Abstract
The aim of this paper is to analyze Sony Company’s recent launch of the Sony Handy-cam HDR-PJ430. The paper analyzes the industry in which Sony operates as well as the competitors. It also investigates the various marketing strategies utilized by the company which include the needs analysis, the 4 P’s analysis, the SWOT analysis and the market analysis.
Description of company and its products
Sony is a Japanese conglomerate company with its headquarters in Konan, Tokyo. The corporation mainly deals in electronics, entertainment systems, games and provision of financial services. Sony Corporation is the electronics unit that is part of the Sony group. The Sony Corporation acts as the parent company which was formed in 1946 during World War 2 by Masaru Ibuka and Akio Morita. The Sony group operates as four segments which include the electronics segment, the motion pictures segment, the music segment and the financial services segment. Sony electronics deals with Sony pictures entertainment is a television and film production company located in the United States of America. Sony computer entertainment operates as a video game company. Sony music entertainment is a music corporation located in America. Sony mobile communications is a mobile phone manufacturing company with its headquarters in Japan. The Sony financial holdings company offers various financial services such as banking services and insurance covers. The four segments make Sony the most comprehensive entertainment companies in the world. Sony ranks as the world’s third largest television manufacturer in the world amidst LG electronics and Samsung.
Description of Industry
The telecommunications industry has evolved over the years from visual signals such as smoke signals, audio messages such as drums to the use of electrical devices telephones, radios, microwave transmissions, fiber optics and printers. The companies operating in the telecommunications industry have to upgrade their systems and equipments so as to be at par with the technological changes taking place each time. The telecommunications industry was previously comprised of big national operators and regional operators. However, over the years the industry has experienced lot of deregulations and innovations. The three major players in the telecommunications industry include LG electronics, Samsung electronics and Sony electronics. The following graph shows the major players in the industry and their respective market shares.
Description of Competitors
Sony has two major competitors and these are LG electronics and Samsung electronics. Samsung electronics is a South Korean multinational company and is ranked as the largest information technology incorporation in terms of revenues it generates. It has shops in more than 60 countries and employs over 200,000 employees. Samsung is also ranked as the world’s largest phone manufacturer and the world’s second largest chip manufacturer. Samsung is also at the top in terms of the manufacturer and supplier of smart phones. The company has recently ventured into the manufacturing of tablets by introducing the Samsung galaxy tab. LG electronics is also a South Korean multinational company which operates its businesses trough five segments namely the mobile communications segment, entertainment segment, home appliances segment, air conditioning segment and the energy segment. The company ranks as the second largest manufacturer of televisions as well as the fifth largest mobile phone manufacturer in the world. Apple Incorporation is an emerging competitor of Sony Incorporation. Apple Inc is a well established brand that is now venturing into the production of television sets and phones. Given more time apple will be able to capture a great market share given that it has a good track record of manufacturing high quality products. Other competitors include Sanyo Corporation, Baron International, Philips electronics and Panasonic Corporation.
Description of and analysis of company’s strategy:
Sony supplies a wide range of cameras which include the point and shoot models and digital single lens models. Sony ranks as the world’s third largest manufacturer of cameras. It recently introduced the Sony Handy-cam HDR-PJ430. The company carried out a thorough research of what individuals wanted in a camera and tried to incorporate all the features into the Sony Handy-cam HDR-PJ430. It has a built in video projector on the back which enables the user to recap the footage in absence of a HD television set. It has an optical zoom that is extended up to 55 times which enables the photographer to capture images that are far away. The camera’s maximum still image resolution is 8.9 megapixels which means that the camera is excellent for capturing very clear images. The Sony Handy-cam HDR-PJ430 comes with accessories such as a rechargeable battery pack, a USB cable, a HDMI mini cable, a power cord and a step down ring that ensures ease of use and reliability even when the user is on the move. He or she does not have to worry about running out of battery charge. The camera is convenient also because one does not have to look for a television set to be able to review the captured moments as one can easily play them back.
Market analysis
The market analysis process involves the study of the attributes of a special market that is located in a special industry. Market analysis involves different dimensions which include analysis of market size, market trend, market growth rate, market profitability, industry costs structure, distribution channels, key success factors and key success details. For Sony Company, a market analysis is important as it allows for decision making concerning inventory, employee recruitment or layoff, purchases, capital equipment acquisitions and marketing and promotional activities. Thus before the launch of the Sony Handy-cam HDR-PJ430, Sony carried out a market analysis so as to establish the attractiveness of the market and the industry at large. The company decided to carry out market segmentation which forms the basis for product differentiation. Product differentiation is important for Sony as it deals with the problem of saturated consumption due to increased competition.
Needs analysis
The needs analysis focuses mainly on the human elements of the requirements of an organization. It involves the analysis of a user centered design which looks into issues concerning identification of the users, defining the tasks and goals of the users, the user’s level of experience, what information the users want and need, analysis of how the users would want the system to function and what functions they require from the system. The first and most important step in the needs analysis is the identification of the user need and requirements. Thus, for the Sony Handy-cam HDR-PJ430 the company had to analyze what features the user’s desire in a camera and try as much as possible to include the most popular features required by the buyers. Such a strategy would ensure that the company is able to sell its products which meet the user requirements and thus gain a competitive edge over other players in the camera manufacturing industry.
4 P’S
The 4 P’s stand for product, place, promotion and pricing and make up the marketing mix.
- Under product, the company identifies a product portfolio which consists of a group of products supplied for its target customers so as to generate revenue and this create value for the company’s stakeholders. The Sony Company is diversified as it provides a range of products and services to its clients including electronics, video games, financial services and motion pictures.
- Place involves the analysis of the most effective and efficient way of making the product available to the target consumer. Product availability should be in such a way that it offers convenience and customer satisfaction while keeping costs at a minimum. The Company had to establish viable distribution channels for the Sony Handy-cam HDR-PJ430.
- The promotion aspect deals with finding out the most effective and efficient way to communicate with the potential market. For Sony promotional activities include publicity, discounts, sales promotions, advertising and also direct selling.
- The analysis of price involves finding out what is the most effective price for the products or services supplied by Sony Company. The most effective pricing strategy for the Sony Handy-cam HDR-PJ430 is the introductory pricing which is used to promote new products coming into the market.
SWOT analysis
The SWOT analysis involves planning methods for evaluation of strengths, weaknesses, opportunities and threats facing a company. The following table highlights the strengths, weaknesses, opportunities and threats.
Problem/Success analysis
The Sony Handy-cam HDR-PJ430 is a success as it enables the user to recap footage without requiring a television set. Also, the backup battery accessory allows users on the move to be able to utilize the camera without worrying about the camera going off due to lack of charge.
Recommendation
The major issue with the Sony Handy-cam HDR-PJ430 is that the 8.9 megapixels of still image focus can be improved to more megapixels. This ensures that the users can be able to capture more sharper and clear images. Also, Sony Incorporation has to take into consideration what its competitors are doing. Without keeping an eye on its competitors the company can lose business and this is because day in day out other producers come up with better products. Thus Sony Incorporation has to keep at par with the competition if it is to survive in the dynamic industry of information and technology.
References
George J. Kress,Taryn Webb, and John Snyder. (1994). Forecasting and Market Analysis Techniques: A Practical Approach. United Sates: Westport Publishers Ltd.
Silk, Alvin (2006). What is Marketing. Boston, MA: Harvard Business School Publishing
Humphrey, Albert (December 2005). SWOT Analysis for Management Consulting. London: Kaplan Publishers Ltd.
