1. About Sony VaioVAIO, an acronym for Video Audio Integrated Operation, is a sub-brand for many of Sony's computer products. The branding was created to distinguish items that encompassed the use of consumer audio and video, as well as being conventional computing products. One example of this was the Sony VAIO W Series personal computer, which functioned as a regular computer and a miniature entertainment center.

Although Sony made computers in the 1980s for the Japanese market only, Sony withdrew from the computer business around the turn of the decade. Sony's re-entry to the computer market, this time globally, under the new VAIO brand, started in 1996 with the PCV series of desktops. The VAIO logo also represents the integration of analog and digital technology. The 'VA' represents an analog wave and the 'IO' represents digital binary code.

Sony is expanding the use of the VAIO label. It can now be found on notebooks, sub-notebooks, desktop, and a hard-disk-based audio player that comes in both 20GB and 40GB variations (called VAIO POCKET player). Network media solutions by Sony will also carry the VAIO brand.

High-end VAIO notebooks are usually shipped with Microsoft Windows Vista Business, while low end laptops such as N series come with Microsoft Windows Vista Home Premium. The highest end of the AR series spec is the exception, coming with Windows Vista Ultimate. As of October 2005, VAIO notebooks and desktop are available upon request without pre-installed software at a slightly lower price

Sony India Pvt. Ltd.

Set up in 1995, Sony India Private Limited is a 100 per cent subsidiary of Sony Corporation, Japan.

Sony India operates in the following segments:

• Electronics: White consumer goods like Colour Televisions (CTV), audio systems, digital cameras among many others.

• Movies: Does movie business through Columbia Tristar Films India Ltd.

• Television Entertainment/Media: Through Sony Entertainment Television it sells TV software and entertainment programmes.

• Music: Sells audiocassettes through Sony Music India.

Sony India broke even in 1997-98, two years ahead of initial plans. It employed over 1200 people as of 2007 and had sales of over US$ 226 million in 2006-2007.

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Sony India has a strong network of distributors and sales force, which consists of 2000 dealers and distributors, 40 Sony World outlets, 60 Sony Exclusives and 12 direct branch locations. Sony India has a strong service presence across the country with five company-owned service centres and 119 authorised service centres.

Sony’s market share in the audio segment is 45 per cent (by value) and 7.8 per cent in CTVs (by value). Sony India’s software division, Software Architecture Division (SARD) has been awarded the Software Engineering Institute’s Capability Maturity Model (SEI-CMM) Level 5 rating.

In India, Sony has its footprint across all major towns and cities through a distribution network comprising of over 7000 channel partners, 215 Sony World and Sony Exclusive outlets and 21 direct branch locations. Manned by customer friendly and informed sales persons, Sony’s exclusive stores ‘Sony World’ are fast becoming the most visible face of the company in India.

Sony India also has a strong service presence across the country with 21 company owned and 172 authorized service centers.

It is no surprise that there is a huge market for laptops in India, after the rapid pace at which technology is developing. People have realized the importance of a computer and the World Wide Web. Using computers and laptops to do simple school homework or regular office tabulation is not a novelty today. One can’t deny there is a huge potential for computers and PCs in the Indian market.

Thus came Sony VAIO, which aimed to change the paradigm of purchase by extending beyond mere computing to offer entertainment, mobility and style. Known across the globe for its unique style, design, lightness and battery life, SONY Vaio was all set to make a statement, and battle out the competition with Hewlett Packard, Toshiba, Acer and Compaq which were established in the market way before.

Initially, Vaio had kept itself up in the ivory tower, make it unreachable for many. Mainly executives could afford one for it was priced between Rs 80,000 and Rs 105,000. However, over a period of time, Vaio realized the huge potential market that existed amongst the youth and the young executives. Thus came about the CR range, which was fresh, not that expensive for a little compromise on the configuration.

Today, with TZ, FZ, C and the CR range, Sony Vaio has managed to target various segments like the executives, youth, women etc and expand their potential market. It has succeeded in establishing itself as a prestigious, powerful and a respectable brand in this segment.

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Popular VAIO References

From the year 2000, German electronic pioneers Kraftwerk have used the Sony VAIO laptops in all their live performances.

Indian Superstar Rajinikanth, in his flick Sivaji: The Boss; uses a Sony VAIO laptop throughout the film.

In the James Bond film Casino Royale, several characters are seen using Sony VAIO laptops. In addition to Bond himself (Daniel Craig), Le Chiffre has an FJ series in Onyx Black, and M (Judi Dench) has an FE series in Pearl White.

In the movie Resident Evil: Extinction, the mad professor is also seen using a VAIO laptop.

The name of New York City based dance music act iiO is derived from the Sony VAIO laptop name.

In the series Gossip Girl, Vanessa is seen using VAIO computers for her digital film work.

A Vaio PCG-SRX77 is used in the movie Johnny English

A VAIO laptop is frequently used in episodes throughout the TV sitcom series "The King of Queens".

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2. Project Methodology

In essence, we had to work on a study of “Marketing Research to know the corporate communication that is held between the companies to dealer to customer”. So, we focused on the 3 main components of the supply & information chain: The Company itself, the Dealers/Franchisees and the end customers.

We contacted each of them and tried to analyze the relationship between them and find common ground based on the various promotional and advertising activities carried out by the organisation.

In an ideal world, the company’s vision and image which it wants to create in the eyes of the end customer would be perfectly communicated to them and the sales of VAIO laptops would see incremental growth every quarter. But that need not necessarily be the case for every product in the market.

Sample Size:

1 Corporate Questionnaire,

2 Sole Dealers’ Questionnaires,

2 Multi Dealers’ Questionnaires,

90 Customer Questionnaires.

Based on the task-at-hand, we initially analyzed them individually and then performed a cross analysis to understand the flow of information between the entities and its effects.

Hypothesis

The hypothesis we took was that the corporate communication given by the firm itself would NOT be followed by the dealers and they would act on their own free will, on matters concerning sales policies and promotional techniques.

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3. Individual Questionnaire Analysis & Interpretations

i) Corporate Questionnaire: (No. of Respondents: 1)

We interviewed Mr. Saurabh Mishra. The excerpts are as follows:

1. What are the company’s primary markets?

The companies’ primary markets are North America, Europe and Asia-Pacific. It is believed that Europe might be termed as “saturated” by 2015 due to the estimated prevailing demographics over there. The Asia-Pacific region is showing tremendous growth and they plan to fully capitalize on this.

2. What are the primary markets in India? ( Tier I , Tier II , Tier III ? )

Tier I: Mumbai, Delhi, Kolkata, Bangalore, Chennai, Hyderabad & Pune.

Tier II: Kanpur, Lucknow, Jaipur, Chandigarh, Surat and Kochi.

Tier III: Guwahati, Darjeeling, Kolhapur.

3. What is the market share of the company?

The Market Share in the laptop concern is poised to touch 60 % in FY- 08. No current market share has been specified, although it is between 35- 45 %.

4. Who are your major competitors in this segment and what is their respective market share?

a. Lenovo (35 %)b. HP (25-30 %)

The figures are estimated due to fraudulent and a mass unorganized sector for electronic goods in India.

5. How does the company intend to differentiate itself from its competitors?

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a. Niche Pricing: The Vaio notebooks are priced at Rs. 90,000 to Rs. 100,000, thereby targeting the niche market; ie: upper middle class segment.

b. Superior Branding & Advertisements: The Company has a huge, bustling ad campaign to ensure maximum brand awareness about the product.

c. Supply Chain Mgmt.: The supply chain is managed with an attempt to achieve six-sigma standards and to ensure demand-supply equilibrium.

d. Extended Distribution Channel: The distribution channel is an all-encompassing network which aims to provide the product at the right place and time.

e. Superior Product Quality: The quality of notebooks is almost second to none and there are hardly any complaints regarding malfunctions in the laptops.

6. What is the growth rate of the industry?

The growth rate compounds annually at the rate of 12 to 13 % annually, across the industry.

7. What are the prospects of the industry in the near future?

The prospects are ever-increasing and manifold due to the following reasons:

a. Increase in disposable income

b. Advanced Branding and Segmenting

In addition, they plan to create a solid customer base and increasing the “fan following”.

8. What are the main mediums of marketing used by you?

a. Large Scale Advertisements

b. Perfect Distributor relationship

c. An attempt to retain the customer forever.

d. Niche Appeal

9. The company usually charges Rs. 90,000 – Rs. 1,00,000 for its laptops. But now you have come up with a student range of Rs. 40,000 – Rs. 50,000. Is this your new primary market?

No, its an extension which is aimed at the long run, as these students will be future customers for the high end laptop.

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10. What is the objective(s) of appointing dealers?

Creating a large distribution channel aimed at attracting prospective customers from everywhere.

11. Are there any pre-requisites to becoming an authorized dealer?

No major pre-requisites; the dealer must be experienced in electronics sales and marketing.

12. What type of assistance do the dealers receive from the company?

a. POP Advice

b. Creating Attractive Schemes

c. Tech. Support

13. Are all dealers eligible for performance linked incentives?

Yes.

14. Does the company offer any direct services to the customer? If yes, please list them below.

Tech Support, Feedback, Appraisals & Mailing Lists.

15. Who is the largest influencer in deciding which brand of Laptop the end-customer uses?

After a market research is carried out, it is analyzed by a group of experts and a prototype is tested with factors like STP, followed by the final brand creation.

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Analysis

What is ‘Brand Vaio’?

Even though the Vaio has been around since 2004, sales have been increasing and people have accepted the brand in the Indian market even though it is a lot more expensive.

The brand Vaio is not a mass brand, and does not intend or pretend to be one either.

What kind of Corporate Communication do they issue?

Sony has decided to advertise through various mediums which literally have reached all the corners of the country. The recent ads have been placed on Television for the CR range, followed by Outdoor campaigns, & print media.

The mission is to communicate with the youth whose spending power is increasing drastically. They are also the ones to decide which computer is bought for the house etc.

The communication has always been very stylish and international in nature in order to connect with the audience of the Sony Vaio.Ads are not placed in order to compete with the advertising of any other laptop brand. As mentioned above, Sony is in a league of its own and does not really concern itself with too much competition.

All the latest ads are based on Sony Vaio as a STYLE symbol (The CR Range is built for that purpose itself). The advertising has worked, since many CR laptops have been sold after and even the general sales of the Vaio has gone up (No specific percentage was disclosed

How does it co-ordinate with various external Dealers?

The company knows that this is where they have to put in most of the effort. They make sure that both their multi-brands and Sony Worlds get the right information on time.They arrange for training programs. With regard to their exclusive dealerships, the staff is giving training every time a new product is launched or even updated for that matter, One week prior to the update or launch. The training could go on for as many days as would be required. With regard to the multi brand stores, they are called in for training whenever a new product is launched. The training would last for 2 days. They are taught how the laptop works, its tech specs and everything else that needs to be remembered.

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What kind of After-Sales Services do they Offer?

All Sony Vaio laptops come with a 1 year warranty. This is the only free thing given along with the laptop, as it is of long-term use.

Service centers are placed in various locations in the city. These service centers handle most problem if it us under the terms of warranty. These are timely services , and one can even call up tech support to figure out if it is an actual problem or can be fixed by the user itself.

Sony takes great pride in it’s after sales services as it is used by all the customers and is always successful in dealing with the problems.They also give extended service warranties on request and international warranty is also available.

Sony feels this is the best way to retain their customers as they help them when a problem arises.

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ii) Sole Dealers (No. Of Responses: 2)

We visited 2 Sole Dealer Outlets and interviewed their owners for gaining an insight on how do these retailers operate.

They are:

a) Mr. Nemish Zuveri of Sony World, Bhulabhai Desai Road and,

b) Mr. Chetan Bhanushali of Kavash Electronics, MG Road, Ghatkopar.

Their respective answers were as follows:

1. How long have you been a dealer of Sony VAIO?

a. Sony World: 2 yearsb. Kavash: 3 years

2. Does Sony give you any promotion material to give your customers?

a. Sony World: Yes, brochuresb. Kavash: Yes, brochures and pamphlets

Brochures & Pamphlets are ‘standard operating procedures’ in case of all the dealerships of Sony in order to spruce up the place and also allow the customer a detailed look at the product he is purchasing.

3. What kind of after sales service do you offer to your customers?

a. Sony World: Full Servicing (in case of glitches) of the laptops.b. Kavash: The Laptops are sent to authorised service centres of Sony.

The after sales services are different for each of them because, most probably, Sony believes in fiercely protecting its brand “Sony World” as compared to a local ‘entrepreneur’. As a result, we see the disparity between the 2 dealers.

4. Who are the major competitors of Sony VAIO?

a. Sony World: HPb. Kavash: Compaq & HP

It goes without saying that Vaio is viewed as a lifestyle brand and HP & Compaq have been around for much longer than Vaio and hence Sony faces a great threat from these 2 big boys.

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5. Does Sony offer you any training?

a. Sony World: Yes, to the sales staffb. Kavash: Yes

While Sony does offer training to its staff members, the training at Kavash is more informal and off-the-job and their sales personnel appeared less equipped to answer complex questions, which was surprising.

6. How does Sony advertise VAIO in your store?

a. Sony World: Posters and other POPb. Kavash: Posters only

The advertising material sent in by Sony will obviously be the same but the Sony World outlet looked more presentable and warm with all the POP advertising.

7. What are the prospects of Sony VAIO in the near future?

a. Sony World: Very good, they are building a “fan following”b. Kavash: Good, it is (marketed as) a lifestyle product.

While both the dealers might be looking at different sides of the same coin, it is evident that Sony is here to stay, and stay it will, because of greater sales of the product. It’s “lifestyle statement” appeals to almost every age group.

8. Does Sony ask you for feedback on their product?

a. Sony World: -b. Kavash: Yes, very often

An optimum level of feedback is vital and essential with regards to everything about the product, and it is good to see that they also ask for feedback from Kavash.

9. What is the most common complaint you face?

a. Sony World: Complaints are very rare.b. Kavash: Not received any ‘major’ complaints.

It feels honestly good to see that Vaio has not yet faced any major problem with regards to the working of the laptops. In general, if an electronic good continually has glitches, the reputation and goodwill gets tarnished. As such, there have not been any major breakdowns in Vaio.

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10. What is the complain procedure from the customer to the company?

a. Sony World: Every laptop has a number and it is quoted to the authorized service center. A majority of problems are solved via. Tech Support.b. Kavash: Customer complains directly to them and they forward the same to the service centers.

It is good to see a proper mechanism in place for any kinds of complaints which might arise from time to time. Although the different procedures might raise a few eyebrows as to whether all of Kavash’s laptops are legitimate ones.

11. What age group are the biggest customers of Sony VAIO?

a. Sony World: 20-35b. Kavash: 23-40

Trendspotters Trendsetters Head Turners.

It had to be the typically young generations which are the biggest customers of Vaio. Period.

12. Do authorized dealers get any extra benefits?

a. Sony World: Nob. Kavash: No

Our take is that they (Sony) could have made life a little easier by passing on the benefits back to the supply chain, but they seem to think otherwise.

13. Do you feel the TVC’s have helped sales?

a. Sony World: Yes.b. Kavash: Yes.

As will be evident from our customer analysis, the commercials have played a huge part in promoting Vaio and the dealers seem to echo that thought.

14. What are the main mediums through which people hear about Sony VAIO?

a. Sony World: Friends, TVCs, Computer ‘experts’.b. Kavash: Friends, advertisements.

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While the demography of the area where these 2 dealers are located is vastly different, we can conclude that friends or word-of-mouth publicity is the most prominent and common among both the dealers.

15. What do you feel is the USP of Sony VAIO?

a. Sony World: Real Good qualityb. Kavash: It’s currently the only lifestyle laptop

The Unique Selling Proposition might be viewed differently by different parties involved. Sony World is definitely in direct contact with the top brass of decision making and hence knows that the major focus is on looks and quality, while Kavash might be of the opinion that people are buying it only for s sweet little demonstration effect over everyone else.

16. The new VAIO range is available in a variety of colors. Has this, increased sales? Which color sells the most?

a. Sony World: Yes, Red and Pinkb. Kavash: Yes, Pink, White & Gold

Interpretations

A sole dealership means many benefits: The dealer does not have to face the clutter of rival brands jostling for space in the already shrinking retail space. In addition, the dealer can easily keep the different products (in this case, Sony) in different sections. Since the showroom is the direct access between the customer and the brand, it is important for Sony to have a showroom that speaks volumes of the brand. This is why they lay emphasis on the location, size and environment of the store.

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iii) Multi Dealers (No. of Responses: 2)

We further visited 2 multi-dealers, who stack other models of laptops apart from Vaio in order to qualitatively try to find marketing differentials between them and sole dealers.

The persons concerned were Mr. Ananth & Mr. Sailesh respectively. There responses were as under:

1. How long have you been a dealer of Sony VAIO?

a. Mr. Sailesh: 5 yearsb. Mr. Ananth: 2 years

2. Does Sony give you the same promotion material as they give their sole dealers?

a. Mr. Sailesh: Yesb. Mr. Ananth: Yes

This is a good sign as it shows that Sony is looking to extract maximum benefit from a wide distribution channel, and every little cog is as important as the big one in the system.

3. What kind of after sales service do you offer to your customers?

a. Mr. Sailesh: All types of repairs.b. Mr. Ananth: Any service whichever is needed to be fixed.

This peculiarity is typical of multi dealers, who choose to be a “jack of all trades”, thereby being held ‘culpable’ and liable for all types of repairs.

4. Who are the major competitors of Sony VAIO?

a. Mr. Sailesh: HP & Compaqb. Mr. Ananth: HP & Dell

A large scale competition at a multi-dealer could swing the status quo either way; the customers may either buy ONLY Vaio and nothing else. Ideally, the total sales of a multi dealer involve selling around 60 % of one typical, repetitive product and the remaining 40 % are the non-moving functions of production. As a result, it might become imperative for Sony to win the battle of the multi-dealers through incentives.

5. Does Sony offer you any training?

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a. Mr. Sailesh: Yesb. Mr. Ananth: Yes

6. How does Sony advertise VAIO in your store?

a. Mr. Sailesh: Brochuresb. Mr. Ananth: No POP material whatsoever

7. What are the prospects of Sony VAIO in the near future?

a. Mr. Sailesh: Very Goodb. Mr. Ananth: Very Good

For multi dealers to be commending the future of VAIO is admirable, because of the currently steep price and lack of a typical demand pattern from existing customers.

8. Does Sony ask you for feedback on their product?

a. Mr. Sailesh: Yesb. Mr. Ananth: Yes, periodically

This could potentially make or break the brand, as feedback from the actual end consumer which is channeled through by Sony, goes a long way on designing “re-designing “strategies. 9. What is the most common complaint you face?

a. Mr. Sailesh: High Price of Productb. Mr. Ananth: None

In truth, the product has been launched as a high end laptop and the people who generally complain about a high price are those who could not afford it in reality.

10. What is the complain procedure from the customer to the company?

a. Mr. Sailesh: Customer is registered with them and then the complaint is forwardedb. Mr. Ananth: Complaints are directly forwarded to company

The complaints & grievances are pretty up to the mark.

11. What age group are the biggest customers of Sony VAIO?

a. Mr. Sailesh: 20-40 years.b. Mr. Ananth: 20-35 years

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Again, we make out that the advertisements have been spot on in targeting and creating an important segment which is theirs for the taking.

12. Do you get customers who ask specifically for Sony VAIO?

a. Mr. Sailesh: Yes, but very few.b. Mr. Ananth: Yes, but he tries to “palm off” VAIOs to customers.

Palming off Vaios to customers is quite difficult, due to the supposedly steep price, but Mr. Ananth is smart enough to try and persuade customers to make a “one time investment” in a quality product.

13. Do you feel the TVC’s have helped sales?

a. Mr. Sailesh: Yesb. Mr. Ananth: Yes, substantially.

The commercials are catchy, attractive and by the looks of our research, have been perfectly on target, with customers being attracted in droves towards that shiny new piece of technology.

14. What are the main mediums through which people hear about Sony VAIO?

a. Mr. Sailesh: Friends & TVb. Mr. Ananth: Advertisements, personal references

Indians in general have a skeptical view towards any new brand, and for someone to buy any commodity, they look around for someone who has already fallen prey to its charms and then ask about durability and quality. As a result, friends and personal references are some of the most important mediums of promotion.

15. What do you feel is the USP of Sony VAIO?

a. Mr. Sailesh: Brand Nameb. Mr. Ananth: Brand Relaibility

We would like to give both of them the benefit of the doubt and say that Name & Reliability are very, very essential for a brand to last in a crowded market and Sony has created just that, a solid and trusted name and very few breakdowns.

16. Which other brands do you stock?

a. Mr. Sailesh: HP, Dell & Compaqb. Mr. Ananth: Dell & HP

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17. Which brand has the highest sales?

a. Mr. Sailesh: HPb. Mr. Ananth: HP

18. Which company gives you the highest margins?

a. Mr. Sailesh: HPb. Mr. Ananth: HP

HP, with its solid networks and distribution channels also give the multi dealers their highest margins.

19. Do you advise customers to buy products which give you higher margins?

a. Mr. Sailesh: Nob. Mr. Ananth: No

20. The new VAIO range is available in a variety of colors. Has this, increased sales? Which color sells the most?

a. Mr. Sailesh: Red, pink & whiteb. Mr. Ananth: Pink, White & gold

Interpretations

The role of a multi dealer is tricky to figure out for a firm like Sony. On one hand, the distribution channel is being widened far and wide. On the other hand, a niche-priced product like Vaio will definitely be given a lower grade by patrons in this utterly price-sensitive market. In addition, the cheaper substitutes have been around for longer than Vaio, and are of the best possible quality on offer.

Thus, it becomes difficult to choose between dilution of the brand and expanding sales for the parent company. The jury is still out on this one, but we believe that the multi-dealers whom we interviewed are competent and aware enough to try and adjust according to the vision and mission of Sony.

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iv) Customer Questionnaires: (No. of Respondents: 90)

After analyzing 90 customer questionnaires, the findings that we have are as follows:

1. When did you buy your laptop?

Sales of Sony Vaio shot through the roof in the year 2007, most probably due to aggressive marketing/promotion.

2. Where did you buy your laptop?

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Many customers preferred to buy it from their recognized software engineers.4. Why Sony Vaio?

The next question we put forth was “why do you prefer Sony Vaio.”

21 people said they bought it solely on Brand Name

12 people went for looks.

33 of them chose quality, saying that it fulfilled their requirements.

7 followed their friend’s advice

6 respondents said they were totally influenced by Ads

11 had other motivations behind buying the laptop.

5. Did you encounter any problems with the laptop?

Only 16 respondents out of 90 said they faced some kind of problem or the other. Everyone else was a satisfied customer.

7. What reasons do you use Vaio for?

51 people polled said that they use it for everyday use, like listening to music, using applications, etc.

11 of them use their Vaio for corporate and academic presentations.

23 use it to surf the net.

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15 others use their Vaio for various tasks and businesses.

8. Where did you first hear about Sony Vaio?

An astonishing 67 respondents said that they saw it first on TV, which means the ad campaign, is certainly bearing fruit.

And the rest learnt about it first from their friends or through other mediums.

9. Which features do you look out for in a laptop to buy?

Thus it is obvious that we are thinking with our heads and going for substance over style.

Other Questions were based on the following topics:

1. Why did you choose a particular place for buying your laptop?

A majority said that proximity to the dealer was the only reason they purchased it from that particular shop.

2. Did you buy your laptop before or after the new commercial?

57 of them said they bought it AFTER watching the new commercial.

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3. Do you think the laptops are overpriced?

While many respondents believed that they were priced a bit too steep, they agreed that a small premium is not too heavy on their pockets.

4. Cross Analysis & Interpretations

Very often, it is observed that the street level promotional and distributional units do not actually follow what the senior management prescribes and this leads to a chaotic situation where the deadlines are not met and sales figures plummet in a free fall. However, we noticed that our hypothesis was exactly opposite of what was happening among Sony and its private distributors.

i) Corporate Response v/s Dealer Response

The corporate ‘response’ suggests certain norms or regulations within which the laptops were to be promoted and marketed. And that is exactly how the sole dealers operated, well within the “prescribed limits” of the parent company.

What they expect from sole Dealers:

Both the parties mutually agree that Vaio is a niche product and hence should be marketed in the same way. It’s classy and that’s how the promotion by the dealers should take place.

The Vaio has sub series hence they are also very clear about the ages to which they belong. All of which are people who can afford such a brand.

TZ – Corporates & higher level managers

CR – Youth (18-24 years)

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SZ – Professional

The company expects the dealers to canvass these separate models to each of the age groups and the dealers in turn oblige

On the basis of communication efforts and marketing strategy, we asked the company and the dealers about the marketing strategy adopted by VAIOThe company said that they follow the trends of their target segment by doing research and speaking to focus groups thus giving them exactly what they need. By doing this they develop a strong hold on the top segment and hence move faster in the market.The dealers on the other hand are trained and given incentives along with advertising material to create an interest about the product amongst its audience.

ii) Sole Dealer’s Response v/s Multi-Dealer Response

a. With Regards to Promotional Material Provided:

Both types of dealers are given the same type of promotional material. This is probably done to maintain uniformity of the product.

b. With regards to the Main Customer Base:

Sony Vaio is targeted towards the business class and youngsters. The ‘CR’ range targets the youth. It’s indeed popular amongst the youth but the executives like to stick to the classic TZ and FZ laptops which suit their work as well as their look.

The exclusive dealers more or less came to the same conclusion, stating that the CR range targets the youth, though some women executives also like to get the CR range. Even the multi brand dealers said that since it’s got various colours and looks sleek, it’s a major attraction for the youth.

c. On The Basis Of Popularity Of Vaio Through Different Media:

The sole dealers as well as the multi dealers vouch for the fact that Vaio has been popularized by word of mouth. In recent times, as they have launched new ranges such as the CR range, they have started to use the mainstream media aggressively to advertise. And the brochures in their showrooms help in imparting more about the brand to the consumers.

Thus the dealers agree on the fact that Vaio is what it is because of the word of mouth publicity, be it through friends or work colleagues or the dealers themselves.

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In addition, all the dealers agree on the fact that the new TV commercial has certainly helped to boost the sales of the product. This shows us how, for a product to be successful, the right combination is needed at all times.

iii) Corporate v/s Consumer Response

Vaio wanted to position itself as a brand which has a certain status attached to it and simultaneously makes a style statement. They wanted to emphasize on the quality of their product and at the same time give importance to its aesthetics.

When we asked our respondents if they felt that Vaio was a status symbol or a style statement, a lot of them agreed that it was both, although there were some who said that they don’t bother as long as the laptop does its basic functions correctly and smoothly. Thus we can say that there is certain sync in how the company wants to project the brand and how the consumers finally perceive it.

However, we did find a point of differentiation between the corporate and the consumers. They corporate had it very clearly defined that they want to position their laptop as an exclusive one which is “not meant for anyone and everyone.” However, we found that there were certain offers in the grey market where the previous models were available for Rs. 40000. This falls in the same bracket as any average laptop, therefore contradicting how the company wants to position the brand Sony Vaio.

With regards to Pricing & Brand Loyalty:

Sony said that they are aware of their high pricing but they do not mind it for they feel that their product is of a different league. They feel that their customers get value for what they pay.

However, our pollsters said that they too felt that Vaio was pricey and they could do with pulling the prices a little lower.

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Despite high pricing, Sony Vaio has managed to get a decent market share in laptops. This tells us that they are successful in attaining their objectives for they are able to maintain their exclusivity with high pricing and at the same time they are gaining popularity with the people.

The fact that people are still buying Vaio in spite of it being expensive tells us that people don’t mind paying so much for a laptop of this kind.

Sony Vaio believes that their products are of a premium quality, exclusive and offers the customers a different experience in the entire process of using a laptop.

Sony Vaio believes that the customers of their brand are extremely loyal and would not switch to any other product once they get habituated to a brand like Sony Vaio as it is in a different league and moving to any other brand would be moving one step down.

But there were only a small number of people who would have moved away from Sony Vaio. A majority of them would not shift to another brand if they found a better deal with the same intangibles offered as well, which speaks well about Sony.iv) Customer v/s Dealer Response

According to the dealers, a clear majority of the buyers of the CR range is the youth, but they pointed out that sales also differ depending on the requirement of the users. And it is important to note that both sole as well as multi brand dealers have pointed out that a lot of women are going in for the new CR range. This also shows how mature women are more open to playing with colors than professional men are.

Thus we note that the dealers point out that the youth use the CR range, where as the consumers felt that it was not only for the youth but also older women and some men who use it also were not from the target group.

This difference regarding the target segment could actually reduce sales, as they miss out on those people who are potential customers. The dealers are under the impression that it’s for youth, where as in the market there is demand for the product from people who do not fall under this category. However, this small “misunderstanding” might fade off over the long term, and certain trend analysis might prove that it was just a mere blip, because the customers are anyway buying the same company’s product.

Brand Loyalty of Customers towards Vaio:

We observed that the dealers are confident of their customer loyalty and sales figures going up. They are of the opinion that once their customers use their products, they would not switch. The dealers also believe that being an expensive laptop, Sony is not afforded by everyone.

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Although all the dealers had an ‘optimistic’ attitude, we did not find the same with very few of the consumers, According to the survey, most Vaio users are Brand loyal to Sony. If they got a better looking laptop or a laptop with the same features, they would probably not go for it. This can be interpreted in many ways. People that look for status and style will switch if the symbol of status shifts. They might not mind moving over to another laptop, if they get the same level of security from it.

Thus we can make out that the dealers are confident about customers being brand loyal, whereas the consumers might be ‘loyal’ as long as they are getting what they want from the brand. But it is possible that the minute another competitor finds this out, and offers the same looks with similar features and an even bigger brand name, all the customers will switch.

5. Conclusions

While a company might go great lengths to strengthen its brand image and market share, it is necessary for all its collective factors like dealers and multi dealers and other components in the supply chain to co-ordinate properly and function for the collective good (increased revenue) instead of choosing to act independently.

Sony, with all its experience, has managed to effectively control the promotional activities and use a terrific AD campaign to initially kick-start and then control the majority market share in the premium laptop segment.

Still, during unspecified “moments of truth”, a sales correspondent may mess up, resulting in loss of value for a typical snob good. As a result, Sony Vaio might appear to not be so strong in the eyes of a few who will inevitably have bad experiences during the course of normal transaction.

But, today’s market is customer-oriented and not company-oriented. So, Vaio might have to further tighten the grip on its existing market share and use innovative marketing techniques to sustain its product, as a new “threat” might sooner or later enter their prized segment.

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We would also suggest them to gain some more control over the multi-dealers to further boost sales and increase the reach of Sony Vaio.

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