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Sony - AC (air conditioners)

Paper Type: Free Essay Subject: Marketing
Wordcount: 2808 words Published: 1st Jan 2015

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The first thing that comes to peoples minds of the company and products of Sony is its high-technology-filled-with-gadgets electronic goods and innovation. It was also this innovation that make Sony the greatest company that started in post-war Japan. The Sony name was created by combining “SONUS,” the original Latin for “SONIC,” meaning sound, with “SONNY,” denoting small size, or a youthful boy. It was chosen for its simple pronunciation that is the same in any language. Sony, well known for their huge line of consumer electronics, also produces computers, notebooks, and multimedia peripherals. Sony is a global manufacturer of audio, video, communications and information technology products for consumer and professional markets.

Their VAIO line of computers is on the forefront of computer technology and aesthetic design. The sony company was founded in Tokyo in 1946, the founder of sony is Maasaru Ibuka and physicist akio morita invested the eqivaqlent of yen 190,000 to start a company with just 20 employes. The rest history.

Behind the phenomenal success of Sony are two men. Masaru Ibuka was an engineer and Akio Morita a physicist when they decided to create a company repairing and building electrical equipment. On May 7, 1946, Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as Totsuko, was established in Tokyo. The new company had no machinery and little scientific equipment. Possessing only their own intelligence and engineering expertise, Ibuka and Morita set about to create new markets.


Our vision: – to create exciting new digital entertainment experience for consumers by bringing together cutting together cutting-edge products with latest generation context and services.

Our mission: – Sony is committed to developing a wide range of innovative products and multimedia services that challenge the way consimers access and enjoy digital entertainment. By ensuring synergy between businesses with the organization, sony is constantly striving to create exiciting new worlds of entertainment that can be experienced on a variety of different products.


Time to time various techniques of marketing are being used by the company and the main objective of all the marketing activities being undertaken by the company is to grasp more and more MARKET-SHARE in all range of products in which company is dealing. So, the main objective of company behind all the marketing activities could be termed as leadership in market share. The company also wants to create BRAND AWARENESS and BRAND RECOGNITION in the minds. Of the customers and more importantly its success abroad and creating CUSTOMER SATISFACTION by making them aware of the distinct. Features of all the products. A key focus for Sony is to strengthen its all-important electronics business and maintain market leadership in high profile areas such as television, digital imaging, home video equipment and portable audio.


  • Trends: – As the scenario of today’s environment the demand of air conditioners is increases because of hot weather .in summer season and people does not like to live in hot weather and every one purchased the air conditioners for making their life easy and comfortable to live in summer. It makes the life of people comfortable to live in summer. Now air conditioners become very useful can purchased by every person whether he is from upper class or middle class and now the demand of air conditioners are continuously increasing. So if company launches a air conditioner under its already existing brand there are vast prospects. For the company to grow in this segment also.
  • Competitors: – As the today’s market is full of competition . if the company is going to launch a new air conditioners in the market it will have to face a great competition from the already existing market leaders which are VOLTAS, SAMSUNG ,LG etc.

All these brands are already enjoying major market share in this

particular industry and if the company wants to take some of the

market share it is necessary that company should take some additional

steps to attract the customers towards its products.

  • The product should contain some additional features than already Existing products in the market.
  • The price should be adjusted according to the competitor’s price.
  • The marketing strategies being followed by the competitor should be taken care off.
  • Some actions should be taken to divert the customer’s attention from Competitor’s product to our product.

Customer profile: – we provide the full range of services regarding air-conditioning and other product such as mobiles, LCD’S, home appliances etc

Design, quote and project manage installations of new AC and process cooling equipment.

From single splits up to large air handling plant with water chillers.

Best customer satisfaction and customer support.

Technology: – The technology required for the production of the new product should also be taken into consideration as it is difficult to launch a new product because there are already many brands in the market, the experts committee should be set up who shall discuss on the matters regarding expenditure to be incurred on the installation of new machinery, need for recruiting new skilled labour, the overall total cost of producing the product. After analysing all these factors the company came to know that if it going for the manufacture whole of the product , it will involve huge expenditure and will then increase the cost of the product . So, therefore it has been decided by the company to manufacture some parts of its own and take some already manufactured parts from the outside vendors and then assemble all the parts to make the finished product.


SWOT ANALYSIS means the analysis of the internal as well As external environment in which company operate. And by this we get full knowledge about our company’s position in the market.

Strengths of the company

  • Strong research and development: – sony electronics is firmly commited to investing in reseach and development(R&D) and design to create products with the most highly valued technology and style.
  • Leading technology: – Sony us one of the pioneers in home-networked and internet-enabled appliances, and has played a leading role in the development of technology standards for next generation home networking products.
  • Production of premium products: – the company transferred itself from a maker of cheap home appliances and private label products to one of the world’s leading premium electronics brands renowned for its cutting edge technology. Premium products remain one of the fastest growing areas for sony electronics. It focus on a consumer and delivering products that are innovative and stylish.

Weakness of the company

  • As the launch of the new product also requires HUGE CAPITAL REQUIREMENTS

Oppturtunity of the company

  • To launch a new product under the already existing brand which help
  • The customers to REMEMBER OR STICK TO PARTICULULAR BRAND even for different products.
  • As Sony is the well known brand for the customer in the market so there is again a new oppturtunity for the company in the market to increase their brand image by providing the new products with innovative and stylish designs to the customer.
  • It has the oppturtunity to capitalize large market share with innovative products.

Threats of the company

  • COMPETITORS are one of the major threat for the company, as Sony company has already has many competitor like LG, Samsung, Voltas etc. which exist in the market from a long time.
  • There is a threat of duplication of resources among the small groups through research and development. So Products should not be duplicated by the market experts.
  • One of the threat for the company is that if the product doesn’t succeed in the Market then it would pause a great BURDEN OF DEBTS for the Company.


Product is an object or service that a man produced or manufacture on a large scale or manufacturer with a specific volume of unit the marketing mix also encompassed how the product developed, the overall performance of the productservice &the design &structure of the Product.

As the company has decided to launch a new product (air conditioners) under. The already existing brand SONY because it has been considered as an area in which the company finds high growth prospects.

Following Are the features of the product:

  • You see them on some fans, but with an air conditioner there is an internal motor to do the job. Oscillating vents sweep the cool air from one side of the room to the other, thus cooling more effectively.
  • Ventilation/exhaust. Prevents that horrible, stuffy feel to room where air conditioning has been on all day, by letting in fresh air from outside.
  • Remote temperature control just got comfy on the sofa and then decides you are not quite cool enough? Don’t move; just have that remote within reach.
  • Energy-saver switch. Turn the fans off at the same time as the compressor for a greater saving on energy.
  • A few models can dehumidify without cooling. This feature is useful on humid but cool days in spring and fall.
  • It provides ventilation without cooling.
  • An air conditioner with a timer can be turned off when you’re out and set to turn on just before you expect to get home. An energy-saver setting stops the fan when the compressor is off. These features save energy.


The company is targetting the of upper class people who have high income and also the middle class people as it has been specially designed with multiple features like Remote temperature control, Energy-saver switch, Oscillating vents which satisfy the needs of the customers it has become such an important part of the summer. Early when the air conditioners is launch in the Indian market on that time air conditioners is only purchased by rich people it is the sign of richness but today every one purchased according to their need , income earn by the people r the which suit them. Now there is Air-conditioned movie theaters, restaurants, and businesses, which is responsible for creating cool comfort to there customer. It should provide the durable and reliable product to the customer. All the products,of the company, are durable enough and customer can keep on using them for quite many years without any problem.

Whereas, Sony’s objective is to provide world class product to upper class and upper middle class to enjoy real luxury in their life. Since it has very advanced features, which are normally demanded by in developed countries.

SONY also insures that whatever product they market should be durable enough which last quite many years and give trouble free service to their customers.

so we can say that the company is targetting the upper class, upper middle class, and middle class of the customer and also the according to the income which is earn by the customer in the market.


The company has launch different models of air conditioners containing various features and also some research have to be done before the product is launched, specialized staff has to Be recruited which would increase the product cost but the company plans to purchase the raw materials in bulk so that discounts can be availed and High cost involved parts from the other small vendors in the market and Assemble them to make the final product . As the product is having various types additional features than that of competitor’s product so it has been decided that the product should have the high price as compared to the

competitor’s product but it should be reasonable according to the quality of the product. So From the price list and discussion with their management, it appears that they position their product pricing in such a way that their main focus is middle and upper middle class. However, they have some selected range for upper class as well.

The company has the policy that their all product price should be the same in all cities and town in market. Sony freight cost and make their product available to their dealers irrespective of where they are located. For this, they give uniform margin to their dealers irrespective of whether he is big or small. Sony consider pricing as one of an important element of marketing mix.. In order to maintain a uniform price all over the country, company bear transportation charges and make the product available at cost price at dealer premises.

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Whereas the SONY pricing strategy is cost + fixed mark up to cover their GP. Since they cater to upper middle and upper class, therefore their 90% dealers are in big cities only. Product-wise price list enclosed in appendix for reference. SONY follows pricing policy in which their normal formula is import cost + reasonable gross profit to cover their marketing expenses and also give them reasonable profit.


As the Company is going to launch the air conditioner under its already existing Brand so, it has been decided that the distribution chain being used by the Company for the T.V under this brand should be the same one for the air conditioners also.

In order to provide quick and timely delivery to their dealers: they have got big warehouses located in almost all big cities and towns. Whenever they get order from the dealer they try to provide supplies to their dealer from closest warehouse. In case stock is not available in the warehouse then it is delivered directly from other Factory.

They has dealers mostly in big cities and some in small towns. They also have got a policy that retail price all over the country should be uniformed for the customers, whether he/she buy from any where.

They also bear transportation cost and thus provide supplies at uniform rate to their dealers. They have got three big warehouses and from these warehouses they feed their product to their dealers and thus they make their product available to them.


As far as Advertising strategy of SONY is concerned, it is being planned and executed by SONY, Korea through their Pakistan Office keeping in view their global approach and theme line. Local Agent of SONY simply gives advice and coordinate in its implementation. Since SONY is a multi-national brand, their spending on advertising is in such a way that their all product get promoted. Although for different product they have got different agent And as been decided to create a verbal advertisement, which should be displayed on some highly watched TV channels and Mr.shahrukh khan has been selected the brand ambassador for the product. And by advertise in some leading newspapers. Due to being a multi-national company and as a part of their global Strategy they, most of the time, divert their funds from strong market and spend more on weak or under developed markets.


Sony is a multinational company and has got different agents in some of the big cities of India. AS, looking toward the success of product in the market. The product enjoys good market shares both because of the reputation of the company or the brand in the market ,high rate of the brand’s loyal customer and customer strong believe and more importantly we think we have become able to satisfy the customers needs by providing them good of quality of products at different price list and customer can choose the product according to their need and income they earn , it is increase coming at par with the product of the competitor’s as shown by the sales record and the company is able to grow in this segment also by launching this nearly product. And it the success of product lies in the marketing strategies as well as the policies of the Government and innovative and stylish design.


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