Sony: A Multinational Company| Essay

This assignment is about marketing management of Sony Cooperation. The principles and concepts of marketing are discussed in details in this assignment. Following are the reasons for selecting Sony Corporation:

Sony has a universal existence being a multinational company.

With wide array (variety) of products

Financial strength with MNC to inspect and enforce all aspects of the Marketing Mix including high spending on Promotions.

Sony’s corporate culture which was established 60 years ago roots the current financial difficulties. Strong planning and strategies should be implemented in such a large multinational corporation.

Better communication and cooperation internally in different departments of the company is essential .To create standards in new fields concordant and cooperation between competitors should be sorted out. Instead of being rebel, Sony should aim at being the leader.

Rather than striving towards the fast and easily changing consumer goods market, Sony should use its technological knowledge for well developed and prosperous business.

Sony spirit of innovation should remain intact even with structure and strategirial change because that is what made Sony strong.

Introduction

Innovation and high-technology- electronic goods is the first thing that comes to customers minds of the products and company of Sony.

Sony is the leading manufacturer for information and technology globally. Sony believes that the power of technology can produce new ideas and vibrate the senses helping to create different and new experiences.

Sony’s attitude is to explore whatever is possible and to develop new ideas. Sony continuously challenges the boundaries and rules that surround the entertainment world.

Sony with this innovation created a multinational, multibillion electronic empires out of ashes in post war Japan. Instead of concentrating on profit and loss statements, emphasis on new products and product volatility was the main objective of the company.

Sony Corporation… the beginning

Headquartered in Tokyo, Japan Sony Corporation is a multinational merger corporation. Sony is one of the largest media merger based in Minto Tokyo with revenue of $77.2 billion (FY2010)

Sony recently changed its slogan from ‘Like no other’ to ‘Make-Believe’ which will differentiate it from its countless competitors and will also encourage the customers around the world to enclose all that Sony is.

Sony is among the World Top 20 Semiconductor Sales Leaders

Sony Group the parent company and Sony the electronics business unit both run there business through five operating segments, these are:

Sony Corporation,

Sonny Ericsson,

Sony Computer,

Sony BMG Music,

Sony Financial Holdings,

Sony Pictures Entertainment,

Sony Corporation has an exclusive culture especially in relation to its two founders, Masaru Ibuka and Akio Morita which is still firmly rooted in the company.

In many different ways Sony is a traditional Japanese company. With strong norms and values and loyalty to the company helps Sony to create Strategies.

In 1946 engineer Masaru Ibuka, and physicist Akio Morita, established Sony in Tokyo Tsuchin Kogyo. The name Sony derives from the Latin word ‘Sonus’ meaning sound and the English word ‘Sonny-boy’ – a term used by the Americans in the 1950’s to denote a bright youngster.Ibuka and Morita realized that they needed a global brand which crossed cultural and language borders.

In 1954, the company began to make progress when it attained a license to produce transistors and manufactured Japan’s first transistor and the first all-transistor radio.

In 1955, the company listed stock on the Tokyo OTC market and in 1958, changed its name to Sony Corporation and was listed on the Tokyo Stock Exchange.

In 1968 with the launch of Sony United Kingdom in London Sony’s UK history began.

On four occasions in the 80s and 90s the prestigious Queens Award for Export was awarded to Sony.

Today Sony employees around 180,500 people in functions like Sales, Marketing and Manufacturing.

The Roman letters were used for the first time by Sony to spell the company’s name instead of kanji.

Sony Corporation

Two founders of Sony Interaction with employers

The logo through times The worlds first all- transistor Radio

Masaru Ibuka, one of the founders of Sony set a primary goal as his mission was the promotion of science education among the general public. He was persuaded that for the recovery of Japan after war the scientific literacy was significant and science education for the children was the solution. 13 years after Sony’s establishment he established Sony Fund for the Promotion of Science Education in

1959 in the search of science education excellence.

Mission- Sony’s mission is to develop a broad range of products and multimedia services that stimulate the way consumer’s access and enjoy digital entertainment.

Sony is constantly aiming to create new exciting world of entertainment that can be viewed on different products.

Sony aims on collaboration between businesses within the organization.

Vision – It’s the way that we do business. Our vision is our guiding force. We bring together the cutting edge products with latest services and generation content and create an exciting digital entertainment for our customers.

Aims and Objectives

Being one of the leading consumers electronically firm Sony aims to have the largest market share.

Sony aims, to contribute effectively to the natural environment and the dreams of future generations, through new business initiatives and continuous technological innovation.

Sony Group top business priority is sustainable economic development by recognizing the utmost importance of natural life-support systems.

All staff of Sony will be educated continuously about a broad variety of environmental issues.

In a joint quest Sony will cooperate with stakeholders to improve the world in which we live.

By developing new and original technologies Sony aims to contribute to the improvement of environment.

Using its creative technological capacity Sony will introduce “Cradle-to-Cradle” design principle to all products and services.

Sony Products

Around the world Sony offers a number of products in different product lines.

Television

Bravia LCD TV

CRT TV

Projectors

Home Theater Projector

Business Projector

Public Display Panel

Home video

Blue-ray Disc Player

DVD Player

DVD Portable Player

Home Audio

Hi-Fi Systems

Home Audio Accessories

Portable Audio

Walkman mp3 Series

CD/Radio/Cassette Player

Home Theatre system

DVD Home Theatre System

Home Theatre Component System

Digital Cameras

Cybershot Digital

Digital Photo Frame

Hand cam video camera

Handcam High Definition Video Camera

Digital Photo Printer

Computers

VAIO Laptops and Computers

VAIO accessories

Video Games

Play Station 2/3

PSP (Portable Playstation

In-Car entertainment

Xplod CD Receiver

Xplod Speaker/Subwoofer

Mobile phones

Sony Ericson

Storage and Recording media

Memory Stick

USB Storage Media

Data Storage Media

Video Storage Media

Batteries and Charger

Accessories

Sony Promotion

The key element of marketing program is Promotion and is based on

communicating strategy of marketing efficiently and effectively to influence perceptions of target customers’ satisfies the objectives of the customer and the company and facilitates exchange between the customer and marketer.

The only means to establish awareness among publics are company’s promotional efforts about their products and services, their features and influence and about themselves.

Sony advertises its product in a variety of ways like TV, Newspaper, magazines, posters, TV programmes and recently through its outdoor advertising.

Sony uses some events to promote its products.

Sony has advertised Play station through English Premiere League

Sony Marketing Mix

Each financial year Sony spends millions on promotion and advertising of the entire range of consumer electronics.

The major elements of this promotion mix are:

Personal selling,

Publicity,

Sales promotion,

Advertising,

Direct marketing.

SONY Place (Distribution)

Sony distributes its products through different channels.

Sony being the company with a reputation of durable and high end products is practicing Selective Distribution from selective dealers like Sony World.

There are some Grey-Markets in some other countries where Intensive Market Coverage is practices. In these markets the products do not have all the features and benefits like warranty and guarantee which Sony offers.

Sony has also reached its customers through the Internet and by going on their website you can get full information about its products.

JUMBO ELECTRONICS – THE BIGGEST SONY DISTRIBUTOR IN THE UAE

Sony Procurement

There are two principals on which Sony Procurement is based:

To meet the expectations of the customer’s worldwide Sony is expected to offer high level of value for its products and services and also through its operations customers want Sony to be a good corporate citizen.

Sony’s worldwide activities require smooth relationships with suppliers based on mutual cooperation and trust. Sony therefore lays emphasis on creating such relationships with suppliers.

Sony Environmental Contribution:

There are various ways in which the Sony’s business will affect the environment. With the objective of realizing the Sony Group Environmental Vision, Sony is introducing different activities to decrease its environmental impact.

Sony Group Environmental Vision

Principals and philosophy for the environmental activities throughout the world with the aim of reorganization for a sustainable society represent the Vision of the Sony Group Environmental Vision.

Trough partnerships and communications with the internal and external stakeholders, Sony specifies targets and concrete plans and commence actions to implement, to realize the Environmental Vision.

Sony has established its own special set of environmental indicators to consider carefully the life cycles of the business activities of Sony Group. These indicators indicate quantitative measurements of the environmental impact, by lowering numerical values which indicate lower levels of impact.

To ensure the accuracy of information relating to the activities, products and services of Sony Group’s business on the entire life cycle Sony is introducing steps.

Greenhouse gas emission and resource use are the two environmental indicators which Sony uses to determine this effect to its possible extent.

Environmental record

Green peace’s Guide to Greener Electronics which evaluates 18 leading companies’ policies on recycling, toxic chemicals and climate change ranked Sony 6th along with Panasonic and Motorola, in October 2010.

Many Sony models in the market are partially free of PVC and BFRs.The Company aims at removing PVC in all models of mobile phones and BFRs in the casing by April 2011.It still needs to set a time line for eliminating all these elements from its product to improve its ranking.

Improvement efforts

Environmental Conference held by Sony in 1976 takes notice of its policies effect on the environment and on global warming. They introduced the steps in a process called ‘Green Procurement’ in which they reduce the amount of greenhouse gases emission and also regulate the products which they purchase from their suppliers.

Sony signed to have 75% of their buildings running on geothermal power.

In U.S they introduced ‘Sony Take back Recycling Program’ aimed at recycling the electronic products purchased by Sony customers to ‘eCycle’ drop off point.

Sony introduced the most powerful biobattery that utilizes sugar and carbohydrates like living creatures to work. And to date its the smallest one.

Green TV

On 30 July 2008 Sony introduced new flat panel 32 inch TV which consumes 70% less energy than regular models. Sony was able to reduce its carbon dioxide emission after this green product.

Facts and Figures

PEST Analysis of Sony

Another marketing tool is PEST Analysis used to monitor the external influences on business which are:

Political:

The way Sony operates can be directly affected by the political factors. The power to change policies and legislation is held by the Government and this can affect Sony. The laws which affect Sony will also affect its competitors. Government may change or increase trading restriction internationally, minimum wage, tax, VAT etc.Sony has to keep an eye on all these factors so that it is prepared for any major global change.

Economical:

As the world is facing recession and credit crunch, the economy growth has shrunk .Due to this the interest and exchange rates may change. If the interest and exchange rates change in different countries Sony being an International Company has to evaluate what prices their products are being sold and whether it would be worth it.

Social:

Sony has to stay ahead of the modern technology as it has gained a reputation for its quality product and the services they provide. To stay alive in this competion Sony has to create revolutionary equipments and ideas for people.

Technological:

The technological factors are very important for any company including SONY to increase productivity and to stay ahead of the competitors. Using customer information, conducting market research and the use of new technology will help Sony to create new products.

SWOT Analysis of Sony

SWOT analysis are helpful in identifying both the External and Internal factors for Sony to know their current business standing, it will give Sony incentive to work toward achieving their goals and objectives.

Picture from Google images

Strengths:

Sony’s ability to produce quality, innovative products. Sony’s webpage writes ‘Sony innovation have become part of mainstream culture’.

The ‘never copy other’ culture is the basis of Sony’s innovative style.

Sony is very successful in several different markets.

Sony’s engineers are its greatest asset. They can work and produce better after learning from the past experiences.

Sony is very competitive towards other companies.

Weaknesses:

In the beginning of 80s the sale has slowed down considerably e.g. PS3 which lacks the innovation.

Lack of general direction in the company is due to a succession problem.

Development and research are run by small teams and secret projects and reports are submitted without the knowledge of the management which shows lack of understanding and communication between R&D and management.

Opportunities:

R&D department which comprises of Engineers are Sony greatest asset and their constant innovation is essential for a consumer electronic firm.

Sony gets knowledge of the local market by Subsidiaries which are well developed, as in the United States and Europe. Sony has become an International Corporation by bringing together the strategies and the talents of both worlds to the organization.

To give greater outlook to all the fields of the business and to create employee satisfaction the company runs self promoting and job rotating system. Preferably, this would result in production of better and new products as marketing people will give their ideas while working in production and the engineers will gain knowledge on consumer needs.

Sony with the enough technology will increase width by entering into high technology business field which creates an opportunity to dominate the field and set up standards.

Sony has the chance to make use of Asian countries for markets and for cheap labour.

In order to attract new customers the marketing department has introduced latest advertising techniques.

Threats:

Due to diminishing margins for the technology advancement other electronic firms can duplicate Sony’s technology easily, in short time and offer more competitive prices.

Sony being a leader in technology is looking for new markets where well-established and bigger companies are not always a threat but this leads to the problem of cooperation where Sony is always creating markets alone. Sony can no longer just produce high quality machines and expect them to sell. It might be profitable to other companies and to Sony that if they cooperate instead of competing for the same systems.

Sony lacks strategy any formal long term direction however all the other departments like marketing, product development and manufacturing are well established. Short term strategy is also lacking with little stress on profit, research and development of products. Sony needs to renew its original mission statement which is outdated with its references to W.W.II.

The result: a company unable to coordinate in a coherent way in order to achieve maximum potential but with strong components.

Conclusion

SONY not only does represent a wide range of businesses, but remains globally unique.

In aggressively carrying out their convergence strategy Sony aims to fully leverage this uniqueness so that SONY can continue to excite and emotionally touch their customers.

Sony has priced its products too expensively depending on the quality and the services they offer. But it does not meet the requirements of the lower class customers who can not afford their products. Sony has always targeted its market mainly to urban customers. Sony needs to consider lowering the prices of its product line to attract a large number of customers in developing rural areas. Implementation of this policy will help Sony to tap into a huge reserve of potential users.

Sony has expanded its products and services to television broadcasting and entertainments like music, movie production and distribution

from electronic and digital devices

With high quality and wide range of products and services Sony has influenced most of its customer’s perception favorably towards its products. From the time of its establishment, Sony product quality is improving every year. Company suffered losses in millions to provide service quality product if any of its product fails. Sony as a company always accepts and rectifies its mistakes.