Case study – 9/04/10

DUTTA Avik
GALLO Noémie
GATEL Sébastien
SINGH Sunil
PROBLEMATIC

ìHOW A SUCCESSFUL WORLDWIDE COMPANY

COULD HAVE KNOWN SUCH A FAILURE ?

ìHOW COULD MARKETING DECISIONS

INFLUENCE THE RECOVERY OF THE BRAND
IMAGE ?
TABLE OF CONTENT

 SONY overview

 The reasons of the failure

 The new strategy

 Recommendations

 Conclusion
SONY OVERVIEW 1/2

“Sony is one of the most important companies in the world of business”

SONY OVERVIEW 2/2

Core competitive advantage of

sony …
Innovation

Visionary leadership

Pioneer advantage
THE REASONS OF THE
FAILURE 1/3
 S o n y ’ s n e t p ro fit fo r th e Ju ly -
S e p te m b e r q u a rte r fo r 2 0 0 6 fa llin g
9 4 % to 1 . 7 b illio n Ye n , co m p a re d to
2 8 . 5 b illio n Ye n fo r th e sa m e p e rio d la st
ye a r (B e n so n , 8 th N o v 2 0 0 6 )

Sony was the inefficient manufacturing
structures which decrease Sony’s quality
that badly affects their reputation and
caused a decline in product
competitiveness. DeWit & Meyer (2004:
p192)
 THE REASONS OF THE
FAILURE 2/3
Many reasons have contributed to Sony’s
decline
• TV &
of
Audio
brand and profit .
 •Mobile
Equipment Phones &
1.Unrelated diversification Music
2.
3.Innovation dearth
4.
Lack of brand evolution
5. liable
ch were •Financial
to overheat and potentially burst into flames
•Movie where Son
& Video
6. Services Product Equipment
7.Recalls of Vaio laptops
8. Range
9.Consumer segmentation problem
10.
Compute
•Compute •Game Consoles
r
 Marketing plans-
What Sony is doing to deter the threat
 Cont…

 (Conglomerate Diversification)

 Cont….

• Ongoing process/product innovation and Advanced R & D

• Strengthening Profits (through lower materials cost and
greater operational efficiency)
• Forming joint-ventures (e.g. Sony-Ericsson)
•
•
 Positioning plans

Sony-Ericson


 Most attractive and innovative global brand

C 702 ………………………. Any angle. Any
weather
C 902 ………………………. Getting the
picture
W 760i ………………………. Fill it up with

songs
Z780a ………………………. The web is
where you are
 Positioning strategy: BCG
Matrıx
High
Semiconductor
LCD
Industry sales Growth Rate

DVD player play station Music Player

Digital Camera VAIO
CRT-TV

PC
Sony-Ericson

CD player
Low
Walk man

High Market Share Low

 Sony Vaio
 Brand’s positioning as a product that performs on
both video and audio front.
 Sony Vaio is also positioned ( and priced ) as a
premium brand.
 Sony Vaio Notebooks with a price ranging from
Rs 43,000 - Rs 1,25,000( in India).
 Sony has a market share of around 5.4 % of the
Indian Laptop market which is estimated to
touch a volume of 1.6 million units this year.
 Cont…
 Vaio targets the hip hop Indian youth aged 18-26
with the variant CR and X series.
 Brand is now positioned as a fashion accessory
rather than a learning/working tool like
Lustrous coating, custom Keyboard, and a
personalized illumination LCD, style.
 The brand is now running a high profile TV
campaign now.
 Vaio now has the tagline " All Eyes on You"
clearly spelling out its positioning based on the
design or aesthetics.
 This video link with
how Sony Vaio tag the
style and segments.
Cont.
Sony Vaio CR series
THE NEW STRATEGY


 Rethink communication :
 « Make.Believe », A new slogan to
reinvent is marketing
 Concentrate is nearly $5bn annual
advertising budget on a smaller number
of products

 But it won’t be enough product have to
be consumer oriented and not only
technology oriented

RECOMMENDATIONS

 Regain focus

 R&D and design have to be consumer
oriented

 Enable marketing to take a lead of the
business and the strategy

 Brand oriented leadership

 Design, features and the “cool” factor
CONCLUSION


 SONY’s
followers began its
competitors

 Anironic solution for SONY: looking
at SAMSUNG

 Thestarting point of SONY’s
resurgence : The PlayStation 3
- Thank you for listening -