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Strategic Marketing Audit Sony International ICT Business

Fakultas Ekonomi & Bisnis Universitas Telkom 2014

Group Novi Amalia Santika Putri Meyta Hana Merlyana Irnanta Wahyu Andari Reza Fahlevi Shielda Fahreisa Ranie 1201120463 120112046 1201120467 1201120468 120112046

1. Introduction
Sony Corporation was founded in Knan Minato, Tokyo, Japan on 7th May 1946. Sony Corporation is owned and managed by its Parent company named Sony Group which indulges its activities in Sony Electronics, Sony Financial Services, Sony Motion Pictures and Sony Music Entertainment. The first product from the Sony Brand the TR-55 a Transmitter radio which was released in 1955. However, until 1958 Sony company was then called Tokyo Tsushin Kogyo (Wikipedia, 2012). Sony is the first company in the world to come up with a portable music player, then branded as walkman in 1979, the brand name walkman is used today also in mobiles and Mp3 players. While walkman is the brand name for Sony Audio entertainment, VAIO represents the elegant designer Sony laptops, VAIO stands for Video Audio Integrated Operation, the first kind of name in its market to directly target the consumer with Visual and Audio effects. Whilst Sony is trying to capture every segment in the electronics market, it makes its grip stronger in the Camera segment with worldwide brand name Cyber shot camera; these were digital camera until 2006 Sony entered the DSLR market by taking over Konica Minolta Company. One of Sonys most profitable segments is the Mobile Communication Department; Initially Sony was in joint venture with the Swedish Company Ericsson, but due to recession and intense competition from Apple Iphone, Sony has then parted ways from Ericsson and focuses solely on Sony Mobiles. There latest mobile now supports Android and is branded under Xperia name. Sony marketing strategy has always been to serve the niche market of techy consumer and high end products for which they wouldnt compromise in price. As of today, Sony continues to capture every electronic market possible recently being the CD market with its Blu-Ray disc format. However, Sony faces tough competition in other segments from major competitors such as Samsung, LG and Panasonic.

1.1 Background 1.2 Goals 1.3 Name of company audited 1.4 scope of audit 1.5 Purposes

1.6 Systematics

2. Identify marketing strategy that already do 2.1 Marketing Objectives 2.2 Target market 2.3 Brand equity & brand positioning strategy 2.4 Marketing mix strategy 2.5 Sales strategy 2.6 Company Performance 2.6.1 number of customers/subscriber 2.6.2 market share 2.6.3 revenue and profitability

3. Identify todays internal environment 3.1 companys resources 3.1.1 Financial Resouces 3.1.2 Human Resources 3.1.3 Technology Resources 3.2 Todays Company Business Process 3.2.1 Production Process 3.2.2 Marketing Process 3.2.3 Service and retention processing 3.2.4 R&D Processing 3.3 todays Organizational structure 3.4 Todays Company competitive advantage

4. Identify the suitable todays marketing strategy with the internal environment condition 4.1 audit the suitable todays marketing strategy with the internal resources condition 4.2 Audit the suitable todays marketing strategy with the business process 4.3 audit the suitable todays marketing strategy with the organizational structure 4.4 Audit all the suitable todays marketing strategy with the internal environment condition

5. Identify todays external condition 5.1 Macro environment conditions (Politic-Economic-Social-Technology) 5.2 Micro environment conditions (industrial and market structure) 5.3 Market Size and Growth 5.4 Customer Map, Need, Wants and expectation

6. Identify the suitable todays marketing strategy with the external environment condition 6.1 Audit the suitable todays marketing strategy with the macro environment condition 6.2 Audit the suitable todays marketing strategy with the micro environment condition (industrial and market structure) 6.3 audit the suitable todays marketing strategy with th e market size and market growth 6.4 audit the suitable todays marketing strategy with the customer map, need, wants, and expectation 6.5 audit all the suitable todays marketing strategy with the external environment condition

7. Identify the weaknesses from todays marketing strategy

Mission Statement. 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 organization, Sony is constantly striving to create exciting new worlds of entertainment that can be experienced on a variety of different products.

7.1 weaknesses from sales strategy 7.2 weaknesses from marketing mix
Product The products that Sony corporations offer diversify into the following categories Audio products include navigation systems for personal use, homes and cars. Video category includes video cameras, digital cameras, DVD players and recorders. Wide range of televisions are also available that include LCD TV, projection TV, CRT based TV. Information and Computers category include personal computers and printers. Semiconductors like LCD and CCD. Gaming electronics like PlayStations. Sales of consumer electronics in the United Arab Emirates is expected to rise from $3.13 billion in 2012 to $3.97 billion by 2015 (Dubai Chamber Analysis) due to the increase in demand and popularity of products like LED and 3G TV sets(Asia Pulse Pty Ltd Oct 11, 2011). Price The development of marketing strategy is highly influenced by pricing variables such as dealer price, discounts, rebates, allowances, retail price and credit terms which can be altered very quickly and are always made in consultation with marketing management. Prices of Ego intensive of technology based products are always related to quality by the consumers. Sony targets its prices from moderately high to high because it provides quality products. The perception that consumers have of Sony products is a Luxury Brand. Its prices are high as compared to its competitors because the company believes that the market is relating quality and price together so it inclines to sell its products in Japan to maintain high quality which is one the main reasons of high process as the labour in Japan is expensive. Selling price varies in different regions and countries due to the economic conditions. The change in the exchange rate with different countries causes change in selling prices. The Sony company uses price skimming to get as much as possible from each market as it is a top brand the technique is worth using. Place Sony Corporation is present online in many formats like its website www.pro.sony.com which provides information about its products and prices. It also provides information about its product offerings. Distributors that sell VARs+ System Integrators include: ASI Corp, Avnet Inc. and Bell Microproducts, Micro-land Electronics Corp. some of the wholesale

distributors of Sonys products

are Jumbo electronics, MTC FZCO, Golden Systems

Electronics FZCO, Asbis Middle East FZCO, Empa Middle East FZCO, eSys Technologies FZE, Al Yousuf Digital LLC, Mindware FZ LLC, Logicom Dubai LLC, Comtronix LLC, and Jumbo IT Distribution. Jumbo is one of the biggest distributors of Sony electronics in the world and biggest name in the field of consumer electronics with 32 retail outlets and 9 service centres in the UAE (Middle East Company News, 2010). Promotion Sony offers discounted coupons ranging from 25% to 50% on the purchase of Sony product like PC speakers, Blue-Ray Disc Players, laptops etc. it also offers Sony card and play station cards on which customers can earn redeemable points whenever they purchase any of its products or services. Its refund zone website provides refunds like 500$ refund following the purchase of a Sony Camcorder or a Sony Hard Disc Recorder. Promotional mix elements include advertisements, personal selling, sales promotions, direct marketing, publicity etc. Sony uses all of these promotional mix elements. Advertising Sony advertises its products through many channels. There are many different advertisements of its products such as Sony wega TV or Bravia televisions. It always advertises its products by targeting television programs like dramas and sports for example it advertised its products in England premier league Football. Sony also has its own TV channel called Sony TV. Newspapers and posters are also used to advertise its products which are sent to a lot people all over the UAE. Sony Company has also used direct response advertising through which consumers are encouraged to respond by providing feedback to the advertiser or placing an order by telephone or mail. This type of advertising is done through catalogues, brochures or direct mail. Sony Company also integrates co-operative advertising during its advertising process. It provides its dealers with the guidelines to develop advertisement for print media, television or radio commercials.

7.3 weaknesses from brand equity and brand positioning

Sony has positioned itself in the market as a path of un-beatable quality and assurance for the upper middle and upper social strata as it gives the scent of a luxury electronic brand while providing products of un-match able quality as compared to its

competitors. For example Sony Ericsson is positioning its Android Range as the best way to watch games while driving in order to boost its share in the market of the smart phones. It has done that by the help of a four-week campaign which promoted its partnership with sports broadcasters ESPN which allowed the customers to set free video clips of the goals. To compete with the already existing smartphones in the market, Sony is positioning its smartphones as the most entertaining smartphones (Sony Ericsson in Soccer Push, Marketing, 2010). Historically speaking Sony positioned itself as a Made of Imagination which it has shifted now to one-touch sharing in order to avoid customers who get confused while focusing too much on the technology used in making the phones(Marketing Director, Catherine Cherry, Sony Mobile to push 'one-touch sharing',2012). Sony holds a strong position in the mind of the consumers as a quality brand providing all. "It's all about Sony as a group, music, movies and games" said Mr. Simon Hovell (The Australian, 2011). The company launched a global campaign in 2011 to position its TVs as Television Redefined to promote its TVs internal capabilities of internet as well as flowing happiness from the other Sony divisions. ( The Australian, 2011 ). For almost 40 years now the world had a love affair with Sony and its products during that time the company created several consumer products and technologies that helped in making their lives easier, productive and more enjoyable. During this time the company earned a solid reputation in the minds of the consumers and positioned itself in the market as providers of quality, reliability, innovation and stylish designs (North American Publishing Company, 2006). Sony has reinforced and extended its market position by taking a quantum leap in revolutionary new technologies providing high speed and precision with the ease of portability. Sony Corporations brand message Make Believe spreads unity across its group of products: electronics, games, movies, music, mobile phones and network services, which signifies the spirit of Sony as the power of creativity and its ability to turn ideas and dreams into reality and to believe that what you imagine, you can make real (Middle East Company News, 2011).

7.4 weaknesses from segmentation 7.5 weaknesses from marketing objectives

8. Formulated New marketing strategy for the future 8.1 Marketing Objective Recommendation 8.2 Target market recommendation 8.3 Brand equity & brand positioning strategy recommendation 8.4 Marketing mix strategy recommendation 8.5 Sales strategy Recommendation

9. Attachment

Tools for Marketing Audit : Answer and analysis the answer for the question below : Part I. Marketing Environment Audit Macro environment A. Demographic What major demographic developments and trends poste opportunities or threats to this company? What actions has the company taken in response to these developments and trends? B. Economic What major developments in income, prices, savings, and credit will affect the company? What actions has the company been taking in response to these developments and trends? C. Environmental What is the outlook for the cost and availability of natural resources and energy needed by the company? What concerns have been expressed about the companys role in pollution and conservation, and what steps has the company taken? D. Technological What major changes are occurring in product and process technology? What is the companys position in these technologies? What major generic substitutes might replace this product? E. Political What changes in laws and regulations might affect marketing strategy and tactics? What is happening in the areas of pollution control, equal employment opportunity, product safety, advertising, price control, and so forth, that affects marketing strategy? F. Cultural What is the publics attitude toward business and toward the companys products? What changes in customer lifestyles and values might affect the company? Task Environment A. Markets What is happening to market size, growth, geographical distribution, and profits? What are the major market segments? B. Customers What are the customers needs and buying process? How do customers and prospects rate the company and its competitors on reputation, product quality, service, sales force, and price? How do different customer segments make their buying decisions? C. Competitors Who are the major competitors? What are their objectives, strategies, strengths, weaknesses, sizes, and market shares? What trends will affect future competition and substitutes for the companys products? D. Distribution and What are the main trade channels for bringing Dealer product to customers? What are the efficiency levels growth potentials of the different trade channels?

E. Suppliers What is the outlook for the availability of key resources used in production? What trends are occurring among suppliers? F. Facilitators and What is the cost and availability outlook for Marketing Firms transportation services, warehousing facilities, and financial resources? How effective are the companys advertising agencies and marketing research firms? G. Publics Which publics represent particular opportunities or problems for the company? What steps has the company taken to deal effectively with each public? Part II. Marketing Strategy Audit A. Business Mission Is the business mission clearly stated in market oriented terms? Is it feasible? B. Marketing Objectives Are the company and marketing objectives and goals And Goals stated clearly enough to guide marketing planning and performance measurement? Are the marketing objectives appropriate, given the companys competitive position, resources, and opportunities? C. Strategy Has the management articulated a clear marketing strategy for achieving its marketing objectives? Is the strategy convincing? Is the strategy appropriate to the stage of the product life cycle, competitors strategies, and the state of the economy? Is the company using the best basis for market segmentation? Does it have clear criteria for rating the segments and choosing the best ones? Has it developed accurate profiles of each target segment? Has the company developed an effective positioning and marketing mix for each target segment? Are marketing resources allocated optimally to the major elements of the marketing mix? Are enough resources or too many resources budgeted to accomplish the marketing objectives? Part III. Marketing Organization Audit A. Formal structure Does the marketing vice president have adequate authority and responsibility for company activities that affect customers satisfaction? Are the marketing activities optimally structured along functional, product, segment, end user, and geographical lines B. Functional Efficiency Are there good communication and working relations between marketing and sales? Is the product management system working effectively? Are product managers able to plan profits or only sales volume? Are there any groups in marketing that need more training, motivation, supervision, or evaluation? C. Interface Efficiency Are there any problems between marketing and manufacturing, R&D, purchasing, finance, accounting, and/or legal that need attention? Part IV. Marketing System Audit A. Marketing Information system Is the marketing intelligence system reducing accurate, sufficient, and timely information about marketplace developments with respect to customers, prospects, distributors and dealers, competitors, suppliers, and various publics? Are company

decision maker asking for enough marketing research, and are they using the results? Is the company employing the best methods for market measurement and sales forecasting? B. Marketing Planning System Is the marketing planning system well conceived and effectively used? Do marketers have decisions support systems available? Does the planning system result in acceptable sales targets and quotas? C. Marketing Control System Are the control procedures adequate to ensure that the annual plan objectives are being achieved? Does management periodically analyze the profitability of products, markets, territories, and channels of distribution? Are marketing costs and productivity periodically examined? D. New product Development Is the company well organized to gather, system generate, and screen new product ideas? Doest the company carry out adequate product and market testing before launching new products? Part V. Marketing Productivity Audit A. Profitability Analysis What is the profitability of the companys different products, markets, territories, and channels of distribution? Should the company enter, expand, contract, or withdraw from any business segments? B. Cost Effectiveness Do any marketing activities seem to have excessive Analysis costs? Can cost reducing steps be taken? Part VI. Marketing Function Audits A. Products What are the companys product line objectives? Are the sound? Is the current product line meeting the objectives? Should the product line be stretched or contracted upward, downward, or both ways? Which products should be added? What are the buyers knowledge and attitudes toward the companys and competitors product quality, features, styling, brand names, and so on? What areas of product and brand strategy need improvement? B. Price What are the companys pricing objectives, policies, strategies, and procedures? To what extent are prices set on cost, demand, and competitive criteria? Do the customers see the companys prices as being in line with the value of its offer? What does management know about the price elasticity of demand, experience-curve effects, and competitors prices and pricing policies? To what extent are price policies compatible with the needs of distributors and dealers, suppliers, and government regulation? C. Distribution What are the companys distribution objectives and strategies? Is there adequate market coverage and service? How effective are distributors, dealers, manufacturers representatives, brokers, agents, and others? Should the company consider changing its distribution channels? D. Advertising sales promotion, Publicity, and Direct Marketing What are the organizations advertising objectives? Are the sound? Is the right amount being spent on advertising? Are the ad themes and copy effective? What do customers and the public think about the advertising? Are the advertising media well chosen? Is the internal advertising staff

adequate? Is the sales promotion budget adequate? Is there effective and sufficient use of sales promotion tools such as samples, coupons, displays, and sales contents? Is the public relations staff competent and creative? Is the company making enough use of direct, online, and database marketing? E. Sales Force What are the sales forces objectives? Is the sales force large enough to accomplish the companys objectives? Is the sales force organized along the proper principles of specialization (territory, market, product)? Are there enough (or too many) sales managers to guide the field sales representatives? Do the sales compensation level and structure provide adequate incentive and reward? Does the sales force show high morale, ability, and effort? Are the procedures adequate for setting quotas and evaluating performance? How does the companys sales force compare to competitors sales forces? sales Force What are the sal es forces objectives? Is the sales force large enough to accomplish the companys objectives? Is the sales force organized along the proper principles of specialization (territory, market, product)? Are there enough (or too many) sales managers to guide the field sales representatives? Do the sales compensation level and structure provide adequate incentive and reward? Does the sales force show high morale, ability, and effort? Are the procedures adequate for setting quotas and evaluating performance? How does the companys sales force compare to competitors sales forces?