Marketing Strategies for SONY Xperia

An EMPLOYER PROJECT PROPOSAL

for

Table of Contents Page No. 1

2

Executi Executive ve Summary.... Summary........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .............. ............... ...........3 ...3 1.1

Synopsis Synopsis of Situation Situation Analysis. Analysis..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........3 ....3

1.2

Key Aspect Aspects s of the the Mark Marketing eting Plan...... Plan.......... ........ ........ ........ ........ ........ ........ .......... .............. ..........3 ..3

Situational Situational Analysis.. Analysis...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........... .............. .......... ... 2.1

2.1.1

Market Market Segmentatio Segmentation.... n........ ........ ........ ........ ........ ........ ........ ......... ............ ............... ............... ........... ....

2.1.2

Market Market "ee#s... "ee#s....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ...... $

2.1.3

Market Market %ren#s.. ren#s...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ............... .............$ .....$

2.1.

Market Market &ro'th. &ro'th..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .............. .........$ ..$

2.2

S()% Analysis.. Analysis...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ............... ..........* ..*

2.3

!ompetitio !ompetition n an# Pro#uct Pro#uct !ompariso !omparison.... n........ ........ ........ ........ ........ ........ ........ ........ ........ .........+ .....+

2.3.1

Pro#uct Pro#uct.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... .............. .......... ..., ,

2.3.2

Price.. Price...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ............... ............... .............. ............, .....,

2.3.3

Place.... Place........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............., .......,

2.3.

Promoti Promotions. ons..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......., ...,

2.3.$

-ran# -ran# A'are A'areness. ness..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... .............. ..........., ...,

2.

Key Success Success actors.... actors........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .........../ ..../

2..1 2..1

A## A## to 0agshi 0agship p peria peria line lineup up in a time timely ly manne manner... r...... ...... ...... ...... ....... ...../ ./

2..2 2..2

-uil# -uil# stra strateg tegic ic partn partner ershi ships ps 'ith 'ith net' net'ork ork oper operato ators rs in Mala Malays ysia ia 1

2..3

Exten# Exten# Smart'ea Smart'earr concepts.. concepts...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ .........1 .1

2.. 2..

&ro'i &ro'ing ng the the range range of smartp smartphon hone e compan companion ion pro#u pro#ucts. cts.... ...... .....1 ..1

2.$ 3

Market Market !haract !haracteris eristics. tics..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... .............. ......... 

!ritical !ritical 4ssues.. 4ssues...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ..........1 ......1

Marketing Marketing Strategies Strategies.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... ...........11 ....11 3.1

!orporate !orporate Mission Mission Statemen Statement.... t........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........11 ....11

3.2

)56ectives )56ectives.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............. ...........12 ....12

3.2.1

Marketing Marketing )56ective )56ectives.... s........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........... .............. ...........12 ....12

3.2.2

inancial inancial )56ecti )56ectives. ves..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ..........12 ...12

3.2.3

Manufactur Manufacturing ing )56ectives )56ectives.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ..........13 ...13

3.2.

Pro#uct Pro#uct 7evelopm 7evelopment ent )56ectives )56ectives.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........13 ....13

3.3

Strategy Strategy an# %actics.... actics........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......13 ..13

3.

%arget arget Market... Market....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............. ...........1 ....1

MK%*2$ 8 Marketing Management 4n#ivi#ual Assignment

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for 3.$

Position Positioning.. ing...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... .............. ...............1$ ........1$

3.*

Strategie Strategies... s....... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............. .............. ............... ..............1* ......1*

3.+

Marketing Marketing Strategies.. Strategies...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ...........1* ......1*

3.+.1

Pro#uct Pro#uct Strategy Strategy.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ ......... 1*

3.+.2

Pricing Pricing Strategy. Strategy..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... .............1+ ......1+

3.+.3

7istri5ut 7istri5ution ion 9Place: 9Place: Strategy. Strategy..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......1+ ..1+

3.+.

Marketing Marketing !ommunicat !ommunication ion 9Promot 9Promotion: ion: Strategy. Strategy..... ........ ........... ...........1, ....1,

3.,



$

*

Marketing Marketing ;esear ;esearch... ch....... ........ ........ ........ ........ ........ ........ ........ ........ ........... .............. .............. ............... ..........1/ ..1/

3.,.1

Pro#uct Pro#uct 7evelopm 7evelopment. ent..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ............... ............1/ .....1/

3.,.2

-ran# -ran# A'are A'areness ness
3.,.3

!ustomer !ustomer Satisfacti Satisfaction... on....... ........ ........ ........ ........ ........ ........... ............... ............... .............. ...........1/ ....1/

inancials. inancials..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........... .............. .............. ............... .......... ..2 2 .1

-reake -reakeven ven Analysis.. Analysis...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........2 ....2

.2

Sales orecast orecast.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ ...........2 ...2

.3

Expense Expense orecas orecast.... t........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ......... ............ .........21 ..21

!ontrols.. !ontrols...... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ............ .......... 22 $.1

4mplement 4mplementation. ation..... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........... ............... ............... .............. .............23 ......23

$.2

!ontingenc !ontingency y Plans.... Plans........ ........ ........ ........ ........ ........ ........ ........ ........ ........... ............... ............... .............. ..........2 ...2

;efer ;eferences ences.... ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ ........ .......... ............. .............. ............... .......... ..2$ 2$


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1 Executie Su!!ar" Accor#ing to (oo#s 923:= marketing planning is the organi>e# proce#ures of researching an# analysing the marketing situation= #eveloping an# recor#ing marketing o56ectives= strategies an# plans= an# executing= assessing an# monitoring activities to succee# o56ectives.

1.1 Synopsis of Situation Analysis *.1? out of 1+./? proportion of sales 5y Sony !orporation 5usiness

is

contri5ute#

5y

this

su5si#iary

Sony

Mo5ile

!ommunications A-. (e have ,,? smartphone penetration rate in Malaysia an# 'e have i#enti@e# four segment markets from our earlier analysis= namely professionals= skille# 'orkers= corporate users an# stu#ents. Sony peria 3Bs strengths of having long lasting 5attery performance an# high Cuality camera un#er the 'ell esta5lishe# of Sony um5rella 5ran# 'ill @ts to a num5er of great opportunities for this !ash !o' to gro' 5y market penetration.

1.2 Key Aspects of the Marketing Plan 3 target markets are selecte# 'hich 'ill contri5ute to achievement of our marketing an# @nancial o56ectives such as 5elo'D • •

• •

%o increase market share to 1? 5y next 3 years %o increase 5ran# a'areness amongst the 2*3* age groups from 1? to *? 5y next 3 years %o increase the sales revenue 5y 32? 5y the en# of F 21$ %o increase sales volume 5y $? 5y the en# of F 21$.

4n or#er to achieve the o56ectives of this marketing proposal= 'e 'ill look into the marketing strategiesG mixes an# also 'e 'ill 5e pro6ecting the @nancial 5u#getary for this marketing plan.

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# Situational Anal"sis Situation analysis 'ill provi#e us the insight such as H'here is Sony no'B an# Sony Mo5ileBs o'n strengths an# 'eaknesses as they can relate to external opportunities an# threats. %he information from situation analysis 'ill help Sony Mo5ileBs management to select a position in that environment 5ase# on i#enti@e# evi#ences 9Irontis an# %hrassou= 2*:.

2.1 Market Characteristics %his report 'ill focus solely on selecte# shopping malls in Klang Ialley= Malaysia= as 5oth in terms of the ma6or players involve# an# the types of #evices that are sol# in glo5al market are Cuite #iJerent from the Malaysia market an# 'e feel itBs more vital to analyse ho' 'e can improve ourselves in the Malaysia as 'e have ,,? smartphone penetration rate in Malaysia. 2.1.1 Market Segmentation 7iJerent customer segment= Sony Mo5ile 'ill cater 'ith #iJerent features an# 5ene@ts. -asically 3 is for everyone that looks for similarity 5ene@ts such as high Cuality= longer 5attery performance etc. Table 1 sho's ho' Sony Mo5ile a##resses the nee#s an# 'ants of consumers an# 5usiness segments. Seg!ents Professionals *Consu!er Mar+et,

Custo!er Nee$s • •

•

Cor%orate -sers *(usiness Mar+et,

•

•

•

S+ille$ or+ers *Consu!er Mar+et,

•

•

igh Cuality camera igh processing po'er an# more #ura5le to perform many functions !onvenient an# mo5ile access to email an# 'e5 p#ate= access an# exchange #ata Photograph situations to maintain a visual recor# !onvenient an# mo5ile access to email an# 'e5 )rgani>e an# access contacts= sche#ule #etails an# 5usiness an# @nancial @les 7ura5le to 5a# con#ition

Corres%on$ing &eatures'(ene)ts • •

•

• •

•

•

•

•

•

-uiltin cell phone (ireless emailG'e5 access from any'here Lua#!ore2.$ &> processing po'er 2.+MP rear camera Lua#!ore2.$ &> processing po'er 2.+MP rear camera 'ith $.2 inch screen si>e 91, 1/2 resolution: (ireless emailG'e5 access from any'here (ireless emailG'e5 access from any'here Lua#!ore2.$ &> processing po'er 4P*, #ust N 'aterproof


Page 


for Stu$ents *Consu!er Mar+et,

• •

•

• •

• •

31mAh -attery capacity Lua#!ore2.$ &> processing po'er PlayStation certi@e# 2.+MP rear camera

Table 1/ Seg!ent Nee$s an$ Corres%on$ing &eatures *Source/ Tan et.al 0 #12,

%he Sony Mo5ileB market is groupe# into consumer an# 5usiness market 5ase# on their homogeneous preferences. rom the nee# 5ase# segments= 'e then #etermine# the #iJerent lifestyle= 5ehavioural= age an# occupation into 'orking an# non'orking 9stu#ents: to make the segment i#enti@a5le. rom the perspective of segment attractiveness an# pro@ta5ility= the 'orking groups are segmente# into professionals= me#ical users an# skille# 'orkers.
an#

stu#ies

sho'

that

upcoming

tren#s

such

as

smartphones 'ith 5iometric security features= health an# a'areness apps an# the availa5ility of & <%E capa5ilities 'ill more #ominant in the future market 9%an et.al= 21:. MK%*2$ 8 Marketing Management 4n#ivi#ual Assignment

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2.1. Market &ro'th leischmann 9212: state# that the smartphone penetrates a5out ,,? of the market in Malaysia. %he smartphone market share in Malaysia is 3$? from 3? in 212 an# is pre#icte# to excee# $? 5y 21. Table 2 sho's Malaysians 5ought *. million smartphones 'hich 'orth more than Q2.2$ 5illion in sales in 213 9&K= 213:. 4nternational 7ata !orporation state# that local smartphone sales anticipate# gro'ing 5y 21.3? in 21 9%he Star= 212:. %he Malaysian &overnment also encourage# more youth to en6oy nationBs 5roa#5an# facilities 5y provi#ing ;M2 #iscount on selecte# smartphones via Malaysia Fouth !ommunication Package 9SKMM= 212:. Year

-nit of S!art%3ones *Million,

Reenue *RM !illion,

Pro4ecte$ 5ro6t3 *7,

#18 #12 #19 #1: #1; #1< #1= ##

*. +.+* /.32 11.1, 13.1 1*.1 1/.32 23.1,

2.2$ 2.+3 3.2, 3./3 .+2 $.** *.+/ ,.1$

21.3? 2.? 2.? 2.? 2.? 2.? 2.?

Table #/ Reenue Outloo+ for S!art%3one in Mala"sia *Source/ 5&>0 #18,

2.2 SWOT Analysis S()% analysis 9Figure 1) is vital as companies 'ill capitalise on their strengths= minimi>e 'eaknesses= exploit market opportunities an# avoi# threats. irstly= Sony Mo5ile a5le to seek for a lot of opportunities

that utili>e

their

strengths of innovative ne'

smartphoneBs features 5y their strong ;N7 team to ful@l the gro'ing strong customer #eman# on more smartphonesB features an# functions such as 'aterproof an# high Cuality. Secon#ly= the strengthen of the net'ork capa5ilities in Malaysia an# lo' tariJ of service provi#ers provi#es a##itional opportunities for Sony Mo5ile to sho'case their strengths of high Cuality pro#ucts into the market. Sony Mo5ile 'ill 5e a5le to expan# their 5usiness reache# 'ith


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these greater opportunities. %hir#ly= the ltra S%AM4"A mo#e in 3 provi#es longer lasting 5attery performances that ful@l the nee# of the rising num5ers of /= international stu#ents in Malaysia. Survey earlier sho's that stu#ents reCuire longer lasting 5attery features to run the higher computing po'er of smartphones.
&igure 1/ Strengt3s0 ea+nesses0 O%%ortunities an$ T3reats of Son" ?%eria @8

2.3 Copetition an! Pro!uct Coparison %here is a high num5er of competing smartphone pro#ucts 'ithin the in#ustry= 'hich can 5e categori>e# into four types as #escri5e# in Table 3. PRO-CTS

Similar


7iJerent

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for

Similar C-STOME R

7iJere nt

7irect !ompetitors

4n#irect !ompetitors

Pro#uct !ompetitors

4mplicit !ompetitors

Table 8/T"%es of Co!%etitors *Source/ o"le0 1==<,

4t is important to analyse #irect competitors= kno'n as the strategic group= as they focus on the same target market segments an# 'ill pursue similar strategies 97oyle= 1//,:. !ompetitors such as Samsung &alaxy S$= iaomi Mi an# Apple iPhone * have consi#era5le corporate resources an# extensive experience in pro#uct #evelopment. (e can further compare Sony peria 3 9O3: 'ith 7irect !ompetitor S 9OS: as 5elo'D

2.3.1 Pro#uct 3 has 5etter overall performance on camera an# image Cuality 'ith their uniCue technology as compare# to !ompetitor S. -esi#es that= 3 provi#es 5etter po'er eciency 'ith 5attery capacity of 31mA as compare# to S. o'ever= survey @n#ings sho' that people perceive# S is more stylish.

2.3.2 Price S has comparatively lo'er price 5y ;M as compare# to 3. o'ever= people perceive# that 3 has higher Cuality un#er the um5rella of Sony 5ran#= therefore= 'orth for more expensive price. Stronger colla5oration 'ith %elecommunication provi#ers such as Maxis= S is still much aJor#a5le as compare# to 3 9Maxis= 21:.

2.3.3 Place 3 an# S have the similar #istri5ution channels such as tra#itional phone shops= telecommunication operators= chaine# operators an# online. o'ever= Samsung outlets have more presence in most of the shopping malls in Malaysia.


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2.3. Promotions S has more prominent promotional tools an# they a#vertise# 'i#ely on social me#ia= online an# print me#ia as compare# to 3. S also engages actively 'ith their customers 5y oJering attractive re'ar#s an# invites famous cele5rities to en#orse an# strengthen their S 5ran#.

2.3.$ -ran# A'areness Sony ranke# thir# in %op of Min# at 1.$?= after S 93+./?: an# A 93+.?: in research #one earlier. Sony peria has the lo'est conversion rate a5out $.? compare to the rest. Sony Mo5ileBs market share in Malaysia smartphone in#ustry is also a5out 1? 9%an et.al= 21:. %his in#icates that there is su5stantial gro'th potential for this 5ran#. A summary on competitors revie' an# comparison are #etaile# in Table 4 5elo'D S!art%3one (ran$

Son" ?%eria @8

S

is%la" t"%e

%;4<M4")S

is%la" AM)
Screen SiBe Resolution

$.2 inch 1, x 1/2

$ inch 1, x 1/2

M

4PS
A

;etina 7 7isplay .+ inch 133 x +$

ar$6are

An#roi# KitKat

An#roi# KitKat

Lua#!ore2.$ &> 3&31 mAh

)cta!ore 1./ &> 2&2, mAh

Rear Ca!era &ront Ca!era

2.+ MP 2.2 MP

1* MP 2.1 MP

ust D ater%roof 5a!ing Abilit"

4P*, PlayStation !erti@e#

O%erating S"ste! CPRAM (atter" Ca%acit"

An#roi# KitKat T M44 Lua#!ore2.$ &> 3&3, mAh

4)S , 7ual!ore 1. &> 1&1, mAh

13 MP , MP

, MP 1.2 MP

4P*+

"GA

"GA

"GA

"GA

"GA

Ca!era

>e" &eatures

Pricing


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for 2=3//.

Price

1=///.

1=*.

2=3//.

Place Tra$itional P3one S3o%s Telco C3aine$ S3o%s Online

U

U

U

U

U U

U U

U U

U U

U

U

U

U

Table 2/ Su!!ar" of Co!%etitors Reie6

2." Key Success #actors 2..1 A## to 0agship peria lineup in a timely manner Sony 'ill continue to launch timely of ne' a##itions to the 0agship peria lineup that inclu#es SonyBs 5est technologies an# features. %his is to secure their premium market an# to enhance their 5ran# a'areness an# presence in Malaysia.

2..2 -uil# strategic partnerships 'ith net'ork operators in Malaysia As the gro'th of telecommunication operators an# lo' tariJ of #ata plans= it is goo# that to esta5lish close rapports 'ith these net'ork operators to gain a 'in'in partnership. As the net'ork operators have more customer 5ase= 'e can tap on their net'ork an# customers to sho'case our Sony peria 3 presence.

2..3 Exten# Smart'ear concepts As Sony plans to follo' the Smart5an# 'ith even more uniCuely Sony pro#uct proposals= 'e can take this to a higher level to suits those 'hom are 'orking to have more convenient an# easy access to phone an# 'e5 or even email from any'here. %his 'ill 5ecome a lifestyle of these premium segments instea# of normal a##itional ga#gets.

2.. &ro'ing the range of smartphone companion pro#ucts Sony 'ill continue to focus on their accessories #evelopment as these 'ill expan# their customer experience an# contri5ute to cross selling of SonyBs technologies. (ith Sony Smartphones= customers MK%*2$ 8 Marketing Management 4n#ivi#ual Assignment

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can al'ays sync seamlessly to car #ock= Sony %I= 'ireless earphone an# many more.

2.$ Critical %ssues )ne issue critical to our success is proper promotion to esta5lish a 'ellregar#e# 5ran# of Sony periaR 3 features linke# to meaningful positioning. Sony Mo5ile has to compete against other smartphone provi#ers 'ith similar pro#uct range. (e have note# from our survey that people #o not a'are a5out most of the 3Bs key features. -esi#es that= it sho's +.2? respon#ents #o not kno' a5out Sony periaBs festival promotion. %he Cuality= pro#uct features an# marketing strategies play an important role for Sony Mo5ile to gain success in terms of market share an# sales pro@t. (e 'ill invest heavily in marketing to create a memora5le an# #istinctive 5ran# image that pro6ect high Cuality= value an# innovative features.

8 Mar+eting Strategies Accor#ing to (eiss 91/*,:= marketing strategy an# marketing mix 'ill #irectly aJect market share of @rms. Many stu#ies have proven that successful implementation of marketing strategies in the competitive market 'as critical for a companyBs performance 9-al#auf= !ravens= N (agner= 2 !ooper N Kleinschmi#t= 1/,$
3.1 Corporate Mission Stateent SonyBs mission is to continuously inspiring an# ful@lling their customersB inCuisitiveness 9Sony !orporation= 21a:. Accor#ing to Presi#ent an# !E) of Sony Mo5ile !ommunication A- 9OSony


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Mo5ile: Mr Kunimasa Su>uki in Figure 2=

their mission aims to

com5ine SonyVs innovative stateofart technologies= services= interfaces an# other assets to unleash the po'er of O)ne Sony in the smartphone in#ustries that inspire #reams= ful@l curiosity an# enrich lives 9Sony !orporation= 213:.

&igure #/ Son" Cor%oration Presi$ent an$ CEO0 Mr >uni!asa SuBu+i

3.2 O&'ecti(es Sony Mo5ile a5le to 5oost gro'th an# construct ne' value 5y attainment of the su5seCuent o56ectivesD

3.2.1 Marketing )56ectives Accor#ing to Mr 7ennis van Schie= Sony Mo5ileBs mission is to reinforce to the 'orl# that Sony makes smartphones an# ta5lets as Sony is a 'ellesta5lishe# 5ran# name glo5ally 9Sony !orporation= 213:. Sony Mo5ile has to strengthen their presence in Malaysia market 5y creating more retailfocuse# organi>ation 5y engaging 'ith customers at all levels. -esi#es that= it is also important to #eliver corporate value to their customers an# partners. (ith the great opportunities an# untappe# mo5ile smartphonesB consumer market mentione# in !hapter 2.2 S()% analysis= there is a great opportunity for Sony Mo5ile to capture a great portion of share in this market 5y ? to 1? 5y next 3 years= #espite the stiJ MK%*2$ 8 Marketing Management 4n#ivi#ual Assignment

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competition among the rivals in Malaysia. Also= to increase 5ran# a'areness amongst the 2*3* age groups from 1? to *? 5y next 3 years.

3.2.2 inancial )56ectives (e have set aggressive 5ut achieva5le @nancial o56ectives in Table 5 for the @rst 3 years. %he @nancial o56ectives are as state# 5elo'D • •

%o increase the sales revenue 5y 32? 5y the en# of F 21$ %o increase sales volume 5y $? 5y the en# of F 21$

Table 9/ &inancial Ob4ecties for Son" ?%eria @8 * 1 -SFG RM8.2;,

3.2.3 Manufacturing )56ectives 4n or#er to meet their marketing o56ectives= SonyBs other #ivisions such as manufacturing #ivision nee# to 'ork han#inhan#. SonyBs manufacturing o56ective is to uphol# their Cuality 5y their capa5ility to pro6ect

#eman#s= grasp

timely procurement

an#

control

inventories 9Sony !orporation= 215:.

3.2. Pro#uct 7evelopment )56ectives SonyBs pro#uct #evelopment o56ective is to #iJerentiate their mo5ile smartphone pro#ucts an# create ne' pro#ucts an# services as part of their 0agship periaR that Wcreate ne' lifestylesW an# Wenrich peopleVs livesW in mo5ile spaces. 4n terms of #evice technologies= Sony strategies to focus on picture sensors= 5atteries an# lo' po'er consumption technologies. As part of SonyBs W

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to 'atch vi#eo or music or even #ata searching remotely any'here 'ithin the resi#ence 9Sony !orporation= 215:.

3.3 Strategy an! Tactics 4n formulating Sony peria 3 marketing strategy= it is important to i#entify Sony Mo5ile 5usiness unit using the -!& Matrix 9 Figure 3:= in or#er to assign the appropriate resources an# strategies reCuire# to o56ectives set. %he matrix 'ill assess the pro#uctBs market share relative to the competition an# the level of gro'th in market. Sony periaBs 5usiness unit is classi@e# as a 'eak !ash !o'= #enote# 5y = #ue to its average high relative market share of the smartphone segment. 4t 'ill therefore reCuire part of the !ash !o' to gro' an# strengthen its market share as potential Stars.

?

&igure 8/ (C5 Matrix *Source/ >otler0 1==2,

Su5seCuently gro'th is the main priority for the marketing strategy. AnsoJ matrix i#enti@es four possi5le gro'th strategies that Sony Mo5ile can pursue accor#ing to the market situation= as each strategy presents uniCue opportunities= threats= resource an# risks. 7ue to the maturity of the market i#enti@e# earlier= the matrix i#enti@es that the most suita5le gro'th strategy at this stage is


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Market Penetration= 5y selling existing pro#uct to existing markets= 5ut increasing the Cuality= pro#uction= marketing an# colla5oration.

3." Target Market !urrently= Sony Mo5ile targets all age categories for its smartphone. Accor#ing to survey 'hich is complete# 5y $3? male an# +? female= 'e 'ill target the segments 5elo' that 'ill provi#e gro'th opportunities for Sony peria 3D • •

&eographic Segments  aroun# a= Klang Ialley 7emographic Segments Skille# 'orkers 9+.?:= Professionals 91.2?: an# !orporate sers 91.$?:. %hese mainly contri5ute to

•

the total gro'th of 32? in sales revenue of Sony peria 0agship.
•

'ork focus -ehaviour Segments  impulse 5uyers= occasional users an# loyal customers

(e 'ill use pro#uct speciali>ation pattern to target these three groups 9Table 6:= 'hich are s+ille$ 6or+ers= %rofessionals an# cor%orate users . Target Mar+ets Professionals *Consu!er Mar+et,

Custo!er Nee$s • •

•

Cor%orate -sers *(usiness Mar+et,

•

•

•

S+ille$ or+ers *Consu!er Mar+et,

•

•

igh Cuality camera igh processing po'er an# more #ura5le to perform many functions !onvenient an# mo5ile access to email an# 'e5 p#ate= access an# exchange #ata Photograph situations to maintain a visual recor# !onvenient an# mo5ile access to email an# 'e5

)rgani>e an# access contacts= sche#ule #etails an# 5usiness an# @nancial @les 7ura5le to 5a# con#ition

Corres%on$ing &eatures'(ene)ts • •

•

• •

•

•

•

•

•

-uiltin cell phone (ireless emailG'e5 access from any'here Lua#!ore2.$ &> processing po'er 2.+MP rear camera Lua#!ore2.$ &> processing po'er 2.+MP rear camera 'ith $.2 inch screen si>e 91, 1/2 resolution: (ireless emailG'e5 access from any'here (ireless emailG'e5 access from any'here Lua#!ore2.$ &> processing po'er 4P*, #ust N 'aterproof

Table :/ Target Mar+ets for Son" ?%eria @8


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3.$ Positioning Positioning is the act of #esigning a companyBs oJering an# image to occupy a #istinctive place in the min#s of the target market 9Kotler= 212:. 4t is the key factors of #eveloping marketing mix 9P:. rom the frame of reference 5y i#entifying target market 9Chapter 3.4: an# relevant competition 9Chapter 2.3:= Sony peria 3Bs

pointsof#iJerence are high Cuality 932.3?: as sho'n in earlier survey. 4n a##ition of the target market nee#s= consumers a5le to en6oy their Cuality features such as longest 5attery performance 9meanX.$: an# higher Cuality camera 9meanX.3$: features as mentione# in !hapter 2.3. Pointsofparity for peria 3 are a5le to access 'e5 an# email from any'here an# high processing po'er to manage #ata an# sche#ules. sing pro#uct #iJerentiation to achieve competitive a#vantage= 'e are positioning Sony peria 3 as the most high Cuality smartphone 'ith long lasting 5attery performance an# goo# camera Cuality for professional use to a## value on their #aily 5usiness routines. )ur propose# tagline 'ill 5e HT3e best I-ALTY for t3e (ESTK

3.) Strategies Sony peria 3 'ill use 5oth push an# pull strategies. %his 'ill increase the a'areness level of Sony peria 3 features among the target market to 5uil# 5ran# loyalty. )n the other han#= it helps to encourage interme#iaries to carry the Sony peria 3 mo#el to increase its presence in the market.

3.* Marketing Strategies 3.+.1 Pro#uct Strategy an# SeCueira= 1//+:.


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Pro#uct innovation is also part of a factor to increase economic performance

9
et

al.=

2/:.

lasting

5attery

9meanX.$: an# high Cuality camera 9meanX.3$: are the lea#ing features reCuire# from the respon#ents vie'. %herefore= 3 current features having 31mAh 5attery capacity an# 2.+ MP camera features a5le to ful@l target market nee#s. 4n terms of packaging 9Figure 4:= this group of target markets are 'illing to pay a little more for the appearance an# prestige of 5etter packages. o'ever the packaging must 5e in rectangular 5ox in shape for easier shipping an# #isplay at #istri5ution outlets.

&igure 2/ Pri!ar" Pac+aging of Pro$uct

3.+.2 Pricing Strategy e current pro@t. %he original price of Sony peria 3 is ;M2= 3//.. )ur propose# ne' price 9Table 7) is at ;M2= 1. 'here5y is falls into our target marketBs category of spen#ing po'er of ;M1= $ 8 ;M3= . 4n or#er to achieve pro@ta5ility= 'e have to pro#uce a5out = units per year to achieve our @nancial o56ectives of 2$? revenue gro'th of total Sony peria 0agship mo#els. Assuming Sony Mo5ile


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has 1$ outlets throughout Malaysia= each outlet only nee# to sell a5out +, units per #ay in or#er to achieve the yearly sales target. %he current situation at the outlets only sells less than $ units per #ay. %his price is slightly a5out $? higher than !ompetitor S at ;M1= ///.. 4t may attract more people to purchase 'ith value pricing metho#. 7uring the festival promotions= 'e can oJer special event pricing as 'ell at 1? #iscounte# rate. %o attract more corporate users an# professionals= 'e can oJer 'arranties an# service contracts as 'ell. 4f the corporate companies 'oul# like to 5uy in 5un#le= 'e can also oJer special customer pricing at 1$? #iscount rate an# still pro@ta5le for the company. Price

e!an$

Cost

*RM'unit,

*units,

*RM'unit,

1=$

$=

/$

1=,

$=

1=1

2=1

=

1=2$

Selling Price ?

Cost ?

It"

It"

Pro)t

+$== +$==

2+$==

  ,1== /$==

 31$==

  ,,$== $==

 3,$==







Table ;/ Pro%ose$ Pricing Esti!ation

3.+.3 7istri5ution 9Place: Strategy 7istri5ution net'ork an# availa5ilities is very important in marketing strategy 9

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3.+. Marketing !ommunication 9Promotion: Strategy Promotion has great impact on market share an# relatively eJective to competitors 9%hirkell an# 7au= 1//,:. Soun# a#vertising 'ill have great impact on @rmBs performance 9
3.+ Marketing ,esearch (e propose# Sony Mo5ile to con#uct marketing research an# plans for future 'hich 'oul# inclu#e the 5elo' aspectsD


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3.,.1 Pro#uct 7evelopment As the technologies are changing rapi#ly= 'e 'oul# propose Sony Mo5ile to con#uct once yearly on the pro#uct #evelopment to @n# out the preference of the pu5lic an# target market on smartphoneBs features an# 5ene@ts. %his is important as the #eman#s an# nee#s of the target market might change an# as 'ell to @n# out if Sony Mo5ile 'ants to explore to ne' market. As this is part of the innovation an# ;N7= therefore the propose# 5u#get for this survey is highest.

3.,.2 -ran# A'areness
is

to

measure

the

eJectiveness

of

the

marketing

communication for the past fe' years. 4t is recommen#e# to #o 5i annually. rom this research= Sony 'ill 5e a5le to @n# out more a5out their

campaign

eJectiveness= an#

'hether

the

right

marketing message #elivere# to their target au#ience an# stimulate #esire# purchasing response. %he 5u#get allocate# shoul# 5e enough to cover all the regions that Sony have their outlets in.

3.,.3 !ustomer Satisfaction !omprehensive stu#ies on customer satisfaction are very important to Sony as this 'oul# #etermine their customer retention eJectiveness an# ho' their customers react emotionally to their 5ran#. rom our earlier survey= 'or# of mouth is one of the 5est me#iums to communicate a5out SonyBs 5ran#. %hus= it is very vital for Sony to @n# out their positions among their clients. %his shoul# 5e #one monthly as they coul# engage more actively 'ith the clients. %his coul# 5e #one at outlet 5asis an# the estimate# 5u#get 'ill 5e lo'er compare to the rest.


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2 &inancials ".1 -reake(en Analysis -reakeven analysis is use# for pre#ict pro@t an# loses in future to pre#ict results accor#ing to pro#ucts. Sony Mo5ile is operating in a in#ustry of supporting high gross margins. Iaria5le costs in relationship to per unit revenue are lo' a5out +? of perunits revenue. %his value 'ill #ecrease further as 'e gro' an# achieve more sales units in the follo'ing years. ixe# cost for Sony peria is roughly a5out ;M +=$=. %hus= Sony peria 3 'ill 5reakeven at monthly sales point of ;M+= $.

".2 Sales #orecast Table 8 5elo' sho's the sales forecast for 12 months. %he total

sales revenue for the 'hole Sony peria smartphone 0agship is RM10 #90 80  9Zestimate#:. %here are total of + ma6or

mo#els or categories of smartphones un#er Sony peria 0agship that 'oul# concurrently contri5ute to the achievement of @nancial o56ective of 3$? gro'th of sales revenue 5y en# of F21$.

Table

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".3 /0pense #orecast Table 9 5elo' pro6ects the marketing expenses 5u#get for the @rst 3

years of my propose# marketing plan. or the @rst year= the sales an# marketing expenses are slightly higher as more intense marketing an# a#vertising are nee#e# to create an# 5uil# stronger 5ran# presence an# a'areness among the target market. rom Fear 3 on'ar#s= the percent of sales an# marketing expenses 'ill 5e lesser= 5ut shoul# 5e maintaine# 'ith constant a#vertising an# marketing activities to remin# the target market a5out the existence of our 5ran#.

Table =/ Mar+eting Ex%ense (u$get


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9 Controls %he @nal chapter of this proposal is a5out controlling an# measuring the results. !ontrol is part of the integral planning process an# it is important to provi#e eJective measurement on the implementation of marketing plan. Figure 5 is the propose# marketing control to Sony Mo5ile that ensures all the marketing plans are taken action as planne# an# provi#es constant fee#5acks to us to #etermine the overall marketing plan is 'orking in actual implementation. (e suggest Sony Mo5ile to con#uct 5oth strategic controls an# operational controls. %he strategic control shoul# 5e carrie# out annually to assess the overall marketing strategy #irection. )n the other han#= the operational controls nee# to 5e carrie# out regularly to ensure the #etaile# actions of the plan are #one correctly an# to i#entify potential #iculties for corrective N preventive action.

&igure 9/ Mar+eting Control *Source/ (rassington an$ Pettit0 #1,


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$.1 %pleentation Kotler 91//: state# that marketing implementation is Othe process that turns marketing plans into real actions an# ensures that such assignments are execute# in a proper manner as plan to achieve 5oth the marketing an# @nancial o56ectives. %his is a very crucial part if the marketing strategies are not implemente# accor#ingly. %he action plan 9Table 10: inclu#es management of pro6ect= setting sche#ules an# timelines= meetings= phone calls= chasing people an# careful preparation 'ith constant monitoring on progress. Mont 3

Pro%ose$ Action Plan

Action b"

Esti!ate $ Cost

Re!ar+s

1

A#vertisement "e'spaper 9English: Ii#eo on Foutu5e an# ace5ook

!ommunicatio n

xxxxx

%he Star

2

!orporate Iisits to aroun# a estive Promotion an# &reeting !ar#s

Sales

xxxxx

!hinese "e' Fear

3

Pro#uct
Marketing !ommunicatio n

xxxxx



A#vertisement "e'spaper 9Malay: !orporate Iisits to aroun# a

!ommunicatio n Sales

xxxxx

-erita arian

$

-usiness Symposium Sponsorship Ii#eo on Foutu5e an# ace5ook


xxxxxx

(orl# -usiness Symposium

*

!orporate Iisits to aroun# a Pro#uct
Sales Marketing

xxxxxx

+

A#vertisement "e'spaper 9English: estive Promotion an# &reeting !ar#s


xxxxxx

,

!orporate Iisits to aroun# a Ii#eo on Foutu5e an# ace5ook

Sales !ommunicatio n

xxxxx

/

Pro#uct
Marketing

xxxxx

1

A#vertisement "e'spaper 9Malay: !orporate Iisits to aroun# a


xxxxx

11

Ii#eo on Foutu5e an# ace5ook 3 Photo 4nstagram !ontest


xxxxx


"S%

tusan Malaya

-est Place at (ork

Page 2


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!orporate Iisits to aroun# a Pro#uct
Sales Marketing

xxxxxx

Table 1/ Pro%ose$ Action Plans for Son" Mobile ?%eria @8

$.2 Contingency Plans Marketing plans can never foresee all possi5ilities. %herefore it is important to propose the contingency plans to a##ress unexpecte# events. 4n marketing plans= forecasts for sales revenue an# market responses to implemente# action plans #epen# on external factors as 'ell. %hus= our marketing plans 'ill have to inclu#e provisions for action 'hen 'e #onBt achieve our marketing o56ectives as planne#. ;evenue excee#s pro6ectionsD (e 'ill have taken this as an opportunity to increase our marketing 5u#get a5ove the allocate# 2? for the @rst year to penetrate #eeper an# strengthen our 5ran# positioning. (e 'ill 5e a5le to #eploy more a#vertising an# marketing activities to engage 'ith the cro'# an# to sustain 5etter ;N7 #evelopment eJorts to improve Luality of our smartphone to 5e more competitive in the market. ;evenue failure to meet pro6ectionsD (e

have to increase

a#vertising an# marketing eJorts. (e have to continue spur the market to 5uil# our 5ran# an# to #eliver our message out to the pu5lic to 5uil# purchase responses. 4n this scenario= 'e 'oul# suggest to pump in a##itional capital to run the more intense marketing eJorts.


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: References -al#auf= A.= !ravens= 7. (.= an# (agner= .= 2. Examining #eterminants of export performance in small open economies. Journal of orl! "u#ine##= 3$91:= pp. *1+/. -eamish= P. (.= !raig= ;.= an# Mce# @rms. $anage%ent &nternational 'e(ie= pp. 12113+. -rassington an# Pettitt= 21. *rin+iple# of $ar,eting= 2n# e#. Prentice all. !hi= M.= 211. &overnment aims to attract 2= international stu#ents 5y 22. The $ala-#ian &n#i!er . [)nline\ Availa5le atD ]httpDGG'''.themalaysianinsi#er.comGmalaysiaGarticleGgover nmentaimstoattract2internationalstu#ents5y 22^ [Accesse# 21 )cto5er 21\. !ooper= ;. &.= an# Kleinschmi#t= E. _.= 1/,$. %he impact of export strategy on export sales performance. Journal of &nternational "u#ine## tu!ie#= pp. 3+$$. 7omingue>= <. I.= an# -renes= E. ;.= 1//+. %he internationali>ation of ation in the AmericasD A vital linkage. Journal of "u#ine## 'e#ear+h= 3,91:= pp. 31*. 7oyle= P.= 1//,. $ar,eting $anage%ent an! trateg- = 2n# e#. Prentice all. Euse5io= ;.= An#reu= _. <.= an# -el5e>e= M. P. <.= 2+. Management perception an# marketing strategy in export performanceD A comparative analysis in 4talian an# Spanish textileclothing sector 9part 2:. Journal of Fa#hion $ar,eting an! $anage%ent = 1191:= pp. 2. leischmann= .= 212. ;etailes Sales %racking.[)nline\ Availa5le atD ]httpDGG'''.gfk.comGsolutionsGretailsales trackingGPagesG#efault.aspx^ [Accesse# 21 )cto5er 21\.


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&K= 213. ;eportD Smartphone ;evenue Surge *1? in Southeast Asia. [online\. Availa5le atD ]httpDGG'''.gfk.comGsolutionsGretailsales trackingGPagesG#efault.aspx^ [Accesse# 21 )cto5er 21\ Kotler= P.= 1//. $ar,eting $anage%ent/ nal-#i# *lanning &%ple%entation an! Control. $th e#. Prentice all 4nternational.

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)gunmokun= &.= an# "g= S.= 2. actors in0uencing export performance in international marketingD a stu#y of Australian @rms. 4nternational _ournal of Management= 21= pp. 1+21,$. SKMM= 21. Smartphone ;M2 ;e5ate for Fouth an# ;M1= &rant for online entrepreneurs to start on 1 _anuary 213. [press release\ 2+ 7ecem5er 212= Availa5le atD ] httpDGG'''.skmm.gov.myGskmmgovmyGme#iaG&eneralGp#fGPr ess;eleasePK-&M-).p#f^ [Accesse# 2$ )cto5er 21\.

Sony !orporation= 213. nnual 'eport 2013/ "u#ine## an! C' 'e(ie. [online\ Availa5le atD ]httpDGG'''.sony.netGSony4nfoG4;G@nancialGarG213GshrGp#fGA nnual;eport`E.p#f^ [Accesse# 1 "ovem5er 21\ Sony !orporation= 21a. A5out Sony. [online\. Availa5le atD ] httpDGG'''.sony.netGSony4nfoG^ [Accesse# 1 "ovem5er 21\ Sony !orporation= 215. !orporate Strategy Meeting F21. ["e' ;elease\ Availa5le atD] httpDGG'''.sony.netGSony4nfoG"e'sGPressG21$G1 $EGin#ex.html^ [Accesse# 1 "ovem5er 21\ %an= K.P.= Fea'= .<.= Anselm= F. an# !hin= K.S.= 21. Situation analysis an# market survey for Sony periaR 3 smartphone. [assignment\ Septem5er 21 e#. MalaysiaD 4"%4 4nternational niversity. %he Star= 212. 47!D SmartphonesB share of mo5ile phone markets to hit 3$?. [online\ Availa5le atD ]httpDGG'''.thestar.com.myGstoryGY@leX ?2212?2/?213?25usiness ?2212/131$2,NsecX5usiness^ [Accesse# 1$ )cto5er 21\ %hirkell= P. !.= an# 7au= ;.= 1//,. Export performanceD success #eterminants for "e' ealan# manufacturing exporters. uropean Journal of $ar,eting= 329/G1:= pp. ,13 ,2/. Irontis= 7. an# %hrassou= A.= 2*. Situation analysis an# strategic planningD an impirical case stu#y in the K 5everage in#ustry. &nno(ati(e $ar,eting= 292:= pp. 13 8 1$1


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(eiss= 7. <.= 1/*,. 7eterminants of market share. Journal of $ar,eting 'e#ear+h pp. 2/2/$. (oo#s= M.-.= 23. The $ar,eting *lan.  an!boo, . "e' _erseyD Prenticeall. akariah= . 213. 2., million legal= illegal foreign 'orkers in Malaysia. e trait# Ti%e#. [)nline\ Availa5le atD ] httpDGG'''2.nst.com.myGlatestG2,millionlegalillegal foreign'orkersinmsia1.31+$1$^ [Accesse# 21 )cto5er 21\.


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Marketing Strategies for SONY Xperia

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