sony ericson

Marketing Plan and Strategy of Sony Ericsson – Future Marketing Plan and Strategy of Sony Ericsson – Future

Tech Tech

Background

• • Technology is growing fast in Nepal, causing the cell phone not to be a

necessity at this time but a want amongst the Nepali people. The next fewyears will show that more people in Nepal will be purchasing cell phones.Today customers expect more, have more choices and they needed thebest for the amount they spend. So, marketing strategic plan has becomeso important in this aspect.

• • Keeping in mind the present global and Nepalese market scenario I have

prepared the report to the best of my knowledge and suggested strategicframe work that they could have to implement to have competitiveadvantage in the market

Introduction: Global Mobile Phone Market:

• International Mobile phone market is being growing at a tremendous rate. Based on the research by IDC , vendors shipped 346.4 million mobile phones, a YTY increase of 15.0% for Q1 2008. However, the shipments were 13.8% lower than the record shipments in Q4 2007; the decline was expected owing to the seasonality of the market. More than 100 M 3G phones were sold in 2006 and more than 200 m smart phones will be sold in 2008.

• Market Share of different Brands

Brand Share%

Nokia 40%

Samsung 14%

Motorola 14%

Sony Ericson 19%

LG 13%

Market Size and Demand – Nepal

• Demand • • Nepal has a young consumer market. • • This will be a potential target market because young adults in the • Nepalese community want to be up to date with technology. • • Young people of Nepal today are more likely to spend money on • technological items. • • Nepal will be advertising cheaper cell phones throughout the country so • that more young people can afford them based on their income. • • With Nepal’s increasing GDP and average income, younger people will • benefit from this growth and purchase more expensive goods. • • The cell phone trend is going to take off within the next couple of years • throughout Nepal. • • Rise in per-capita will allow people to spend more on luxury items. • • The phones will be less expensive. • • The cell phone will eventually be considered a necessity

Market Size

• Market Size • • Estimated mobile user in Nepal approx 3.5 -4 million • Tentative Market share F/Y 64-65 • • Estimated Sales last year of mobile Phones is 3.5-4 lakh • • This year sales would reach approx 5-6 lakh

Customer Analysis /Target Market.

• Gender Male and Female Age Group 15-59 • Lifestyle College Youths Working Executives • Geographical Profile Urban/Semi Urban and Rural Where there is mobile connectivity

Competitive Analysis

• Direct competitors – Nokia, LG, Samsung, Motorola and other Chinese brand • Indirect competitors Walkie-talkies, PDA's

Marketing Objective : Volume, Share

• With the outstanding market potential the objectives on how much volumeand share are nearly limitless for the next few years. Since there is such ahuge market that needs the supply of phones as long as you have a goodbrand image almost all, if not all of your stock should be purchased.However setting initial goal of 70 thousand phones is not unreasonable andnot to cost problematic.

• • This will also establish a decent market share. However, the market share of

individual phones is ever changing. Since we are with a company whichdominates the market share (Nokia, Samsung, and Motorola) and image. Wemust be having at lease 10-12% of market share for this fiscal year andgradually improve to be No.1 in days to come and I believe it is not at allimpossible and ultimately

What Future Tech Should think?

• THINK GLOBAL BUT ACT LOCAL

• Nepal - A diverse market • Every market is different and requires special actions • Faster response to market needs – Dealers as well as customer • Planning and implementation to go hand in hand • Decision making at field level • Delegation at local level Sales activities and Schemes Network coverage and expansion

Local Marketing activities

• Integration of all activities at the zone level (Sales, sales support, • marketing and service) • Dealer guidance, development and problem solving at the local level • Specific strategies based on markets • Reaching out to customers. • Delivering value

Sony Ericsson SWOT Analysis

• Strength • • Diversity among products. • • Sony as a brand name. • • Weakness • • Lack in understanding Customer Preferences • • Less technology advancement • • Lack of user centered designs. • • Lack of Brand awareness globally • • Opportunities • • Mobile phones market in developing • • High % of young market • • Strong Customer demand for innovative product • • High Disposable income in emerging markets. • • Network capabilities and low tariff of service providers. • • Threats • • Landline penetration and introduction of Sky phones for rural areas. • • Intense competition. • • Bargaining power of consumers.

The Marketing Mix and Product Strategy

• The Marketing Mix and Product Strategy • Key marketing strategies which are identified:- • The products should be stylish and in with the current trend and

technology. One of the noted trends is the ‘only touch screen' mobilehandsets, with the advent of iphone from Apple and a phone from the LG-Prada tie-up. If the emerging markets and trend are focused, then stylewould play a major role as the Nepalese consumers are mostly youngadults with an increasing amount of disposable income and they look forbrands which are fashionable, especially.

• Sony Ericsson should be differentiated according to pricing. With heavycompetition cutting down on the profits, Future Tech (Sony Ericsson)should look into new markets using the penetration pricing technique andcreate a new market segment, like what Nokia did in India with their Nokia1130 mobile which was a dust proof phone with a torch.

• Product differentiation could be done on the basis of the respectivebundling; if it focuses on music player then it should be placed in aseparate category from the handset which has camera as its specialty.

• The emphasis should be given to direct marketing and customer • relationship management (CRM).).


• A key part of brand development is making your brand more instantlyaccessible in memory and that's what product placement does. So, placementshould be utilized in the digital media to make a mark on the customers psyche.Also, strategic placement of advertisements in youth oriented program to targetteenagers.

• The product needs to be placed strategically in such a way that customers treatit as a status symbol and a fashion statement. This could be done by directmarketing in mega malls and boutique shops, to improve the brand image.

• Future tech should endorse local film stars and athletes for their products and not go for international stars, which the local people wouldn't be able to relate to.

• Physical settings of the showroom should be trendy and modern to give thegeneral impression of the brand. It should not just confirm to the assumptions ofthe consumer but also delight them. The mobile phones should also be placedstrategically such that the best phones should be in the front and the cheapestat the back.

• The employees dealing with the customers should be given special training asto how to be presentable, pleasing, and well-mannered and how to handle thecustomers efficiently. The training would set a certain standard across alloutlets and increase the consumer satisfaction


• Warranty and Insurance • Sony Ericsson units come with a standard 1-year warranty for parts and

functionality and 6 months for battery. The warranty excludes cosmeticdamage whereas replacement casing may be purchased and then appliedfree of charge in Sony Repair Centers. For the holders of Sony EricssonPrivilege card, there is an option for upgraded warranty by payment of anominal charge.

• Insurance is a new terminology in Mobile market, but it is very effective toolglobally. Future Tech should tie up with some insurance company forinsurance of mobile phone. ( it is a value added strategy or marketinggimmick to attract customers).

• After Sale service - Service Plus • Future Tech should heighten its already excellent customer service to further

differentiate it from competitor brands. In order to align itself with thevarious needs of its clientele, there will be a provision for different ‘Tiers ofService' for Sony Ericsson Privilege Card holders - silver / gold / platinum.The Card tiering will be contingent on the points accumulated. Sonycustomer care service centers promise a one-day maximum period withinwhich to respond to queries. Taking advantage of the client contact whichthis entails, service representatives handling repairs may extend the optionof loaning temporary units at a nominal charge until the user's phone hasbeen completely repaired. Future Tech will also provide assistance to clientswho need to retrieve data or contact numbers from damaged units. Theseservicing station should be very visible and in major outlets as well.

• Enhanced 24-hour 7 business day toll free line, and professional • staff to hel customers solve roblems

The Marketing Mix and Product Strategy• Branding/Rebranding • For Sony Ericsson to boost it’s the corporate identity, it is recommended the

re-branding of mobile phones under the umbrella brand, "Sony." Theconcept is similar to that utilized by Motorola (Moto-Razor, Moto-Flip, etc.).This strategy will help leverage upon the existing strong brand equity ofSony in the "appliance" industry, as well as its reputation for productinnovation.). This not only reinforces the existing brand awareness of Sonybut also tells customers about what advantages Sony Ericsson mobilephones are capable of bringing to them.

• It is proposed to establish strategic partnerships that will help Sony Ericssonreach the primary target market as well as the secondary target marketmore effectively. This will help create a stronger brand recall for SonyEricsson mobile phones in each category.

• In addition, a club of Sony mobile users and users of Sony home applianceswith cross-product discounts, and membership perks in other establishmentswill be provided upon purchase of the said appliances. For instance, acustomer will be entitled to a certain number of credits which may be usedin purchasing a Sony Ericsson mobile phone when he purchases a television.

• Launches: • Any new product launched by Future tech should be talk of the town. The

launch should be carried out with press meet and backed up with hugemedia campaign.

• Pricing Policies: • Future Tech retail price will be issued to the distributors for strict

implementation. Strict monitoring will be implemented to ensure thatretailers would not dilute the brand by selling it at a lower price.


• Distribution Strategy • Existing Distribution system • Sony Ericsson’s current distribution system consists of one national supplier who acts as exclusive distributor agent to the Nepal. This

supplier distributes to: • a. 3 Concept Stores which are Future tech own store and display ONLY Sony • phones. • b. Over 150 Authorized dealers which are multi-brand stores • The problem of ‘Grey market' is huge due to a VAT to be paid to government • Channels Members: Proposed Distribution System • In order to increase sales volume and market share, the following alternate • distribution model is proposed: • Traditional Distribution Channels • Distributor – Retailer / Distributor – Consumer • We will retain the conventional distribution process whereby it utilizes a selection of

distributors. These distributors have the option of either a) reselling units to anetwork of retailers or b) vending to consumers. The latter scenario applies todistributors who own shops in selected shopping centers. Here, it is imperative thatproduct pricing be comparable to the cellular phone model's suggested retail price.

• In order to optimize product exposure in the retail channels, Sony can issued is p lay • racks to high-volume retailers, gratis. It will be mandatory for distributors who own • retail stores to maintain at least one of these promotional racks in a visible area. Exclusive dealers will likewise be required to utilize

company-sponsored racks and follow Sony Ericssions prescribed store layout. We will make our beat route plan and follow up with retailers and dealers to be done on daily basis by sales team.


• Sony Ericsson Outlet Stores • Spurring from the utilization of this channel, Sony Ericsson should explore the

possibility of establishing company-owned outlets, whose product line consistsexclusively of Sony Ericsson mobile phones and paraphernalia. The availability ofwarranties for both parts and service differentiates these outlets from independentvendors, whose warranties are confined to repairs. Repair provisions, however, willnot be limited to units within their prescriptive warranty, provided the customer iswilling to shoulder incidental costs.

• Future Tech choice of location will be limited to upper scale malls and boulevards, • and restricted to areas mostly outside their retailers' scope of operations. • Factors Affecting Channel Decision • It must be noted that in selecting its network of distributors, it is recommended that

Future tech evaluate reputation given by years in trade as well as sales forcecapabilities in order to maximize market reach while keeping the number ofdistributors

• That distributors are willing to undergo training for repair of Sony Ericsson products is imperative. This allows Sony Ericsson to ascertain that the quality of service to be rendered satisfies Sony Ericsson standards.

• Dealers should likewise be assessed in terms of store location, reputation, andcustomer target segment. These standards are critical in the selection process ascontracts with dealers mismatched target markets risk rendering the partnershipsuperfluous due to meager revenues.


• Area Wise targets Vis a Vis Competition and expansion of Network

• All of us understand there is a huge potential in a market and which need to be penetrated. To penetrate the market Area wise targets to the sales team to be given according to market size and shares.

• We have to have proper distribution channel and it is must to

have distribution • channels where competition is present

Promotional Strategy• Advertising • The aim of advertising strategy is to increase the brand-awareness

and brand-recall. While Sony Ericsson has been able to establish itsname in the mobile phone market, it has not successfully implantedits image in customers' minds as the first mobile phone of theirchoices. The high priority of advertising strategy is to be able tocommunicate Sony Ericsson's stance on giving its customers theultimate mobile phones equipped with functionality suitable for theprofessionals and state of the art technology.

• When marketing to the rural area we have to realize that they donot have various methods of communication such as internet andtelevision. To market to the rural area markets we will place add inpopular newspapers and magazines as well as send out mobile vansto market our product. Lastly we will participate in trade fairs andflea markets which are immensely popular in the rural area

Promotional Strategy

• Executive Series • The "professional edge" should be rooted in the heart of advertising

campaign. The message to be delivered through advertising and promotionstrategies is "Be yourself! Be a Pro!” This is to take into account that SonyEricsson’s primary target segment are young professionals in the age groupof 25 to 40 years who have been able to prove themselves in their fields ofwork. They know who they are and they are pleased with what they haveachieved in their life so far. Their "centre of gravity" lies in how they feel andhow they look. They are confident, sure of themselves and know what theywant to look for in life. They accept themselves and are keenly interested inthe "Pro world" but not transform into someone else rather than themselves.

• Our target is more mature, more pleased with himself/herself. That's not to • say that s/he's perfect. It just means s/he is more PRO-centered.“ • The advertisement of the above should be featured on television between • news or informative programs as these are most watched by this • target segment. In addition, it should be printed on magazines such as • Himal Magazine, Boss, as well as Nepal which are of high interest to the

target segment. Internet advertisement is also highly recommended for thissegment.

• Strategic advertising partnership with other car distributor such as Hyundai,Maruti, Toyota and the like are strongly encouraged so as to build a co-brand awareness and existence for both Sony Ericsson and carmanufacturers. This is made possible after the successful co-operation ofFuture Tech with these manufacturers in the distribution channel as well asco-advertising. The majority of this target segment is existing car owners aswell as professionals that will be seeking to own mid to high-end cars once

Promotional Strategy

• Walkman Series: • Sony Ericsson secondary target segment is the urban population in the

age group from 15 to 25. People at this age group are seeking to findthemselves and their places in the society. Their sense of belonging isof significant importance. They yearn to belong to a certain group andare greatly influenced by their friends/peers. It could be said that thisgroup's behavior is entirely different from that of the primary targetsegment. Besides the emotional aspect, they are looking forentertainment features in mobile phones such as music, games.

• As such, there arises the need for a different advertising strategy.Advertisements should focus on featuring Sony Ericsson mobile phonesas a way to connect friends and as a status symbol of being recognizedas a member of a circle of friends/peers. In addition, they can derivegreat music, and games out of Sony mobile phones.

• Television still remains one of the choices of the media. However,cinema, billboard, internet and radio advertising are also chosen for themain reason that this target segment spends much time for thesechannels. These could prove to be highly effective advertising means.

• Sponsorship of Musical programs or live concerts by mean of ambush • marketing will be an added advantage to the Walkman series.

Sales Promotion or Sales Tactics

• The objective of sales promotion is to induce purchase as well as to retainexisting customers by providing special incentives for Future Techcustomers.

• It is specially encouraged that Future tech should tie-up with corporationsto allow discounts for employees. This promotion move will prove to behighly effective as the primary target segment is the young workingprofessionals. This is an ideal strategic tie-up as it will certainly generatesales volume as well as brand awareness. There is no better advertisingstrategy than "word of mouth" advertising. In addition, there will bestrategic tie-ups with TV, FM. For example, audience tuning to Kantipur TVprograms answering questions correctly given after the end of theprogram can get Sony Ericsson mobile phones as prizes. In turn, KTV willindirectly promote Sony Ericsson brand awareness by mentioning the SonyEricsson as prize-givers. For music stores: customers purchasing CDs,VCDs, DVDs from music stores will get their points added in their.

• Sony Ericsson Privilege Cards. Kiosks located in the business district will begeared at promoting the new line, Executive series. This will bring uscloser to our primary target segment.

Sales Promotion or Sales Tactics• Sony Ericsson Privilege Cards: Sony Ericsson Privilege Cards forges a • community of Sony Ericsson customers. This club is not only exclusively for

Sony Ericsson mobile phone users but also for users of other Sony Ericssonproducts. It is aimed at strengthening corporate identity. Based on the amountof purchase, there will be 4 tiers of membership: 1) Regular, 2) Silver, 3) Gold &4) Platinum. Promo mechanics will operate along the lines of purchases entitlingcustomers membership in Sony Ericsson Privilege Cards. In this system,customers may earn loyalty points commensurate to the amount of theirpurchase. Upon accumulating a certain number of points, their membership willbe upgraded to Silver or Gold status, allowing them increasing privileges.

• Sony Ericsson Privilege Cards membership will provide customers manybenefits. First, redemption of loyalty points will be in the form of discountsamong an extensive range of Sony Ericsson or Sony Products. Depending onlevel of membership, customers may avail of offers for extended warranties andproduct service. Members may also earn points on the surrender or exchange ofSony Ericsson products which they intend to replace. Replacements can then bepurchased at a discount, using loyalty points as credit. Special promotions andexclusive discounts will be exclusive to members of the Sony Ericsson PrivilegeCards.

• Sony Ericsson Privilege Card Club will be beneficial not only to customers, but tothe company as well. The club will create sustainable strong brand loyalty,promoting customer advocacy and stronger repeat purchase due to perks andconveniences. The Sony Ericsson Privilege Cards Club will be an ambassador forCorporate Social Responsibility, a medium for communicating Sony Ericsson’ssocial responsiveness to the public. Members will be made aware of SonyEricsson’s initiatives of proper disposal of hazardous parts via notices whichaccompany promotional letters, emails, and text messages


• Public Relations: Sony Ericsson should embark on the program "Batteries • Return". Most of the time, when the battery is no longer usable, customers will

just throw away and therefore cause damage to the environment. Future Techshould practices Corporate Social Responsibility by asking its customers toreturn its batteries and to reproduce/or discard them so as not to damage theenvironment. In return, customers will be able to add in Sony Ericsson points fortheir Sony Ericsson privilege Cards. This action plan will no doubt be receivingcoverage from media such as television/newspapers of this action program is toproject Future Tech as a "green" corporation and that people in the SonyEricsson community care greatly about the environment.


• Schemes Nepal is a discount driven market. It is

recommended that Schemes to be introduced every 3 months in form of

Consumer scheme.

Sales Promotion or Sales Tactics• Dealer Commission • Dealer commission to be at par with Competitors and additional commissions on cash purchase bulk lifting to be given to the

dealers. Additional 1% bonuses on total turn over to be given if achieved 100% target which is additional to target bonus. • Incentives to Sales persons • Model wise sales wise incentives to be given to the sales persons to motivate • them. • Participations in trade shows and fairs • To get the word out about our product we will participate in market and trade fairs

in different parts of the country. Trade shows in Nepal are no longer based onstrictly industrial goods and the business class. Today, the biggest trade showsare organized for the middle income group and more towards household groupsthat fit into our target market

• These Trade fairs will provide us with an incredible opportunity to get in touch with the real end consumers and to understand the needs and also what their demands of our product are.

• Continuous Training Programs on sales and Marketing • Programs related to sales and marketing to be conducted on regular basis so as to ensure that sales team is motivated and are

not new to the innovation and ideas of the world. • Direct Marketing or mass mailing • It is recommended to have a tie up with different commercials banks and • magazines to distribute our product leaflets and schemes to their clientele

Thank You