Sony Corporation is a multinational company and was founded in 1945 in Nihonbashi, Tokyo. The company operates globally in 204 countries and is one of the leading manufacturers of communication, information technology, communication and electronic products. With a high level of brand awareness, Sony is a globally recognized brand. Sony has an unlimited passion for technology and innovation that drive them to offer ground breaking products.
From young to adults, Sony targets every age group. Sony offers gaming products for children too. Sony is a diverse brand that offers products for wide variety of people who have an ability to purchase and want to use the products of Sony.
Sony works in strongly aggressive markets portrayed by changing customer’s needs and preferences and rapid technological innovation. Due to cutting edge technological development and the relative ease of technological imitation, new products and services have a tendency to become standardize more quickly, prompting more intense competition and continuous price erosion. In order to survive in the market, Sony keeps on investing vigorously in Research & Development, especially in growth areas, for example, image sensors and the Game and Network Services (“G&NS”) segment.
The goals of Sony Corp are:
• To design and create innovative quality products which benefits to people.
• To increase the sales of the products.
• To increase the market shares in the Global consumer electronic industry.
• To become the leading company in the distribution of consumer electronics and other technology.
• To ensure growth of investment in community project.
The key strategies of Sony are:
• Management that highlight revenue without necessarily pursuing volume.
• More autonomy at business units with an emphasis on shareholder values.
• Well-defined positioning for each business.
Annual Marketing Budget
The company has been spending a lot for marketing of its products. Back in 2012 and 2013, Sony spent around 52.4 billion and 53.8 billion Yen respectively for its annual marketing budget. Now the company is set to spend 13.3 billion Yen for marketing and promotional activities which is very less as compared to the past budgets.
Marketing Mix of Sony
Sony is known for quality and innovative products. It offers diverse range of products such as audio, Televisions, Video (digital camera, DVD, video players and recorders), Games, semiconductors, computers, printers, motion pictures and mobile phones. Moreover, Sony has also jumped into personalized PlayStation and Sony cards which are used as reward credit cards.
Sony adopts price skimming strategy when it launches the new product with some unique feature. The price then decreases gradually if the competitors come up with the same product. The idea behind price skimming strategy is profit maximization and when the price goes down, it increases sales volume.
Sony makes sure that their products reach everywhere. Sony has numerous distribution channels, outlets and branch locations. The products of Sony are available around the globe.
Different promotion strategies are followed by Sony which includes sales promotions, advertising, personal selling and direct marketing. Sony offers coupons, rebates, free samples, discounts and scratch cards in order to push its products to its target market. Sony also spends excessive amount in advertisement to reach the masses.
Sony has numerous competitors in every business be it consumer electronics, music industry, movies or games. In gaming, Sony has a competition with Microsoft Xbox and Nintendo. In movies, it has a fierce competition with Motion picture studio. In consumer electronics, Samsung and Panasonic are its main competitors.
• Innovative products
• Strong Brand Image
• Diversification in Manufacturing location around the globe
• Technological competence
• Strong foothold in the entertainment industry
• High prices
• Narrow product line
• Lack of dominant mobile devices
• High cost manufacturing base leading to lower margin
• About Sony, Retrieved from https://www.sony.net/SonyInfo/
• Sony’s Annual Marketing Budget, Retrieved from https://www.sony.net/SonyInfo/IR/stock/shareholders_meeting/Meeting100/100_Consolidated_Financial_Statements.pdf
• Sony’s products, Retrieved from https://www.sony.net/electronics/