MADE BY: GROUP5 | STRATEGIC MARKETING MANAGEMENT | August 1, 2016

SONY SOLAR NANOWAVE OVEN

PRODUCT DIVERSIFICATION MAKRETING PLAN PRESENTED TO SIR SALMAN NASIR ZUBERI

COMPANY OVERVIEW

After World War II, Masaru Ibuka open a radio repair shop in Tokyo. After a year, he was joined by his colleague Akio Morita and they found a company called as Tokyo Tsushin Kogyo. This company built Japan's first tape recorder called as Type-G. In the early 1960s, Ibuka traveled in the United States and heard that Americans face difficulty to pronounce their company name so they changed their name to “Sony”. here he observed that America’s youth was showing a great interest to buy a portable radio transistor so they also decide to manufacture radio transistor. In 1955 they launch TR-55 transistor radio and after the success of TR-55 transistor radio they start to work on different new and innovative ideas and they are the pioneer in microelectronics and play a vital role in revolution of technology.

The word Sony is the combination of 2 words ‘sonus’ means sound and ‘sonny’ means small size or youthful boy. Sony will be

the hardware benefits of the business unit and the guardian agency of the Sony bunch which will be locked in for business

through its five operating segments, these settle on Sony a standout amongst the A large portion far reaching stimulation

organizations in the world;. Sony’s vital benefits of the business operations include:

SONY CORPORATION,

SONY PICTURES ENTERTAINMENT,

SONY COMPUTER ENTERTAINMENT,

SONY BMG MUSIC ENTERTAINMENT,

SONY ERICSSON,PAGE 1

SONY FINANCIAL HOLDINGS.

SONY SOLAR NANOWAVE OVEN MARKETING PLAN

OBJECTIVES OF THE BRAND:

As Sony is a well-known brand and is already capturing a consumer mind in different electronic items, due to the large potential and growth in the market. Sony has decided to go through the diversification strategy and has come with innovative product. Basic objective of the product is to provide ease and convenience to the customers who are suffering with different frustrating problems (electricity issue, shortage of Natural gas in the winter season, time consumption issues) and by creating a totally new segment with innovations through which company can provide value to its customers and in return gain a positive and a valuable relationship. As Sony always look after for its image and convenience for its customers this diversification would give a profitable share to the company.

MARKET SEGMENTATION:

1. GEOGRAPHIC SEGMENT

According to the product Sony has decided to select the segment based on geography which is Pakistan because it is an under development country and having a great economic growth where this product is being offered for the first time which give an edge to the company by making the segment more concise the product will be launched first in two major cities Karachi and the capital of Pakistan Islamabad.

2. DEMOGRAPHIC SEGMENT

Company further did this segmentation of some demographic tools those are,

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Income:

Company has selected two major cities in Pakistan in geographic segmentation because of the potential buying power of people. People living in two major cities falls in income level which is very valuable for the company.

Gender:

Gender is a great way to segmented the market as our product falls in a household category where the purchasing is in the hand of male but the decision making for household is almost falls in a female’s hand. At some extent we have to target both males as well as females and educate them the usefulness of the product.

Educational Segmentation:

It gives an ease to company as the selected geographical segment has a high level of literacy rate of 88% in Islamabad and 58% in Karachi which give an ease in educating the people about the product and its usefulness.

3. PSYCHOGRAPHIC SEGMENT

This segment is psychologically targeted to women who are working in companies and housewives. The purpose of this product is to save the time and efforts of the women but at the same time providing her the facility to fulfill her family responsibilities.

4. BEHAVIORAL SEGMENT

Occasion & Benefit Sought:

Due to the easy use and portability of the product it provides best ease for the customers to cook their food easily in different occasions or at different places. Examples, picnics, parties, camping and different other activities.

Usage Rate:

Based on the frequency on food consumption of normal household is consuming a meal minimum two times a day which make the heavy usage rate of the product. Thus it can be easily said the product is highly useful and highly convenient.

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Lower Class 20,000

Middle Class 50,000

Upper Class 100,000

Measurable through the buying power

Karachi Lower Class 20,000Middle Class 50,000 Upper Class 100,000

Accessible:

The product segmentation is done on the basis of accessibility of the product as company is operating 6 display centers in the major locations of Karachi city. Company has also given authorized distributorship which gives the company approachability to the segmentation and make the company more responsive to its customers.

DISPLAYS CENTERS CHART

Sony Centers in Islamabad …

Mount View Plaza, Shop 16A, Khan Rd, F-6 Markaz, F-6, Islamabad

Sony Centers In Karachi …

Showroom No. 4, Clifton Centre, Block-5 Clifton(021) 35293192 ext. 3

Address: 4C, Stadium Lane 4, Khayaban-e-Shamsheer,, Phase 5, DHA, Karachi

Sony - Mega Service Center, Shahrah-e-Faisal

Shop 2, Bahadurabad Arcade, Bahadur Shah Zafar Road, Karachi

Preedy St, Saddar Town, Karachi, Sindh(021) 32772798

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Sustainability:

as the company is always want to innovate things that could bring ease pleasure and comfort to its customer’s company will sustain through facilitating by new and innovative accessories of the product which will help the company not to lose their market share and capture more market (more segments)

Differentiation:

Company has positioned its product which differentiate itself from the other product existing in the market because of solar energy Nano wave the company has created entirely a different segment in the market which will give an edge to the company as well as differentiate its product form others and its segment as well.

TARGETING

Based on the upper segmentation we will target the mass audience which include people falling in the age bracket of 20 to 60s (because of the buying and decision making power). Geographically Targeting the two major cities because of the literacy rate and the heavy usage of the product. Because of this narrow segmentation and targeting it is quite easier for the company to achieve its goals and at the same time capturing and delivering value to the customer.

POSITIONING

Product will be positioned in the customer’s mind as a sophisticated product with a class and a unique design that provides convenience and ease with the safety to the customers and help them to get rid of the frustrating problems of shortage electricity, natural gas and time. That is why product will be launched with the tag line COOK HAPPILY

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SWOT ANALYSIS

MARKETING MIX

PRODUCT :

Based on the facts company has decided to launch an innovative product that would provide ease to the customers. In the long run company will come up with the improvement in size, design and with the remote solar panel that would help the product to gain more market share and create a push to the customers both existing as well as new to buy the new and improved version of the product. The product will come with the warranty for internal parts to be replaced and repaired within one year and a product will also come with the manual that will help customer to understand the functions of the product and if required a technician he will help to install the product at customer place.

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STRENGTHSWEAKNESS

OPPORTUNITIESTHREATS

Brand Image Innovative product Makret acceptability Responsiveness to the customersUpto date wiht the tenchnologyAppartment and houses that are not exposed to the sunglight Having no huge space to cook huge amount of foodDoes not easily affordable for the lower classBy creating entirely new segment will give a competitbe edge to the company The portability of the productTime SavingCook safelyThe new entrants in the marletIncrease in Taxation on the raw materialTechnological advancement

Product Features & Specification:

FEATURES SPECIFICATION TECHNICAL SPECIFICATION

Built in Pakistani Recipes Nanowave power output: 800W Capacity: 32 liters

Free cook book developed by Zubaida Apa

Product Dimension:

Width 553 Depth 470 Height 326

Grill: Yes

Mechanical Rotary control 10 Nanowave power settings Mechanical Rotary controls

Warranty: 1 years official

Energy Efficient Rated Input grill: 900W Battery: Yes

Anti bacterial Accessories:

Trivet Grill Turntable Ring Glass Turntable

Solar Panel: Yes

Easy Clean Interior Incandescent Bulb: 25W

Electronic Clock Battery Backup: 4-5 hours

Grill Power Power Supply Required: 13A

Quick cook Technology

Child Safety Lock

PRICE:

As the company offering providing the value to its customer that is high as compared to the company which customer is paying in short as well as long run. Customer is getting reduction in their utility bills that gives a high value to the customer as compared to the money they are paying. Due to this company will surely gain a profitable relationship with its customers.

PROMOTION:

Product will come with the promotion of free home delivery with free installation. A local BTL campaign will be run in different IMTS and LMTS to educate the customers about the usefulness of the product and the ease it will provide affiliation with the cooking shows that will capture the mind of the customers. Creative and attractive

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advertisement that will target the mass audience based on the convenience, usefulness, safety and sophisticated of the product.

PLACE:

Company will display its product in two major cities in Pakistan that is Karachi and Islamabad where company is already operating displays centers that will give convenience to the buyer and online buying and free home deliver through company logistics will provide a great benefit to its customers.

DIFFERENTIATION

TECHNOLOGY DIFFERENTIATION:

The product brings a new technology based on the solar energy as well as Nano waves to cook food which gives a great differentiation to the product compare to the other companies offering.

PRICE DIFFERENTIATION:

Companies offering unique price for its innovative product that would Facilitate its customers in the long run by reduction of their utility bills because the price for the product is for one time.

PRODUCT DIFFERENTIATION:

The company offering is entirely a different product that can be easily differentiated on the basis of its portability design and the technology that is used in product manufacturing.

CUSTOMER SERVICE DIFFERENTIATION:

As company is providing one-year free replacement and repairing as well as free installation with free home delivery and a free experience for the product through different advertisement and direct experience of the product.

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COMPETITION

As the product is new in the market that comes within entirely new technology with rights reserved for one year there would be no competition but in a long run company will compete on the basis of its pioneer ship and improved design and style with the long run batteries and improved solar equipment through which company will sustain and grow its market share and will try to capture its competitive edge.

COST & PRICE STRATEGY

Cost is a core part of every product and brand to make higher revenue in order to achieve maximum profit. Therefore, Cost strategy can be designed according to the Fixed and Variable cost occurred in the production. As we studied above that people have buying power and they are very much familiar with the technological advancement, and they want a reliable and superior solution to easily survive their life. That is why we set up the cost of product is 14000 after the sales tax and other expenses its final cost will be 16000PKR.

PROMOTIONAL BASED COSTING:

There is a promotional trend take place in Pakistan occasional wise. In Eid occasions whether it is Eid ul Adha or Eid ul Fitr, people can more likely to buy product if we setup promotional offer like 20% off. Furthermore, affiliation with different banks credit or debit cards on discounts and on installments will lead to generate a market share quickly.

TARGET AND ACTIVITY BASED COSTING;

The product will be placed on virtual markets which are so called online stores in Pakistan on discounted rates. The price will be set to 15000PKR on the basis of selling of 25-30 units. Once the target of units selling has been achieved then we will setup the retail amount of the product which is 16000PKR.

PRICE PENETRATION STRATEGY:

As the competition is very high in this region, we have designed a price penetration strategy in order to capture the market share. The current prices of microwave ovens based on the size of 32 liter are offering 12-16 Thousand Rupees according to their features and specification. Here is the Sony offers 15-16 Thousand Rupees to secure high volumes. To introduce a new product

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FUTURE

As we already known Sony has a huge market share in home appliances and their other functionalities. The New Product Diversification of Sony Solar Nano Oven which is energy efficient and specially designed for those who innovate their routines smartly. Sony will enjoy their pioneer ship until the new entrant introduce the same idea as the Sony offers but in the same regards product will be changed time by time in terms features, functions and accessories.

TAHNK YOU

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