Increasing Sony Vaio Laptop Sales in Hubli-Dharwad

“To access the opportunities for increasing the sales of Sony Vaio laptops in
Hubli-Dharwad region”

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1. Introduction

Computing on the move has been a focus area for a lot of Information
Technology Companies for years. The idea of being able to work while on the road
is extremely fascinating. A notebook, also known as a laptop, which may also be
understood as a mobile computer has been the solution for these portable computer
related tasks.
Thousands of people face the dilemma every day, should I buy a laptop or a
desktop? Information technology is not only advancing at a great pace but it is
making lives better. We have been using desktops way back since 1940 when the
first computer was invented. However, the increasing dependence on computers has
given an impetus to develop more advanced computers like laptops or notebooks.

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Though desktop is the king, laptops are gaining ground these days due to its
portability.
In 2000, one in 10 home computers bought worldwide was a laptop, these
days it is one in five. According to the research firm Current Analysis, laptops have
for the first time outsold desktops in the US in a calendar month. Laptops sales
accounted for 53 per cent of the total personal computer market, up from 46 per cent
during the same period last year.
Due to increased demand for laptops, companies have reduced prices and at
the same time improved quality. Laptop prices have come down 17 per cent during
the last year while desktop price has dipped only 4 per cent. The reasons for this rise
are: laptops' longer-lasting batteries, CD burners and wireless capability.
Moreover, the computing crowd is increasingly demanding mobility. "There
used to be a time when people expected a reply to an email within a couple of days.
Now they expect a response within 24 hours. People want to stay connected
wherever they are"
Desktop computers are less expensive than laptop computers. The price difference is
because a laptop's components are much smaller, usually more expensive to
manufacture, and more time-consuming to build into the final product. Prices range
from Rs 45,000 for entry-level ones to over Ts 1.5 lakh for snazzier versions.
Laptop brands: Sony, Acer (TravelMate and Aspire), Alienware, Apple
Computer (iBook and Powerbook), ASUS, Averatec, Clevo, Compaq (EVO,
Armada and Presario), Dell, ECS, Fujitsu, Gateway, Hewlett Packard, Hypersonic,
IBM, NEC, Panasonic and Toshiba.



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1.1 Laptop History
In the 1970s, Alan Kay of the Xerox Palo Alto Research Center had a vision
for a wireless portable computer roughly the size of a notebook. He called it the
Dynabook. Kay's Dynabook never got past sketches and a cardboard model, but it
set the wheels in motion for the development of a truly portable computer.
In 1979, William Moggridge of Grid Systems Corporation created the first
functioning portable computer: The Grid Compass Computer 1109. It had 340
kilobytes of bubble memory, a die-cast magnesium case and a folding
electroluminescent graphics display screen. NASA bought a handful of them at $800
apiece for use in the space program.
Other companies, like Gavilan Computer and Apple, introduced other
portable computers in following years. The first commercially viable machine,
however, was the IBM PC Convertible, introduced in 1986. The PC Convertible
featured:
An 8088 microprocessor
256 kilobytes of memory
Two 3.5-inch (8.9-cm) floppy drives
An LCD display
Parallel and serial printer ports
Space for an internal modem
A software suite including basic word processing, appointment calendar,
telephone/address book, and calculator software Weighing in at a hefty 12 lbs (5.4
kg), the PC Convertible sold for $3,500. It was the first portable computer with the
clamshell design used in today's laptops. The success of the PC Convertible was the
catalyst for competitors like Compaq and Toshiba to switch to the clamshell design
in their portable computers. And so began the era of the laptop computer.



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1.2 Introduction to How Laptops Work
In a way, the skyrocketing popularity of laptop computers is ironic. They are
completely portable, and they use less power and make less noise than desktop
models. But, they're often a little slower and have less graphics and sound processing
power, although these differences can be too small for most users to notice.
How can all the equipment found in a desktop tower fit into such a small
package? And how can laptops be efficient enough to run on battery power
alone?

A desktop computer includes a motherboard, video card, hard drive and other
components in a large case. The monitor, keyboard, and other peripherals connect
wirelessly or with cables. Whether the case sits vertically or horizontally, it has lots
of space for add-in cards, cables and air circulation.



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A laptop, however, is much smaller and lighter than even the most compact
PC tower. Its screen is an integrated part of the unit, as is its keyboard. Instead of a
spacious case with lots of room for air circulation, a laptop uses a small, flat design
in which all the pieces fit together snugly.
Because of this fundamental design difference and because of a laptop's
inherent portability, components have to:
• Fit into a compact space
• Conserve power
• Produce less heat than desktop components
Often, these differences make the components more expensive, which can contribute
to higher laptop prices.



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1.3 Processor
The microprocessor, or CPU, works with the operating system to control the
computer. It essentially acts as the computer's brain. The CPU produces a lot of heat,
so a desktop computer uses circulating air, a fan and a heat sink -- a system of
plates, channels and radiator fins used to draw heat off of the processor -- to cool off.
Since a laptop has far less room for each of these cooling methods, its CPU usually:
• Runs at a lower voltage and clock speed -- This reduces heat output and
power consumption but slows the processor down. Most laptops also run at a
higher voltage and clock speed when plugged in, and at lower settings when
using the battery.
• Mounts to the motherboard without using pins -- Pins and sockets take up
a lot of room in desktop PCs. Some motherboard processors mount directly to
the motherboard without the use of a socket. Others use a Micro-FCBGA
(Flip Chip Ball Grid Array), which uses balls instead of pins. These designs
save space, but in some cases mean that the processor cannot be removed
from the motherboard for replacement or upgrading.
• Has a sleep or slow-down mode -- The computer and the operating system
work together to reduce the CPU speed when the computer is not in use or
when the processor does not need to run as quickly. The Apple G4 processor
also prioritizes data to minimize battery drain.



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Some laptops use desktop CPUs that are set to run at lower clock speeds.
Although this can improve performance, these laptops typically run much hotter and
have a significantly reduced battery life.

Laptops usually have small fans, heat sinks, heat spreaders or heat pipes to
help dissipate the heat from the CPU. Some higher end laptop models reduce heat
even further with liquid coolant kept in channels alongside the heat pipe. Also, most
laptop CPUs are near the edge of the unit. This allows the fan to move the heat
directly to the outside instead of across other components.



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1.4 Memory and Storage
A laptop's memory can make up for some of the reduced performance that
comes from a slower processor. Some laptops have cache memory on or very near
the CPU, allowing it to access data more quickly. Some also have larger busses,
allowing data to move between the processor, motherboard and memory more
quickly.

Laptops often use smaller memory modules to save space. Memory types used in
laptops include:

• Small Outline Dual Inline Memory Module (SODIMM)
• Dual Data Rate Synchronous RAM (DDR SDRAM)
• Single data rate Synchronous RAM (SDRAM)
• Proprietary memory modules
Some laptops have upgradeable memory and feature removable panels for easy
access to the memory modules.
Like a desktop, a laptop has an internal hard disk drive, which stores the
operating system, applications and data files. However, laptops generally have less
disk space than desktops. A laptop hard drive is also physically smaller than that of a
desktop. In addition, most laptop hard drives spin more slowly than desktop hard
drives, reducing both heat and power consumption.
Desktop computers have multiple bays for installing additional drives, such as CD
and DVD ROM drives. However, space in a laptop is in much shorter supply. Many
laptops use a modular design, allowing a variety of drives to fit in the same bay.
These drives come in three different designations:
• Hot swappable - The computer can stay on while changing the drive.
• Warm swappable - The computer can stay on while changing the drive, but
the corresponding bus (the path the drive uses to send data to the CPU) must
be inactive.
• Cold swappable - The computer must be off during the swap.



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1.5 Display and Sound

A graphics processing unit (GPU) is a microprocessor that handles the
calculations necessary for 3-D graphics rendering. Like a CPU, a GPU produces a lot
of heat. Most laptops have graphics capability built into the motherboard or have
smaller graphics cards with a GPU designed specifically for laptop use. GPU
manufacturers ATI and nVidia both make GPUs specifically for laptops. Laptops
frequently share memory between the CPU and the GPU, saving space and reducing
power consumption.
A laptop displays its graphics on a liquid crystal display (LCD) screen. Most
screens measure between 12 and 17 inches, and the size of the screen affects the
overall size of the laptop. In addition, laptop screens can be:
• Black-and-white (16 grayscale) or color (65,536 colors)
• Active or passive matrix
• Reflective or backlit
Most laptops also have sound cards or integrated sound processing on the
motherboard as well as small, built-in speakers. However, there is generally not



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enough space inside a laptop for a top-of-the-line sound card or a high-quality
speaker.
1.6 Power Supplies
Laptops and desktops both run on electricity. Both have small batteries to
maintain the real-time clock and, in some cases, CMOS RAM. However, unlike a
desktop computer, a laptop is portable and can run on batteries alone.
Nickel-Cadmium
(NiCad) batteries were
the first type of battery
commonly used in laptop
computers, and older
laptops sometimes still
use them. They have a life of roughly two hours between charges, but this life
decreases with each charge based on the memory effect. Gas bubbles form in the
cell plates, reducing the total amount of available cell space for recharge. The only
way around this is to discharge the battery completely before recharging it. The other
drawback of NiCad is that if the battery charges too long, it can explode.
Nickel-Metal Hydride (Ni-MH) batteries are the bridge between NiCad and
the newer Lithium-Ion (Li-Ion) batteries. They last longer between charges than
NiCad but overall have a shorter total lifespan. They suffer from the memory effect,
but to a lesser extent than NiCad batteries.
Li-Ion batteries are the current standard for laptop computers. They are light
and have long life spans. They do not suffer from the memory effect, can be charged
randomly, and won't overheat if overcharged. They are also thinner than any other
battery available for laptops, making them ideal for the new ultra-thin notebooks. Li-
Ion batteries can last for anything from about 950 up to 1200 charges.
Many laptops with Li-Ion batteries claim to have a 5-hour battery life, but this
measurement can vary greatly depending on how the computer is used. The hard

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drive, other disk drives and LCD display all use substantial battery power. Even
maintaining wireless Internet connectivity requires some battery power.

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2. Industry Overview
Electronics industry the business of creating, designing, producing, and
selling devices such as radios, televisions, stereos, computers, semiconductors,
transistors, and integrated circuits. As sales of electronic products from some $200
million in 1927 to over $266 billion in 2007 worldwide, the electronics industry
transformed factories, offices, and homes, emerging as a key economic sector that
rivaled the chemical, steel, and auto industries in size.
The industry traces its origins to the invention of the two-element electron
tube (1904) by John Ambrose Flemming, and the three-element tube (1906) by Lee
De Forest . These inventions led to the development of commercial radio in the
1920s, which boosted radio sales to $300 million by the end of the decade. In 1947,
the electronics industry made another important advance when John Bardeen, Walter
Brattain, and William Shockley invented the transistor. Smaller, lighter, and more
durable than the vacuum tubes that had been used in radios, transistors touched off a
period of progressive miniaturization of electronic devices. Integrated circuits, which
were developed in the 1950s, allowed the integration of several circuits into one
circuit, and the introduction of analog devices in the 1960s vastly increased the
amount of information that could be stored on a single silicon chip.
Other important sectors that have made great advances since the 1970s
include laser and optical electronics, digital electronics, and microwave electronics.
Advances in the field of electronics have also played a key role in the development
of space technology and satellite communications; inaugurated a revolution in the
computer industry that led to the introduction of the personal computer; resulted in
the introduction of computer-guided robots in factories; produced systems for storing
and transmitting data electronically; greatly expanded the market for popular music
and culture; and, in the process, transformed life at home, the office, and the factory.
Many of these innovations, such as the transistor, had their origins in military

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research, which needed increasingly complex electronic devices for modern high-
tech warfare.
3. Business (Company) Overview
Sony Corporation is a Japanese multinational conglomerate corporation and
one of the world's largest media conglomerates with revenue of $70.303 billion (as
of 2007) based in Minato, Tokyo. Sony is one of the leading manufacturers of
electronics, video, communications, video game consoles and information
technology products for the consumer and professional markets.

Sony Corporation is the electronics business unit and the parent company of
the Sony Group, which is engaged in business through its five operating segments —
electronics, games, entertainment (motion pictures and music), financial
services and other. These make Sony one of the most comprehensive entertainment
companies in the world. Sony's principal business operations include Sony
Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony
Computer Entertainment, Sony BMG Music Entertainment, Sony Ericsson and Sony
Financial Holdings. As a semiconductor maker, Sony is among the Worldwide Top
20 Semiconductor Sales Leaders. Its slogan is Sony. Like no other.

3.1 History
In 1945, after World War II, Masaru Ibuka started a radio repair shop in a
bombed-out building in Tokyo. The next year he was joined by his colleague Akio
Morita, and they founded a company called Tokyo Tsushin Kogyo K.K, which
translates in English to Tokyo Telecommunications Engineering Corporation.
The company built Japan's first tape recorder called the Type-G.

In the early 1950s, Ibuka traveled in the United States and heard about Bell
Labs' invention of the transistor. He convinced Bell to license the transistor

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technology to his Japanese company. While most American companies were
researching the transistor for its military applications, Ibuka looked to apply it to
communications. While the American companies Regency and Texas Instruments
built transistor radios first, it was Ibuka's company that made the first commercially
successful transistor radios.

In August 1956, Tokyo Telecommunications Engineering produced its first
coat-pocket sized transistor radio they registered as the TR-55 model. In 1965, Sony
reportedly manufactured about 40,000 of its Model TR-72 box-like portable
transistor radios and exported the model to North America, the Netherlands and
Germany.

That same year they made the TR-6, a coat pocket radio which was used by
the company to create its "SONY boy" advertising character. The following year,
1967, Tokyo Telecommunications Engineering came out with the TR-63 model, then
the smallest (112 × 71 × 32 mm) transistor radio in commercial production. It was a
worldwide commercial success.

University of Arizona professor Michael Brian Schiffer, Ph.D., says, "Sony
was not first, but its transistor radio was the most successful. The TR-63 of 1957
cracked open the U.S. market and launched the new industry of consumer
microelectronics." By the mid 1950s, American teens had begun buying portable
transistor radios in huge numbers, helping to propel the fledgling industry from an
estimated 100,000 units in 1955 to 5,000,000 units by the end of 1968. However, this
huge growth in portable transistor radio sales that saw Sony rise to be the dominant
player in the consumer electronics field was not because of the consumers who had
bought the earlier generation of tube radio consoles, but was driven by a distinctly
new American phenomenon at the time called rock and roll.

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3.2 Origin of name
When Kogyo was looking for a romanized name to use to market themselves,
they strongly considered using their initials, TTK. The primary reason they did not is
that the railway company Tokyo Kyuko was known as TKK. The company
occasionally used the acronym "Totsuko" in Japan, but Morita discovered that
Americans had trouble pronouncing that name, during his visit to the United States.
Another early name that was tried out for a while was "Tokyo Teletech" until Morita
discovered that there was an American company already using Teletech as a brand
name.

The name "Sony" was chosen for the brand as a mix of the Latin word sony
or son(us) and also a little boy sonny, which is the root of sonic and sound as well as
familiar word of everybody called a boy in February 1955, and company name
changed to SONY in January 1958. Morita pushed for a word that does not exist in
any language so that they could claim the word "Sony" as their own (which paid off
when they sued a candy producer using the name, who claimed that "Sony" was an
existing word in some language).

At the time of the change, it was extremely unusual for a Japanese company
to use Roman letters instead of kanji to spell its name. The move was not without
opposition: TTK's principal bank at the time, Mitsui, had strong feelings about the
name. They pushed for a name such as Sony Electronic Industries, or Sony Teletech.
Akio Morita was firm, however, as he did not want the company name tied to any
particular industry. Eventually, both Ibuka and Mitsui Bank's chairman gave their
approval.

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3.3 Sony in India
One of the most recognized brand names in the world today, Sony
Corporation, Japan, established its India operations in November 1994, focusing on
the sales and marketing of Sony products in the country. In a span of 14 years Sony
India has exemplified the quest for excellence in the world of digital lifestyle
becoming the country’s foremost consumer electronics brand. With relentless
commitment to quality, consistent dedication to customer satisfaction and
unparalleled standards of service, Sony India is recognized as a benchmark for new
age technology, superior quality, digital concepts and personalized service that has
ensured loyal customers and nationwide acclaim in the industry.

With brands names such as BRAVIA, Xplod, Sony hi-fi, Handycam, Cyber-
shot‚ WEGA, VAIO, Walkman, Memory stick‚ PlayStation an AIWA, Sony has
established it self as a value leader across its various product categories of
Audio/Visual Entertainment products, Information and Communications‚ Recording
Media, Business and Professional products.

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. A distinctive feature of Sony’s
service is its highly motivated and well-trained staff that provides the kind of
attentive and sensitive service that is rare today.

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Sony is committed to ensuring that both the products and the marketing activities
employed truly make a difference to people’s lifestyles and offer them new
dimensions of enjoyment – experiences which are ‘like no other’ .

3.4 Company Outline

Company: Sony India Pvt. Ltd.
Managing
Mr. Masaru Tamagawa
Director:
Date of
November 17, 1994
Establishment:
A-31, Mohan Cooperative Industrial Estate, Mathura Road,
Location:
New Delhi - 110044, India.
Staff Strength: 636 (as at March 31, 2007)

Share Capital: Rs. 550 million
Share
100% subsidiary of Sony Corporation, Japan
Holding:

Delhi, Haryana, Ludhiana, Mumbai, Bangalore, Chennai,
Branch Kolkata, Hyderabad, Vijayawada, Jaipur, Chandigarh,
Offices: Lucknow, Pune, Ahmedabad, Indore, Cochin, Coimbatore,
Ghaziabad, Guwahati, Hubli and Ranchi

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Marketing, Sales and After-Sales Service of electronic
products & software exports
Products: Televisions, Hi-fi Audios, Home Theater systems
Business and DVD players, Personal Audio (CD/Cassette Radio Players
Activities: and Walkman®), Audio Video Accessories, Car Audio and
Visual Systems, Notebooks, Gaming Consoles, Camcorders
and Digital Still Cameras, Digital Imaging Accessory Mobile
Phones, Recording Media, Broadcast and Professional

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3.5 Notable Sony products, technologies and proprietary formats
Sony has historically been notable for creating its own in-house standards for
new recording and storage technologies instead of adopting those of other
manufacturers and standards bodies. The most infamous of these was the videotape
format war of the early 1980s, when Sony marketed its Betamax system for video
cassette recorders against the VHS format developed by JVC. In the end, VHS
gained critical mass in the marketplace and became the worldwide standard for
consumer VCRs and Sony adopted the format. While Betamax is for all practical
purposes an obsolete format, a professional-oriented component video format called
Betacam that was derived from Betamax is still used today, especially in the film and
television industry.

3.5.1 A Sony VCR
In 1968 Sony introduced its Trinitron
brand name for its line of aperture grille
cathode ray tube televisions and (later)
computer monitors. Trinitron displays are still
produced, but only for markets like India and
China. Sony discontinued its last Trinitron-
based television set in the USA Spring of
2007. Trinitron computer monitors were discontinued in 2005. Sony launched the
Betamax videocassette recording format in 1975. The Walkman brand was
introduced in 1979.

1982 saw the launch of Sony's professional Betacam videotape format and the
collaborative Compact Disc format. In 1983 Sony introduced 90mm micro diskettes
(better known as 3.5-inch floppy disks), which it had developed at a time when there
were 4" floppy disks and a lot of variations from different companies to replace the
then on-going 5.25" floppy disks. Sony had great success and the format became

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dominant; 3.5" floppy disks gradually became obsolete as they were replaced by
current media formats. In 1983 Sony launched the MSX, a home computer system,
and introduced the world (with their counterpart Philips) to the Compact Disc or CD.
In 1984 Sony launched the Discman series which extended their Walkman brand to
portable CD products. In 1985 Sony launched their Handycam products and the
Video8 format. Video8 and the follow-on hi-band Hi-8 format became popular in the
consumer camcorder market. In 1987 Sony launched the 4mm DAT or Digital Audio
Tape as a new digital audio tape standard.

In addition to developing consumer-based recording media, after the launch
of the CD Sony began development of commercially based recording media. In 1986
they launched Write-Once optical discs (WO) and in 1988 launched Magneto-optical
discs which were around 125MB size for the specific use of archival data storage.

In the early 1990s two high-density optical storage standards were being
developed: one was the MultiMedia Compact Disc (MMCD), backed by Philips and
Sony, and the other was the Super Density disc (SD), supported by Toshiba and
many others. Philips and Sony abandoned their MMCD format and agreed upon
Toshiba's SD format with only one modification based on MMCD technology, viz
EFMPlus. The unified disc format was called DVD which was marketed in 1997.

3.5.2 Sony MiniDisc
Sony introduced the MiniDisc format in 1993 as an
alternative to Philips DCC or Digital Compact
Cassette. Since the introduction of MiniDisc, Sony
has attempted to promote its own audio compression
technologies under the ATRAC brand, against the
more widely used MP3. Until late 2004, Sony's
Network Walkman line of digital portable music

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players did not support the MP3 de facto standard natively, although the provided
software SonicStage would convert MP3 files into the ATRAC or ATRAC3 formats.

In 1993, Sony challenged the industry standard Dolby Digital 5.1 surround
sound format with its newer and more advanced proprietary motion picture digital
audio format called SDDS (Sony Dynamic Digital Sound). This format employed
eight channels (7.1) of audio opposed to just six used in Dolby Digital 5.1 at the
time. Unlike Dolby Digital, SDDS utilized a method of backup by having mirrored
arrays of bits on both sides of the film which acted as a measure of reliability in case
the film was partially damaged. Ultimately, SDDS has been vastly overshadowed by
the preferred DTS (Digital Theatre System) and Dolby Digital standards in the
motion picture industry. SDDS was solely developed for use in the theatre circuit;
Sony never intended to develop a home theatre version of SDDS.

In 1998, Sony launched their Memory Stick format; flash memory cards for
use in Sony lines of digital cameras and portable music players. It has seen little
support outside of Sony's own products with Secure Digital (SD) cards commanding
considerably greater popularity. Sony has made updates to the Memory Stick format
with Memory Stick Duo and Memory Stick Micro.

Sony and Philips jointly developed the Sony-Philips digital interface format
(S/PDIF) and the high-fidelity audio system SACD. The latter has since been
entrenched in a format war with DVD-Audio. At present, neither has gained a major
foothold with the general public. CDs are preferred by consumers because of their
ubiquitous presence in consumer devices.

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3.5.3 The PlayStation 2
In 1994 Sony launched its PlayStation. This
successful console was succeeded by the
PlayStation 2 in 2000, itself succeeded by the
PlayStation 3 in 2006. The PlayStation brand was
extended to the portable games market in 2005 by
the PlayStation Portable. Sony developed the
Universal Media Disc (UMD) optical disc medium
for use on the PlayStation Portable. Although Sony
tried to push the UMD format for movies, major
studios stopped supporting the format in the Spring
of 2006.
In 2004, Sony built upon its MiniDisc
format by releasing Hi-MD. Hi-MD allows the
playback and recording of audio on newly-
introduced 1GB Hi-MD discs in addition to
playback and recording on regular MiniDiscs.
Recordings on the Hi-MD Walkmans can be transferred to and from the computer
virtually unrestricted, unlike earlier NetMD. In addition to saving audio on the discs,
Hi-MD allows the storage of computer files such as documents, videos and photos.
Hi-MD introduced the ability to record CD-quality audio with its linear PCM
recording feature. It was the first time since MiniDisc's introduction in 1992 that the
ATRAC codec could be bypassed and lossless CD-quality audio could be recorded
on the small discs.
Sony is currently touting its Blu-ray Disc optical disc format, which is likely
to compete with Toshiba's HD DVD. As of quarter three of 2007, Blu-ray Disc has
the backing of every major motion picture studio except Universal, Paramount and

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Dreamworks.. In December 2006 Sony debuted their first Blu-ray player, the Sony
BDP-S1

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3.6 Manufacturing base

Slightly more than 50% of the electronics' segment's total annual production
takes place in Japan, including the production of digital cameras, video cameras, flat
panel televisions, personal computers, semiconductors and components such as
batteries and Memory Stick.Approximately 65% of the annual production in Japan
was destined for other regions. China accounted for slightly more than 10% of total
annual production, approximately 70% of which was destined for other regions.

Asia, excluding Japan and China, accounted for slightly more than 10% of
total annual production with approximately 60% destined for Japan, the US and the
EU.The Americas and Europe together accounted for the remaining slightly less than
25% of total annual production, most of which was destined for local distribution
and sale.

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3.7 Environmental Record
Sony has received numerous awards and much recognition for their
environmental efforts throughout the world. Their achievements in the way of energy
and environmental conservation have earned them respect for their green campaign

3.7.1 Works and Policies
Since 1976, Sony has had an Environmental Conference. Sony's policies
address their effects on global warming, the environment, and resources. They are
taking steps to reduce the amount of greenhouse gases that they put out as well as
regulating the products they get from their suppliers in a process that they call "green
procurement". Sony has said that they have signed on to have about 75 percent of
their Sony Building running on geothermal power . The "Sony Take Back Recycling
Program" allows consumers to recycle the electronics products that they buy from
Sony by taking them to eCycle (Recycling) drop-off points around the U.S. The
company has also developed a biobattery that runs on sugars and carbohydrates that
works similarly to the way living creatures work. This is the most powerful small
biobattery to date.

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VAIO, an acronym for
“Video Audio Integrated
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Operation”
3.8 VAIO

VAIO, 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.

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3.9 Products
Sony is expanding the use of the VAIO label. It can now be found on
notebooks, subnotebooks, 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
Home Premium or Business, while low end laptops such as N series come with
Microsoft Vista Home Basic. VAIO notebooks and desktop are available upon
request without pre-installed software at a slightly lower price. Some models no
longer ship with a Recovery CD, but a special partition on the hard drive is used for
the recovery information, including operating system and all bundled software.
VAIO users are prompted to create a set of recovery CDs or DVDs immediately after
purchase.

VAIO computers come with components from companies such as Intel processors,
Seagate Technology or Fujitsu hard drives, Infineon RAM, Sony (usually made by
Hitachi) or Matsushita optical drives, Intel or NVIDIA graphics processors and Sony
speakers.

3.10 Technology
Sony VAIO models come with Sony's proprietary XBRITE (also named as
ClearBright in Japan and Asia-Pacific region) displays. The first model that
introduce this feature is the VAIO TR series. It is also the first consumer product to
utilize such technology. It is a combination of smooth screen, anti-reflection (AR)
coating and high-efficiency lens sheet. Sony claims that the smooth finish provides a
sharper screen display, the AR coating prevents external light from scattering when
it hits the screen, and the high-efficiency lens sheet provides 1.5 times the brightness

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improvement over traditional LCD designs, while also extending battery life due to
less usage of the LCD backlight.
The SZ series features both an Intel GMA 950 graphics chip and an NVIDIA
graphics chip. These laptops can cold-switch between the GMA 950, to preserve
battery life, or the NVIDIA chip, to enhance graphics performance. These will be the
only notebooks on the market with this feature, as Sony has patented the technology.
The high-end AR Series VAIOs were the first to incorporate a Blu-ray Disc
burner. These laptops were designed to be the epitome of high-definition products
including a 1080p capable WUXGA (1920 × 1200 pixels) screen, HDMI output and
the aforementioned Blu-ray burner.

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3.11 Corporate Social Responsibility

The Sony Group recognizes that its businesses have direct and indirect impact
on the communities in which we operate.

3.11.1 Environmentally Conscious Products & Services by Sony
Sony cares for
the environment and
therefore develops
products and services
that are environment
friendly. Sony uses the
"eco info" mark to
accurately indicate the
environment conscious aspect of products
Sony cares for the environment and develops the products and services that
are environment friendly. Sony has developed a silicon conductor that is
environment friendly and small as postal stamp. Sony includes environmental
conscious packaging in their design goal.

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4. Quality Policy
4.1Quality Management
Sony is wholeheartedly committed to improving product and service quality
from the customer's viewpoint with the aim of maintaining and enhancing customers'
trust, confidence and satisfaction. This reflects Sony's belief that its most important
goal is to remain a highly trusted partner for its customers.
4.1.2 Philosophy and Policy
Since the start of its
operations, Sony has given top priority
to providing customer oriented, high-
quality products and services as an
operating foundation. This philosophy
is set forth in the Founding Prospectus
drafted in 1946 by Sony's co-founder,
Masaru Ibuka.
The Sony Group Code of Conduct, established in May 2003, compels Sony
to continuously seek ways to comply with or exceed legally mandated standards in
all aspects of its business activities to ensure the safety and satisfaction of customers
who use its products and/or services.
To instill this philosophy more firmly, in January 2007 Sony formulated the
Sony Pledge of Quality, which lays out Sony's basic policy on product and service
quality in the Electronics business.

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4.1.3 Reinforcing Sony's Quality Control System
Sony is endeavoring to introduce new product quality improvement measures
into all processes, from development, planning, design and manufacturing to sales
and service activities. Such measures include:
• Establishing the position of Corporate Executive in Charge of Product
Quality and Safety, who is responsible for managing and overseeing efforts to
improve product and service quality and safety and to respond to quality and safety
issues;
• Appointing personnel within each product and business group who are
ultimately responsible for quality to spearhead initiatives in the areas for which they
are responsible;
• Holding regular Quality Strategy Meetings, which consist of Sony's
president and top management from each business group, including manufacturing
and marketing executives from the Electronics business, to discuss and set policies,
strategies and key measures relating to product quality; and
• Formulating corporate quality standards applied to Sony's electronics
products, focusing on such criteria as product safety and performance, labeling and
services. These standards are updated continuously to reflect technological advances,
changes in applicable legal and regulatory requirements and social changes

4.1.4 Customer Feedback
Sony makes active use of customer feedback to improve its products.
Complaints, suggestions, ideas and reports of malfunctions received from customers
at the Customer Information Center after purchase are promptly and accurately
evaluated and disseminated to the planning and design groups so that improvements
in product quality can be made in a timely fashion.

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4.1.5Utilizing Customer Feedback

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4.1.6 Product Quality Information Channel
It is vital to detect product quality-related problems early. Sony therefore
established the Product Quality Information Channel in 2003 to gather product
quality-related information, including reports of problems, as well as opinions from
Sony Group employees. Employees can send messages to the Product Quality
Information Channel website. This can be done when, during the course of their
work, they discover a problem related to product quality that they cannot solve or
deal with or when a quality-related problem occurs while they are using a Sony
product. After the Product Quality Information Channel conducts fact-finding studies
regarding the information gathered, it proposes and introduces measures to avoid
potential problems and prevent previous problems from recurring.
As of April 30, 2007, Sony had received a cumulative total of more than 1,000
reports since the establishment of the Product Quality Information Channel. The
diverse range of information received has included proposals to make products and
manuals more user-friendly, and has led to more than 700 improvements.

Breakdown of Product Quality Improvements

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4.2 Environment Policy
Sony India is committed to comply with Sony Group Environment Vision
(SGEV) and to continually improve Environment Performance in our office.

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5. Collaborations
Mergers, acquisitions, and joint ventures

1988 — CBS Records Group from CBS. It was renamed "Sony Music
Entertainment".
1989 — Columbia Pictures Entertainment from Coca Cola for US$3.4 billion. It was
subsequently renamed "Sony Pictures Entertainment" in 1991.
1993 — Acquired Psygnosis Limited a computer games company based in
Liverpool, UK. Psygnosis director Ian Hetherington was made Managing
Director of Sony Computer Entertainment Europe.
1995 — Sony/ATV Music Publishing LLC, a 50:50 joint venture of Sony
Corporation of America and Michael Jackson.
1997 — ST Liquid Crystal Display Corporation (STLCD), a 50:50 joint venture of
Sony Corporation and Toyota Industries Corporation.
2001 — Sony Ericsson, a 50:50 joint venture of Sony Corporation and Ericsson AB,
was established in October.
2002 — Aiwa Corporation in October.
2004 — S-LCD Corporation, a joint venture of Sony Corporation and Samsung
Electronics Co. Ltd (Samsung Electronics: 50% plus 1 share, Sony: 50%
minus 1 share) was established in April.
2004 — On July 20, 2004, the EU approved a 50-50 merger between Sony Music
Entertainment and BMG. The new company was named Sony BMG Music
Entertainment and, as of 2005, holds a 21.5% share in the global music
market, behind worldwide leader Universal Music Group, which has a 25.5%
share.

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2005 — On April 8, 2005, The MGM Company (Metro-Goldwyn-Mayer and United
Artists) was acquired by a Sony-led consortium (Providence Equity Partners
29%, Texas Pacific Group 21%, Sony 20%, Comcast 20%, DLJ Merchant
Banking Partners 7% and Quadrangle Group 3%) finalised the deal to
purchase the film studio for about $4.8 billion, including $2bn in debts from
Armenian-American Kirk Kerkorian.
2006 — Sony NEC Optiarc Inc, a 55:45 (Sony 55%, NEC 45%) joint venture of
Sony Corporation and NEC Corporation, was established in April.
2006 — Acquired digital Single Lens Reflex (Digital SLR) cameras section from
Konica Minolta including digital camera support and servicing.
2006 — Acquired Grouper Networks (now Crackle, Inc.), a Sausalito-based startup
company that created a user generated video sharing platform and P2P
technology for $65M.
2007 — Qreatic Design Inc, a 50:50 joint venture of Sony Corporation and Qimonda
AG.
2007 — Moversa GmbH, a 50:50 joint venture of Sony Corporation and NXP
Semiconductors

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6. Product Line & Length

Sony India
Sony India

Home IT &
Television & Projector Home
Television & Projector
IT & Portable Audio
Portable Audio
Video/Audio
Video/Audio Computing
Computing

LCD TV
LCD TV Blu-ray Disc
Blu-ray Disc Laptop &
Laptop & MP3
MP3
Player
Player Computer
Computer Walkman
Walkman

CRT TV
CRT TV DVD Player
DVD Player Memory Stick
Memory Stick CD Walkman
CD Walkman
Home Theatre
Home Theatre
Projector
Projector DVD/HDD Flash // Data
•• 3LCD DVD/HDD Flash Data Voice
3LCD Recorder Media Voice
Projection TV
Projection TV Recorder Media Recorder
Recorder
Business
Business
Projector
Projector DVD Portable
DVD Portable Storage Media
Storage Media

Public
Public Hi-Fi System
Hi-Fi System Enterprise
Enterprise
Display Panel
Display Panel Storage
Storage
Solutions
Solutions
Home Audio
Home Audio
Accessories
Accessories

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Sony India
Sony India

Storage &
Storage & Digital
Digital
Game
Game Video Camera
Video Camera
Recording
Recording Photography
Photography

High
High
Play
Play Memory Stick
Memory Stick Digital SLR
Digital SLR Definition
Definition
station® 3
station® 3 Video
Video
Camera
Camera
Play
Play USB Storage
USB Storage Digital
Digital
Station® 2 Media Camera Standard
Standard
Station® 2 Media Camera
Definition
Definition
Video
Video
PlayStation®
PlayStation® Data Storage Digital Photo Camera
Camera
Portable Data Storage Digital Photo
Portable Media
Media Printer
Printer
Projection TV
Projection TV
Standard
Standard
Definition
Definition
Storage Media
Storage Media Video
Video
Camera
Camera
Professional
Professional
Media
Media

Video/Audio
Video/Audio
Media
Media

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7. Management Level

MD
MD

National Sales Head
National Sales Head

Regional Sales Manager
Regional Sales Manager

Area Sales Manager
Area Sales Manager

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8. Major Competitors
The major competitors for Sony Vaio in this region are HP/Compaq, Acer,
Lenovo and the major share is taken by HP/Compaq laptops as they are having the
brand name as well as competing products which match the international standards
and are of good quality. In Sony the starting prices are from forty thousand and plus
where as HP/Compaq has thirty plus thousand price tags.

If a person buying laptop with price in his mind then there is no chance of him
going for Sony as it is not affordable, in case he is ready to bear the price for the
price of forty thousand plus when he is able to get better configuration than what he
gets in Sony then also he will think twice while buying. Sony products are known for
the quality there is no doubt about it but the price tags make them unhappy. People
who are affordable and they are brand conscious only go for Sony. In some cases the
user was given a Sony laptop by his organization. The looks are most preferred of
the Sony products.

Acer and Lenovo are also having the higher end models where in they tap the
segment which is price conscious and wants higher configuration. Here these
companies produce at a low cost and do not charge premium prices on there products
as they want to compete in the market and increase their market share and with small
margin they want to increase their profit.

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9. Various Branch Offices and Service centers

The Head office of Sony India Pvt Ltd is located in New Delhi.
Sony Branch offices
• Haryana,
• Ludhiana,
• Mumbai,
• Bangalore,
• Chennai,
• Kolkata,
• Hyderabad,
• Vijayawada,
• Jaipur,
• Chandigarh,
• Lucknow,
• Pune,
• Ahmedabad,
• Indore,
• Cochin,
• Coimbatore,
• Ghaziabad,
• Guwahati,
• Hubli and
• Ranchi

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10. Employee base
Sony India currently has employee base of 636 people working in India in
various branch offices.

10.1 Business Activities
Marketing, Sales and After-Sales Service of electronic products & software
exports
Products: Televisions, Hi-fi Audios, Home Theater systems and DVD players,
Personal Audio (CD/Cassette Radio Players and Walkman®), Audio Video
Accessories, Car Audio and Visual Systems, Notebooks, Gaming Consoles,
Camcorders and Digital Still Cameras, Digital Imaging Accessory (Batteries,
Chargers, Microphone, Photo Printers), Mobile Phones, Recording Media and
Energy Devices, Broadcast and Professional products

10.2 Careers
Join a Team that makes it happen

We are committed to
continually seek talented and
creative minds working in
harmony with each other to
bring new emotions and
wonders to the world. As a leading Consumer Electronics organization we look
forward to your initiative, enthusiasm with imagination and invite you to explore
unparalleled career opportunities while creating an exciting future together.
We provide our employees a vibrant, diverse and stimulating environment
with enormous opportunities to explore new dimensions of creativity and Hi-
Technology thus enhancing their potential to the optimum.

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We invite you to join our organization whose forte are its ethics and values,
which are reflected in our actions and people practices.
11. Financial Performance
Sony Corporation and Consolidated Subsidiaries

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11.1 Business Overview

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Electronics
The Electronics business is comprised of televisions, video, audio,
information and communications equipment, Laptops, components, semiconductors
and other products. To achieve future growth and to reinforce competitiveness and
profitability, Sony is concentrating investment of its Electronics business resources
in development and commercialization in the areas of high definition (HD) products,
mobile electronics and semiconductors and other devices, all of which are crucial to
the differentiation of Sony’s products.

Review of Operations
In the fiscal year ended March 31, 2007, the global
market for liquid crystal display (LCD) televisions
totaled approximately 51.5 million units, 2.5 times
its size in the previous year. Although competition
in the operating environment for the flat panel
television industry was harsh overall, efforts to
heighten the appeal of our BRAVIA line of LCD
televisions by focusing on key strategic product
features—namely larger screen sizes and Full HD
(1920 x 1080-pixel) resolution—supported brisk sales worldwide, pushing shipments
of BRAVIA televisions up 2.3 times, to approximately 6.3 million units, and earning
us the top global market share.
* Source: DisplaySearch, revenue basis for calendar year 2006

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11.1.1 Digital Camera

The digital camera market continued to grow in the fiscal year ended March
31, 2007, climbing 22%, to around 79 million
units, reflecting robust replacement demand in
Europe and North America. In this environment,
Sony recorded brisk sales worldwide thanks to
products that responded to market needs,
including the affordably priced Cyber-shot W
series and S series in Europe and North America
and the slim-design Cyber-shot T series in Asia.
As a consequence, shipments of Sony digital cameras increased 26%, to
approximately 17 million units.

11.1.2
For the fiscal year ended March 31, 2007, the global
market for video cameras remained level at about 18
million units, of which Sony accounted for approximately
7.45 million units, a slight decline from the previous fiscal
year. From 8mm video, the industry format for consumer-
use video cameras, to digital video (DV) and high
definition video (HDV), which enables users to record and
replay HD video, we have led the industry by striving constantly to commercialize
Handycam® camcorders that deliver improved image quality and convenience. In
the period under review, we launched the first consumer-use video camera based on
the AVCHD HD video recorder format, which enables recording and storing of HD
Video on random-access media. We will continue to enhance our lineup of HD
camcorders and promote the conversion of personal video content to HD.

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11.1.3

BLU RAY
In the period under review, we rolled out Blu-ray Disc players in the
U.S. market while in Japan we launched two Blu-ray Disc recorder models. Capable
of recording full-resolution content from HD broadcasting and HD video cameras,
Blu-ray Disc recorders can also play motion pictures and other content released in
Blu-ray Disc format, as well as support digital slide shows and playback
applications, thereby increasing the enjoyment to be gained from HD technology.
In the portable audio category, we continued to enhance our lineup of Walkman®
digital music players. These players exhibit superb sound clarity, thereby fulfilling
the quintessential objective of any piece of audio equipment—to produce superior
sound that enhances the music listening experience. We also launched a top-of-the-
line Walkman® series that delivers outstanding sound quality and high-resolution
video playback in a small, lightweight package featuring simple operability that
takes advantage of the large screen.

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Game

PLAYSTATION®3
Launched in Japan on November 11, 2006, then successively in North
America and some Asian countries on November 17, 2006, and in Europe on March
23, 2007, the PS3 platform is expanding. Despite the impact of a production delay
for a key PS3 component, SCE succeeded in shipping a total of 5.5 million units
worldwide during the fiscal year. For the European launch, SCE took advantage of
the four months following the Japanese/North American launches to assemble an
initial hardware shipment of 1 million units and approximately 30 software titles,
thereby transforming PS3 into its most successful platform launch yet in Europe.

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Entertainment
In the Entertainment business, Sony is primarily engaged in motion picture
and television production and distribution, music recording and music publishing.
Enjoying leading industry positions in many of its businesses, Sony Pictures
Entertainment Inc. (SPE) is comprised of its motion pictures, television
programming, home entertainment and digital entertainment businesses. Sony Music
Entertainment (Japan) Inc. (SMEJ) and SONY BMG MUSIC ENTERTAINMENT,
a joint venture with Bertelsmann AG, are engaged in the music recording and
distribution businesses, producing many hit songs and award-winning artists.
Sony/ATV Music Publishing is engaged in the acquisition and exploitation of
musical copyrights.

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11.2 Research and Development
R&D expenses for the period increased ¥12.1 billion, or 2.3%, to ¥543.9
billion from the prior fiscal year. This is equivalent to 7.1% of net sales and
operating revenue, excluding the Financial Services segment, which was down from
7.8% a year earlier.
R&D expenses in the Electronics segment increased ¥22.3 billion, or 5.3%, to
¥440.4 billion, while expenses in the Game segment decreased ¥10.8 billion, or
9.9%, to ¥97.9 billion.

R&D Highlights for the Fiscal Year Ended March 31, 2007
New Agreements
Sony joined an alliance of industry-leading consumer electronics and
telecommunications companies from Japan, Korea, Europe and North America in
March 2007 to establish the Open IPTV2 Forum. The organization will set a single
global standard for Internet protocol television (IPTV) technologies to deliver video
content via networks. In this forum, the alliance members will develop technology to
offer consumers easy access to the content and services offered by various providers
via mobile and home electronics.

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11.3 Corporate Governance
Sony is committed to strong corporate governance. As a part of this effort,
Sony has adopted “Company with Committees” corporate governance system.

11.4 Governance Structure
Sony Corporation’s statutory entities are comprised of the Board of Directors,
which is appointed by resolution at the shareholders’ meeting; three committees (the
Nominating Committee, Audit Committee and Compensation Committee),
consisting of directors named by the Board of Directors; and the Corporate
Executive Officers, who are appointed by resolution of the Board of Directors. In
addition to these statutory entities, Sony has Corporate Executives who carry out
business operations within designated areas.

11.5 Corporate Governance Structure

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12. Theoretical Background for the project work
12.1 Channel Management

The channel decision is very important. In theory at least, there is a form of
tradeoff: the cost of using intermediaries to achieve wider distribution is supposedly
lower. Indeed, most consumer goods manufacturers could never justify the cost of
selling direct to their consumers, except by mail order. In practice, if the producer is
large enough, the use of intermediaries (particularly at the agent and wholesaler
level) can sometimes cost more than going direct.

Many of the theoretical arguments about channels therefore revolve around
cost. On the other hand, most of the practical decisions are concerned with control of
the consumer. The small company has no alternative but to use intermediaries, often
several layers of them, but large companies 'do' have the choice.

However, many suppliers seem to assume that once their product has been
sold into the channel, into the beginning of the distribution chain, their job is
finished. Yet that distribution chain is merely assuming a part of the supplier's
responsibility; and, if he has any aspirations to be market-oriented, his job should
really be extended to managing, albeit very indirectly, all the processes involved in
that chain, until the product or service arrives with the end-user. This may involve a
number of decisions on the part of the supplier:

• Channel membership
• Channel motivation
• Monitoring and managing channels

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12.1 Channel conflicts
Channel conflict refers to a situation in which business partners clash in some
of their operations, such as distribution networks, in such a manner that it causes
stress to the relationship, effectively turning them into both competitors and partners
simultaneously. In the Internet-driven business world, channel conflict is a well-
known phenomenon. As the online medium has forced separate players closer
together, it has resulted in many of them stepping on each other's toes.

Also called disintermediation, channel conflict is a problem that many in the
e-commerce world aggressively took on as a consequence of devising an online
strategy. In the process, the chain of business relationships became scrambled and
confusing. Drastically lower transaction costs and higher margins for merchants
make Internet-based direct customer sales irresistible. While companies fret over
alienating their resellers, they risk losing valuable time and market share to
aggressive competitors that move to become online distribution fixtures. These
simple economics lay at the heart of channel conflict. Forrester Research, a
Cambridge, Massachusetts-based market research firm, found that 66 percent of the
consumer goods manufacturers it surveyed listed channel conflict as the chief barrier
to online sales. However, the fact of channel conflict appears to be inevitable as
more companies set up shop online.

Companies have thus begun turning to strategies that will enable them to
manage channel conflict and eventually turn it into an advantage.Along with the
advent of e-commerce, many merchants moved their distribution outlets online to
reach customers directly and save on transaction costs. This caused powerful
distributor networks, which often enjoyed extremely valuable relationship with the
merchants, to take offense at the abandonment of their businesses. For example,
manufacturers who have established brand name recognition and loyalty may want

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to reap greater returns on their sales by bypassing retailers, with whom they may
have built lasting relationships that contributed greatly to both parties' success.
Meanwhile, distributors—perhaps the most endangered victims of disintermediation
—are increasingly challenged to prove they add immediate value and justify their
margins. According to InformationWeek, one method was for distributors to forego
the assumption of ownership over inventory and instead charge manufacturers a
transaction fee, while assuming order-management and other value-added duties.
Meanwhile, a whole new crop of distributors rose up to encroach on the e-commerce
distribution channels, marketing themselves as e-commerce services that handle
logistics and other tasks specifically for dot-coms.

More important than what the firm values in these cases is what the customer
values in each segment of business. If customers have come to appreciate, expect,
and depend upon a certain type of service and presentation they received through an
experienced retailer, a manufacturer may be shooting itself in the foot by trying to
sell direct to customers over the Web. No matter how important the drive to establish
an online presence and an Internet-based distribution scheme, the ultimate goal is to
turn channel conflict into channel harmony.

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12.2 Sales Related Marketing Policies

Sales related marketing policies impact upon the functions and operations of
the sales department. These marketing policies delineate the guidelines within which
effort to reach personal-selling objectives are made. The three major types are
• Product policies (What to sell)
• Distribution policies (to whom to sell)
• Pricing policies

Sales related marketing policies directly influence the jobs of sales executives.
Clearly, these policies constitute the company-imposed marketing frame work within
which sales executives and the departments they lead must operate.

Product Policies

Relation to Product objectives
Product policies serve as guidelines for making product decisions. They derive
from product objectives .product policies define the nature of superiority from the
standpoint of the product users.

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Product line policy
Policies on the width of a product line are classified as either short line. The
company following a short-line policy handles only part of a line, while the company
with the full-line policy handles all or most of the items making up a line.

Distribution Policies
Distribution Policies are important determinants of the functions of the sales
department. The choice of particular marketing channel or channels set the pattern
for sales force operation, both geographically and as to the customers from whom
sales force operations, both geographically and as to the customers from whom sales
personnel solicit orders.

Pricing policies
Every company has a policy regarding the level at which its products are
priced relative to the competition. If competition is price based, a company sells its
products at same price as its competitors. If there is non-price competition, the
choice is one of the alternative of three polices.

 Meeting the competition.
 Pricing above the competition.
 Pricing under the competition.

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13. Rationale behind choice of the project

“The important thing is not to stop questioning. Curiosity has its own reason for

existing. One cannot help but be in awe when he contemplates the mysteries of

eternity, of life, of the marvelous structure of reality. It is enough if one tries merely

to comprehend a little of this mystery every day. Never lose a holy curiosity”

Albert Einstein
US (German-born) physicist (1879 - 1955)

. A project always starts with a definition of problem. Once a problem is defined it
completes the part of the project work. The questioning gives the exact answer for
the problem defined.
The first portable computer was Osborne 1, which was developed in 1981.
Manny Fernandez was the first who developed the personal portable computer for
the business executives in 1981 and named it “Laptop”. The two commonly used
terms are being used for the laptops, one is laptop and other is notebook.
Sony Vaio is a well know brand in the Bangalore region and is performing
well in southern part of Karnataka, the Hubli-Dharwad region is up coming area
where in there is lot of potential for the companies to increase their market share.
There are players like HP/Compaq, Lenovo and Acer which are having the
considerable amount of market share. Sony laptops have made their presence felt in
the market but it is now intending to increase the market share and the need for this
project is to determine the opportunities available for its growth and to determine the
gaps in the competitors within their distribution channel till the end users. This will
help SONY to fill those gaps in its distribution channels through which it can make
customers delight.

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Through this project SONY will not only be able to get to know about the
Gaps of its competitors it will also be able to trace the of its channel and fill those
Gaps for providing the effective service to its channel members and end users.
In this project a survey will be conducted on the retailers as well as
distributors of the laptops and data will be collected. Along with this information
from end user of the laptops will also be collected in order to know the customer
preference and their buying behavior. The company will get the latest information
about the retailers i.e. data base of the retailers along with filled questionnaires
which they have filled will be submitted to the organization.
As for the end users a proportionate number of users as will as potential
customer’s opinion will be considered so that company can design their marketing
strategies to suit the needs of its customers.
The study for laptop is essential as more people are buying laptops and the
competition among the players is increasing. When the company is having sufficient
data about the market then it becomes easy to have an edge over its competitors.
Considering all these aspects it is essential to study the potential of the
market, competitor’s strategy, finding the Gaps in the competitors and filling those
Gaps so that there can be an edge over the competitors.

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14. Utility of the project

14.1 Benefits to the organization

 Sony will be benefited with the information collected by me on the Sony Vaio
Laptops from the retail partners and further use it as per their requirement.
 Sony will be able to estimate the market share of their products.
 Through this project they will come to know about the performance of their
competitors like HP/Compaq, Acer, Lenovo, and other in the laptop market.
 The retailers mention about the satisfaction on the aspects like cost of the
laptop, its performance and distribution channel and various other details
which will be of prime importance to the company.
 The report contains the data collected from end user also and potential
customers. The end users are again segregated into segments like Sony laptop
users and non-Sony laptop users, where in the information given by them is
valuable and company will come to know the reason why people buy Sony
and why people don’t buy Sony.
 The information is also collected from the potential customers who are
willing to buy the laptop and their preference is mentioned which is a vital
information to the company
 The data is collected from major cities of North Karnataka which include
Hubli-Dharwad which tells the problem faced by the retail partner in the city
like advertising problem, service problem.
 The suggestions and opinions are collected in this report which is a valuable.

14.2 Benefits to me as a student
 As a student I came to know the market condition in the IT field.
 I came to know about laptops, cost, usage, types and various other things.

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 Through this project I was able to know the distribution channel in the IT
field.

15. Introduction to the project work
15.1 Background
The project in Sony Vaio Laptop is an interesting area as it gives a wide scope
for study of the market of the laptop as well as the products of the competitors as
well as the strategies adopted by them in order to increase market share. The project
is done mainly to determine the problems faced by the Sony in selling the laptops
through its retailers and also to find out the exact reason why the Sony product sale
is not increasing in the Twin-Cities. As in the IT market the retailers play a crucial
role in promoting the goods along with the companies which produce them. If there
is no correlation between them then there would not be much sales for the company
and retailers also does get any benefit.
The Sony India Pvt Ltd is into laptop business from past many years and it is
performing were well in the metropolitan cities but the performance is not up to the
mark in up country region. The competitors like HP/Compaq, Lenovo, Acer have
been doing good in these regions also.
The competitors have introduced the products which very much suitable to
this region. HP/Compaq is providing the laptops at a very competitive price and they
are also with a latest configuration. Sony is know for the brand and quality but
unfortunately only those people buy who are very much brand and quality conscious.
The people in up country region are not at all ready to pay the premium price for the
laptops.

3

Increasing Sony Vaio Laptop Sales in Hubli-Dharwad

Increasing Sony Vaio Laptop Sales in Hubli-Dharwad

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Increasing Sony Vaio Laptop Sales in Hubli-Dharwad