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Sony AIBO: A Marketing Dilemma
Background Information
• World’s first entertainment robot (1999)
• Japan sold the AIBO at great pace
• Constant questioning of purpose of existence
• First Generation AIBO
• Second Generation AIBO
Discussion
• Problem Recognition
• Situational Analysis
• Evaluative Criteria
• Alternatives and Recommendations
• Consumer Profile
• Distribution Channels
• Pricing Strategies
• Promotional Strategies
Problem Recognition
• Sony AIBO’s possible expansion into the U.S.
• Promotional mix
• Companion or Productivity Tool?
• Ability to sell to mainstream market
• Premium Pricing
Situational Analysis
Strengths
Weaknesses •Price•High Cost of R&D
•Innovation Leader•Superior Technology•Software Adaptability•Sony´s Specialized Department
Situational Analysis
Opportunities
Threats•Perception of robots in U.S.•Aging American Market•Aversity to Technology•3 Possible markets are saturated
•American robotic market in infancy•Growth of American toy market
Evaluative Criteria
• Ability to Maintain Competitive Advantage
• Risk Minimization
• Long Term Profit Potential
• Short Term Profit Potential
• Ease of Implementation
Alternatives and Recommendation
Expand to U.S
Productivity Tool
Companion
EducationalToy
Positioning Promotional Target
Niche
Mass Marketing
Pricing Distribution
PremiumPricing
Captive Pricing
25-40 AffluentParents
Typical ToyConsumer
Superstore
Niche Store
Long Term Strategy
Short Term Strategy
Consumer Profile
• 25-40 year old mom
• Affluent Consumer
• Seeking educational product benefit
• Early Adopters
Distribution Channels
• High End Stores – Neiman Marcus, Sachs Fifth Avenue
• Online Retail
• Mass Retail Distribution (Long term)
Pricing Strategies
• Early Adopters – Premium Pricing
Strategy
• Price - $1500
• Early Majority – Captive Pricing Strategy, after next generation release
• Price - $300
Promotional Strategies
• Viral Marketing: Word of mouth, social networking
• In-store display
• Parenting and related magazines
• Crossing the chasm: cartoon, books, software, etc.