SONY VAIO Marketing Case Analysis
Summary
Sony wants to introduce it’s stylish and premium VAIO laptops to the Chinese market. Mr. Richard Lopez, product manager at Sony corporation must finalise his marketing plan for VAIO laptops in Chania before presenting it to senior management. To finalise his plan, he has the results of four market research reports: a large-scale study of the Chinese consumers (Shanghai report), an in-depth customer interview report and two segmentation reports CLUES and COMPASS which provided different segments of the Chinese laptop market.
Sony VAIO was intended for customers whose priority lies in features such as style and design, which justifies its positioning as a “relatively high-end niche product”. Through its higher average selling price, the brand has managed to be seen as a premium brand offering statement pieces to individual consumers or business professionals. In China, Sony brand is also well established as a premium, especially since Japanese electronic brands are highly regarded. In addition to that, Sony is perceived as “young and trendy”. However, Chinese consumers are not as aware of VAIO, as they often refer to it simply as Sony. Despite that, the company has succussed in protecting and sustaining its value. Indeed, the growing segment of consumers placing greater importance in intangible attributes sees the purchase of a Sony VAIO computer as a way to experience a superior lifestyle and distinguish themselves by standing out.[unique_solution]
The customer interviews conducted by Lopez were aimed at gaining a better understanding of “laptop-related perceptions and preferences”, while the CLUES report’s purpose was a clear segmentation of the market. The redundancy in the results of these two studies comes from the fact that the questions asked are quite similar and the results obtained are related to each other. Indeed, the surveys asked respondents to grade laptops according to certain characteristics while the in-depth interview consisted in a series of question on their behaviour throughout the customer journey (research, shopping, set up and usage).
If Lopez’s main goal is to steal market share form other brands, using the CLUES report would the best strategy. By finding out what are the key differences and similarities among Chinese customers, which groups of consumers exist and how big these groups are, this report constitutes a true evaluation of the market’s opportunities.
Analysis
Through a productive analysis of the caser presented to him, Mr. Richard Lopez, who is a product manager at the institution, could effectively make a valid marketing plan conclusion or solution before seeking to present his logical solution to the senior management to review. Lopez utilised all the elements of market research obtained regarding Chinese laptop consumers. The research efforts were into four main categories, including the customer interview report, Shanghai report, along with two segmentation reports, that is, both CLUES and COMPASS. An assessment of the leading laptop market segments provided useful insights for the product manager to reach a helpful solution to give the senior management.
Analysis
Generally, according to the research conducted and reports complied, the Sony brand obtained the highest global share of the market after the Dell and HP brands operating worldwide, while comparing laptop ownership, more people owned desktop computers; this means there was a potential for market the laptops and make them available to the potential buyers. The male gender dominated in ownership of laptop brands in China at 57% with the youth between 25 years and 34 years leading in the consumption. However, the usage of electronic devices was not common among the old-aged people. Research indicated more laptop possession and utilization at the college level when regarding the education system with the level when regarding the education system with the level lower than high school recording the lowest percentage.
Furthermore, statistics showed that the level of income matters a lot concerning owning the brands. In this case, the findings indicated that the upper class led to preferring laptop ownership. Also, it was a significant preference among married individuals as broadband usage in homes. While considering the market segment characteristics of the total sample assessed, the market segment with the highest percentage at 22% represented the family user laptop consumers with the heavy user recording the lowest percentage.
Regarding the CLUES report, which shed some light on the comparison of consumers in China as well as their laptop product preferences, was a vital basis over which Lopez used to draw his conclusion. The findings indicated different consumers in China as entertainment lovers, fashion-oriented, tech enthusiasts, business-focused, family, and heavy users.
The COMPASS segmentation report, on the other hand, also offered a better understanding of Sony’s consumer worldwide. Notably, the intention was to come up with a detailed view of the users across a range of markets as well as different products. However, the entire process of carrying out the Project Compass was long, taking an estimated period of two years or so primarily due to the hardships encountered when marketing the research efforts. The Project Compass venture had to understand Sony consumers by seeking to answers various questions. For instance, there was a need for them to establish whether or not digital camera users were similar in distinct regions of the world, like Latin America and Asia, Globally, there were six consumer segments found, and they included; techno socializers, status focused, unfussy basics, functional socializers, quality of lifers, as well as performance seekers.
Additionally, the administration of interviews to the Chinese laptop users was of a more considerable significance with the urge to comprehensively know all details concerning preferences and perceptions on laptops and their usage. VAIO owners, non-Sony Product owners, parents, students, as well as experts, formed part of the participants in the interview conducted, and the age bracket for the participants was between 21 and 35 years. The age range was the usual age limit for the most of the laptop brand owners. The interviews set up sought to understand how the consumers used their machines, the shopping process, how they got to know the brand through researching, alongside their overall experience with the laptop brands. Notably, the research showed that some use their machines to communicate with others through electronic mail, social media platforms, blogging, among other connections. Others used different laptops as an academic tool. Again, some users viewed the laptop brands they owned as integrators of all the technology.
The Shanghai report contained VAIO market research information touching on crucial areas that significantly incorporated values for the customers in China, and laptop usage behaviour and habits. The analysis considerably based on three main aspects, including industrial, internet as well as the computer ages. For instance, generations past the 1980s symbolized the highly educated populace; and knowledge about computers. Additionally, they had interests in buying cars, machines, as well as computer brands. Mainly, the Chinese human populace concentrated mostly on seeking to access detailed information on the products, and models available before making purchase resolutions.
Solution
It was a struggle for Lopez to find a long-term and relevant solution for the senior management to employ to realise an effective marketing plans for the Sony laptop brand called VAIO. Particularly, deciding on the best segment to utilise was challenging for him. Also, he could not quickly figure out the practical way to best position VAIO. Regarding in findings, Lopez found it hard on whatever results to use and snot to use; it included the CLUES study that he considered necessary not to omit in concluding the marketing plan. Despite having a collection of useful information concerning the preference for electronic products among the Chinese customers, as well as the opinions they have about Sony Brands.
The data was considered essential and enough, but Lopez, like the Sony product manager alongside his assessment team, because confused and undecided on best information to use in creating a fruitful marketing plan. The uncertainty was mainly on choosing a particular segmentation model to utilise in developing the project. As a result, Lopez considered revising the reports to be a better option to have a closer look at the information. However, he only had few time remaining since the deadline to submit the solution to the management was only a week.
All in all, Lopez was come up with a solution that seeks to critically inform the Chinese consumers about the availability or presence of VAIO in the market. The human population in China enthusiastic in laptop brands frequently referred to VAIO as Sony. Therefore, there was limited knowledge of the product among the customers.
In my opinion, crossing the segmentation model was a better and practical solution for the corporation that had the intention to mold a successful marketing approach. I believe that all the information that was collected and complied in reports was critical to be used. The marketing plan was to encompass all the variables, including customer data and information on rival brands, preferably in the form of a document or a blueprint.