Some solutions to complete the marketing mix for bravia LCD TV series of sony vietnam in 2012

VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS VU XUAN TUNG SOME SOLUTIONS TO COMPLETE THE MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr Tran Doan Kim Hanoi – 2012 TABLE OF CONTENTS ACKNOWLEGEMENT ABSTRACT TÓM TẮT TABLE OF CONTENTS TABLE OF FIGURES INTRODUCTION Reasons to choose this topic Objectives of the Study Subjects and Scope of the Study Methods of study and process of data Significance of the Topic: Structure of the Thesis: CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Marketing 1.1.1 The Formation and Development of Marketing 1.1.2 Definitions of Marketing 1.1.3 Concepts of Marketing 1.1.4 Role of Marketing 1.2 Marketing Environment 1.2.1 Political and legal environment 1.2.2 Economic and Demographic environment 1.2.3 Cultural - Social environment 1.2.4 Technological and Natural environment 1.3 Target Market Identification 1.3.1 Concept of market: 1.3.2 Market Classification 1.4 Positioning 1.4.1 Definitions 1.4.2 Positioning methods 1.4.3 Stages of market positioning: 1.5 Marketing-mix 1.5.1 Product strategy 1.5.2 Price strategy 1.5.3 Place (distribution) strategy 1.5.4 Promotion strategy 1.6 The relationships between product and other remaining factors of Marketing-mix: CHAPTER 2: ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT SITUATION OF MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY VIETNAM 2.1 General introduction of Sony Vietnam 2.1.1 Overview of the Company 2.1.2 Objectives and Purposes of the Company 2.1.3 Main products of the Company 2.1.4 Activities and Sale performance of Bravia LCD TV Series 2.2 Target markets of Sony Vietnam: 2.3 Analysis of Marketing environment of Sony Vietnam 2.3.1 Macro-environment 2.3.2 Micro-environment 2.4 Analysis of product positioning strategy of Bravia LCD TV: 2.5 Analysis of current situation of Marketing-mix for Bravia LCD TV Series of Sony Vietnam: 2.5.1 Product 2.5.2 Price 2.5.3 Distribution 2.5.4 Promotion CHAPTER 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 3.1 Development orientations and objectives of Sony Vietnam 3.1.1 Development orientations: 3.1.2 Marketing objectives of Sony Vietnam 3.2 Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony Vietnam 3.2.1 Product: 3.2.2 Price: 3.2.3 Place/Distribution: 3.2.4 Promotion 3.2.5 Some support measures: 3.3 Marketing Action Plan from June to December, 2012 3.3.1 Objectives 3.3.2 Sales Activities 3.3.3 Promotional program 3.3.4 Marketing Budget CONCLUSION LIST OF REFERENCES LIST OF APPENDICES SOME SOLUTIONS TO COMPLETE THE MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 VU XUAN TUNG MBA candidate, 2009 - 2011 School of Business Vietnam National University, Ha Noi Supervisor: Dr Tran Doan Kim INTRODUCTION Reasons to choose this topic Sony Vietnam introduced its Bravia LCD TV series and considered this to be the strategic product line of the Company This is also the reason why the author decide to carry out the dissertation: "Some solutions to complete the Marketing-mix for Bravia LCD TV series of Sony Vietnam in 2012" 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 conclusions of the dissertation shall serve as reference materials for marketing managers to know and understand better about current situation of LCD TV market as well as the positioning of Bravia LCD Series of Sony Vietnam 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 1: Literature review Chapter 2: Analysis of Marketing environment and current situation of Marketingmix 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 CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Marketing 1.1.1 The Formation and Development of Marketing 1.1.2 Definitions of Marketing Marketing is considered a science, an art of business It never ceases to be useful and has been supplemented and developed constantly; therefore, there have been a number of definitions of Marketing by various authors and scientists: - Definition by Philip Kotler (U.S.) - President of World Marketing Association: “Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit Marketing identifies unfulfilled needs and desires It defines measures and quantifies the size of the identified market and the profit potential It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.”[3] The differences between traditional and modern Marketing are shown in the following diagram: Objective Traditional Marketing Product Modern Marketing Satisfy customer’s needs Means Sales & Advertising Result Generate profit by selling many products Generate Adopt comprehensive satisfying Marketing strategies needs profit by customer 1.1.3 Concepts of Marketing During the development of Marketing, there have been fundamental concepts of how to organize Marketing activities, specifically as follows:      Production concept: Product concept: Sale concept: Marketing concept: Social Marketing concept: 1.1.4 Role of Marketing Marketing plays a very important role in business It guides and coordinates the operating activities of a company Marketing is also helpful in adapting a product to market needs It promotes research and development activities Marketing has delivered success for many companies So, it has been praised as "new theory of business", "theory of market take-over", "behaving etiquette in modern business", "golden key", "secret of success in business", etc 1.2 Marketing Environment 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 Marketing environment consists of micro and macro-environment The Marketing environment may be analyzed under PEST model, which comprises the following factors: Political-legal, Economic, Social, Technological and Natural factors (or environments) In order to succeed, enterprises must be able to adapt to the changing Marketing environment while not resisting those trends [4] 1.2.1 Political and legal environment Government, interested parties (in some other countries), public interest protection groups, etc are those affecting the political environment, which, in turn, cause policy makers to enact new laws and regulations impacting on consumers and enterprises These enacted laws, directly or indirectly, influence the practical implementation of marketing policies of a company, such as: anti-monopoly law, environment law, consumer protection law, etc 1.2.2 Economic and Demographic environment 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 Development level and model of the economy are fundamental factors of the economic environment 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 In the demographic environment, age structure, race, education level and others are factors to divide the market into segments of different scales and characteristics Expenditure pattern of families of two or more generations as well as type of products/services that they choose tends to be decided on basis of people community preferences The movement of living places and among people groups will also affect the changes of needs; therefore, marketing policy should also adapt 1.2.3 Cultural - Social environment 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: a group of people share values acquired from certain living experience and conditions Religions have influence on the consumption of goods and services defined by religious rules and social traditions 1.2.4 Technological and Natural environment Natural environment results in changing trends of production materials, energy cost, environmental pollution level and attitude of governments toward environmental protection Technological environment is always the most important force to improve the quality of life for humans, as it becomes more effective at harnessing the natural environment’s resources 1.3 Target Market Identification 1.3.1 Concept of market: 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 Market Classification 1.3.2.1 Reasons of market segmentation and market targeting A market consists of buyers that are different in single or many aspects; for example, they may be different from each other by their desire, purchasing power, location, purchasing attitude and pattern No company has the capacity to satisfy the needs of all of its potential customers In addition, there are many other rival companies in the market so, it has to face the challenges posed by competitors Anyway, each company has strengths in certain aspects so that it can use such strengths to satisfy part of market needs 1.3.2.2 Market Segmentation  Definition 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]  Segmentation criteria: Segmentation basis Segmentation criteria 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 Consumption behavior Purchasing reason, desired benefit, consumer status, loyalty level, readiness stage, and attitude toward products 1.3.2.3 Market targeting  Definition “Market targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.”[10]  Reasons of market positioning Coverage of the whole market: - Insufficient resources - Includes of unattractive segments 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  Basis of market positioning - 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 1.4 Positioning 1.4.1 Definitions Although there are different definitions of positioning, probably the most common is: “Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers Formulating competitive positioning for a product and a detailed marketing mix”[11] 1.4.2 Positioning methods - By competitors - By attributes of products - By benefits offered to the customers by products - By other products - By price and quality 1.4.3 Stages of market positioning: - 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) 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 1.5 Marketing-mix Marketing-mix implementation [15] Marketing-mix (Price) (Promotion) Target market Source: “Quan tri Marketing” – Prof Dr Vu The Phu (Place) (Product) 1.5.1 Product strategy  Definition “Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need It includes physical objects, services, persons, places, organizations and ideas.”[16]  Product levels: Source: Marketing management, Philip Kohler  Product classification Marketers traditionally classify products on the basis of different attributes of those products For each classification of products, there should be a suitable Marketing-mix plan 1.5.2 Price strategy  Definition "Price is an important factor of Marketing-mix It plays an important role in the purchase of certain product by consumers For a company, price plays a decisive role in determining its competitiveness in the market.”[17] Product pricing is a crucial matter to a company since it directly affects revenue and profit  Factors affecting pricing:  Internal factors: - Marketing objectives - Marketing-mix plan - Production cost  External factors: - Market and needs - Competition - Other external factors include legal and political environments  Pricing methods:  Cost-based pricing method:  Purchaser-based pricing method:  Competition-based pricing method:  Mark-to-market pricing:  Bid pricing Pricing strategy is mostly decided by target market segments and positioning objectives of the company Pricing will affect and be influenced by decisions on products, place, and promotion Therefore, pricing decisions should be considered carefully and coordinated with other factors within Marketing-mix in developing a marketing strategy 1.5.3 Place (distribution) strategy  Definition “Place (distribution) involves activities related to the organization, operation and distribution of goods and services from manufacturers to consumers.”[18]  Distribution channels Type of Distribution channel Manufacturer Manufacturer Manufacturer Wholesale ssagent Retailers Retailers Manufacturer Wholesale agent Retailers Retailers Consumer Consumer Consumer Consumer Direct Channel Channel Lv Channel Lv Channel Lv  1.5.4 Promotion strategy This strategy involves various activities including: Advertisement, promotion, offer, dissemination, and public relation to satisfy and promote the needs of customers 1.5.4.1 Advertisement  Definition According to the American Marketing Association (AMA): “The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, non-profit organizations, government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or audience about their products, services, organizations, or ideas.”[19]  Components of an advertising campaign: - Advertiser - Advertising agent or firm - Communication media - Advertising services  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: - Customer-oriented consumption - Customer support - Development and promotion of product demands - Introduction to matters in relation to the products, support for sales activities  Effects of advertisement: - For companies:  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 - For consumers:  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 "M" of advertising strategy, which is Mission, Message, Media, Money, and Measurement 1.5.4.2 Promotion  Definition “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]  Purposes of promotion: - 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 1.5.4.3 Public Relation  Definition Public relation (PR) is a broad and diversified area involving many activities in addition to communicating information to potential customers and factors affecting the purchase of products PR is also used to demonstrate that the behavior of the company benefits the society in which it is operating This concept implies that the company has a clear accountability to increase social welfare  Role of public relation To develop and improve a positive image of the company in the opinion of related parties, to persuade related parties that the company is an ethical organization, that they should a transaction with the company Certainly, a positive image of the company in customers' opinion will be very helpful at a greater level in affecting their final purchase decision-making In fact, this is clearly one of the ultimate objectives of any relation campaign 1.5.4.4 Dissemination 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 1.5.4.5 Direct sale  Definition: Direct sale is a direct promotion method between the salespeople and customers with the purpose of persuading the customers to buy products This method is carried out on face-to-face basis In recent times, direct sale being implemented over the telephone call or online has become widespread in many countries  Role of direct sale Direct sale allows marketers to tailor their communications to influence individual customers (or the people around them who influence their purchase decision) Salespeople become the main source of information communicated to those customers that are intending to buy a product Even the customers may rely largely on salespeople for provision of fundamental information for their purchase decision-making 1.6 The relationships between product and other remaining factors of Marketing-mix: Product plays an especially important role because it must meet the needs and perceptions of the customers, if it does not deliver the expected benefits then the entire Marketing strategy would be undermined Therefore, product is the sharpest weapon of competition in the market Product strategy ensures to allow the company to carry out some fundamental objectives of a Marketing strategy:  Profit objective:  Market power objective: 10 Chapter 2: ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT SITUATION OF MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY VIETNAM 2.1 General introduction of Sony Vietnam 2.1.1 Overview of the Company 2.1.2 Objectives and Purposes of the Company  Objectives:  Purposes: 2.1.3 Main products of the Company 2.1.4 Activities and Sale performance of Bravia LCD TV Series  Market share by production of Sony Vietnam: According to the data of GFK market research firm, as at the end of March 2007, Samsung Vietnam held the leading position in term of production percentage in Vietnam (20.7%) then LG Vietnam, second position, (18.8%) and Sony Vietnam, third position, (17.4%) Followed by Panasonic, JVC, TCL, Toshiba, VTB, etc In general, in the past years, Samsung Vietnam and LG Vietnam managed to hold on to the 1st and 2nd positions in term of production percentage in TV market of Vietnam However, looking at Figure 2.1, it can be seen that in recent years since 2009, Sony Vietnam has been trying to narrow the distance of market share compared to these two leading manufactures and by March 2010, Sony Vietnam was only 1.4% behind LG Vietnam and 3.3% behind Samsung Vietnam Therefore, the 1st position of TV market share by production is not an unattainable objective to Sony Vietnam Figu1  Market share by revenue of Sony Vietnam: In contrast to the production market share, according to the data of GFK market research firm, as at the end of March 2007, Sony Vietnam hold the 1st position in term of revenue percentage in Vietnam (25.9%) Next manufactures in the list were Samsung Vietnam (18.0%) and LG (16.9%) Followed by Panasonic, JVC, Toshiba, TCL and VTB, etc Since the end of 2009, the distance between Sony Vietnam and other manufactures has been increasing This, once again, indicates the leading status of Sony in TV market of Vietnam in recent years and even in the future 2.2 Target markets of Sony Vietnam Sony Vietnam has chosen Ho Chi Minh City and Hanoi as its key markets to develop a correct and effective Marketing strategy 2.3 Analysis of Marketing environment of Sony Vietnam 2.3.1 Macro-environment  Economic environment The problems of economic environment because of frequently increased interest rate of VND and high inflation rate When VND interest rate is increased, saving trend will be 11 also increased, while consumption is reduced In addition, high inflation will cause raw material costs to increase, resulting in increased selling price of products  Political and Legal Environment Sony Vietnam, the political and legal environment that the Company pays attention to concern the laws and regulations on environment protection, equality of employment, labor use, export/import procedures, and change of tax regulations, etc  Technological influence: Recognizing the importance of technological influence, Sony Vietnam always researches the most advanced technologies to apply to its production processes Sony tried to research modern technologies and processes to apply latest inventions of the industry to protect the environment and reduce negative impacts on environment from the use of energy and resources 2.3.2 Micro-environment  Suppliers: Suppliers are critical external factors to the business production process of a company At Sony Vietnam, its accessories and parts for assembly of a TV are supplied from two sources:  Imported parts from foreign countries  Domestically manufactured parts  Distributors Sony Vietnam has established a number of policies to address and develop its distribution network, closely monitor performance of its agents to provide financial aids (discount, price reduction, etc.) if necessary, train them about sales skills, support store decoration by providing: panels, signs, shelves, and so on  Customers Customer orientation for Bravia LCD TV Series: In times of tough competition among rivals not only by means of products, but also by means of price and quality, Sony Vietnam has decided to satisfy customers' needs with its products while offering them intangible values when they use its products  Competitors: An important task in checking external factors is to identify competitors and determine their strengths, weaknesses, opportunities and challenges  Competition by technology, product:  Engineering technology:  Utilities:  Product diversity:  Co-operation among competitors 2.4 Analysis of product positioning strategy of Bravia LCD TV:  Outstanding attributes of Bravia LCD TV Series: 12 - High-resolution screen - Improvement of color refresh rate - Picture and Picture mode (PA)  Customer characteristics and purchase preferences for Bravia TV series: - Gender: products intended for long-term use and of high value, male customers tend to be the ones to select and make purchase decisions - Profession, Status, and Financial capacity: potential customers are normally those with high income and savings, who are capable of buying these products - Consumption attitude  To assess product positioning strategy for Sony's Bravia LCD TV Series in LCD TV market, the following factors may be considered: - Market share - Innovative capacity - Distinctiveness creation - Quality - Cost and Price - Brand 2.5 Analysis of current situation of Marketing-mix for Bravia LCD TV Series of Sony Vietnam:  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)  Product life cycle: Since the Sony Bravia LCD TV introduced at the end of 2005, this product is in the growth stage of the product life cycle  Product strategy for Bravia LCD TV Series of Sony Vietnam:    Product line filling strategy: Product line pruning strategy: Product line stretching strategy: 2.5.2 Price  Pricing methods: Currently, the pricing method adopted by the company is "cost-based pricing", which is more of enterprise-oriented than market-oriented This pricing method may help the company ensure the safety of its financial position (if all of forecasts are correct), however, it cannot ensure the company's competitiveness in the market because cost-based-price are determined on the basis of supply-demand relationship, competitors' prices and market potential 13  Price strategy: Price strategies that Sony Vietnam has adopted for its Bravia TV series in recent years are:    Market penetration price strategy: Price regulation strategy: New product introduction: 2.5.3 Distribution      Current distribution channels of Sony Vietnam: Ordinary agent channel: Affiliated agent channel: Exclusive agent channel: Display store channel: SONY VIETNAM Ordinary Agent Affiliated Agent Exclusive Agent Sony Display Store Sub-Agents Lv 2, 3… Individual Clients, End-users…  Distribution strategy of Sony Vietnam: Sony Vietnam has chosen selective distribution strategy instead of other strategies such as widespread exclusive distribution  Some weaknesses of distribution network of Sony Vietnam: - The main weakness point is its sub-agent channel, the largest percentage channel (>95%) of the whole distribution network It is necessary that the Company should solve certain problems with this channel to be able to promote its performance more effectively - In addition, though the distribution network has been outlined in the above figure, in fact, there are some major agents that still re-distribute products of other minor agents Thus, Sub-Agents will not be able to directly access policies of the Company and it will be impossible for the Company to maintain close control over actual situation in the market and the needs of end-users - Currently, the Company’s does not target corporate accounts (such as: office, hospitality, government, etc.), which is high potential customers for LCD TVs 14 2.5.4 Promotion Since the first introduction of Bravia LCD TV Series to the market, Sony Vietnam has not really focused on using sales promotion tactics for its strategic product lines but only carried out some marketing activities, which affect at a certain times only  Public Relation: - To counter-act this problem, Sony Vietnam held press conferences to introduce Bravia LCD under the title "A Breakthrough Technology - Impressive Bravia" in two main markets: Ho Chi Minh City and Hanoi City        Sponsorship for annual contest of "The Green Invention" Advertising activities Television Newspapers: Online: Promotional activities: Direct sale: Summary of Chapter 2: After analyzing factors of the internal and external Marketing environment for Bravia LCD TVs of Sony Vietnam, here is the summary of existing weaknesses in the production management and operation of the Company that should be addressed:  Monitoring the target markets Customer research: there has been no customer research conducted on large a scale to identify needs and demands for Bravia LCD TVs to determine more accurate production  Product: - Product line strategy for Bravia LCD TV Series is for short-term only: pruning small-size TVs and developing larger-screen TVs, however, no intensive development strategy has been adopted to improve the functions, outstanding features or utility of the products - Model design is simple and not distinctive and eye-catching  Price: - Pricing method is enterprise-oriented but not market-oriented - Production costs of Bravia LCD TV series are high; as a result, cost prices are less competitive and reduce the size of the potential target market of the Company - Not participating in price war, high-price strategy Besides such features as durability and high quality, the products fail to offer distinctive or breakthrough functions or features for the prices to be persuasive in the long run  Place/Distribution: 15 - The development of policies offered for agents is strict and depends on the experience of salespeople - There are still some intermediary agents that widen the distance between the Company and its final consumers - Many potential customers are missed such as: potential corporate accounts - Distribution channels are not diversified and convenient for consumers  Promotion: Information on TVs in general and Bravia LCD TVs in particular are not delivered to consumers sufficiently - There is no long-term, specific marketing strategy (promotion, advertisement, direct marketing, public relation, etc.) with clearly defined budget for Bravia LCD TV Series - There are not many diversified customer services 16 Chapter 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 3.1 Development orientations and objectives of Sony Vietnam 3.1.1 Development orientations: - Growth - Development - Profitability 3.1.2 Marketing objectives of Sony Vietnam  Mission of the Company  Objectives of the company 3.2 Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony Vietnam 3.2.1 Product: Among factors of Marketing-mix, product seems to be the most important factor that we should pay attention to - Focus on updating appearance of the Bravia LCD TVs by researching and offering new, unique designs that satisfy consumers' preferences - Offer uniqueness for its products by outstanding and specific features It should continue investing in researching new technologies to add more functions for Bravia LCD TV Series while timely responding to continuous and changing needs of the customers - Manufacture Bravia LCD TVs at lower price to take over the future market Although Sony Vietnam has developed a detailed strategy for its Bravia LCD TV Series, it is a core requirement that the company strictly follow its policies of "continuous innovation" and "unique and impressive products" to maintain the leading position of its products compared to those of other manufactures in the market 3.2.2 Price:  Change its pricing and price list development methods  The following measures will help product price of the company be more competitive while still maintain a reasonable profit margin Reducing cost price can be achieved by either of the following two measures:   Reducing costs of electronic components Reducing production cost Increase the productivity of Bravia LCD TV production line Gradually upgrade the production equipment to suit the development of products on a long-term basis and with close co-operation of product development team to prevent from sudden increase of defective products 3.2.3 Place/Distribution:  Improving and developing relationships with agents  Revising distribution network to be more efficient  Target a new customer segment to distribute Bravia LCD TVs - corporate clients 17  Developing new distribution channels for customers' convenience In summary, Sony Vietnam may improve the performance of its distribution system by following the figure below: SONY VIETNAM Ordinary Agent Affiliated Agent Exclusive Agent Sony Display Store NEW Sub-Agent: Lv 2, Online, Tele Sales Individual clients, end-users Corporate Clients 3.2.4 Promotion Promotion is a very important activity in Marketing-mix plan to consumers and remind them of the existence of the product, which helps to build its market share In the section below, the author would like to recommend some solutions to correct existing weaknesses of promotional activities for this product line of Sony Vietnam:  Supplying customers with information on TVs in general and Bravia LCD TVs in particular  In addition, Sony Vietnam needs to continue its advertising programs  Selecting suitable promotion methods  Promotional activities  Preferential policy  Direct Marketing  Building up a good image of display stores of Sony Vietnam  Carrying out public relation activities in an effective and significant manner  Provide support sales services: In summary, marketing activities of the company are important and should be supported by detailed, professional strategy, which is operated frequently and continuously However, in implementing these activities, it should be noted to allocate budget appropriately to generate the highest efficiency, so that marketing activities may generate profit for the enterprises 3.2.5 Some support measures:  products    Developing adequate human resources to monitor the market and develop the Co-operating to conduct scientific research and technology innovation Maintaining business code of conduct and healthy competition Committing to protect the living environment 18  Quickly responding to external changes 3.3 Marketing Action Plan from June to December, 2012 3.3.1 Objectives - 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 3.3.2 Sales Activities During this period, it is very important to prepare the sales force at promotional sites and agents to provide such services as: giving advice, helping distributors to promote the products  June: Salespeople are assigned to various locations to prepare sales activities for distributors and regional agents  Jul, Aug, Sep: Regional employees will carry out their tasks: inform distributors of promotional programs, provide customer care service, supervise the performance of distributors, collect statistics and make monthly and quarterly reports Conduct weekly and monthly survey on sales performance of distributors and competitors’ activities 3.3.3 Promotional program   Mass Media TVC Plan Details of broadcasting time on TV channels are as follows:    Print Ad Plan Newspapers: Magazines: Details of issuing date and edition issues are as follows: 19   PR Plan: Key Media Seeding To provide reviews on outstanding features of the technologies of Sony's Bravia LCD TVs compared to product of other competitors in the market through these newspapers:  TV Reportage: To introduce to and re-affirm the quality of Sony's Bravia LCD TVs so that consumers are aware of the outstanding features of this product line compared to those of other competitors in the market  Experts and Endorsement: - 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;  Online Marketing:  Re-design current web page of the Company:  Join in affiliates with other web pages about advertisements and sales    Sales promotion Free uniform gift: Free Sony's DVD player: 3.3.4 Marketing Budget Summary of Chapter In Chapter 3, the author has summarized a number of solutions to improve Marketing-mix plan for Bravia LCD TVs of the Company, emphasizing on the follows: - Firstly, develop a detailed product strategy, in which, it is required that products delivered to consumers must be really high-end, unique, and impressive to be more outstanding than products of other firms - For price, main strategy is "not to participate in price war", instead, adopt the strategy of "skimming price" that is suitable to high quality of the products With its 20 reputation and a consumption notion of Vietnamese that "Quality is indicative of Price", it is sure that Bravia LCD TVs will lead the market not only in term of sales but also in term of production volumes - For distribution, maintain selective distribution strategy while paying attention to enhance the performance and effectiveness of distribution channels of the Company: build up new sales channels, reduce the number of intermediary distributors and develop channels to address new customer segment - corporate customers - For promotion, it should be carried out more strongly and broadly to help reinforce the image of Sony Vietnam, especially Bravia LCD TV series, to increase sales and profit for the company In addition, it is necessary to take some support measures such as promoting research, survey and monitor of target markets; training human resource about forecasting and researching the market; improving the workmanship of engineers and workers adequately to the features and quality of products; continuing researching and applying new technologies to protect living environment, etc These activities will help enhance the performance of Marketing-mix activities for Bravia LCD TV product line - strategic products of the Company 21 CONCLUSION Though LCD TV products of Sony Vietnam still lead the market in terms of quality, reliability and durability, there is an undeniable fact that consumers are being pulled into a tornado of LCD TVs of various manufacturers with eye-catching designs and reasonable prices Therefore, without continuous innovation to adapt to changes of market demand, the position of Sony Vietnam will be endangered In general, selling price of the products is still less competitive while promotion activities to improve the image of Sony Vietnam in general and Bravia LCD TV product line in recent years have lagged behind aggressive competitors such as: Samsung Vietnam and LG Vietnam, etc Therefore, though Sony Vietnam is currently ranking the first in the market in term of sales and third position in term of production, it is important for Sony to devise a correct and detailed strategic guideline, especially a Marketing strategy, to be able to lead the market in all terms This dissertation will provide a more general overview of LCD TV market in Vietnam, consumers' opinion on Bravia LCD TVs in the market by conducting a survey that will be very useful for Sony Vietnam to develop effective tools in assessing its capacity and position in the market By analyzing the results of this survey, the author suggests a Marketing-mix plan for Bravia LCD TV products to reinforce the position of Bravia LCD TVs in Vietnam electronic market 22 ... decide to carry out the dissertation: "Some solutions to complete the Marketing- mix for Bravia LCD TV series of Sony Vietnam in 2012" Objectives of the Study To conduct a comprehensive study of the. .. 3: Some solutions to the Marketing- mix for Bravia LCD TV Series of Sony Vietnam in 2012 CHAPTER 1: LITERATURE REVIEW 1.1 Overview of Marketing 1.1.1 The Formation and Development of Marketing. .. Marketing objectives of Sony Vietnam  Mission of the Company  Objectives of the company 3.2 Some solutions of Marketing- mix plan for Bravia LCD TV Series of Sony Vietnam 3.2.1 Product: Among factors