Market Analysis †Sony Bravia Free Essays

Sony Bravia In the Australian Marketplace â€Å"Colour like No Other† Executive Summary Introduction Summary: This report will articulate purchases of the Sony Bravia Television in the Australian marketplace. It will illustrate information to develop an in-depth understanding of the consumers buying habits. The research for this report includes information sourced from the Sony website itself, interpreted and applied to the Australian Marketplace. We will write a custom essay sample on Market Analysis – Sony Bravia or any similar topic only for you Order Now Body Summary: The major findings indicate there are various factors affecting the Australian marketplace. Overcoming a major threat is possible by utilising Sony’s strengths to maintain relevance in the Australian Marketplace. Conclusion/Recommendation Summary: It is clear that overtime, Sony will experience a variety of threats and weaknesses, that will jeopardise the success of the company. This report recommends that Sony maximises its strengths to continue creating innovative technology, to continue its perception of one of Australia’s premium television producers. Table of Contents Executive Summary2 Introduction4 Purpose4 Authorisation4 Scope4 Background4 Environmental Scan6 Economic influences:6 Demographic influences6 Competitive influences:7 Political influences:7 Social/Cultural:8 Technological influences8 S. W. O. T analysis9 Conclusion12 Reference list14 Introduction Purpose This report aims to present an accurate investigation of Sony Bravia in the Australian marketplace, and to provide recommendations for the development of the company’s success. Authorisation This report is authorised by Anne Tonkin, TAFE SA, and written by Lynden Beck, a student of Anne Tonkin. Scope This report relates only to the Sony Bravia television, within the Sony Company and attempts to draw links to further development of understanding the Australian market place. Background In 1944, Mr. Akio Morita, an officer in the Japanese Navy worked with Mr. Masaru Ibuka, on a military task designing heat seeking missiles. After World War II, Morita and Ibuka maintained their friendship, and founded the corporate brand known as Sony. Sony was created on the shared belief that it could create ideas from imagination and make them a reality. The main objective of Sony was to create innovative products that would excite their customers. Sony is now one of the world’s leading producers of home entertainment systems with major interests in consumer electronics. Today, Sony has a vision to celebrate life that is expressed through advertisements. A vision articulates the focus and direction of an organisation. Sony’s vision states: â€Å"Creativity is our essence, we take chances, we exceed expectations, we help dreamers’ dream†. This statement expresses Sony’s want to satisfy their customers. Sony focuses on delivering a luxury experience which can only be experienced through their product. Sony Market Analysis Environmental Scan Economic influences: * The Financial Crisis of 2007- 08, is considered by many economists to be the worst financial crisis since the Great Depression of the 20th Century. The effect of the crisis on Australia has been considerably less than in many other countries, however the effects on households are still present today. The Financial Crisis reduced the income of Australia by nearly 10% by March 2009. Furthermore, the Australian consumer is expected to save 21% more of its income during 2012-13. The Australian economy predicted less likely to purchase luxury items, such as a Sony Bravia television. * The ‘Household Assistance Package’ introduced by the Federal government in May 2012, is a key part of the clean energy future plan. This Government subsidy is designed to provide financial support to the middle class Australian householders in the introduction of the Carbon tax. Demographic influences * The demographic of the population consists of consumers who seek a premium product. The demographic of Bravia owners are, due to its pricing, of a higher socioeconomic group causing the Bravia to be seen as a status symbol. Sony Bravia offers ‘Colour like No Other’, implying exclusivity. * Sony Bravia’s typical target audience are consumers who are aware of the company’s material sources and sustainability policies, as well as their not-for-profit work in the community. Competitive influences: * Samsung, LG and Panasonic are well-known competitors of Sony. Each offering similar applications on televisions. Therefore companies must compete with customer service; this includes warranty lengths, replacement guarantees, prompt repair or replacement, to establish loyal customers. * Whilst cheaper televisions have less features they still appeal to consumers due to the low prices, putting pressure on the larger companies to compete for sales. Political influences: * The introduction of ‘Minimum wage’ has affected the international mployees of Sony working in sweat shops or factories, due to the increase of the minimum wage Sony will have to pay more taxes. In addition, Sony must increase prices of products to maintain a certain profit rate. * Sony large screen televisions cost 30% more in China than they do in Australia. Tariffs on the importation of Sony products manufactured in China which then arrive in Australia help with inflated prices. Social/Cultural: * Sony puts particular emphasis on the cultural nature of its consumers. Sony is a premium product with premium prices, and is therefore seen as a status symbol amongst eastern and western cultures. Generally, only wealthy Australians can afford a Sony Bravia. * Today’s culture places more value on experience rather than materialistic possessions. Sony Bravia overcomes this desire by creating an experience that offers ‘Colour like No Other’. This television offers both an experience, and a possession. Technological influences * Technology is rapidly advancing; causing electronic products to be out dated regularly. Sony must be innovative with its products to maintain its competitive edge. LED televisions consist of a display that uses LED backlighting instead of the cold cathode fluorescent backlighting used by LCD televisions. LED televisions reduce energy consumption, produce better contrast in brightness and a greater colour range. * As 3D products are becoming more common at homes Sony intends to increase sales of 3D televisions, by 50% of their respective television distributions by 2012. S. W. O. T analysis A S. W. O. T analysis is a tool used to analyze the internal and external factors affecting a company. It is one of the most commonly used business analysis and decision-making tools. In this report, a S. W. O. T analysis will be used to examine the strengths, weaknesses, opportunities and threats of Sony Australia. Strengths | Weaknesses | Opportunities | Threats | Creative catch phrase: ‘Colour like no other’. | High price can deter buyers. (smaller target audience)| Strong corporate brand Sony can be identified for many things. | Environmental concerns, high cost in running electronic products. | Strong status symbol, Sony is a premium product, and a luxury item. | Due to faulty wiring, the Sony Bravia was recalled between 2007-08| Age of technology, televisions have come from being a luxury to a household necessity. | Product confusion. Consumers unable to differentiate brands. | Technologically advanced. The Bravia television with high resolution 4 times any other HD T. Vs| Sony unable to provide premium customer service, due to high traffic visiting store. | Sony strives to employ diverse people to ensure the company achieves innovation and a wide range of skills. | Emphases on experiences rather than materialistic objects, such as expensive televisions. | Product features: ‘Your Presence is Needed’ app, which allows the TV to turn off once it senses the viewer has left. | Sony Bravia is not distributed into stores such as K-Mart and Big-W. Creating less impulse buyers. Changing Technologies Sony is investing in improving 3D capabilities and additional smart TV apps. | Global Financial crisis. The Australian consumer is expected to save 21% more of its income during 2012-13. | Sony’s involvement in the community and its participation in charity work. | Fewer adverts on Australian television| Sony Foundation Australia is a not-for-profit charitable organisation. | Carbon tax less money for Australian buyers to spend on high quality televisions. | Sony is able to cater for the Carbon tax through apps that save electricity. | Hard for non-technological people to uses due to extensive applications. Sony supports many initiatives that reduce waste and degradation| Must advertise online if unable the Sony brand may fall behind. | A major threat for Sony is the environmental concerns regarding electronic products. Current social values place emphasis on maintaining sustainability. Sony focusses on improving the energy efficiency of their products by the use of the ‘Minimum Energy Performance Standards’  and ‘Energy Rating’ labels which appear on every electronic item. These help customers consumers choose more efficient appliances and save money on running the products. Sony Australia is enabling and encouraging Australian consumers to recycle batteries. Batteries collected are transported and recycled in a safe, environmental manner. Valuable materials such as cadmium, nickel, iron, cobalt and lead are reclaimed, and are reused as raw materials . Additionally, Sony has created various applications on televisions to save electricity. Motion sensors turn off the back screen when the viewer leaves the room. In overcoming environmental threats faced by Sony, the three strengths listed above suggest the capability to overcome perceived threats. Conclusion This report has analysed the brand, Sony, and in extension, the Sony Bravia product. This report illustrated Political, Social/Cultural, Technological, Economic, Demographic, and Competitive factors that influence success in the Australian marketplace. A S. W. O. T analysis described the company’s strengths, weaknesses, threats and opportunities. It is recommended that Sony maximises its strengths to continue creating innovative technology, to continue its perception of one of Australia’s premium television producers. Reference list * Commonwealth Australia. (2010). The E3 Program – Improving Our Energy Efficiency. Available: http://www. energyrating. gov. au/. Last accessed 26/03/13. * Elliott, M. (Nov. 13, 2006). Akio Morita Masaru Ibuka. Available: http://www. time. com/time/magazine/article/0,9171,1554986,00. html. Last accessed 25/03/13. * Fung, D . (October 13, 2011). Sony Bravia 40-inch TV models could explode, melt. Available: http://www. cnet. com. au/three-sony-bravia-40-inch-tv-models-could-explode-melt-339324229. htm. Last accessed 14th March 2013. * Hales, S. (May 2010). Sony settles into the premium market with 2012 Bravia range. Available: http://www. connectedaustralia. com/News/BreakingNews/tabid/119/ArticleId/7190/Sony-settles-into-the-premium-market-with-2012-Bravia-range. aspx? dnnprintmode=truemid. Last accessed 14th March 2013. * ING DIRECT. (January 2013). Year of the Saver. Available: http://blog. ingdirect. com. au/2013/02/28/the-year-of-the-saver/. Last accessed 20/03/13. * Make. Believe . (January 2013). Our Vision . Available: http://www. sony. com. au/article/300251/section/sonycompanyoutline. Last accessed 20/03/13.. * Queensland Government . (24 November 2012). Swot Analysis . Available: How to cite Market Analysis – Sony Bravia, Papers