Reasons to choose this topic
In an era of rapid technological advancement and fierce competition among manufacturers, LCD TVs have emerged as a popular choice for consumers With appealing designs and innovative features, they have outshined other television products, effectively meeting the growing market demands Renowned brands like Samsung, Sony, Panasonic, and LG have responded to consumer preferences by launching exclusive product lines alongside their traditional offerings, such as Full-HD models.
HD TV with multi-function, super-slim, super-connection, super-fast and environmentally-friendly features
Acknowledging this fact, Sony Vietnam introduced its Bravia LCD TV series and considered this to be the strategic product line of the Company
To effectively compete with major manufacturers like Samsung and LG in the Vietnamese market, Bravia LCD TV series must develop a comprehensive understanding of the marketing environment.
The dissertation focuses on developing marketing strategies to improve the business performance of Sony Vietnam's Bravia LCD TV series in 2012 It aims to identify effective solutions for enhancing the marketing mix of this strategic product line.
Objectives of the Study
- To conduct a comprehensive study of the theories on Marketing, Marketing mix and methods to develop Marketing mix strategy for a product;
- To research about TV market in general and LCD TV market in particular, both globally and in Vietnam;
- To analyze current situation and evaluate Marketing strategy of Bravia LCD TV series of Sony Electronics Vietnam;
- To suggest some solutions to complete the strategy of marketing mix for Bravia LCD TV series of Sony Electronics Vietnam.
Subjects and Scope of the Study
Bravia LCD TV Series and Marketing environments (internal and external of Sony Vietnam).
Methods of study and process of data
- Methods of study: quantitative and qualitative study in combination with expert method, summary, statistics, comparison method, etc
- Interview method: direct interview over 300 respondents with a questionnaire by selective sampling method to identify consumers' opinions on factors that affect on Marketing mix strategy (product, price, place, and promotion)
- Data processing tool: SPSS 13.0 software
- Base on data collected from quantitative and qualitative study, solutions shall be suggested to complete Marketing mix strategy for Bravia LCD
TV Series of Sony Electronics Vietnam.
Significance of the Topic
- Help the managers to see clearly Marketing operation of Bravia LCD
TV Series of the Company, its ability to cope with internal and external influencing factors, and its competitive status compared to other rivals in the market;
- Research about consumers' knowledge about various types of TVs and assess their opinion on factors affecting on Marketing mix for Bravia LCD TV Series of the Company;
The dissertation conclusions will provide valuable insights for marketing managers to enhance their understanding of the current LCD TV market landscape and the competitive positioning of Sony Vietnam's Bravia LCD Series.
In addition, strategies of product, price, place and promotion for Bravia LCD TV
Series as suggested are practical for business situation that of Bravia LCD TV Series now occupies.
Structure of the Thesis
In addition to the Introduction and Conclusion parts, the Thesis is consisted of three parts:
Chapter 2: Analysis of Marketing environment and current situation of Marketing-mix for Bravia LCD TV Series of Sony Vietnam
Chapter 3: Some solutions to the Marketing-mix for Bravia LCD TV Series of Sony Vietnam in 2012
LITERATURE REVIEW
Overview of Marketing
1.1.1 The Formation and Development of Marketing
Marketing, defined as "doing the market," emerged in America in the early 20th century but gained significant traction only after World War II, subsequently expanding to Western Europe and Japan during the 1950s and 1960s.
Marketing was once confined to commercial enterprises, focusing on delivering ready-made products and services for quick consumption to maximize efficiency This approach is now referred to as "traditional marketing."
Between 1960 and 1970, the complexity of production and consumption, coupled with fierce competition in capitalist markets, significantly elevated the role of marketing in economic management This era saw the establishment of numerous scientific research institutions, marketing research centers, and advisory offices within companies, making marketing a crucial factor in management and competition among capitalists Marketing's scope expanded beyond mere sales contracts and ready-made products to encompass the mass market, marking the advent of modern marketing This included comprehensive planning related to objectives and strategic concepts throughout the entire process, from production to sales, consumption, and after-sale services.
Starting in 1960, marketing began to be recognized in Eastern European socialist countries, including Hungary, Poland, Romania, and Czechoslovakia The significance of this shift was highlighted at the international conference "Marketing Application in Foreign Trade Activities and Socialist Nations," held in Berlin in November 1976 During this conference in 1977, participants confirmed that marketing practices were relevant not only in capitalist nations but also in socialist contexts.
Marketing, first introduced in 1905 by Mr W E Kreussi at the University of Pennsylvania, has evolved significantly over the years as a vital activity for generating economic benefits across various sectors.
Marketing is viewed by economists as a strategic approach that aligns production with consumer needs, significantly influencing the evolution of capitalist economies Often referred to as a "new business philosophy" or "the secret to business success," marketing is recognized as both a science and an art Its ongoing relevance and continuous development have led to numerous definitions by various authors and scholars.
- Definition by Hamilton College (U.S.): “Marketing is the performance of business activities that direct the flow of goods and services to customers or users.” [1]
According to the American Marketing Association (AMA), marketing encompasses the activities, institutions, and processes involved in creating, communicating, delivering, and exchanging valuable offerings for customers, clients, partners, and society as a whole.
According to Philip Kotler, President of the World Marketing Association, marketing is both a science and an art focused on exploring, creating, and delivering value to meet the needs of a target market profitably It involves identifying unmet needs and desires, measuring and quantifying the market size and profit potential, and determining which segments the company can serve most effectively Ultimately, marketing aims to design and promote suitable products and services that cater to these identified segments.
- Definition by British Institute of Marketing (U.K.):“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.” [4]
According to John H Crighton from Australia, marketing involves delivering the appropriate goods and services to the target audience in the ideal location, at the perfect moment, and at a competitive price, all while utilizing effective communication and promotional strategies.
- Definition by Peter Drucker – the American modern economists:
Marketing is the defining function of a business, encompassing its entirety and viewed through the lens of customer outcomes It is essential that the focus on marketing permeates every aspect of the organization, ensuring that all areas share a commitment to understanding and meeting customer needs.
Marketing encompasses a variety of interpretations, with early definitions aligning more closely with traditional marketing and later ones reflecting modern practices Each definition is contextually accurate for its era, highlighting that a singular definition of marketing may restrict the diversity and dynamism inherent in marketing activities Embracing multiple perspectives allows for a more comprehensive understanding of the marketing landscape.
The differences between traditional and modern Marketing are shown in the following diagram:
Traditional Marketing Product Sales & Advertising Generate profit by selling many products
Generate profit by satisfying customer needs
During the development of Marketing, there have been 5 fundamental concepts of how to organize Marketing activities, specifically as follows:
It is considered that customers will feel attracted to those products that are popularly sold at reasonable prices Therefore, management should focus efforts on improving effective production and distribution
It is considered that customers like to use products that have the highest quality and the best utilities Therefore, enterprises should frequently innovate their products
It is considered that customers will not buy many products of an enterprise if it doesn't spend regular efforts on sales and promotion
To successfully achieve business objectives, it is essential to identify and address the needs of the target market, ensuring customer satisfaction to a greater extent than competitors.
An enterprise's primary activities involve identifying the needs, desires, and preferences of its target market By effectively addressing these customer needs, businesses can outperform their competitors while simultaneously promoting benefits for both consumers and society.
Many enterprises, including small businesses, are increasingly adopting modern marketing concepts to better understand and respond to customer needs, leading to product modifications that enhance sales.
To ensure sustainable growth, businesses must integrate social marketing principles into their operations, focusing on activities that benefit both consumers and society This includes researching health-conscious technologies, committing to the responsible use of materials and chemicals, and engaging in initiatives that promote a clean and green environment.
Marketing Environment
Marketing environment is the total of "uncontrollable" forces that a company should pay attention to in developing its marketing-mix Marketing environment is understood as follows:
The set of active entities and external forces of the company that affect on the control of marketing unit, establishment and maintenance of good cooperative relationships with target customers
In an unpredictable climate, marketing significantly impacts a company's operations Rapid and unforeseen environmental changes can lead to immediate effects and serious repercussions To navigate this landscape effectively, companies must continuously monitor and anticipate shifts in their external environment by leveraging marketing research and gathering relevant marketing information.
The marketing environment is divided into micro and macro components The micro-environment encompasses factors directly impacting a company’s ability to serve its customers, such as suppliers, marketing agencies, customers, competitors, and the public In contrast, the macro-environment includes broader external forces that influence the market, including demographics, economic conditions, natural factors, technology, politics, and cultural trends.
The marketing environment can be effectively analyzed using the PEST model, which includes Political-legal, Economic, Social, Technological, and Natural factors For businesses to thrive, it is essential to adapt to the evolving marketing landscape and embrace emerging trends rather than resist them.
Government entities, stakeholders, and public interest protection groups play a crucial role in shaping the political environment, prompting policymakers to create new laws and regulations that affect consumers and businesses These laws, including anti-monopoly, environmental, and consumer protection regulations, significantly influence the marketing strategies and practices of companies.
Enterprises must consider the legal and political environments on both national and global scales, including multilateral and bilateral agreements among organizations, regions, and nations Key international treaties, such as the WTO agreement, free trade area agreements, and various trade and investment agreements, play a crucial role in shaping the business landscape.
Factors of economic environment affecting Marketing activities include income and distribution of income, price, consumption and savings-investment, debt and borrowing capacity, debt payment, and expenditure pattern
The development level and economic model are crucial to understanding the economic environment In developed economies, higher incomes and broader income distribution contribute to improved living standards, leading to a demand for high-quality goods and services Conversely, underdeveloped economies primarily focus on essential goods and low-end services, although the demand for high-end products is rapidly increasing due to industrialization Consumers in developed countries tend to spend more easily, often relying on borrowing; however, during recessions, they reduce spending and borrowing, negatively impacting the growth of demand for goods and services.
In addition, population scale, structure and growth rate are having considerable influence on the marketers Population together with economic growth is the measurement of market scale
The demographic environment, including factors such as age structure, race, and education level, plays a crucial role in segmenting the market into distinct groups Family expenditure patterns among multi-generational households and their product or service choices are largely influenced by community preferences Additionally, shifts in living locations and demographic groups can lead to evolving consumer needs, necessitating adaptive marketing strategies.
The society where people grew up defines the basic believes, values and standards There are three aspects that should be considered in cultural - social environment:
Core values: it is necessary to define the belief or core values that tend to last for long and identify which are vulnerable to change
Cultural branches consist of groups of individuals who share values shaped by specific life experiences and conditions Religious beliefs significantly impact the consumption of goods and services, as these are often guided by religious rules and social traditions.
Values that evolve with time and social trends present both opportunities and challenges for marketing efforts Trends and preferences among youth regarding music, fashion, and career aspirations influence how consumers perceive themselves, their peers, and organizations.
The natural environment significantly influences trends in production materials, energy costs, pollution levels, and government attitudes towards environmental protection Meanwhile, the technological environment plays a crucial role in enhancing human quality of life by effectively utilizing the resources of the natural world.
Rapid advancements in technology are shortening product life cycles and transforming marketing tools This environment fosters limitless opportunities for product and service innovation, leading to lower prices and increased accessibility for consumers To maintain a competitive edge, companies aspiring to be market leaders must enhance their Research and Development budgets Additionally, regulations governing technology are becoming stricter to safeguard consumer rights and privacy.
Target Market Identification
Under marketing concept, a market is the actual and potential buyer of a certain product/service A market consists of buyers while an industry consists of sellers
Phillip Kotler’s definition: “A market is the set of actual and potential buyers of a product These buyers share a particular need or want that can be satisfied thought the exchange.” [7]
1.3.2.1 Reasons of market segmentation and market targeting
A market is composed of diverse buyers who vary in desires, purchasing power, location, and buying behaviors No single company can meet the needs of all potential customers due to this diversity and the presence of competing firms However, each company possesses unique strengths that enable it to address specific market demands effectively.
Market segmentation involves dividing consumers into distinct groups based on various factors, including geographical (region, city), demographic (gender, age, education level), psychological (social class, lifestyle), and behavioral (purchasing opportunity, consumption rate, benefit-oriented) criteria This process highlights the differences in needs, characteristics, and behaviors among consumers, allowing businesses to tailor their strategies effectively Each market comprises multiple segments, each with unique attributes that influence consumer behavior.
Market segmentation is defined: “Dividing a market into instinct groups of buyers with different needs, characteristics or behavior, who might require separate products or marketing mix” [8]
Requirements of an effective market segmentation [9]
- It is internally homogeneous (potential customers in the same segment prefer the same product qualities)
- It is externally heterogeneous (potential customers from different segments have basically different quality preferences)
- It responds similarly to a market stimulus
- It can be cost-effectively reached by market intervention
Geography Region (North, South), area (urban, rural, etc.), town, district, commune, etc
Demography Age, gender, family generation, family life cycle, income, profession, education level, religion, ethnicity, etc
Psychology Attitude, motivation, social class, life style, personality
Purchasing reason, desired benefit, consumer status, loyalty level, readiness stage, and attitude toward products
“Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.” [10]
Coverage of the whole market:
- May not be able to satisfy the best needs of a customer group since trying to satisfy too many segments
- Suitable to multinational and transnational corporations
- Scale and development potential of the segment
- Attractiveness of the segment: large number of customers, diversified and abundant needs, changing consumption style, few competitive threats, high profit, favorable macro-environment
- Suitable to resources of the organization.
Positioning
In marketing, positioning refers to the strategic process of establishing a distinctive image or identity for a product, brand, or organization in the minds of the target audience, ultimately enhancing customer value.
Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective mind of the target market
De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market
The original concept of Positioning primarily targeted consumer marketing, emphasizing the need to cut through ambient "noise" to create genuine connections with the audience, rather than focusing solely on competitive products A classic illustration of this approach is AVIS, which effectively communicated its unique value proposition to stand out in the marketplace.
The slogan "No 2, We Try Harder" aimed to create a memorable shock that overshadowed the competition's presence, effectively making consumers forget who was in the top spot This approach was not about making a philosophical statement regarding ambition in business, but rather about capturing attention and creating a lasting impression.
Positioning refers to the strategic process of establishing a product's unique and appealing place in the minds of target consumers compared to competing products It involves creating a clear competitive positioning and developing a comprehensive marketing mix to effectively communicate this distinction.
Also positioning is defined as the way by which the marketers create impression in the customers mind
Positioning, a marketing concept introduced by Jack Trout in the June 1969 issue of Industrial Marketing, highlights the challenge consumers face in a saturated market filled with excessive advertising Trout emphasized that consumers often ignore information that doesn't fit neatly into their existing mental frameworks, making effective positioning crucial for brands to capture attention and create meaningful connections.
Al Ries and Jack Trout developed this theme in their bestseller book
"Positioning - The Battle for Your Mind” They saw it as a creative exercise done with an existing product:
Positioning begins with a product, service, company, or individual, but it focuses on influencing the perception of the target audience It’s not merely about altering the product itself; instead, positioning is about shaping how prospects view and understand it in their minds.
Also, positioning as "an organized system for finding a window in the mind
It is based on the concept that communication can only take place at the right time and under the right circumstances" [13]
Positioning refers to the perception formed in the minds of the target market regarding a specific company, product, or service, especially in comparison to competitors This perception develops regardless of whether a company's management takes proactive, reactive, or passive approaches However, through strategic actions, a company can effectively shape and enhance these perceptions.
In today's competitive marketplace, a strong positioning concept is essential for a company, brand, or product to thrive As highlighted in "Marketing Concepts That Win!" by Martha Guidry, many people mistakenly equate a core idea concept with a positioning concept While a core idea concept merely describes the product or service and assesses its appeal to potential buyers, a positioning concept focuses on effectively communicating the benefits of the product or service to attract and engage potential customers.
Positioning concepts emphasize the rational and emotional benefits that buyers experience from a product or service Before crafting a "positioning statement," it is essential to develop and validate a successful positioning concept This concept is then shared with the target audience to gather feedback and refine it further The resulting Positioning Statement encapsulates the audience's qualified insights, serving as a foundation for creating a creative brief for an agency tasked with developing advertising or communication strategies.
For target customers seeking a solution to their needs, the product name is a product category that offers a key benefit, providing a compelling reason to purchase Unlike the primary competitive alternative, our product stands out with its unique differentiation.
- By benefits offered to the customers by products
- Summarize brands and attributes of products (important attributes to consumers)
- Find out about consumers' awareness of such attributes
- Analyze current status of such attributes of products compared to those of competitors and products of the organization
- Identify a unique selling proposition (USP)
After establishing its market positioning, a company should develop comprehensive marketing and promotion strategies For those targeting the premium market segment, it is essential to create a perception of quality among consumers This can be achieved through effective advertising and public relations that highlight the product's superior attributes, choosing prestigious distribution channels, and potentially offering discounts to encourage market engagement.
Market positioning should also identify a company’s competitors In devising a positioning strategy, a company must understand the weaknesses of its competitors so that its own positioning can become a competitive advantages.
Marketing-mix
Source: “Quan tri Marketing” – Prof Dr Vu The Phu
A product is defined as any item or service that can be marketed to fulfill a want or need, encompassing physical goods, services, individuals, locations, organizations, and concepts.
Source: Marketing management, Philip Kohler
- The 1 st level is the core benefit: the service or benefit the customer is really buying
- At the second level, the marketer must turn the core benefit into a basic product
- At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product
- At the fourth level, the marketer prepares an augmented product that exceeds customer’s expectations
- At the fifth level stands the potential product, which encompasses all the possible augmentations and transformations the product or offering might undergo in the future
Marketers typically categorize products based on various attributes, necessitating tailored marketing-mix strategies for each classification The Marketing definition and tools outline fundamental product classification methods that consumers use, which encompass quality perceptions and marketing concepts With these foundational ideas established, we can delve into the details of product portfolios, types, and categories.
Price is a crucial element of the marketing mix that significantly influences consumer purchasing decisions For businesses, establishing the right price is essential for maintaining competitiveness in the market.
Product pricing is a crucial matter to a company since it directly affects revenue and profit
- Marketing objectives: survival, maximization of profit, market leader, market share expansion, etc
A marketing-mix plan integrates price as a crucial tool for companies to meet their objectives Effective pricing decisions should align with product, place, and promotion strategies to ensure a cohesive and impactful marketing approach.
- Production cost: fixed cost, variable cost, total cost
Understanding the interplay between costs, market dynamics, and consumer needs is crucial for effective pricing strategies While costs form the foundation of pricing, the market and consumer demand determine the optimal price point Both consumers and traders evaluate products or services by weighing their price against the perceived benefits Therefore, marketers must analyze the relationship between selling price and product demand before setting prices to ensure alignment with market expectations.
- Competition: the decisive factor influencing the pricing strategy of a company is price set by its competitors and their possible response toward the pricing strategy of the company
External factors such as legal and political environments, along with the economic situation, play a crucial role in shaping pricing strategies Economic elements like inflation, growth, recession, and interest rates directly influence pricing decisions by affecting production costs and consumers' perceptions of product value.
G = Z + M G: selling price of the product
Z: cost price of the product
To set prices based on perceived value, companies must evaluate factors such as product reputation, service quality, product completion level, and customer satisfaction By adopting this pricing strategy, businesses should focus on enhancing their value in the eyes of customers compared to competitors' offerings.
Mark-to-market pricing involves a company setting its prices based on competitor rates while also considering its own demand This pricing strategy allows businesses to establish prices that can be higher, equal to, or lower than their competitors It is widely used across various industries.
Adopting this method, companies will feel that their prices are marked to and following market prices that are common in the whole industry
Competition-based pricing is a prevalent strategy among factories competing for contracts, where companies determine their prices based on competitors' pricing rather than solely on the cost-demand relationship However, it is crucial to avoid setting prices too low, as this could jeopardize the company's sustainability.
A company's pricing strategy is primarily determined by its target market segments and positioning objectives, significantly impacting and being influenced by product, place, and promotion decisions Consequently, pricing decisions must be made thoughtfully and aligned with other elements of the marketing mix to effectively develop a comprehensive marketing strategy.
“Place (distribution) involves activities related to the organization, operation and distribution of goods and services from manufacturers to consumers.” [18]
Product/service distribution channel strategy is the method by which a company delivers its products and services to the customers in its targeted markets
Efficient supply chain management plays a crucial role in delivering the right products to customers at the optimal time and location, utilizing appropriate channels and logistics It enhances business coherence, minimizes competition, and facilitates seamless and rapid movement of goods.
Direct Channel Channel Lv 1 Channel Lv 2 Channel Lv 3
Direct channels enable manufacturers to sell products directly to consumers without intermediaries This approach encompasses various sales methods, including door-to-door sales, in-store transactions, online sales, and telephone sales, providing flexibility and direct access to customers.
Channel Lv.1: There is only one sale intermediary as retail-sale agent in the market In industrial goods B2B market, this intermediary is a broker or sales representative
Channel Lv.2: There are two intermediaries who are wholesale and retail-sale agents
Channel Lv.3: There are three distribution intermediaries
This strategy involves various activities including: Advertisement, promotion, offer, dissemination, and public relation to satisfy and promote the needs of customers
The American Marketing Association (AMA) defines advertising as the strategic placement of announcements and persuasive messages in various mass media, which can be purchased by business firms, non-profit organizations, government agencies, and individuals This practice aims to inform or persuade a specific target market or audience about their products, services, organizations, or ideas.
Components of an advertising campaign:
- Advertiser: the individual or organization that tries to sell the products or influence on customers purchasing behaviors by means of advertisements
- Advertising agent or firm: an independent and specialized firm in developing and carrying out advertising campaigns for the advertiser
- Communication media: used to communicate the advertising messages
- Advertising services: individuals or organizations that supply specialized services such as print ads, photocopy, TV Commercials, etc
Roles and effects of advertising
Roles: In commercial markets, advertisements play the role of a guide, informer, and salesman to sell more products and satisfy the needs of purchasers:
- Development and promotion of product demands
- Introduction to matters in relation to the products, support for sales activities
Help the manufacturers to generate more demand for products, increase sales and market share
Provide updated information to any change of products and services to be distributed;
Build up a competitive environment for companies to improve their quality, innovate their design, and enhance their services
Provide information on products; equip the consumers with necessary knowledge for them to select suitable products at their demands
Help consumers save time buying products
Encourage consumers to improve their living standards and use new products instead of old ones
A decision on advertising is made on basis of 5 "M" of advertising strategy, which is Mission, Message, Media, Money, and Measurement
“Promotion is a marketing activity that distinct from direct sales, advertisement and dissemination, which is conducted to motivate the consumers to buy the products and enhance efficiency of agents.” [20]
While the range of promotion activities is diverse, it can be classified into two main categories by target customers and specific objectives, specifically:
- To motivate and promote the efforts of sales force
- To motivate intermediaries to push the sale of products to consumers for trial purpose or for ongoing consumption
Public relations (PR) encompasses a wide range of activities beyond merely conveying information to potential customers; it also highlights how a company's actions positively impact society This approach underscores the company's responsibility to enhance social welfare, demonstrating accountability and commitment to the communities in which it operates.
To cultivate a positive corporate image among stakeholders, it is essential for public relations (PR) to demonstrate the company's ethical standards and encourage transactions Unlike other marketing strategies focused on promoting product brand image, PR aims to build overall trust and credibility for the organization A favorable perception of the company significantly influences customers' purchasing decisions, making it a crucial goal of any relationship campaign.
Dissemination is the communication activity carried out to make public aware of the positive effects of company activities by publishing news or images on newspapers, local news or television
The relationships between product and other remaining factors of Marketing- mix
The product is crucial in meeting customer needs and perceptions; failing to deliver expected benefits can undermine the entire marketing strategy Thus, it serves as the most effective competitive tool in the market.
Factors deciding the position of a company in the market:
- Can products of that company surpass other competitive products?
- What does that company do to persuade its customers to buy?
A company's success hinges on its ability to establish an effective product strategy and create high-quality products The right product strategy is vital for the survival and growth of the business, as it directly influences the overall performance and market position of the company.
A strong product strategy is essential for attracting investment, design, research, and mass production Without a clear target market, a weak product strategy can make these activities seem risky and prone to failure.
A well-developed product strategy enables the effective implementation of pricing, distribution, and promotional strategies For instance, when a company launches a high-quality product with exceptional features, it can seamlessly integrate its distribution channels, justify a higher selling price that customers are willing to pay, and execute advertising campaigns that resonate deeply with consumers.
Product strategy ensures to allow the company to carry out some fundamental objectives of a Marketing strategy:
The interplay between the quality and quantity of a product, the decision to expand or narrow its product line, production costs, and the potential selling price of each product significantly influences a company's profitability.
A company's ability to increase turnover and expand market share is primarily determined by its market penetration strategies and product line expansion Attracting customers hinges on the quality of the brand, the reliability of its products, and the overall reputation of the company in the eyes of consumers.
A well-defined product strategy can secure a stable and predictable demand within a loyal market segment, thereby minimizing the risk of losses and enhancing business safety This approach is essential for achieving the company’s objectives and maintaining long-term success.
ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT
General introduction of Sony Vietnam
Founded on November 1, 1994, Sony Vietnam is a joint venture between Viettronic Tan Binh and Sony Corporation, focusing on the assembly and trade of home electronic devices while supplying products to the domestic market.
The joint venture, established over a decade ago, features a capital structure where the Vietnamese Party holds a 30% stake and the foreign Party contributes 70% Initially, the charter capital was set at US$2,000,000, with total initial investments reaching US$6,666,000, which increased to US$16.6 million in November 1996 The Company operates with legal status and possesses its own seal and bank account at VIETCOMBANK.
2.1.2 Objectives and Purposes of the Company
- To enhance productivity, reduce waste products, and take full advantages of human resources
- To promote marketing and market research activities, understand the competitors in order to expand into Vietnam market in particular and ASEAN market in general
- To supply the markets with a diversity of high quality products while ensuring profit margin and accumulated value for the Company
- To assemble and manufacture home electronic devices of the best quality
2.1.3 Main products of the Company
The company offers a diverse range of products, including the WEGA absolute flat color TV series (ranging from 14" to 43") and the Bravia LCD TV series (from 15" to 40") Their product lineup also features radio cassette CD players, Hi-Fi studios, Walkman CDs, DVD/VCD players, computers, camcorders, digital cameras, projectors, plasma TVs, and various other devices Additionally, the company specializes in manufacturing electric parts, primarily for export, such as deflection coils.
2.1.4 Activities and Sale performance of Bravia LCD TV Series
Market share by production of Sony Vietnam:
To ensure the confidentiality of data, this dissertation will only present figures of percentage of production of each manufacturer in Vietnam market but not provide details of production value
According to the data of GFK market research firm, as at the end of March
In 2007, Samsung Vietnam dominated the market with a production share of 20.7%, followed by LG Vietnam at 18.8% and Sony Vietnam at 17.4% Other notable competitors included Panasonic, JVC, TCL, and Toshiba, among others.
In recent years, Samsung Vietnam and LG Vietnam have maintained their leadership in the Vietnamese TV market, securing the 1st and 2nd positions in production percentage due to their competitive pricing and appealing designs that attract medium-income consumers In contrast, Sony Vietnam emphasizes quality over price, adhering to its guideline that prioritizes product excellence, resulting in higher selling prices compared to Samsung and LG.
However, looking at Figure 2.1, it can be seen that in recent years since
Since 2009, Sony Vietnam has been actively working to close the market share gap with leading manufacturers LG and Samsung By March 2010, Sony Vietnam had reduced the difference to just 1.4% behind LG and 3.3% behind Samsung, making the top position in TV market share an achievable goal for the company.
Figure 2.1: MARKET SHARE BY PRODUCTION OF SOME TV
Market share by revenue of Sony Vietnam:
As of March 2007, Sony Vietnam led the market with a revenue share of 25.9%, according to GFK market research Following Sony were Samsung Vietnam with 18.0% and LG with 16.9%, while other manufacturers like Panasonic, JVC, Toshiba, TCL, and VTB also held significant positions in the Vietnamese market.
Since 2007, Sony Vietnam has consistently held the top position in revenue market share within the Vietnamese TV market This success is attributed to the company's strategy of positioning its products as high-quality offerings at premium prices, which has enabled Sony Vietnam to achieve higher revenue compared to its competitors.
Since late 2009, Sony Vietnam has significantly widened the gap between itself and other manufacturers, reaffirming its leading position in the Vietnamese TV market both in recent years and for the foreseeable future.
Figure 2 Figure 2.2: MARKET SHARE BY REVENUE OF SOME TV
Target markets of Sony Vietnam
Over 10 years of operation, until now, Sony Vietnam has established a sale network of over 250 agents and stores spreading all over provinces from Northern to Southern regions to ensure its products to cover a broad market and facilitate for the supply of the best products and services to customers
As of March 2010, Ho Chi Minh City held the largest market share at 13.01%, followed by Hanoi with 9.18% The Northeastern provinces accounted for 8.31%, the North Middle region provinces had a share of 7.64%, and the Mekong River Delta region represented 7.45%.
Figure 3FIGURE 2.3: CONSUMPTION MARKETS OF SONY IN VIETNAM
Ho Chi Minh City and Hanoi are the primary markets for Sony Vietnam, boasting the highest number of sales points, with over 63 and 43 respectively These regions stand out due to their robust economies, dense populations, elevated living standards, and higher average incomes compared to other provinces Consequently, Sony Vietnam has identified these cities as key areas for implementing effective marketing strategies.
Analysis of Marketing environment of Sony Vietnam
The macro-environment significantly influences the operations of every business, making it essential for organizations to identify and assess environmental opportunities and challenges This evaluation helps clarify objectives and formulate strategic plans aimed at achieving long-term goals.
Mr Klaus Rohland, Director of the World Bank in Vietnam, highlights that despite Vietnam's robust economic growth and improved macroeconomic management, challenges remain in the economic environment, particularly due to rising VND interest rates and high inflation These factors adversely affect businesses, especially in the high-value electronics sector, such as the Bravia LCD TV Series As interest rates rise, consumer savings increase while spending decreases, leading to a reliance on effective advertising, appealing promotional materials, and incentives to drive product purchases.
High inflation leads to rising raw material costs, which subsequently increases the selling prices of products As a result, the overall selling price of LCD TVs, including the Bravia LCD TV Series, becomes less appealing to consumers.
Vietnam's economic environment presents positive factors, notably the sustainable rise in average income per capita driven by robust economic growth This increase in disposable income is expected to boost the consumption of high-quality products as consumers have more discretionary spending available.
The political, governmental, and legal environments significantly influence business opportunities and challenges For Sony Vietnam, key considerations include laws and regulations related to environmental protection, employment equality, labor usage, export/import procedures, and changes in tax regulations.
Sony Vietnam is dedicated to environmental protection, adhering to laws and regulations as part of its commitment to the Sony Group's Global Environment Management System (GEMS) The company has implemented measures to address four key environmental challenges effectively.
+ Global warming: The company will take effort to reduce energy consumption and green house gas emissions
+ Natural resources: improve the effectiveness of natural resource use:
Chemicals management: manage strictly the use of special chemicals
Through innovative measures and the latest advancements in environmental protection, Sony Vietnam aims to minimize its negative impact on energy consumption and natural resources while ensuring adherence to environmental laws and regulations.
Sony Vietnam, a subsidiary of a Japanese Group, upholds the principles of Japanese organizational culture by strictly adhering to employment equality laws and labor regulations The company not only ensures compliance but also provides competitive compensation and comprehensive benefits to its employees This includes equal treatment with respect, fair compensation scales, annual leave that surpasses statutory minimums, and additional summer holiday benefits.
Sony Vietnam faces external challenges related to export/import regulations and tax rates, which are beyond its control To mitigate the impact of these changes, the company must focus on careful supervision and forecasting, while also developing adaptive business and marketing strategies Ultimately, while proactive measures can be taken, the inherent unpredictability of these external factors remains a significant challenge for Sony Vietnam.
Recognizing the importance of technological influence, Sony Vietnam always researches the most advanced technologies to apply to its production processes:
As consumers increasingly prioritize environmental protection, Sony has focused on researching and implementing modern technologies and processes to mitigate the negative impacts of energy and resource use on the environment.
In the competitive landscape, companies strive to leverage distinctive technologies to enhance their product features For instance, Samsung employs its Digital Natural Image Engine (DNIe) to optimize image quality, while LG utilizes the XD Engine as its standout technology Toshiba's innovation is highlighted by its Meta Brain technology Additionally, Sony Vietnam integrates the advanced Bravia Engine in its Bravia LCD TV Series, delivering viewers exceptional image quality and realism.
Suppliers are essential to a company's production process, significantly impacting product quality and output The accessories and parts they provide influence the reliability of the production line and ensure timely delivery of goods to the market.
At Sony Vietnam, its accessories and parts for assembly of a TV are supplied from two sources:
Imported parts from foreign countries:
In the past, nearly 100% of the components for LCD TVs were imported due to the high-end nature of the product, which required delicate parts and technologies that Vietnam could not produce The low production volume of Bravia TVs necessitated significant investment in high-value production lines, making domestic parts more expensive than their imported counterparts Consequently, suppliers were reluctant to invest in the necessary machinery to support Sony Vietnam's low order quantities As a result, the company initially focused on importing accessories and parts for Bravia TV manufacturing, with plans to gradually increase domestic content as the market evolved.
Currently, most of domestically manufactured parts are packing (carton boxes, polystyrene, sponge, user's manuals, labels) plus some types of electric cables, capacitors, speakers, etc
- Quality of parts: Suppliers are required to satisfy technical specifications before they can be eligible to supply material parts to Sony Vietnam
Due to the inconsistent quality of parts from suppliers, stemming from unstable production lines, the Company mandates that all domestically manufactured components undergo probability-based inspections upon delivery to the warehouse Only parts that pass these quality checks are accepted for use, which has significantly decreased the number of defective products produced by the Company.
The presence of numerous minor suppliers providing limited quantities of parts can hinder the production flexibility of the company, leading to significant economic losses These losses stem from increased costs due to production delays, wasted labor expenses, and the potential loss of other opportunities.
Therefore, it is necessary for the Company to establish relationship with major suppliers to ensure sufficient standard supply for it to be more dynamic in its business operations
Analysis of product positioning strategy of Bravia LCD TV
LCD manufactures Image Technique Durability Service Reasonable
A recent survey highlights the strengths of Sony's Bravia LCD TVs, revealing that 120 respondents identified superior image sharpness and color quality as its standout feature, outpacing Samsung's 94 and LG's 57 This comparison indicates that Sony's LCD TVs deliver significantly better visuals than those of its competitors, reinforcing their reputation for exceptional image and color performance in the LCD TV market.
The 2 nd strength of Sony's TV according to the survey is its durability with
A survey of 130 respondents highlights the superior durability of Sony's TVs, which are renowned for their long-lasting performance, with many units still delivering high-quality images, colors, and sounds even after decades of use In contrast, only 90 respondents reported on Samsung's products, indicating a notable difference in consumer feedback regarding longevity and overall quality.
A total of 120 respondents chose Sony's Bravia LCD TV, highlighting the brand's reputation for reliability and its longstanding presence in the electronics market Sony is recognized as a leader in research and the application of new technologies, which reinforces consumer confidence in the quality and dependability of its products.
The final aspect analyzed is the perceived value of Sony's TV pricing While many respondents view the price as relatively high, they associate it with superior quality, leading them to deem it a "reasonable" investment.
Outstanding attributes of Bravia LCD TV Series:
- High-resolution screen: both V and S-series use LCD screen of high resolution up to 1,366 x 768 pixels
The Wide Color Gamut Cold Cathode Fluorescent Lamp technology enhances the color refresh rate of Sony's V-series, establishing it as a premium offering This innovative feature produces a broad spectrum of red and green hues, resulting in more lifelike images As a crucial functionality, it enables Sony's products to effectively compete in the high-end market.
The Picture and Picture (PA) mode, exclusive to V-series TVs, allows viewers to simultaneously display signals from two receivers, enabling the enjoyment of two TV channels with equally sized images Additionally, all current Bravia LCD TV series feature Picture in Picture (PIP), or image pause, which is particularly useful for watching cooking shows, recording important events, or managing phone calls.
Customer characteristics and purchase preferences for Bravia TV series:
Most customers for high-tech products like the Bravia LCD TV series are male, as they typically show greater interest in researching specifications and technical features Additionally, men are more likely to make purchase decisions for high-value, long-term use items.
To enhance advertising effectiveness for Bravia TVs, the company should focus more on attracting potential male customers This can be achieved by strategically placing advertisements in popular male-oriented sections of newspapers such as Saigon Giai Phong, Tuoi Tre, Thanh Nien, Bong Da, and The Thao.
Bravia LCD TVs, known for their premium pricing, primarily attract customers with substantial financial resources As a result, the target audience typically consists of individuals with high income and significant savings, enabling them to invest in these high-end products.
Consumers exhibit a cautious attitude towards high-tech products due to their elevated prices, prompting them to thoroughly research aspects such as price, quality, brand reputation, functions, and technical specifications while comparing different brands To effectively attract these consumers, Sony Vietnam should implement strategies that provide comprehensive information about their products, distribution points, and retail locations This can be achieved through diverse and effective advertising channels, including newspapers, television, brochures, leaflets, and online platforms The information presented must be clear, concise, and memorable, ensuring it is easily understood by potential customers.
Sales of Bravia LCD TVs, along with LCD TVs in general, are expected to rise significantly during major sporting events such as the Olympics, SEA Games, European Football Cup, and World Cup, as the primary decision-makers for purchases are typically male customers.
To assess product positioning strategy for Sony's Bravia LCD TV Series in LCD TV market, the following factors may be considered:
Market share reflects a company's position in the industry, significantly impacting the strategies of its competitors To effectively respond to market dynamics, Sony Vietnam must analyze not only the market share data of its rivals but also their business and marketing strategies This comprehensive understanding will enable Sony to develop timely and effective solutions, minimizing potential losses resulting from competitors' actions.
To remain competitive in a market characterized by diverse and evolving consumer preferences, companies must prioritize research and innovation in their product offerings As a Japanese company, Sony embodies the traditional values of innovation and adaptability, continuously evolving to meet the changing needs and desires of its customers.
In today's advanced technological landscape, most products fulfill basic functional needs, making distinctiveness a crucial factor for competitiveness A product's ability to stand out among similar offerings, along with the added value provided through after-sales service and promotional incentives, significantly enhances its appeal to consumers.
Samsung Vietnam distinguishes itself in the competitive LCD TV market by focusing on striking designs and appealing aesthetics, setting its products apart from those of other leading manufacturers.
Analysis of current situation of Marketing-mix for Bravia LCD TV Series of
To evaluate the product positioning strategy and current marketing mix of Sony Vietnam's Bravia LCD TV, a survey was conducted involving 300 respondents who are either customers or visitors at Sony shops and agents Utilizing a selective sampling method, the research employed a questionnaire detailed in the Appendix The sample size was calculated using Yamane’s formula, considering a total population of 1,200 customers and a margin of error of 5%.
This analysis of the 2012 Marketing-mix plan for Bravia LCD TV will utilize survey results to identify the manufacturer's strengths and weaknesses, providing insights and suggested solutions for enhancing the marketing strategy.
The author only emphasized on Marketing mixes 4Ps for Bravia LCD Bravia
The traditional marketing mix of 4Ps—Product, Place, Promotion, and Price—has inherent weaknesses, prompting the need for a more comprehensive approach The 7Ps framework, which includes People, Physical Evidence, and Processes, addresses these gaps by focusing on essential business operations relevant to all products This expanded model enhances marketing strategies and improves overall business effectiveness.
N is population size e is the level of precision or error limit separately for LCD TV item In fact, Sony Vietnam has been performing effectively these three elements:
Sony utilizes an umbrella branding strategy that combines the product name with the corporate name, allowing products to develop their own identity while leveraging the strength of the Sony brand This approach aims to enhance consumer confidence in new products, which Sony has effectively employed during product launches.
The company's significant investment in research and development (R&D) highlights its commitment to innovation, enabling the launch of cutting-edge products that meet customer needs A prime example of this strategy is the introduction of the BRAVIA ZX1, an ultra-thin and lightweight LCD TV with advanced LED edge lighting This strong focus on R&D not only revitalizes the product lineup but also aligns with market demands.
Sony embraces a philosophy known as "uniquely Sony," which emphasizes employee development while encouraging individuals to take charge of their own careers and avoid being pigeonholed This approach reflects the company's commitment to fostering adaptability among its workforce Additionally, Sony's expansive perspective encompasses its dedication to corporate responsibility.
The recent reorganization of electronics into "Personal" and "Home" categories reflects the company's commitment to enhancing user experience by prioritizing ease of use in its hardware and interfaces The focus on making the "Home" category more user-friendly underscores this dedication to improving accessibility for consumers.
Sony has implemented a "Company of Committees" governance structure to enhance transparency and exceed basic legal compliance This initiative involves revising certain Directors' roles to support the effective operation of statutory committees.
Sony has recently undergone a reorganization to enhance its responsiveness and customer service, establishing a tailored network of services to meet local customer needs This strategic move reflects the increasing complexity of its product offerings The company has created Sony Customer Services, Inc and initiated specialized employee training to improve its capacity to address customer inquiries and requests effectively.
Sony is committed to implementing corporate social responsibility across its supply chain by introducing the Green Partner Environmental Quality Approval Program for suppliers This initiative ensures that Sony sources electronic parts exclusively from suppliers who have successfully passed rigorous audits and achieved Green Partner certification, thereby maintaining a consistent global quality standard.
- Mr Yuzo Otsuki is the current Chairman of Sony Vietnam
- Sony Vietnam employs approximately 2000 staffs nationwide
Sony Vietnam actively promotes applications from qualified individuals, including women, men, visible minorities, aboriginal peoples, and persons with disabilities The company prioritizes selecting the most suitable candidate for each position based on their ability to fulfill essential job responsibilities Furthermore, all Sony managers are accountable for providing equitable opportunities within their departments.
In term of Physical evidences
- Sony Vietnam headquarter is located at 248A No Trang Long, Binh Thanh Dis, Hochiminh City
- Other location of branch office in Hanoi: 5 th floor, BIDV Tower, Hoan Kiem Dis, Hanoi
- Distribution networks with 18 Sony Centers and 250 agents nationwide
- Sony’s main company website provides helpful information ranging from service and support, music, electronics and gaming as well as a range of shopping alternatives
The current situations of Marketing mix 4Ps of Sony Vietnam
A recent survey revealed that 18% of respondents desire more eye-catching and luxurious designs for Bravia TVs, while 7.3% are looking for a greater variety of models Additionally, 4% of participants expressed a preference for slimmer Bravia LCD TVs to enhance the elegance and uniqueness of their home interiors.
Introduction to Bravia LCD TV Series:
Bravia is shorted for Best Resolution Audio Visual Integrated Architecture, consisting of three series: High-end V-series, medium-class S-series and Standard B-series (with computer connection input)
The Bravia LCD TV Series initially launched with nine models ranging from 15" to 40" Recently, Sony Vietnam has expanded this lineup by introducing an additional nine larger Bravia LCD models, now available in sizes from 46" to 50" These new models build upon the foundation of earlier product lines, incorporating the latest technologies to enhance the Bravia LCD experience.
TV Series while the market for previous models has become saturated
Since its launch in late 2005, the Sony Bravia LCD TV has entered the growth stage of the product life cycle, indicating a transition from introduction to a broader customer base This growth phase necessitates an intensified focus on advertising and marketing strategies to effectively reach potential buyers and encourage them to purchase Bravia LCD TVs.
Product strategy for Bravia LCD TV Series of Sony Vietnam:
During the launch of Bravia LCD TVs in Vietnam, Sony introduced a diverse product line featuring nine models ranging from 15" to 40" This strategic offering targets three market segments: High-end, Medium-Class, and Standard By expanding the product range, Sony aims to boost profits, provide more options for salespeople and consumers, leverage excess company resources, and fill market gaps to deter competitors.
SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR
Development orientations and objectives of Sony Vietnam
Upon consideration of current business situation as well as the opportunities and difficulties of economic environment, Sony Vietnam has proposed following development orientations:
To expand its market share, Sony Vietnam is launching a new product line of LCD TVs, aligning with current consumption trends By entering the LCD TV market, Sony Vietnam aims to boost production consumption and establish a stable presence in this competitive sector.
The Company is committed to sustainable development by improving the quality of management across its production, operation, and distribution processes during product development.
Sony Vietnam aims to enhance profitability through its marketing strategy for the Bravia LCD TV Series This involves improving management quality, reducing costs and waste, and making strategic investments to create value By focusing on these areas, Sony seeks to elevate customer perception and ensure sustainable, long-term profitability.
3.1.2 Marketing objectives of Sony Vietnam
Our mission is to enhance quality of life by providing products that meet customer needs, protect the environment, and drive continuous innovation We strive to improve production efficiency and product quality while fostering a robust organizational structure that benefits everyone involved.
Sony Vietnam aims to capture a 30% market share in the LCD TV sector by early 2012, targeting an ambitious annual growth rate of 200% While this goal presents significant challenges for the company's production and sales teams, it remains attainable with the implementation of a comprehensive and effective marketing strategy to successfully penetrate the market.
The second objective focuses on diversifying product models and ranges to meet customer needs effectively This involves actively exploring various market sources and enhancing employee sales skills Ultimately, the goal is to strengthen consumer perceptions of product design and quality.
Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony
This article analyzes the internal and external factors influencing the marketing activities of the Company, focusing on a survey of 300 respondents regarding their knowledge and preferences for the Bravia LCD TV Series Key aspects examined include price, distribution, and promotion Based on these findings, the author recommends primary strategies to enhance market targeting and optimize the Marketing-mix plan for the Bravia LCD TV Series, along with secondary recommendations to effectively support these main strategies.
Among 4 factors of Marketing-mix, product seems to be the most important factor that we should pay attention to
Since its first introduction to the market (11/2005) until now, Bravia LCD
The latest Bravia Engine has significantly enhanced TV series display quality by improving movement, filtering images, and optimizing contrast for more vibrant visuals With High-Definition standards, image sharpness has increased threefold, effectively meeting the evolving needs and high expectations of consumers This advancement allows customers to make informed purchase decisions quickly, as they gain a clear understanding of the product upgrades in Bravia LCD TVs.
To enhance consumer satisfaction, it is essential to prioritize innovative design updates for Bravia LCD TVs once technology quality reaches its peak By researching and introducing unique aesthetics, we can align with consumer preferences and elevate the overall appeal of the product.
The rising trend in personal and unique designs, such as sleek sports-themed TVs and customizable vibrant colors like yellow, orange, green, and red, caters to the preferences of young, high-income families and successful singles These consumers are increasingly drawn to Bravia LCD TVs that reflect their individual style and enhance their aesthetically vibrant home interiors.
To differentiate itself in a challenging economic landscape since 2011, the Company must focus on offering unique products with standout features Continued investment in research and development is essential to enhance the Bravia LCD TV Series, ensuring it meets the evolving needs of customers A recent survey indicated that 16% of respondents desire more convenient functions in their products, highlighting the importance of innovation As a technology leader, Sony should proactively identify and implement these desired features, such as integrating D-VCD and karaoke capabilities into Bravia LCD TVs This would allow users to enjoy high-definition movies and engage in karaoke, creating a streamlined and clutter-free entertainment experience in their homes.
In 2011, as LCD TVs gained popularity, the company aimed to explore cost-effective manufacturing methods for Bravia LCD TVs to capture future market share This strategy aligns with consumer expectations, as 14.7% of respondents (44 out of 300) expressed interest in purchasing a Sony Vietnam LCD TV.
To meet the needs of lower-income customers, the Company should launch additional LCD TV lines by creating new designs for boards, microprocessors, and other components to reduce costs and lower prices While these models may not require complex features, it is essential to maintain high image and sound quality, as this is a key expectation for Sony's televisions.
Sony Vietnam's strategy for its Bravia LCD TV Series emphasizes the necessity of adhering to its core policies of "continuous innovation" and delivering "unique and impressive products." This approach is essential for maintaining a competitive edge in the market against other manufacturers.
To successfully implement innovative strategies and enhance products, companies must ensure that their production lines and equipment are aligned with these developments Continuous training for workers is essential to enable them to produce high-tech products, while adherence to the company code of ethics is crucial By focusing on product innovation, offering discounts, and maintaining consistently high quality, businesses can foster long-term customer loyalty.
To be able to survive and compete in a sustainable manner, Sony Vietnam should establish a defined price strategy and long-term orientations for Bravia LCD TVs
In my opinion, to develop and carry out a price strategy, Sony Vietnam must:
Change its pricing and price list development methods
Sony Vietnam's pricing strategy is primarily enterprise-oriented rather than market-oriented, which, while securing profit margins, risks alienating less affluent yet potentially valuable consumer segments.
To effectively transform the concept and perception of pricing, Sony Vietnam must implement a comprehensive reform of its pricing strategy, enabling the adoption of a sustainable long-term pricing method This requires addressing key issues that impact pricing effectiveness.
To develop an effective pricing strategy, it is crucial to forecast external environmental factors that may fluctuate over time For instance, rising oil prices can lead to increased transportation costs, which in turn may elevate the prices of both imported and locally manufactured components Conversely, advancements in LCD TV manufacturing technology or electronic parts can potentially lower production costs, impacting product pricing favorably.
To establish an effective pricing strategy, it is essential to consider the dynamics of supply and demand, competitor pricing, and potential new markets For high-end products, a premium pricing approach is recommended due to their exclusivity, unique features, and superior quality Conversely, a flexible, market-responsive pricing strategy should be employed for medium-end product lines to remain competitive.
The company's pricing strategy avoids engaging in price wars with competitors, focusing instead on establishing a price that reflects quality This approach reinforces the belief among customers that "Price is indicative of Quality." For many Vietnamese consumers, buying high-end products symbolizes a high income and a preference for exclusive, modern, and unique items.
The following measures will help product price of the company be more competitive while still maintain a reasonable profit margin
At the same time as developing and changing pricing method, Sony Vietnam should reduce production cost
Reducing cost price can be achieved by either of the following two measures:
Reducing costs of electronic components:
Currently, aside from the LCD screens produced by the S-LCD joint venture, most electronic components for Bravia LCD TVs are sourced from Japan via various internal procurement teams within Sony Group in Malaysia This reliance on imports presents several disadvantages.
- Production cost of LCD screen by S-LCD joint-venture is still very high
- Costs of electronic components and parts made in Japan are high since production and transport costs in Japan are very high
To compensate for these disadvantages, Sony Vietnam may take the following measures:
Marketing Action Plan from June to December, 2012
- To improve awareness of target customers of the products;
- To promote sales during the key season in 2012;
- To enhance brand value for Bravia LCD TVs of Sony VN
The months from October to December are the key months for promoting
To effectively promote TV products, the marketing action plan will concentrate on October and November, utilizing consistent exposure across public media channels like television, newspapers, and magazines This strategic approach aims to enhance advertising effectiveness compared to isolated, unfocused ads, ultimately driving stronger customer motivation and boosting sales in the subsequent months.
During this time, it is crucial to equip the sales team and promotional agents with the necessary skills to offer essential services, such as providing expert advice and assisting distributors in effectively promoting the products.
June: Salespeople are assigned to various locations to prepare sales activities for distributors and regional agents, including the following tasks:
- Research the performance of distributors, agents; forecast the quantity to be ordered by them; their desire and sales potential; and growth potential of their region
To effectively support our valued distributors, we conduct comprehensive market research to understand their business operations, challenges, and needs regarding our TV products We ensure they are well-informed about promotional activities, pricing trends, and our company's future initiatives, enabling them to refine their sales strategies Additionally, we collaborate closely with distributors to forecast and plan consumption, fostering a proactive partnership that drives mutual growth.
To support our distributors in maximizing sales of our products, we provide comprehensive price lists, catalogs, and detailed pricing methods, including discount and deduction strategies, alongside specific payment options.
Market research reveals valuable insights from distributors, highlighting their feedback and sales statistics This data is essential for optimizing the production line, ensuring that supply aligns with demand effectively By proactively sharing these findings, businesses can enhance their inventory management and respond swiftly to market needs.
Marketing activities will be completed in all of these regions prior to 15/05/2011 To prepare for the next plan to deliver products to distributors;
- To make plans to deliver products to distributors in the next months
During the months of July, August, and September, regional employees will focus on key responsibilities including informing distributors about promotional programs, offering customer care services, supervising distributor performance, and collecting statistics They will also prepare monthly and quarterly reports to ensure effective communication and performance evaluation.
Conduct weekly and monthly survey on sales performance of distributors and competitors’ activities
- 15/08-31/8/2012, prepare TVC content design plan
- 15-25/09/2012, select TV channel: Hanoi: 'In HCM: HTV 3/7/9/ Cable Channels, Da Nang DRT/DVTV
Salesperson, head of unit to conduct survey on public opinion and feedback, actual performance of the programs, revenue, and consumers' support
Details of broadcasting time on TV channels are as follows:
From 1/10-31/11/2012 post advertisements on the following newspapers and magazines:
Details of issuing date and edition issues are as follows:
To provide reviews on outstanding features of the technologies of Sony's Bravia LCD TVs compared to product of other competitors in the market
- Pre-seed Sony LCD Bravia TV to targeted mass
- Provide support materials (user's manual, technical specifications )
- Identify 4-6 communication channels on target technology on basis of the coverage, number of readers, and popularity in the technology sector:
Discover the exceptional quality of Sony's Bravia LCD TVs, designed to stand out in a competitive market With cutting-edge technology and remarkable features, Bravia TVs offer an unparalleled viewing experience that sets them apart from other brands Explore the innovative advancements that make Sony's Bravia the preferred choice for discerning consumers seeking superior performance and stunning visuals.
- Provide information on the products, script, etc to MCs;
- Provide support materials such as user' manual, review on the products, specifications of the TVs ;
- Select 2-3 popular and reputable target TV channels in technology sector, which are highly acknowledged and have wide coverage to implement TV reportage;
- To invite famous characters to be the ambassador of the brand to advertise Bravia LCD TVs to the public;
- To introduce about rewards granted to Bravia LCD TVs;
Targeted customer: Consumer Media/Tech Media/ Lifestyle Media
- Interview experts or celebrities on their experience and review in using Sony's Bravia LCD TVs
- Organize Q&A events with experts about technologies adopted by Sony Vietnam to manufacture LCD TVs: allow questions to be posed by consumers
- Select one celebrity to be the ambassador of Bravia LCD TV brand
A website serves as an effective and low-cost advertising tool for products, allowing consumers to easily access information, specifications, pricing, and promotions Today, potential buyers frequently browse the Internet to compare products with competitors before making their final purchasing decisions.
Re-design current web page of the Company:
- Design microsite update of latest news on Bravia LCD TVs on official website for visitors to quickly review every details in relation to Bravia LCD TVs;
- Update promotional programs in quick manner on the website, making them more attractive to visitors
=> Seed locations on popular web pages to advertise the products by considering the popularity of keywords such as: TV, TV LCD, Bravia, and Sony…
To enhance sales opportunities for Bravia LCD TVs, Sony Vietnam should collaborate with various affiliate websites focused on advertisements and sales By strategically placing ads and links on popular platforms like thegioidienlanh.com, vidic.com, and vatgia.com, the company can effectively reach a broader customer base while ensuring these sites provide comprehensive product information.
- From 10-25/09/2011: design and seek affiliated websites to place banners, ads;
Employees managing these websites and sales personnel regularly analyze consumer interactions to proactively address any issues Additionally, they are tasked with updating the websites with the latest information, including pricing and promotions.
All employees, including distributors, technicians, and repairmen, will receive free uniforms featuring a sleek two-color design with black as the primary color and a printed tag of the Sony LCD Bravia TV on the front The new uniforms maintain a similar style to the previous ones to ensure brand consistency, while prominently displaying Sony's logo and slogan on the sleeves, pockets, and back for enhanced visibility and recognition.
- From 15-30/09/2012: complete the design and decide specific quantity of uniform to order prior to 15/09/2012
- From 01-15/10/2012: all of uniforms are delivered to distributors and agents
A 15 - day promotion program from 01-15/11/2012 to promote sales and demands In this period, customers will be directly given one free DVD player of Sony for each Bravia LCD TV purchased
- Coverage: All over the country
+ A gift of DVD Sony DVP-NS648PBMSP6, Progre DivX /
USB worth 980,000 VND for purchasing a Bravia LCD TV at 10,000,000 - 20,000,000 VND
+ A gift of DVD Sony DVPNS758HPBMSP6, HDMI, USB worth 1,800,000 VND for purchasing a Bravia LCD TV at 25,000,000 VND or higher
+ From 1/10 - 15/10/2012: complete sales forecast report for promotion period
+ From 15/10 to 29/10/2012: deliver DVD players under the promotion program as estimated to distributors, agents of Sony Vietnam to prepare for the first day of the program, 1/11/2012
Cost of advertisements on newspapers and magazines
Unit Cost VAT included (VND)
Net Cost VAT included (VND)
Total Net VAT included (VND)
Full Page - beginning QC Mon-Sun 54,000,000 12% 15% 49,680,000 9 447,120,000
QC/end TTN Mon-Sun 54,000,000 12% 10% 47,520,000 10 475,200,000
Full Page - page A (2011) Mon - Sun 30,000,000 28% 19,636,364 14 274,909,091
Full Page- PAGE WITHIN COTENT
LISTENING Full color page 25th 42,042,000 30% 26,754,000 2 53,508,000
Costs of advertisements on Television
Total Rated TV Budget in US$ (without VAT and with discount) $258,044
Total TV Budget in USD (without VAT and with discount) $258,044
Activity Channels Creative Execution Total Net
Total Sony Bravia LCD TV $361,535
In Chapter 4, the author has summarized a number of solutions to improve Marketing-mix plan for Bravia LCD TVs of the Company, emphasizing on the follows:
To stand out in a competitive market, it is essential to create a comprehensive product strategy that focuses on delivering high-end, unique, and impressive products to consumers This approach ensures that your offerings not only meet but exceed customer expectations, setting them apart from those of other firms.
Bravia LCD TVs will dominate the market in both sales and production volumes by implementing a "skimming price" strategy that emphasizes high quality rather than engaging in price wars This approach aligns with the Vietnamese perception that "Quality is indicative of Price," leveraging Bravia's strong reputation to attract consumers.
To optimize distribution, the Company should implement a selective distribution strategy that focuses on enhancing the performance and effectiveness of its distribution channels This includes establishing new sales channels, minimizing the number of intermediary distributors, and developing targeted channels to reach corporate customers.
To enhance the brand image of Sony Vietnam and boost sales and profits, a more robust and widespread promotional strategy is essential for the Bravia LCD TV series.