SONY Bravia : Strategic Sales Management

Sales Management Presentation Topic : Sony Bravia

Batch : A1, IIPM

Presentation By : Sampurna Chawdhary

Anushree Ambardekar

Ayush Parekh

THE TELEVISION STORY

Sony TV8-301- launched in 1960-portable, world's first non-projection type all-transistor television- used 2 6V lead acid batteries

Discontinued in 1962

Sony Trinitron KV-1310 launched in 1968

Kx21 hv1- 1986

WEGA series– KW HD- 1997

2005- BRAVIA X-series (flagship brand)-- widescreen Liquid Crystal Display TVs- HD- full color resolutions- detail display

2009- Sony BRAVIA- KDL ZX5- Ultra thin LCD HDTV- Advanced LED Backlight

KDL-LX900 Series- 3D BRAVIA with Full HDTV (2010)

KDL-HX80R Series- BRAVIA LED HDTV with 3D, Blu-ray recorder (2010)

Jan 16, 2014, saw SONY unveiling the BRAVIA Full HD TV line-up-- offering X-Reality™ PRO picture engine, bringing stunning images to life from any source.

... the company

Founded- 7 May 1946 Founder(s)- Masaru Ibuka, Akio Morita Headquarters- Minato, Tokyo, Japan Key people- Osamu Nagayama (Chairman of the Board), Kazuo Hirai (President and

CEO) Products- Consumer electronics

SemiconductorsVideo gamesMedia/EntertainmentComputer hardwareTelecom equipment

Revenue Increase- US$75.410 billion (2014) Operating income- (Increase) US$0.257 billion (2014)

Market Share

>Bravia by Sony is the top selling television brand (24/26 to 46/55 inches)> Contributes 35% of total sales in India<Figures in billion yen>

2012 20130

200

400

600

800

1000

1200

1400

1283.2

994.8

203.2

84.3

Sales Operating loss

Market Analysis

With the new Xperia and Bravia 4K X9200A series, Sony is eyeing India to become a bigger market than Japan (home base) by year 2015

SWOT Analysis

Strength

Brand SONY- since 58 years- its' equity and credibility

Innovation

Transformational Engineering

Growth in Indian economy makes India the breeding ground for the company's profitability

Ripple effect on the home entertainment product industry

Credible delivery and quality products

Media Mix and presence (Eg: FIFA official 4K TV)

Get inside the stadium with Sony Bravia 4K HD 3D TV

Weakness

Wrong business decisions. Eg: The alliance with samsung that costed the company a whopping $100 million loss (as Sony does not manufacture its' own LCD panel)

Pricing- Brands like Panasonic, Toshiba, Sharp, LG etc. win in the price game.

Majority production takes place in Japan leading to large distribution costs increasing the product costs

Opportunities

Master in innovation and creating differentiation

Sony's strategic decision to come up with the Bravia X9200A series, featuring-- Sony's proprietary 4K X-Reality which absolutes enhanced visual noise reduction and color management, the TRILUMINOS Display- reinventing color reproduction

The reducing operating loss and increasing profitability in FY2012

Flagship brands-- Bravia, Xperia

Indian market

Incorporating Information Technology, design, audio and imaging

Threats

Samsung and LG

The maximum profit making countries of The United States, Japan and Europe are hit hard by the slow economy

The Apple TV

4 Ps : PRODUCT

BRAVIA™ HD TV [LED & LCD]

Bes t Reso lu t i on Aud io V i sua l In teg ra ted A r ch i tec tu re

Defi nitely

crystal c lear

images

Sleek captivat ing

monol i thic design

Sony Internet TV to

bring you the

best onl ine content

o Home entertainment just got Better, Brighter and Bolder

o Ranging from Basic TVs, Internet TV to 3D TVs

o Sony’s State-of-the-art technologies and Eco-friendly

innovations will change the way you watch TV

Explore the range of Sony BRAVIA TV

X Series - 4K TV

4K Picture Perfect LED TV with Upscaled 4K Resolution by 4K X-Reality Pro

TRILUMINOS-Series

W950B/W950A/W900A Full HD 3D Internet LED TV with X-Reality PRO

W800B Series

Stunning 3D Internet LED TV with X-Reality Pro & One-Flick Entertainment

W700B Series

Internet LED TV with X-Reality Pro & One-Flick Entertainment

W600B Series

Basic Internet LED TV with X-Reality Pro and Smart Interface

R Series

LED TV with Crisp Picture & Unlimited Wireless Sharing

P Series

LED TV with Clear Resolution Enhancer, Smartphone/ USB Connectivity and FM Radio

Explore All LED TV Series

Browse the full selection of Sony BRAVIA LCD/LED TVs

X Series - 4K TV

TRILUMINOS-Series

W800B Series

W700B Series

W600B Series

R Series

P Series

Sony BRAVIA – Made for FANS

HIGHLIGHTS

Colour, Brilliance And Details

Sound that brings stadium to your home

The Perfect Shape That Fits Every Home

Watching Football Just Got More Interactive

Be part of excitement from around the world

PICTURE PERFECT

4x More Detail Than Full HD

See More Colours Than Before

Upscale to Near 4K* Resolution,Regardless of Source

Stunning Details, Whatever You're Watching

Your most immersive 3D entertainment

Clear Resolution Enhancer

Stunning Picture Quality4x More Detail than Full HD

BECAUSE SOUND MATTERS

Absolute Audio Clarity With Full-Range Sound

Sound Perfection with the new Wedge design

Richer Sound With Solid Bass Audio

Full-Range Audio Clarity With Big Bass

Hear Audio Like Its Original Source

Immersive SoundDon't just hear it. Feel it.

WHERE DESIGN MEETS FUNCTION

For every purpose there is a

perfect shape

[Space Saving & Sound Perfection]

An Alternative Way To Display Your

TV

[Wall-mountable Stand]

Entertainment l ike never before

Your Entertainment Awaits, Just a Fingertip Away

Share Your Moments With The World

Wirelessly Mirror Your Smartphone's ScreenOn BRAVIA With A Single Touch

Swipe, Share And Grab A PhotoWithout A Network

Supersize Your Favourite Smartphone Content

TV that's made for your Smartphone

Effortlessly control BRAVIA with your smartphone or tablet

Passions Come Alive With Stadium Surround Sound

Engaging User ExperienceChange the way you watch.

4 Ps :

PRICE

PREMIUM PRICING STRATEGY

Price variables such as dealer price, retail price, discounts, allowances, credit

terms etc. influence the development of marketing strategy, as price is a

major factor that influences the assessment of value obtained by customers

Customers directly relate price to quality, particularly in case of products

that are ego intensive of technology based

Sony being a company which emphasize product quality, it tends to sell its

products with price range from Moderately-high to High-prices, depending

on the use and the targeted customers

High Quality High Pricing

Competitive Price : Price High than Competitors

BRAVIA have been the growth driver of the business in India,

contributing 35% to the total sales of Sony Corporation in FY13

Sony India achieves sales of Rs. 6,313 crore in FY13

BRAVIA is No.1 in Flat Panel Market with 18.8% share

In FY11, Sony sold 8.3 lakh BRAVIA TVs, which went up to 9

lakh units by end of FY12

Sony Bravia 40 Inch Full HD LED KLV-40R452A Rs. 45,000

Sony Bravia 32 Inch Full HD LED KDL-32W600A Rs. 33,792



Sony Bravia 24 Inch HD LED KLV-24R422A Televi Rs. 15,860

Sony Bravia KLV-24R402A 24 Inch LED Televisio Rs. 14,863


Sony Bravia KDL-32NX650 32 Inches LED Full Rs. 40,500

Sony TV Price in India 2013


Sony Bravia KD-65X9004 65 Inch 3D 4K LED Rs. 344,910

Sony Bravia 47 Inch Full HD 3D LED KDL-47W800A Television Rs. 88,901

Sony Bravia KD-55X9004 55 Inch 3D 4K LED Rs. 258,947

Sony Bravia 50 Inch Full HD KDL-50W800B LED Rs. 101,065

Sony Bravia KDL-47W850A 47 Inch Full HD 3D Rs. 89,952


Sony Bravia 55W950B 55 Inch Full HD LED Television Rs. 152,561

Sony Bravia 48W600B 48 Inch Full HD LED Television Rs. 77,900

LATEST PRICING STRATEGY:

Sony Brings Bravia 4K TV Range in India With Price Starting Rs 3,04,900

UPCOMING PRICING STRATEGY:

Sony to experiment with minimum pricing strategy

4 Ps :

PLACE

PLACE: SUPPLY CHAIN & MARKETING

Depending on the nature of the product, marketing management

decides to put into place an exclusive, selective or intensive network

of distribution, while selecting the appropriate dealers or wholesalers

Sony being the company which positions itself as a seller of durable

and high-end products, it is practicing selective distribution of its

products from the selective dealers i.e. SONY World

Sony distributes its products in various channels

It uses Zero-level channel, one level channel and two-level channel

In India, Sony has used the method of one-level distribution channel

4 Ps :PROMOTION

Sony engages in a variety of different marketing efforts, as one of the world's largest and most pervasive corporations

Sony's former slogans have been

"The One and Only",

"It's a Sony",

"like.no.other" and

"make.believe"

Its current slogan is "BE MOVED"

BE MOVED

WHEN ARTISTS MEET ENGINEERS

The BRAVIA brand uses the slogan"Color like.no.other."

The launch of the BRAVIA was supported by an advertising campaign, with a commercial featuring 250,000 brightly colored rubber balls bouncing down a San Francisco street

Advertisement in India features thousands of square anthropomorphic pixels. A Kathakali dancer's green face turns into pixels which run away from him. He finds his face later in a Sony BRAVIA television

PROMOTION

• Promotion is a key element of marketing program and is concerned with effectively and

efficiently communicating the decisions of marketing strategy, to favorably influence target

customers’ perceptions to facilitate exchange between the marketer and the customer that

may satisfy the objective of both customer and the company

• A company’s promotional efforts are the only controllable means to create awareness

among publics about itself, the products and services it offers, their features and influence

their attitudes favorably

SONY MARKETING Communication Mix

Sony India will spend Rs 200 crore in this financial year on advertising

and promotion of the entire range of consumer electronics, outof which Rs 60

crore will be spent only on digital imaging products

The major elements of promotion mix include advertising, personal selling,

sales promotion, direct marketing, and publicity. Sony Corporation has used

all of these marketing communication mix elements.

Advertising

Advertising is any paid form of non-personal mass communication through various

media to present and promote product, services and ideas etc. by an identified

sponsor

Sony advertise its products by targeting those favorable television programs, like

sports, series and also it has its own channel called Sony TV channel

Through newspapers like Times of India, & also through Posters Sony has

advertised a wide range of products it offers to its customers

Sony also uses direct response advertising

Sales Promotion

Sales promotion is a marketing discipline that utilizes a variety of incentives

techniques to structure sales related programs targeted to customers, trade, and/or

sales levels that generate a specific, measurable action or response for a product or

service

Includes free samples, discount, rebates, coupons, premiums, scratch cards,

exchange offers, early bird prizes, etc.

Public Relations and Publicity

Public relations is a broad set of communication activities employed to create and maintain

favorable relationship with employees, shareholders, suppliers, media, educators, potential

investors, financial institutions, government agencies and officials and society in general

Through its website, Sony corporation has its provided contacts for those customers who

will be in need of any information from the company

In this way Sony can create a mutual relationship

with its customers and ensure that it serves the wishes

and demands of its customers

Organization Structure

Source: www.sony.net

Sales Target& Budget

What is Sales Target ?

A specified amount of sales that a management sets for achieving or exceeding within a specified timeframe.

Sales Target are apportioned among different sales units such as salesperson, franchisees, distributors, etc.

Sony Sales (India Only)

• Sony has been ruling the Indian market by maintaining a very high market share.

• Sony India hit Number One position with 18.8% share (In Qty) in FY11.

• Sales Target was very high for the year 2012 and 2013. Source: Sony India, Google

• Due to strong competition from big players like Samsung, LG, etc. sales went down.

• Sony suffered operating losses in the year 2012 and 2013.

Source: Annual Report

Source: The Hindu Newspaper

Sales Target• 20% increase in sales by next

year.

• For small towns and cities, going to launch TVs starting Rs. 15000

• Focus high end product mainly in metro cities.

Source: Times of India

Budget • Objective : Maximize sales, Minimize costs and Ensure

Profits.

• It’s a timely controlled mechanism.

• Sony allocated Rs. 450 Cr marketing budget in the year 2013.

Sales Team Training

Skill Development

To forecast and achieve sales

Communication Skills

Time Management

Discovery of Strengths and Weaknesses

Source: HR Sony

Compensation

Software Engineer 561,500₹ 400k to ₹ 700k₹

Senior Software Engineer 727,333₹ 500k to ₹ 925k₹

Trainee Software Engineer 425,000₹ 400k to ₹ 450k₹

Hardware Engineer 175,000₹

Sales Associate 150,000₹

Sales & Marketing 125,000₹

On an average, Sony Electronics pays its employees about 12% more than that of the market.

Source: www.glassdoor.co.in

Motivation

For Customers

Customer Satisfaction

Product Quality

After sales service

Global repair service network

For Employees

Easy working environment

Human rights and equal opportunities

Education and Training

Occupational Health and Safety

Employee benefits, bonus and allowances

Source: www.sony.net , CSR

http://www.sony.net/

Thank You.