Marketing Planning and Strategy of Sony Ericson

1. Marketing Plan and Strategy of Sony
Ericsson – Future
Marketing Plan and Strategy of Sony
Ericsson – Future
Tech
Tech

2. Background
•
• Technology is growing fast in Nepal, causing the cell phone not to be a
necessity at this time but a want amongst the Nepali people. The next few
years will show that more people in Nepal will be purchasing cell phones.
Today customers expect more, have more choices and they needed the
best for the amount they spend. So, marketing strategic plan has become
so important in this aspect.
•
• Keeping in mind the present global and Nepalese market scenario I have
prepared the report to the best of my knowledge and suggested strategic
frame work that they could have to implement to have competitive
advantage in the market

3. Introduction: Global Mobile Phone
Market:
• International Mobile phone market is being
growing at a tremendous rate. Based on the
research by IDC , vendors shipped 346.4 million
mobile phones, a YTY increase of 15.0% for Q1
2008. However, the shipments were 13.8% lower
than the record shipments in Q4 2007; the
decline was expected owing to the seasonality of
the market. More than 100 M 3G phones were
sold in 2006 and more than 200 m smart phones
will be sold in 2008.
• Market Share of different Brands

4. Brand Share%
Nokia 40%
Samsung 14%
Motorola 14%
Sony Ericson 19%
LG 13%

5. Market Size and Demand – Nepal
• Demand
•
• Nepal has a young consumer market.
•
• This will be a potential target market because young adults in the
• Nepalese community want to be up to date with technology.
•
• Young people of Nepal today are more likely to spend money on
• technological items.
•
• Nepal will be advertising cheaper cell phones throughout the country so
• that more young people can afford them based on their income.
•
• With Nepal’s increasing GDP and average income, younger people will
• benefit from this growth and purchase more expensive goods.
•
• The cell phone trend is going to take off within the next couple of years
• throughout Nepal.
•
• Rise in per-capita will allow people to spend more on luxury items.
•
• The phones will be less expensive.
•
• The cell phone will eventually be considered a necessity

6. Market Size
• Market Size
•
• Estimated mobile user in Nepal approx 3.5 -4 million
• Tentative Market share F/Y 64-65
•
• Estimated Sales last year of mobile Phones is 3.5-4 lakh
•
• This year sales would reach approx 5-6 lakh

7. Customer Analysis /Target Market.

8. • Gender
Male and Female
Age Group 15-59
• Lifestyle
College Youths
Working Executives
• Geographical Profile
Urban/Semi Urban and Rural
Where there is mobile connectivity

9. Competitive Analysis
• Direct competitors –
Nokia,
LG,
Samsung,
Motorola and
other Chinese brand
• Indirect competitors
Walkie-talkies, PDA's

10. Marketing Objective : Volume, Share
• With the outstanding market potential the objectives on how much volume
and share are nearly limitless for the next few years. Since there is such a
huge market that needs the supply of phones as long as you have a good
brand image almost all, if not all of your stock should be purchased.
However setting initial goal of 70 thousand phones is not unreasonable and
not to cost problematic.
•
• This will also establish a decent market share. However, the market share of
individual phones is ever changing. Since we are with a company which
dominates the market share (Nokia, Samsung, and Motorola) and image. We
must be having at lease 10-12% of market share for this fiscal year and
gradually improve to be No.1 in days to come and I believe it is not at all
impossible and ultimately

11. What Future Tech Should think?
• THINK GLOBAL BUT ACT LOCAL
• Nepal - A diverse market
• Every market is different and requires special actions
• Faster response to market needs – Dealers as well as customer
• Planning and implementation to go hand in hand
• Decision making at field level
• Delegation at local level
Sales activities and Schemes
Network coverage and expansion
Local Marketing activities
• Integration of all activities at the zone level (Sales, sales support,
• marketing and service)
• Dealer guidance, development and problem solving at the local level
• Specific strategies based on markets
• Reaching out to customers.
• Delivering value

12. Sony Ericsson SWOT Analysis
• Strength
•
• Diversity among products.
•
• Sony as a brand name.
•
• Weakness
•
• Lack in understanding Customer Preferences
•
• Less technology advancement
•
• Lack of user centered designs.
•
• Lack of Brand awareness globally
•
• Opportunities
•
• Mobile phones market in developing
•
• High % of young market
•
• Strong Customer demand for innovative product
•
• High Disposable income in emerging markets.
•
• Network capabilities and low tariff of service providers.
•
• Threats
•
• Landline penetration and introduction of Sky phones for rural areas.
•
• Intense competition.
•
• Bargaining power of consumers.

13. The Marketing Mix and Product
Strategy
• The Marketing Mix and Product Strategy
• Key marketing strategies which are identified:-
• The products should be stylish and in with the current trend and
technology. One of the noted trends is the ‘only touch screen' mobile
handsets, with the advent of iphone from Apple and a phone from the LG-
Prada tie-up. If the emerging markets and trend are focused, then style
would play a major role as the Nepalese consumers are mostly young
adults with an increasing amount of disposable income and they look for
brands which are fashionable, especially.
• Sony Ericsson should be differentiated according to pricing. With heavy
competition cutting down on the profits, Future Tech (Sony Ericsson)
should look into new markets using the penetration pricing technique and
create a new market segment, like what Nokia did in India with their Nokia
1130 mobile which was a dust proof phone with a torch.
• Product differentiation could be done on the basis of the respective
bundling; if it focuses on music player then it should be placed in a
separate category from the handset which has camera as its specialty.
• The emphasis should be given to direct marketing and customer
• relationship management (CRM).).

14. The Marketing Mix and Product
Strategy
• A key part of brand development is making your brand more instantly
accessible in memory and that's what product placement does. So, placement
should be utilized in the digital media to make a mark on the customers psyche.
Also, strategic placement of advertisements in youth oriented program to target
teenagers.
• The product needs to be placed strategically in such a way that customers treat
it as a status symbol and a fashion statement. This could be done by direct
marketing in mega malls and boutique shops, to improve the brand image.
• Future tech should endorse local film stars and athletes for their products and not go for international stars, which the local people wouldn't be able
to relate to.
• Physical settings of the showroom should be trendy and modern to give the
general impression of the brand. It should not just confirm to the assumptions of
the consumer but also delight them. The mobile phones should also be placed
strategically such that the best phones should be in the front and the cheapest
at the back.
• The employees dealing with the customers should be given special training as
to how to be presentable, pleasing, and well-mannered and how to handle the
customers efficiently. The training would set a certain standard across all
outlets and increase the consumer satisfaction

15. The Marketing Mix and Product
Strategy
• Warranty and Insurance
• Sony Ericsson units come with a standard 1-year warranty for parts and
functionality and 6 months for battery. The warranty excludes cosmetic
damage whereas replacement casing may be purchased and then applied
free of charge in Sony Repair Centers. For the holders of Sony Ericsson
Privilege card, there is an option for upgraded warranty by payment of a
nominal charge.
• Insurance is a new terminology in Mobile market, but it is very effective tool
globally. Future Tech should tie up with some insurance company for
insurance of mobile phone. ( it is a value added strategy or marketing
gimmick to attract customers).
• After Sale service - Service Plus
• Future Tech should heighten its already excellent customer service to further
differentiate it from competitor brands. In order to align itself with the
various needs of its clientele, there will be a provision for different ‘Tiers of
Service' for Sony Ericsson Privilege Card holders - silver / gold / platinum.
The Card tiering will be contingent on the points accumulated. Sony
customer care service centers promise a one-day maximum period within
which to respond to queries. Taking advantage of the client contact which
this entails, service representatives handling repairs may extend the option
of loaning temporary units at a nominal charge until the user's phone has
been completely repaired. Future Tech will also provide assistance to clients
who need to retrieve data or contact numbers from damaged units. These
servicing station should be very visible and in major outlets as well.
• Enhanced 24-hour 7 business day toll free line, and professional
• staff to hel customers solve roblems

16. The Marketing Mix and Product
Strategy
• Branding/Rebranding
• For Sony Ericsson to boost it’s the corporate identity, it is recommended the
re-branding of mobile phones under the umbrella brand, "Sony." The
concept is similar to that utilized by Motorola (Moto-Razor, Moto-Flip, etc.).
This strategy will help leverage upon the existing strong brand equity of
Sony in the "appliance" industry, as well as its reputation for product
innovation.). This not only reinforces the existing brand awareness of Sony
but also tells customers about what advantages Sony Ericsson mobile
phones are capable of bringing to them.
• It is proposed to establish strategic partnerships that will help Sony Ericsson
reach the primary target market as well as the secondary target market
more effectively. This will help create a stronger brand recall for Sony
Ericsson mobile phones in each category.
• In addition, a club of Sony mobile users and users of Sony home appliances
with cross-product discounts, and membership perks in other establishments
will be provided upon purchase of the said appliances. For instance, a
customer will be entitled to a certain number of credits which may be used
in purchasing a Sony Ericsson mobile phone when he purchases a television.
• Launches:
• Any new product launched by Future tech should be talk of the town. The
launch should be carried out with press meet and backed up with huge
media campaign.
• Pricing Policies:
• Future Tech retail price will be issued to the distributors for strict
implementation. Strict monitoring will be implemented to ensure that
retailers would not dilute the brand by selling it at a lower price.

17. The Marketing Mix and Product
Strategy
• Distribution Strategy
• Existing Distribution system
• Sony Ericsson’s current distribution system consists of one national supplier who acts as exclusive distributor
agent to the Nepal. This supplier distributes to:
• a. 3 Concept Stores which are Future tech own store and display ONLY Sony
• phones.
• b. Over 150 Authorized dealers which are multi-brand stores
• The problem of ‘Grey market' is huge due to a VAT to be paid to government
• Channels Members: Proposed Distribution System
• In order to increase sales volume and market share, the following alternate
• distribution model is proposed:
• Traditional Distribution Channels
• Distributor – Retailer / Distributor – Consumer
• We will retain the conventional distribution process whereby it utilizes a selection of
distributors. These distributors have the option of either a) reselling units to a
network of retailers or b) vending to consumers. The latter scenario applies to
distributors who own shops in selected shopping centers. Here, it is imperative that
product pricing be comparable to the cellular phone model's suggested retail price.
• In order to optimize product exposure in the retail channels, Sony can issued is p lay
• racks to high-volume retailers, gratis. It will be mandatory for distributors who own
• retail stores to maintain at least one of these promotional racks in a visible area. Exclusive dealers will likewise be
required to utilize company-sponsored racks and follow Sony Ericssions prescribed store layout. We will make our
beat route plan and follow up with retailers and dealers to be done on daily basis by sales team.

18. The Marketing Mix and Product
Strategy
• Sony Ericsson Outlet Stores
• Spurring from the utilization of this channel, Sony Ericsson should explore the
possibility of establishing company-owned outlets, whose product line consists
exclusively of Sony Ericsson mobile phones and paraphernalia. The availability of
warranties for both parts and service differentiates these outlets from independent
vendors, whose warranties are confined to repairs. Repair provisions, however, will
not be limited to units within their prescriptive warranty, provided the customer is
willing to shoulder incidental costs.
• Future Tech choice of location will be limited to upper scale malls and boulevards,
• and restricted to areas mostly outside their retailers' scope of operations.
• Factors Affecting Channel Decision
• It must be noted that in selecting its network of distributors, it is recommended that
Future tech evaluate reputation given by years in trade as well as sales force
capabilities in order to maximize market reach while keeping the number of
distributors
• That distributors are willing to undergo training for repair of Sony Ericsson products is imperative. This allows Sony
Ericsson to ascertain that the quality of service to be rendered satisfies Sony Ericsson standards.
• Dealers should likewise be assessed in terms of store location, reputation, and
customer target segment. These standards are critical in the selection process as
contracts with dealers mismatched target markets risk rendering the partnership
superfluous due to meager revenues.

19. The Marketing Mix and Product
Strategy
• Area Wise targets Vis a Vis Competition and expansion
of Network
• All of us understand there is a huge potential in a
market and which need to be penetrated. To penetrate
the market Area wise targets to the sales team to be
given according to market size and shares.
• We have to have proper distribution channel and it is
must to have distribution
• channels where competition is present

20. Promotional Strategy
• Advertising
• The aim of advertising strategy is to increase the brand-awareness
and brand-recall. While Sony Ericsson has been able to establish its
name in the mobile phone market, it has not successfully implanted
its image in customers' minds as the first mobile phone of their
choices. The high priority of advertising strategy is to be able to
communicate Sony Ericsson's stance on giving its customers the
ultimate mobile phones equipped with functionality suitable for the
professionals and state of the art technology.
• When marketing to the rural area we have to realize that they do
not have various methods of communication such as internet and
television. To market to the rural area markets we will place add in
popular newspapers and magazines as well as send out mobile vans
to market our product. Lastly we will participate in trade fairs and
flea markets which are immensely popular in the rural area

21. Promotional Strategy
• Executive Series
• The "professional edge" should be rooted in the heart of advertising
campaign. The message to be delivered through advertising and promotion
strategies is "Be yourself! Be a Pro!” This is to take into account that Sony
Ericsson’s primary target segment are young professionals in the age group
of 25 to 40 years who have been able to prove themselves in their fields of
work. They know who they are and they are pleased with what they have
achieved in their life so far. Their "centre of gravity" lies in how they feel and
how they look. They are confident, sure of themselves and know what they
want to look for in life. They accept themselves and are keenly interested in
the "Pro world" but not transform into someone else rather than themselves.
• Our target is more mature, more pleased with himself/herself. That's not to
• say that s/he's perfect. It just means s/he is more PRO-centered.“
• The advertisement of the above should be featured on television between
• news or informative programs as these are most watched by this
• target segment. In addition, it should be printed on magazines such as
• Himal Magazine, Boss, as well as Nepal which are of high interest to the
target segment. Internet advertisement is also highly recommended for this
segment.
• Strategic advertising partnership with other car distributor such as Hyundai,
Maruti, Toyota and the like are strongly encouraged so as to build a co-
brand awareness and existence for both Sony Ericsson and car
manufacturers. This is made possible after the successful co-operation of
Future Tech with these manufacturers in the distribution channel as well as
co-advertising. The majority of this target segment is existing car owners as
well as professionals that will be seeking to own mid to high-end cars once

23. Promotional Strategy
• Walkman Series:
• Sony Ericsson secondary target segment is the urban population in the
age group from 15 to 25. People at this age group are seeking to find
themselves and their places in the society. Their sense of belonging is
of significant importance. They yearn to belong to a certain group and
are greatly influenced by their friends/peers. It could be said that this
group's behavior is entirely different from that of the primary target
segment. Besides the emotional aspect, they are looking for
entertainment features in mobile phones such as music, games.
• As such, there arises the need for a different advertising strategy.
Advertisements should focus on featuring Sony Ericsson mobile phones
as a way to connect friends and as a status symbol of being recognized
as a member of a circle of friends/peers. In addition, they can derive
great music, and games out of Sony mobile phones.
• Television still remains one of the choices of the media. However,
cinema, billboard, internet and radio advertising are also chosen for the
main reason that this target segment spends much time for these
channels. These could prove to be highly effective advertising means.
• Sponsorship of Musical programs or live concerts by mean of ambush
• marketing will be an added advantage to the Walkman series.

24. Sales Promotion or Sales Tactics
• The objective of sales promotion is to induce purchase as well as to retain
existing customers by providing special incentives for Future Tech
customers.
• It is specially encouraged that Future tech should tie-up with corporations
to allow discounts for employees. This promotion move will prove to be
highly effective as the primary target segment is the young working
professionals. This is an ideal strategic tie-up as it will certainly generate
sales volume as well as brand awareness. There is no better advertising
strategy than "word of mouth" advertising. In addition, there will be
strategic tie-ups with TV, FM. For example, audience tuning to Kantipur TV
programs answering questions correctly given after the end of the
program can get Sony Ericsson mobile phones as prizes. In turn, KTV will
indirectly promote Sony Ericsson brand awareness by mentioning the Sony
Ericsson as prize-givers. For music stores: customers purchasing CDs,
VCDs, DVDs from music stores will get their points added in their.
• Sony Ericsson Privilege Cards. Kiosks located in the business district will be
geared at promoting the new line, Executive series. This will bring us
closer to our primary target segment.

25. Sales Promotion or Sales Tactics
• Sony Ericsson Privilege Cards: Sony Ericsson Privilege Cards forges a
• community of Sony Ericsson customers. This club is not only exclusively for
Sony Ericsson mobile phone users but also for users of other Sony Ericsson
products. It is aimed at strengthening corporate identity. Based on the amount
of purchase, there will be 4 tiers of membership: 1) Regular, 2) Silver, 3) Gold &
4) Platinum. Promo mechanics will operate along the lines of purchases entitling
customers membership in Sony Ericsson Privilege Cards. In this system,
customers may earn loyalty points commensurate to the amount of their
purchase. Upon accumulating a certain number of points, their membership will
be upgraded to Silver or Gold status, allowing them increasing privileges.
• Sony Ericsson Privilege Cards membership will provide customers many
benefits. First, redemption of loyalty points will be in the form of discounts
among an extensive range of Sony Ericsson or Sony Products. Depending on
level of membership, customers may avail of offers for extended warranties and
product service. Members may also earn points on the surrender or exchange of
Sony Ericsson products which they intend to replace. Replacements can then be
purchased at a discount, using loyalty points as credit. Special promotions and
exclusive discounts will be exclusive to members of the Sony Ericsson Privilege
Cards.
• Sony Ericsson Privilege Card Club will be beneficial not only to customers, but to
the company as well. The club will create sustainable strong brand loyalty,
promoting customer advocacy and stronger repeat purchase due to perks and
conveniences. The Sony Ericsson Privilege Cards Club will be an ambassador for
Corporate Social Responsibility, a medium for communicating Sony Ericsson’s
social responsiveness to the public. Members will be made aware of Sony
Ericsson’s initiatives of proper disposal of hazardous parts via notices which
accompany promotional letters, emails, and text messages

26. Sales Promotion or Sales Tactics
• Public Relations: Sony Ericsson should embark on the program "Batteries
• Return". Most of the time, when the battery is no longer usable,
customers will
just throw away and therefore cause damage to the environment. Future
Tech
should practices Corporate Social Responsibility by asking its customers to
return its batteries and to reproduce/or discard them so as not to damage
the
environment. In return, customers will be able to add in Sony Ericsson
points for
their Sony Ericsson privilege Cards. This action plan will no doubt be
receiving
coverage from media such as television/newspapers of this action
program is to
project Future Tech as a "green" corporation and that people in the Sony
Ericsson community care greatly about the environment.

27. Sales Promotion or Sales Tactics
• Schemes
Nepal is a discount driven market. It is
recommended that Schemes to be
introduced every 3 months in form of
Consumer scheme.

28. Sales Promotion or Sales Tactics
• Dealer Commission
• Dealer commission to be at par with Competitors and additional commissions on cash purchase bulk lifting to be
given to the dealers. Additional 1% bonuses on total turn over to be given if achieved 100% target which is
additional to target bonus.
• Incentives to Sales persons
• Model wise sales wise incentives to be given to the sales persons to motivate
• them.
• Participations in trade shows and fairs
• To get the word out about our product we will participate in market and trade fairs
in different parts of the country. Trade shows in Nepal are no longer based on
strictly industrial goods and the business class. Today, the biggest trade shows
are organized for the middle income group and more towards household groups
that fit into our target market
• These Trade fairs will provide us with an incredible opportunity to get in touch with the real end consumers and to
understand the needs and also what their demands of our product are.
• Continuous Training Programs on sales and Marketing
• Programs related to sales and marketing to be conducted on regular basis so as to ensure that sales team is
motivated and are not new to the innovation and ideas of the world.
• Direct Marketing or mass mailing
• It is recommended to have a tie up with different commercials banks and
• magazines to distribute our product leaflets and schemes to their clientele

29. Thank You