This assignment is based on the comprehensive study of the main subject matter of Marketing Management. Within this assignment, I've referred to a marketing plan of Sony Ericsson cellular phone Company. Sony Ericsson Company is a joint venture of Japanese Sony Corporation and Swedish Organization Ericsson according to manufacture mobile phones. Sony Ericsson Company was proven on 1st Oct, 2001. The main theme because of this project was to incorporate Ericsson's scientific knowledge with the Sony's gadgets know-how in the communication sector. After the merger both companies have halted making their own cell phones.
In the coursework I discuss a complete marketing strategy with respect to SWOT and Infestations evaluation and describe Ansoff Matrix Theory as well as I mentioned Marketing Mix of Sony Ericsson.
Introduction
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Sony Ericsson is a jv owned evenly by the telecommunications innovator Ericsson and Sony company- the buyer electronics powerhouse. It was established in the entire year 2001 with a capital of 100, 000, 000 Euro and released its first product in the year March 2002. The management team of Sony Ericsson is situated in Hammersmith in London. It is the fourth largest manufacturer of phones in the world by 2009. They have around 8450 employees with over 2500 companies worldwide. It offers 6. 788 billion income and with the income of 836 million in this past year. Globally, its market talk about dropped from 9. 4% to 7. 9% in Q1 2008.
Sony Ericsson is a global provider of multimedia system devices such as mobile phones, PC cards and accessories. The merchandise using its powerful technology and innovative applications result in mobile imaging, entertainment, communications and music. In areas of music, design and applications the merchandise from Sony Ericsson have a universal appeal. It uses communication systems such as 2G and 3G systems in its products, increasing the offerings to the marketplace.
PRODUCT RANGE VS End user GROUPS
Sony Ericsson is always doing focus on their customer needs and tries to provide them atlanta divorce attorneys possible way. You can find huge range of its products which they launch for the different group of users. Such as:
Symbian Cell phones:
These ranges of mobile phones are made especially for the new users.
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Walkman Devices:
This amounts of mobile phones made for especially for the music fans.
zzsonyericssonw600. jpgSony Ericsson W715 Walkman Music Mobile Phone. jpg
High Resolution CELL PHONES:
These types of devices are created for those users who are keen on photography. This cellular phone has a higher quality camera so users can enjoy while using other mobile functions.
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Market Orientation
Today maximum successful businesses or companies take market focused procedure. A marketing orientated method means an organization responds to what its customer want. Marketing orientated company is totally centered around customer needs and wishes information rather than just what a company thinks is wonderful for the customers.
We can say a corporation is a market focused when that company or a small business philosophy is thoroughly and systematically focused on the constant creation of superior customer value. Indeed, this consists of collecting and gathering information data on competition, customers and other important market influencers for example controllers and contractors to use that value in building.
There are three key the different parts of a market orientation:
Customer Orientation
Market focused businesses employees spend time and effort with the clients. Supervisors and workforces throughout the industry ask their clients or convey them into their personal services in a continuous exploration for many new ways to fulfil their needs.
Competitor Focus
Customer focus is a heart of a market orientation business. Producing superior consumer value requires more than just focusing on customers. The proper questions are those which technologies, opponents and focus on clients identify them as different satisfiers. Greater value will involve the supplier recognise and appreciate the principal opponents' short-term weaknesses and advantages and also long term abilities and methods.
Cross-Functional Coordination
Coordination of personnel and previous resources through the company or a company to generate value for customers is the 3rd part of the market orientation primary components. One point in the customer's value string is an opportunity for a retailer to produce value for the buyer firm. IT means that anybody in any job in a store organization can theoretically contribute to value creation.
Strategic Management Model Analysis
Macro-Environmental Scanning
Macro-Environmental scanning is the monitoring, evaluating and discriminating of information from the external and inner environment to keep people within the organization. The business scans the environment in the next way:
General Makes:
It includes:
Sony Ericsson Company is very much indeed conscious about the political and legal environment of the united states. The company changes its labour salary which is signed up whenever a govt. changes the labour laws and regulations.
Technological Makes:
Sony Ericsson tries to adopt the future technology for using in the merchandise. They always keep in view the technology for increasing the quality of the product for his or her customers. Based on modern tools, company is the market leader about the appliances.
Economic Forces:
Economic forces suggest change in throw-away Income, flections in the market, inflation, change in rate of interest etc. . . Company always remember the economical conditions of the country and sets its prices consequently.
Social Cultural Pushes:
It includes environmental concerns, work life quality attitudes and also employees variety etc Sony Ericsson helps to keep in view the social culture changes of the country and packages its target accordingly.
Task Environment:
It Includes:
Customers:
Today Sony Ericsson is one of the top organizations of market. It has customers worldwide who love Sony Ericson cell phones. Company has also internal and exterior customer.
Internal customers are those who find themselves the employees of the company which don't makes big impact on the sales. Exterior customers are those that are the outsides the company such as standard pubic except employees.
Supplier Diversity:
Diversity within company's resource base is dominant to Sony Ericsson in struggle to mirror the varied marketplaces in which company runs. Within Supplier Variety, company's greatest goal to provide sourcing opportunities throughout firm to a wide-ranging of diverse business types, to include:
Facility Disabled Expert Owned Business.
Handicapped Possessed Business.
In turn, diverse suppliers effectively support Sony Ericsson various dealings and day-to-day procedures.
Sony Ericsson Provider Diversity Initiative offers a prime opportunity for shared growth.
Competitors:
Sony Ericsson Company has very big competition in telecommunication field so that it must work harder and harder to get the top position. Rivals of Sony Ericsson's are
NOKIA
SAMSUNG etc. . .
Public Pressure Categories:
There is no public pressure group which have an effect on the working of the company because Sony Ericsson makes product by taking a look at all its aspects which don't affect the societal environment.
Internal Environment
Structure:
Company has very organized structure; the information flows from top to low lower part and from bottom level to top mean mechanistic style have rigid string of command word.
Culture:
The company has strong culture. Employees work in groups and have set great expectation and beliefs for the inbound employees.
Resources:
It includes:
Assets
Labour skills, staff skill etc
Competences
Quickly sensible to competitors
Knowledge
Half and each year founded training.
Strategy Formulation
Mission:
Sony Ericsson: MAKE. BELIEVE
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Objective:
Company has its objective regarding cell phones to be number 1 1 in the market in the returning years. Company also established the objective to make such kind of phones which offers the blend of PC's and Camera's.
Strategy:
Company has a comprehensive master intend to achieve its quest and targets. Company is trying to stabilize its market show regarding its Mobile phones also want its growth in the future.
Policies:
Company has its plan to maintain the quality of its products at lower cost and the constant value satisfaction to the customer.
Situational Analysis of Sony Ericsson (SWOT)swot_img2. gif
Strengths
Major durability is Sony as a brand name. Sony Ericsson has variety in its products. Sony Ericsson is well known for their interest to aspect and their ability to bring something not used to the environment. Sony Ericsson really takes care of each and every step regarding the development of their Windows Mobile Phones which thing gives them a definite cut gain over their rivals.
Weakness
No uncertainty Sony Ericsson is the first in the market of high quality camera phones but like every new product it has the has some weaknesses such as W910i is not a 3G devise credited to which it can't work in technologically advanced countries like Japan and Korea. Both used the 3G compliant phones. There are also some weaknesses in Sony Ericsson Company making their cell phones less popular than Nokia and Samsung. Such as
Lack in customer choices understanding, consumer cantered designs and brand recognition globally.
Less technology advancement.
Other issues included system freezing and button source failures.
Opportunities
There are a great deal of opportunities for Sony Ericsson Company to increase in neuro-scientific telecom. Some of them are listed below:
Every year populace progress rate is increasing; this is a huge opportunity for Sony Ericsson Company to catch the attention of new customers.
Sony Ericsson is most beneficial in music field and young generation today is mad about music so it is a big opportunity for the business to create more music cell phones like W910i.
Network capabilities and low tariffs are a few of the opportunities for Sony Ericsson.
Threats
There are numerous competitions around, the biggest threat to IT companies. Without doubt the marketplace of smart phone is growing speedily but acceptance of competitor's product can affect the demand of Sony Ericsson CELL PHONES. Intense competition, intro of devices for rural areas and customer bargaining are a few of the threats to Sony Ericsson.
PESTLE Analysis
Political
Political or legal pushes means regulation and order situation in the united states. It offers Country insurance policies for trading companies. Because of the deregulating marketplaces, like other mobile phone companies; Sony Ericsson is has the specialist to be unbiased in every country it operates.
Political and legal situation regarding Sony Ericsson Company is explained as:
Registered Labours
Increase income when govt. changes Labour policies
No politics affects
Economical
Mean economical condition of the united states such as change in dispose bale income, fluctuation in market, inflation rate etc. . . The increasing young population and the increase in the quantity of disposable money demand a whole lot of selections to the people. People demand more features at an acceptable rate.
Company sets the prices according to the economic situation of Country.
Middle and top class buyer
Generally in inflation situation buying electricity decreases
Reduction of prices
Social
Sony Ericsson brings about an alteration in the individuals communal life by offering the most attractive and ground breaking handsets on the market. It stands by its objective to provide communication with entertainment.
Employees Work in Shifts.
Employees are well settled based on the culture.
Technological
Advancement in neuro-scientific technology by other cellular phone companies results in Sony Ericsson. The improvements include touch screen, high resolution video cameras etc. . .
Technology Affects The Working OF THE Company.
Company Adopts MODERN TOOLS.
Receives Feedback.
Legal
Sony Ericsson is exclusive in its design offering the sense movement technology.
Environment
All products of Sony Ericsson have a global declaration. Sony Ericsson is also participating to spread inexperienced environment issue among people. Company is also making recyclable cell phones with 50% of recycle plastic housing.
Porter's Five Forces
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Competitive Rivalry
Today telecommunication market is actually huge as there are a lot of telecom companies like Nokia and Apple. Sony Ericsson competitors are
Nokia
Samsung
Apple
LG
Motorola
These companies constantly draw out new phones in to the market that have many new features and are priced at a low price. This is a tough competition for Sony Ericsson Company.
Threats of New Entrants
Many new mobile phones are entering the marketplace and grabbing the interest of the people. Because of this these new entrants will harm Sony Ericsson Mobile Phones posing a risk from the new entrants.
Threat of Substitute products
The risk of substitute products will further limit the use of Sony Ericsson. The products include landline telephones and technology through the internet such as tone of voice chat and video tutorial conferencing.
Bargaining ability of Consumers
Due to the demand for low cost phones many cellular phone companies are bringing out phones with many features with an acceptable price. Thus, customers have the choice of switching mobile phones from the opponents as Sony Ericsson is highly priced when compared to other phones.
ANSOFF'S MATRIX:
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Market Share
Market Growth
Star:
Sony Ericsson high definition camera products are extremely popular.
Sony Ericsson SATIO with 12. 1 MP Camera resolutions Mobile Phone is a superstar of your company.
Question Symbol:
Sony Ericsson has to take steps to draw out investment from other declining product such as W910i which is on its declining stage
Cash Cow:
Sony Ericsson Xperia Mobile range is a cash cow for the company as they are getting popularity day by day.
Dog:
Sony Ericsson W910i comes in this category since it is not producing gains neither is it producing losses.
Due to slow growth rate they have suprisingly low market share.
The BCG MatrixAnsoff. gif
Sony Ericsson W901i can divert from your dog to cash cow, if it invests some amount on its promotion with innovative features and extra functions. Investing finance to keep its stand on the market Sony Ericsson can move to the question make slot. Good decision- making skills and general market trends can make Sony Ericsson W910i a star.
GAP Analysis
The innovative features of Sony Ericsson W910i captivated a great deal of customers and it saved high sale immediately after its launch, however, not now the merchandise is at a declining stage due to less sales leading to sales difference. This sales space is ultimately leading to a profit distance. The key factors that will lead to rejuvenate Sony EricssonW910i should be discovered and recorded. For meeting the existing requirement of the marketplace the factors should then be approved for the variance between its capabilities.
Competitive Strategy
Cost Command:
Sony Ericsson can gain market the stand by position costs it cost effectively and resolving its steadiness concern. Sony Ericsson using its impressive thinking, success passionate and responsiveness to its customers have an edge over other companies.
Differentiation:
The progressive features in the telephone like the shake control feature which allows record change by only a shake of the telephone, java based program and games and its own brand as walkman mobile phone differentiate it from other devices of other companies.
Focus:
Sony Ericson's most important focus should be to resolve its stability issue and price it sensibly. The people have a number of phones with enhances feature and cost affordable.
TACTICS Marketing Combination:
PRODUCT
PRICE
PLACE
PROMOTION
Product:
Sony Ericsson when launched initially was very famous due to its unique ground breaking features. Nut has now received a whole lot of criticism scheduled to stableness issues. Customers didn't get what that they had paid for and finally the product is in a declining level.
Price:
Sony Ericsson should concentrate primarily on its costs policy. The distributors should be issues with a retail price and strict monitoring should be executed to ensure that the brand is not diluted by offering at price not the same as the future technology price.
Place:
One of the main decisions is to choose the best distribution around the world to get more popular among the consumers.
Promotion:
The product should be top quality so which it instantly makes a location in the storage of folks. Digital multimedia should be utilized to promote the product through advertisements. The product can even be publicized using events such as the youth focused programs to focus on teenagers.
People:
Sony Ericsson should concentrate on people of different ages and genders. It will focus on people who have limited buying electricity such just as the rural areas where there aren't many means of communication such as internet, journals etc.
Process:
Sony Ericsson's complex techniques such as hardware, applications and impressive solutions results in easiness used and appeals to customers.
Physical Process:
Sony Ericsson should be introduces within a centered market section such as rural areas with very little means of communication.
Conclusion
Sony Ericsson is a innovator in the mobile phone market knows because of its innovative and stylish cell phones. Earlier, people who have a lot of throw-away income used to change their handsets every three years, but now with decelerate in economy this isn't a trend any more. Moreover, the higher price of Sony Ericsson mobile phone leads to customers making a choice to the devices by the rival companies.
A detailed examination of opportunities for Sony Ericsson has been shown so as it operates successfully and expands its business situation in the long term. Strategies such as marketing segmentation, marketing communication mixture should be incorporated in order the business proceed and be competitive on the market which will bring more customers for business. Thus, this will raise the reputation of the business enterprise on the marketplace and also the loyalty of customers.
Recommendations
Sony Ericsson should do extensive general market trends and draw out new strategies, spend substantially and control and screen activities.
Due to competitive benefits from rival mobile phone companies, Sony Ericsson should reduce the price of its cell phones.
Sony Ericsson should come up with innovative promotional strategies and use people who have fresh ideas.
Sony Ericsson should use technology improvements and produce more creative looks, features and user friendly options
Sony Ericsson should provide services such as Guarantee and Insurance to catch the attention of customers. It should provide after sales services to further differentiate it from rival mobile companies.
It should setup 24/7 toll free collection with professional personnel to help customers to solves their issues with phone and answer any inquiries.
In order to increase sales volume and capture a market share it should focus on a particular market section such as rural areas with not much communication means.
