Sony’s improvements in the TV Industry
In recent years, the sales of Sony’s televisions have severely decreased, mainly due to their high prices and affordability. Sony needs to lower their prices during this economic downturn while ensuring consumers the same quality products as before. We concluded that individuals with greater income and those who budget their money are more willing to invest in a premium brand television such as Sony. While the price remains one of the underlying factors on which television to purchase, the quality, and reliability of the television outweighs the price when making the final decision
Literature Review
By looking at Sony’s 2009 Annual Report, we can see the struggles that the electronics industry has faced over the past year. Television sales have declined rapidly compared to its competitors, Samsung, Panasonic, Mitsubishi, and many others (Annual Report 2009). By researching expert and consumers reviews of Sony’s products on several different websites, we have concluded that Sony’s televisions are priced reasonably higher than its competitors are. Vidhu from NY stated at biz.com his review of Sony’s KDL-46W5100 46 TV, Bravia W Series LCD HDTV “Wow! This TV rocks, and the internet features on are great! The image is far superior then the V series I previously owned and the sound might not be as good as hoped , but hey who listens to TV speakers anymore anyway ![...] And the Price ,,,Dare I Say it WAS INSANE ! Hats off to you guys on 9th ave. (Vidhu, 2009).” Another review, this time from an expert at alaTest.com stated “The all new Sony KDL-40XBR7 is near-perfect especially for those who were impressed with Sony's XBR8 series LCD TVs but shied away from buying it due to their exorbitant price...
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... is your overall opinion of Sony as a company and would you recommend others to purchase a Sony TV regardless of its price.
We wanted to see if the consumers were happy with their purchases and if they would spread good messages about Sony to potential customers. Grace responded, “I have allot of respect for Sony, they work hard to get the perfect product out to their consumers. They stand by their products. I would definitely recommend a Sony product to others (Grace Schneider, Personal Communications, Feb. 22, 2010).”
Conclusion
If Sony advertises its televisions at a lower, more affordable price with the same quality as before, more people will be apt to purchase a Sony television. Most of the responses were predictable, but the one that surprised us the most is that some people take cheaper prices over higher quality when it comes to their financial decisions.
*Other External Factors Influencing Brand Purchase: The inclusion of an XM tuner as an option in most new cars provides an external opportunity for purchase of their service.
The market penetration of TiVo has been very poor. Fourteen months after its introduction only 0.04% penetration has been achieved out of the total of 102million TV watching population. This is also reflected in the poor revenue position of the company. Exhibit 3 shows that the company recorded a loss every quarter since the introduction of the product in September 1999 and has been getting worse.
Since 1999 the growth of spending on DVD purchases and rentals has been incredible. According to Alexander & Associates, “Rapidly growing consumer activity and spending has built this industry into a major market phenomenon. The DVD format for enjoying pre-recorded entertainment at home is extraordinarily popular and consumers are changing their behavior to accommodate it.”
Determining the right target segment requires an analysis of the customer, company and competition (fig. 2). TiVo's customer is defined by unmet needs in the market. While TV is one of the most ensconced and ritualistic elements of contemporary American life, there are still aspects of television viewing that do not fulfill customer needs. An estimated 68% of Americans complained that they felt "widowed" by their loved one during the Fall television season because their spouses were chained to their televisions during primetime from 8pm to 11pm. Additionally, parents expressed a difficult time getting their children to do homework during key television programming times. In general, this is evidence that consumers want greater control over their television consumption habits. Analysis of the TiVo Corporation reveals their core competencies, which include proprietary software, national distribution through established retail outlets such as Best Buy, Circuit City and Sears and product co-branding with trusted electronics giants Philips and Sony.
Since BPS couldn't expect a competing product like 1270, both the company and the distributor were shocked and stirred. Considering Barco's scale in the market, even though BPS was in the position of industry leader, it couldn't defend itself from the attack of the giant like Sony. At this point, to keep the market position and share BPS should take an immediate action against Sony's market conquering movement with the high-quality but low-priced projector 1270. At this time, the managers of Barco were considering basically two options: pricing option and product development option, but both options had some defects.
In spite of the social stereotype that watching TV is bad there are many advantages of TV which either people don't care or don't want to care. But the fact is either people love or hate TV they cannot avoid it and it keeps on playing the major role in their life as a mass communication media, entertainer and education provider. The new generation of the TV is the smart TVs which even simplifies the three aspects gaming, web surfing and watching TV and they are eye friendly as well which only keeps on making it better. It is not wrong to say that TV is the major weapon to be in touch with the new technology and the things that are going around the world before being left behind.
The article, “Keeping Up with the Trumps,” discusses how television and the amount of television a person watches, affects a person’s spending habits. I was not surprised at all to find out that there is a correlation between a person’s spending and the amount of television they watch. Because many Americans are always wanting the nicest and best new things, it is easy to fall for product placements in movies and shows, and it is easy to see commercials and want to imminently go out and buy the products the commercials are selling. This is because, today we label people based on what they own, so people feel included to spend to keep up with the in crowd. A thought that cross my mind while reading this article, is how things might have changed in recent years, now that many families own DVRs. Now when people tune in to watch shows and movies, they can record them ahead of time and skip commercials. I would be curious to see how the results would change if this study was redone
Sony’s problems continued and were ‘most obvious in its core electronics business, which accounts for two-thirds of its revenues’ as the consumer devices such as TV’s, DVD players and music players came under fierce price pressure and Sony failed to come up with any more trend-setting new gadgets to boost profits (The Economist, 2005). Idei resigned after a series of stumbles and handed the reins to Welsh-born American Howard Stringer, a former television executive (Dvorak, 2005, p.1). Prior to joining Sony, Mr. Stringer had a distinguished 30-year career as a journalist, producer and executive at CBS Inc (www.sony.net).
Through statistical analysis and predictive models, use the data to derive the selling benefit, target market, distribution methods, price points, and brand image. Although this process takes serious heavy lifting, RadioShack’s committee must aim to have the interviews and analysis completed in 6 months to have product and service development initiatives for the rest of the rest of the business to work on. Eventually this process becomes part of an iterative and cyclical program that is continuously refining the focus of the organization on products that drive on customer
“With smart TVs taking over the TV market, analysts reckon that the time is ripe for an Apple iTV to be launched. Smart TV adoption grew from 12% in 2011 to 25% in 2012, according to a new report from TDG.” says Dan Granham of techradar.com. http://www.techradar.com/us/news/television/apple-itv-release-date-news-and-rumours-1045768
The video gaming industry has come a long way from the first home based gaming system since the Magnavox Odyssey. Through the decades, the video game industry has rapidly improved the technology to home gaming, and made arcades nonexistence. The major video gaming titans of today are Nintendo, Microsoft Xbox, and Sony Playstation. These three have been in war with each other the past ten years, and neither show signs of defeat. However the two leading competitors of high sales in the gaming industry are Microsoft Xbox and Sony Playstation. Both developers have been head to head on technological advancements and consumer marketing. Sony uses their advanced design of game console and their secrecy of their project to entice consumers. Microsoft however tries to direct their marketing strategy towards consumers themselves. With different marketing planning, both companies still show success. Sony and Microsoft’s entire production unit were sold out when they were released at their release date.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
The biggest reason for me choosing this company was because of the great products they produce. From Vega’s TV’s to blockbuster motion pictures and all that fall in between, Sony has proven to be a well-rounded company. Sony’s Internet service provider So-Net, which has operated in Japan since 1996, offers some great features like: network-based content and service. In February 2000, Sony established SonyStyle.com in Japan to conduct marking and sales of Sony products. As a hardware company and a provider of content and services they are number one in many of today’s homes.
price as the major decision-making tool for customers (“Global Consumer Electronics”, 2013). This lack of