitive advantage and needs to be leveraged to the maximum when communicating the value proposition. This needs to be done on a mass scale, with publicity and public excitement.

Company Profile

Sony Corporation (Sony), founded in 1946, is the fifth largest media conglomerate & world's second-largest consumer electronics maker after Samsung. Its diversified operations are spread across electronics, games, entertainment, and financial services categories. The company operates globally in over 200 counties across Japan, North America, Europe, and Asian countries. The company's current slogan is “Make.Believe’’

Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its seven operating segments – Consumer Products & Services Group, Professional & Device Solutions Group, Pictures, Music, Financial Services, Sony Ericsson and All Other.

Over the years, the group has established a strong brand image in global markets, which increases its bargaining power and makes its entry into new product segments easier. Sonyʼs Brands include: BRAVIA®, Vaio®, Cyber-Shot®, and PlayStation®.

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Origin of Sony:

Behind the phenomenal success of Sony are two men. Masaru Ibuka was an engineer and Akio Morita a physicist when they decided to create a company repairing and building electrical equipment. On May 7, 1946, Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as Totsuko, was established in Tokyo.

Masaru Ibuka and Akio Morita, the founders of Sony

Sony name was created by combining "SONUS," the original Latin for "SONIC," meaning sound, with "SONNY," denoting small size, or a youthful boy. It was chosen for its simple pronunciation that is the same in any language.

Vision

To create exciting new digital entertainment experiences for consumers by bringing together cutting-edge products with latest generation content and services.

Mission

Sony is committed to developing a wide range of innovative products and multimedia services that challenge the way consumers access and enjoy digital entertainment. By ensuring synergy between businesses within the organisation, Sony is constantly striving to create exciting new worlds of entertainment that can be experienced on a variety of different products.

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Category of Products:

TV & Home cinema

Cameras & Cam-corders

Vaio & Computing

Portable Audio

Reader e-book

Home Audio

Playstation

Memory discs& Batteries

Car Entertainment.

Accessory Finder

Current Marketing Situation:

Sony has an immense brand image worldwide through high level of customer satisfaction over the years. Over the decades, Sony has been very successful to understand customers’ needs, wants & demands. That’s the reason for the company’s enormous achievement, what Sony stands at present. With a satisfactory market growth & relative market share, company has been working on product development, market development, new product & product diversification constantly.

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LCD TV has been very popular within a short range of time & growing it’s demand very rapidly. It’s already a very popular device in USA, UK, Australia, Asia pacific region even in South-east Asia. It also has a growing demand in Bangladesh.

Market Description:

BRAVIA® is the brand Sony uses to market its high-definition LCD televisions, projection TVs and front projectors, along with its home cinema range under the sub-brand BRAVIA® Theatre. The BRAVIA® name is an acronym of "Best Resolution Audio Visual Integrated Architecture". All Sony high-definition flat-panel LCD televisions in North America have carried the BRAVIA® logo since 2005. The BRAVIA® brand uses the slogan "Color like no other."

3D TV is a generic term for a display technology that lets home viewers experience TV programs, movies, games, and other video content in a stereoscopic effect. It adds the illusion of a third dimension, depth, to current TV and HDTV display technology, which is typically limited to only height and width ("2D"). To get true 3D content, you will also need 3D glasses, access to 3D broadcast programming and/or a 3D Blu-ray disc player, and 3D movies.

Sony plans to offer a comprehensive range of 3D home entertainment content to appeal to the widest possible audience.

Target Customer:

Our qualitative research supports an initial target, for an ideal customer, as a 25-35 year old innovator male who regularly uses his television to watch films and network programming, possibly gaming. He is technologically savvy, has disposable income and considers himself an innovator when it comes to acquiring the latest devices. He most likely owns a video gaming system and has an above-average home entertainment system. He will likely be unmarried or recently married and may have young children.

A secondary market will be gender non-specific, targeting the age ranges of 35-45. These will be young married couples with children varying in ages but who have a home gaming or home entertainment system in place. These individuals will also be innovators, but with a target adjusted toward family entertainment and educational concerns.

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Segments Customer:

We target two segments: new television purchasers and current Sony product users. 1. Purchasers of 3D Television

In this segment, we assume that the consumer already owns a high definition television. The challenge is to convince the consumer of the benefits to upgrade to a 3D television to maximize the viewing experience. Emphasis will be placed on enhanced viewing capabilities as a “total viewing experience,” focusing on the increased offerings of 3D channels and viewing options that are forthcoming from networks and cable service providers. Sonny’s product would be position as a “total 3D solution” for experiencing enhanced programming, such as sporting events, movies and major entertainment events (such as concerts).

Emphasis will be placed on the enhancement of home computing gaming and educational software that expands the consumer base to include families with children seeking to expand the use of the product beyond simple home entertainment. 2. Existing Users of Sony Products

This segment of individuals is already familiar with Sony branded items and, in most instances, will already be owners of gaming equipment (Playstation) or Sony home theater components, such as Sony Blu-ray disc players. In conjunction with presenting the benefits of 3D television generally, this segment would be targeted specifically to recognize the ease of integration with the Sony product into their existing Sony devices.

Product Features:

High definition display With screen resolutions of up to 1,366 x 768 pixels, both the V- and S-series TV panels will be able to offer High-Definition image quality. Together with the integrated WEGA Engine, the new TVs also promise improved contrast, fast response and wide viewing angle, according to Sony. Enhanced color reproduction Sony claims its Wide Color Gamut Cold Cathode Fluorescent Lamp (WCG-CCFL), available in the top-end V-series panels, is a key feature that will enable the company to stand out from the competition. This enhanced feature is said to reproduce a wider color range, creating deeper and richer green and red gamut’s in LCD TVs for improved picture realism.

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.

Improved surround sound quality To complete the whole home theater experience, the V-series LCD displays will be equipped with Sony's S-Master full digital amplifier, while both the V- and S-series panels will feature SRS TruSurround audio capabilities. This will enable users to enjoy virtual surround sound using just the two onboard speakers. Automatic light sensor Also available in the V- and S-series LCD TVs is the advanced Light Sensor feature which automatically optimizes the picture intensity to the brightness of the surrounding environment. Picture-and-Picture (PAP) The V-series panels will come with two onboard tuners, so you can watch two TV shows side-by-side on the same screen.

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At a glance: few BRAVIA LCD TV

Model Names Price

Article I.

SONY BRAVIA BX3 32 Inch HD LCD TV

38,500 tk

Article II.

SONY BRAVIA™ 32" LCD X-Reality™ Picture Engine

57,000 tk

Sony 40’’ Bravia LED model ex-710

90,000 tk

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Model Names Price

Article III. Sony Bravia bx-420

96,000 tk

Article IV. Sony BRAVIA 3D 40'' NX720 LED TV

1,58,000 tk

Article V. Sony Bravia EX700 52" LED TV

2,19,000 tk

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Competitive Review:

The main three competitors of Sony in 3D TV marketing are-

1. Samsung 2. LG 3. Panasonic

• Samsung has been very aggressive with its 3D campaign as it has positioned itself as the world’s first LED 3DTV. They have launched a major media campaign that depicts the hardware as if it were a work of art, providing an immersive 3D experience that brings people together and enriches their lives. A second follow up campaign focused on showing a family bringing home the “wonder” of 3D entertainment. They also signed up Avatar director James Cameron for a special launch event at Times Square where they displayed their new 3D lineup. Pop group Black Eyed Peas also did a special performance that was shot in 3D. The concert footage would be distributed to new Samsung 3D customers.

• LG’s 3DTV plans include use of Passive 3D technology, which requires significantly cheaper 3D glasses than Active 3D technology that is being utilized by everyone else. This may attract many budget consumers to LG 3D, even though they might compromise on quality. LG’s media campaign is targeted towards the beginning of a new era in TV viewing as it highlights the end of traditional TV. The campaign focuses on the transition of moving from traditional TV to 3DTV.

• Panasonic is using Plasma technology for its choice for delivering 3D. They claim that Plasma TVs delivers a better 3D experience. Panasonic has signed an agreement with Best Buy to display their 3D technology at Best Buy retail stores. They are also offering an exclusive bundle deal at Best Buy stores that features a 50 inch TV and a 3D capable Blu ray player. Panasonic is not offering Internet connected 3DTVs whereas all other companies have models that support the internet.

Channels & Logistic Review:

Sony has a huge distribution network through many channels worldwide. Sony retailer network, which mainly comprises of retailers & distributors wants consumers to have best customer experience.

Rangs Electronics Limited (REL), which is a pioneer in the field of electronics & electrical products in Bangladesh, is the only authorized company for assembling, marketing & distributing all sorts of sony products in Bangladesh.

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Rangs Electronics Distribution centre in Banglades

(blue color indicates uncovered region)

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SWOT Analysis:

STRENGTH

Strong Brand Image

Worldwide Reputation

High Market Share

High Quality Products

High Technology

Pioneer in the Industry as Being Creative and Innovative

Supports R&D Activities

Diversification in Manufacturing Locations Around the World

Ability to Provide High Motivation to Its Employees

Loyal Customers

Only company fully emerged in the 3D value chain: content, distribution and display

High interest level for 3D after success of 3D motion pictures such as Avatar and Alice in Wonderland

Joint ventures with other companies for 3D content

Strong present Eco System via PS3 and Sony Online Network

Special 3D Research facility setup in California

Partnership with ReelD, manufacturers of 3D glasses

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WEAKNESSES

Not enough market data available for 3D preferences

New hardware is required for 3D

Switching from 2D to 3D is expensive

Limited 3D content

Last major company to launch 3D TV

Competitively high price

OPPORTUNITIES

Continuous growth in their sectors.

Increasing demand in technological products around the world

3D Gaming

Academic and Professional applications

Medical Applications

3D TV sport content

3D Advertising content

3D PCs – Vaio

Other 3D consumer electronics- cameras, camcorders, etc

THREATS

Strong competition in the market. PC graphic chip makers can offer the same 3D technology at a lower price

Competitors such as Panasonic, LG and Samsung have already introduced their

3D TVs in the market Newer, better technology could emerge

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Marketing Objective:

Global demand for 3D TVs is projected to reach 15.6 million units in 2013 from an estimated 1.2 million this year. That figure could reach 64 million in 2018, when total revenues are expected to hit $17 billion. The plan’s main objective is to ensure that 3D BRAVIA® models will make up at least 10% of more than 25 million LCD TVs that Sony will sell next year and account for an even larger percentage of revenue. Secondary objective is to restore Sony’s leadership in the television manufacturing marketplace.

In order to achieve the outlined objectives a number of targets need to be hit. The consumer public must come to associate unparalleled quality in 3D entertainment as exclusive to the Sony BRAVIA® brand, thus regaining the sense of prestige that came with owning a Sony television. While the “Made In Japan” tag doesn’t carry the same cache as it did a few decade’s back, the ground can be regained by effectively communicating to the consumer Sonny’s market position as the only start-to-finish 3D Company. The consumer needs to aspire to have a Sony 3D television, Sony Blu-ray disc player, PlayStation 3, and a Sony surround sound system while they consume the 3D content produced and distributed by Sony and made with Sony equipment. That is to say, the consumer must want a total Sony 3D experience. While that is very hard to achieve, the consumer can start getting close to the feeling by purchasing a Sony 3D television and proudly saying, “It’s a Sony!”

The role of retailers is not to be underestimated. Their cooperation with the company’s efforts to position the brand is essential, since a significant portion of consumers’ first direct encounters with the product happen within their stores. Best Buy, among others, should feel naturally inclined to showcase the Sony home theater experience in the best light possible to be in line with consumers expectations created by the plans campaign.

The plans metrics will involve a before evaluation of the consumer mental space as it relates generally to the brand of Sony 3D and especially to the Sony BRAVIA® 3D HDTV product. After the implementation, regular updates will be made. Retail order response and qualitative feedback will be another important measure of the plans success.

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Marketing Strategy:

Sony’s marketing strategy is based on Societal Marketing Concept.

Positioning:

Sony has a unique, distinctive position in the eye of the consumer. Sony products are considered to be high quality. Sony Bravia added a new dimension in that.

Lowers electricity bills :

Energy Saving:

Eco-friendly:

World’s 1st micro tubular hot cathode flurescent lamp (HCFL) reduces power consumptions by more than 50% compared to any other LCD TV or even those from sony.

A new energy saving switch allows users to draw virtually no power where other LCD draw a small amount of power even in stand by or when switched off

Most Bravia models from 2009 carry the ‘flower’ label, which is a EU certified eco-label for environment friendly products. All new bravia models are awarded ‘Flower’ Eco-label.

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PRODUCT

BRAVIA® 3D HDTVs are to be positioned as luxury electronics. Their high quality is communicated by an elegant design and flawless attention to detail. The current line up has 3 series (the LX900, HX900, and HX800) that come in 6 sizes (40”, 42”, 46”, 50”, 52”, and 60”), for a total of 8 different SKUs. Our belief is that there should be one model in small, medium and large sizes, sandwiching the most popular size of 46”.

Furthermore, when considering product life cycle, Sony BRAVIA® 3D HDTVʼs can be broken down into three curves: Sony company brand, BRAVIA® brand, and 3D televisions as product. Sony is unquestionably the market leader in terms of verticals.

PRICE

Current pricing strategy has Sony 3D HDTVs wedged somewhere between that of Samsung and Panasonic. Sony’s pricing is considerably higher and rightfully so. When the 3 model approach is implemented, it will become easier to communicate the value through the price, price in itself becoming an uncompromising sign of the products quality.

LX900 Series: 40” - $3,200, 42” - $3,900, 50” - $4,800, 60” - $6,500 HX900 Series: 46” - $4,350, 52” - $5,250 HX800 Series: 40” - $2,450, 46” - $3,100 In Bangladesh there is a wide range of Sony Bravia of different models & variety, price ranges from 22,000- 3,60,000 tk (approximately at present) PLACE

Consumers may purchase the product at their nearest high-end electronics store or consumer chain, through an online retailer, or directly from Sony Style, Sony’s online store. It is important to draw retailers to the prestige of carrying Sony BRAVIA® televisions and in no way subsidize the in-store product demonstration. One of the plans goals is to make the Sony 3D Experience valued by the consumer, hence stores that include a new Sony 3D Experience home theater room can expect to see increased foot traffic.

In Bangladesh, Rangs Electronics Limited is the sole assembler, marketer & distributor of Sony products.

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PROMOTION & ADVERTISING "

The promotional plan outlined in the following pages is at the heart of the proposed marketing mix. Sony has concluded that the real consumer value proposition is in the wonder and an awe that is produced by experiencing 3D content on 3D Sony equipment. The consumer is less and less concerned with the technological specifications, because they expect them to be the best quality possible.

Sony plans 3D Experience to the consumer directly, regardless of their demographics.With these considerations, it propose a nationwide, promotion centered strategy structured around a mobile campaign to showcase the 3D Sony Experience in a home theater environment. It is a logistical challenge, and at the plan's core lies the ability to successfully coordinate and manage several promotional companies. The working name for the initiative is “Sony 3DWORLD.”

Using PromoAid it designed a portfolio of promotional companies to employ in this campaign. Coordination, quality control, and effectiveness monitoring will stay in the hands of our team.

TOUR – On Board Entertainment (Sausalito, CA) “At OBE, the goal of Mobile Marketing is simple: we bring the message to the consumer. In mobile events, it lets the brand message come to life organically and take root through questions, one-on-one interaction and true branded experience. INTERNET/SOCIAL NETWORKS - Brandmovers (Atlanta, GA) “Brandmovers specializes in Online Games, Contests, Sweepstakes, Reward Solutions, Facebook Apps and mobile promotions that deliver measurable results. Major brands turn to

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IN-STORE/RETAIL ADVERTISING – Reatil advertising deliver over 10 billion media impressions annually. Valassis is the nation’s leading marketing services company, MARKET RESEARCH - BG Key Analytics (Dobbs Ferry, NY) “Bg Key Analytics' small team members are experienced researchers with different areas of expertise, including Project design, execution and reporting, Data analytics and processing, Coding of verbatims for pen ended questions” MOBILE - 5th Finger (San Francisco, CA) “A creative mobile agency that formulates strategies and designs engaging interactions for consumers living on the go.” NATIONAL/LOCAL ADVERTISING and PR - Ogilvy & Mather (New York, NY) Following Oglivyʼs commendable performance in Vietnam we propose to continue working with the firm for this project

Conclusion:

In year 2009, Sales & operating revenue in the electronics business of Sony decreased 17% 5488 billion yen. Business recorded a 168.1 billion yen operating loss. The devastating earthquake has a major impact for that. But good news is, sales for Sony Bravia LCD televisions increased sharply & leading the sector at present.

It is expected that the marketing strategy, marketing mix with all it’s tools working effectively, the promotional plan will help Sony acquire key territory in the consumer mental space, regaining the associated prestige with owning the brand, “Itʼs a Sony!” Most importantly, eco-friendly, energy saving technology will certainly help to boost again. In a bold stroke Sony will introduce 3D to the population by bringing it to their doorsteps and will effectively communicate not only the benefit of 3D, but most importantly the benefit of owning a Sony BRAVIA® 3D HDTV.

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Bibliography:

www.wikipedia.org www.sony.net www.sony.com www.sony.co.uk/hub/eco www.sony.co.uk/article/id/1234253950778 www.clickbd.com/bangladesh/268710-new-sony-bravia-sale-for-lowest-

price.html www.velki.com/market/catAds.asp?cat_id=26 http://electronicsfurnitureinfo.com/new/sony-bravia-tv-price-in-bangladesh www.rangs.org/about.html