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The Brand Management Of Sony Marketing Essay

The Brand Supervision Of Sony Marketing Essay

Founded on May 7, 1946 in Tokyo, Japan, one of the successful technological corporations on the planet: Sony was made beneath the two legendary males: the physicist Masaru Ibuka and the physicist Akio Morita (Sony, 2013). They made the decision to create a company mending and producing electrical products and established Sony beneath the name under the brand Tokyo Tsushin Kogyo K.K. which is usually Tokyo Telecommunications Engineering Corporation, known as Totsuko. At that time, Totsuko was just a little provider with capital of 190,000¥ (~ 2000 $) and around 20 staff members compare to giant corporations in Japan such as for example Toshiba, Hitachi, Sharp, Matsushita with tremendous capital, conveniences and labour capability. Although in 1946 Japan was just recovered from the wartime, while the other giants even now possessed enough resource and experience to regulate the Japan market, Totsuko acquired no machinery and little scientific equipment and only using their own clever and engineering experience, the young talented group with wonderful ambitious set their first step to the new markets. From 1955, the company continued generating product with the logo ‘SONY’. In 1957, the company decided to change the name of the business from Totsuko to Sony Company (Sony, 2013).

There was just a little story behind the name ‘Sony’. it was formerly by integrating “SONUS” the initial Latin for “SONIC” indicating sound, with “SONNY” meaning a youthful boy. The theory came to Akio Morita when he was browsing the U.S in 1950s, he noticed that many U.S businesses’ names are not at all hard with only alphabetic letters, at that time he realized the brand Totsuko was difficult to keep in mind for customer all over the world and made a decision to change to ‘Sony’.

Over a 50 percent century, Sony Corporation is definitely a pioneer in technical development and acquired popularity to be innovative. Its aim is usually to be the Japan’s first of all as well as the world’s first. This is also the reason why Sony had many failures during the past simply because of being first but it never stop continue. Grow from a tiny company of 20 employees, today, it has turned into a global corporation consists over 160,000 employees over the world and ranked #38 in the World’s MOST EFFECTIVE Brands list according to Forbes (2012). Sony takes part in an array of businesses including electronics, video game, entertainment and financial services sectors with major goods such as television, computer, camera, video game console, mobile audio, cellular phone and entertainment sectors with Sony Pictures Entertainment, Sony Music Entertainment rendering it just about the most comprehensive entertainment companies on the globe. Well-known for being always impressive, Sony may well not be the largest company but definitely, the most innovative, they have brought to humanity a multitude of creations that modification the world that we already familiar with such as for example Walkman, Playstation, Blu-ray. Even though in recently years, Sony has misplaced their market’s stand due to financial losses and fierce competitions from Apple and Samsung, however, persons still believe in the spirit of an impressive legend such as Sony will never collapse.

Unique Selling Points

One of the important unique selling factors of Sony is certainly its innovativeness. During the past where the company is not a good competitor to those giants such as Toshiba, Hitachi or Matsushita, the main one durability Sony possessed is cleverness and steadily they proved to the universe that they deserve a top position in world most innovative makes. The innovativeness of Sony comes from the strategy of fabricating their own in-house technology for his or her product development rather than adopting and relying on market technology. Long before the Ipod device from Apple becomes the universe iconic music device, there was the Walkman from Sony. Introduced on 1st, July, 1971, the earliest Walkman with metal-cased blue-and-silver TPS-L2 was created as the community first’s low cost portable stereo and achieved superb success as yet with the sales record of 200 million unit by the time the Ipod device was introduced (Hansen, 2009).

Product quality and top quality management are also major unique selling things making the formidable reputation of Sony. From the initial electronics products lines, entertainment and interaction devices to robots, Sony usually presents to the marketplace premium items with the brand exclusive features so as to deliver to the client their best leading edge technology. Furthermore, the company is also famous for its management system in term of quality enhancement and customer offerings in an effort to further achieve customer’s pleasure, trust and dependability (Sony, 2012).

One more thing which makes Sony a well-known manufacturer in the world as well as a major unique feature is its strong manufacturer equity. By extending the firms of the company to a variety sectors incorporating PCs and network goods, TVs and Digital imaging, Electronic elements and semiconductors, Entertainment and Financial products and services, Sony has achieved enormous brand awareness, and it is likewise enhance its company equity. Some feature products from Sony such as Bravia TVs, DSLRs Cameras, Playstation gaming consoles, lightweight music players Walkman and VAIO computer systems for example .Furthermore, they even take part in entertainment sector with the Sony Music Entertainment and Sony Pics Entertainment which are incredibly popular on earth.


As Sony is normally competing in a variety of kinds of market related to technology, financial products and services, consequently it faces different competition from different fields. The following section will discuss the competition between Sony plus some of its famous rivals.

3.1 Sony vs Apple

Sony (million US $)








Gross Profit




Net Income




Figure Financial highlight from 2010 – 2012 of Sony (Morningstar, 2013

Apple (million US $)








Gross Profit




Net Income




Figure Financial highlight from 2010 – 2012 of Apple (Morningstar, 2013)

Sony is still fighting financial concerns and suffering record annual losses. This is probably because of the Japan earth wake and tsunami in 2011 and economical damage from the appreciation of the Japan yen in recent years. However, the company believed it was on the right track in recovery and preparing to become popular again in 2013 (Time Colonist, 2013).

Based on the statistics above we can plainly see that Apple is usually moving ahead of Sony in term of economic in recently years because of the successful revenue of Apple gadgets such mobile phones, portable music thesis ideas players and personal computers. Among the fiercest competitions of Sony and Apple is the music industry. Both of the makes are now the very best leading brands in the music industry where Apple is famous with ITunes Retail outlet and IPods music player, for Sony, they possess the effective Sony Music Entertainment and the Walkman music player. Recent news show that Sony may withdrawn performers from Apple’s iTunes Retail store and planning to create Sony Unlimited as a rival to Apple ( The Age, 2011).Sony still have quite a distance ahead to contend with the powerful Apple since the American brand has climbed their method to the top of the world.

3.2 Sony vs Microsoft

Microsoft and Sony will be main rivals in the video games industry for quite some time where they own the immediate competition in the revenue of gaming devices, especially the console war between Xbox from Microsoft and Playstation from Sony. There has been half a decade of long battle between the two consoles over their case study templates top quality, value and features. Each area constantly provide more appealing features and technology advancements to their product in order to defeat the other including the introduction of Kinect from Microsoft and PSMove from Sony, bring about the greatest duel between the two brand.


Figure Total product sales of the latest gambling consoles globally (VGChartz, 2013)

The chart shows a slightly higher number of sales for the Xbox 360 with 74.8 million units compare to 73.6 million units of Ps3 3(VGChartz, 2013). Nevertheless, the figures do not conclude that Microsoft does business better than Sony in the games sectors because Microsoft introduced the Xbox 360 to the market 1 year prior to the Sony launched Playstation 3 3. Actually, recent data from VGChartz (2013) confirmed that Sony Playstation 3 3 has defeated Xbox 360 360 in sales calculated right from the start of 2013 to date:

Figure Sales of the most recent gambling consoles global year-to-day (VGChartz, 2013)worldwide_totals.png

SWOT analysis

Figure Market segmentation

There are some primary of marketplace segmentations that Sony can want to review the appropriate marketplace for

products which are contained in the five consumer market segmentations commonly used happen to be geographic segmentation, demographic segmentation, psychographic segmentation and profit segmentation, besides, the marketing strategies may also rely upon the behaviors of the prospective customers (Ferrel & Michael, 2011).

The graph below depicts the portion of product segments of Sony via the sales volume in 2012. The Consumer Services and products (CPS) Division holding the first location with 47.2% of sale, television and video game are sharing more than 50% of the full total sale in this division. However, the Professional, Device & Solutions, which consists of the Professional solutions, semiconductors and pieces and other, will come in the second on the rank. Product sales in the Photos, Music, and Financial Providers segment are comparable, with 13.4% of Financial Companies, 6.6% of Music, and 10.1% of Pictures. The brand new separated segment in 2012 which is Sony cellular communications contributing 1.2% to the total sale.

Macintosh HD:Users:LeDucHuy:Desktop:Screen Shot 2013-04-01 at 11.58.11 PM.png

Figure Proportion of sales by Sony’s business.

Source: Sony – Annual article 2012

In this study, both selected segments are the games and digital imaging in which more than a one half of the R&D budgeting is utilized in (Sony, 2012). The demographic segmentation and behavioral segmentation will become mainly utilized to illustrate the consequences of market segmenting on these mentioned items.

4.1 Gaming

The Sony’s gambling section established in 1995, one of many innovator available in the market (Sony, 2012). Since that time, video games has been contributing large portion of benefit to Sony. The customers’ behavior may be the subject that Sony offers been studying for some time to understand the buyers’ perceptions, reactions, use rates and feelings toward Sony’s products as a way to create good buying event, satisfy customers’ benefits sought and moreover to keep carefully the customers’ loyalty.



Good existing products

Strong customer networking

Mature supplier system

In-depth understanding about the market demand, laws and regulations

Good after sales services

Risk management

Being more sensitive to exchange rates as a result of geographic expansion

Security system

Lack of technology for PS3



New CEO with good strategies

Merger and Acquisition

High price of competition from Nintendo and Microsoft

Pirated program and patent infringement claims

Losing market shares

Figure SWOT Analysis for Gaming


Sony is currently having a whole lot of good items like PS2, PS3 and PSP with a solid customer networking. The supplier system of Sony can be matured with the understanding about the market demand, laws and regulations of markets all over the world. Besides, the after-sales offerings will be the key factor to keep up and improve customer romance of Sony.


In the year of 2011, Sony online entertainment faced a significant mistake of losing buyer confidential information, which will be the bank accounts and additional personal information used to login the machine. Sony provides been reimbursing a lot just to overcome the problems and maintain the relationship with customers all over the world. The fault indicates that the chance management of Sony needed to be improved, besides, the lack of creativity of PS3, a strategic item of Sony, is decreasing the amount of sales of this products as compared to competitors sales.


The innovative appointed CEO of Sony Mr. Kazuo Hirai provides been changing the business since started working day in February 2012 (Sony, 2012). The brand new CEO experienced in laptop entertainment and PlayStation, which is very promising towards Sony’s focus. Additionally, there are more acquiring opportunities for Sony


The Wii and Xbox are receiving the market shares in gaming industry aggressively and pulling down the sales of Play Station series. The outsourcing of productions to the 3rd party may be at the mercy of copyright or patent infringement claims.

Digital Imaging



Good warrantee plan offered

Strong brand name

Operating license in nations

Good R&D planning and budgeting

Many product lines cause having less focusing

Lack of strategic mergers & acquisitions.



The recovery of financial after recession

Homogeneous market with equivalent tastes and preferences

Increase in expense of production following the Great East Japan Earthquake

Decreasing the market demand

Reduction of materials

Natural disasters

Figure SWOT Analysis for Digital imaging.


The company has generated a broad sales network, registered in about 200 countries and territories. Sony includes a strong brand name because its products are usually considered to have high quality and good design.


Sony operates numerous products that serve way too many parts of the entertainment value chain. It not merely leads to the slowing down of the whole development strategy but as well impaired their competitiveness in virtually any of the market segments they get excited about. Further, the merchandise lines usually do not really link to each other, it creates Sony losing the costs advantage, for instance, the finance segment and digital imaging segment haven’t any linkage.


The recovery of the world monetary is a good signal for Sony when clients enhance their purchasing power, you will have more electronic and digital imaging devices being sold because the travelling actions are pushed. Luckily, the approach to life of human being is certainly going toward the homogeneity of preference and tastes where European and Asian persons get to use the same products specifically for the field that Sony is working on.


Reducing total demand by consumers and businesses due to the huge variety of manufacturers. Sony must overcome significantly powerful competition from firms that may be more specialised or have greater assets.

Sony in the next 3 years time

Based on the examination, there are a few essential issues for Sony, which are the macro-risks and the huge competition rate. In this section, we will critically discuss what Sony is doing very well along with what to improve in.

Since 1946, Sony has successfully expanded into different business segments, including Consumer electronics, Game, Financial Services, Photographs and Music. Some of the mentioned segments have built up Sony’s diversification and status, they have also dragged Sony’s resources, such as R&D, advertising, and customer solutions into unrelated areas (Sony, 2013). Alongside the immensely increase in competition, Sony is not in a position to establish their competitive positive aspects in any segment. So, it is suggested to Sony to select a concentrate segment and redesign the development toward the chosen segment (Hao, Rahul & Ellie, 2012).

Sony will benefit from this restructuring for the reason that company will be able to use methods in the most effective way. The least lucrative segments will sometimes be shut down or integrated. Sony will then have the competitive edge to choose their own method to focus on from the large pool of segments that they are operating in. Moreover, the turn is a good signal to Sony’s customers, the business may regain the trust and take pleasure in from them.

Gaming is certainly a promising appealing segment to spotlight. The segment provides been creating the good status to the Sony brand and dominating the marketplace for long. It has also integrated the business resources and products. The intention to broaden the PlayStation game network to provide music and video to displace the lineup of content material delivery platforms it right now operates is a huge jump over the competition. The upcoming PlayStation 4 may be the good evidence for that.

The goals to go toward digital imaging organization including digital camera models and camcorders are not advised. Within this segment, Sony isn’t only facing powerful competition from big brothers like Canon, Nikon, and Olympus, but is also getting threats from substitutes like the multifunctional mobile or tablet.

Once Sony has selected a segment target, they should begin to get aggressively within that segment. Acquisitions will allow Sony to get market share, reduce developing costs, to own economies of scale and also have access to new technologies and patents. Sony should start by acquiring smaller firms within the focused marketplace segment, and try not to shell out premiums for the predicted integration.

Brand name is among Sony’s strength when Consumers have confidence in Sony products’ quality and reputation. However, there have been some serious flaws that Sony shouldn’t have made for instance the hacking scandal took place in 2011. The personal information including names, birthday, emails and also details of 10 million bank cards of clients was stolen. Although Sony was not the first company to face with security challenges, the trustworthiness of the brand was critically influenced (Kevin, 2011).

Accomplishing all the mentioned recommendations, Sony will get in to the top 30 most effective brands within the next 3 years. For gaming section, Sony would be the dominant over Nintendo, Microsoft and the product sales of PS4 will be twice of Wii or Xbox 360.

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