Sony has a strong brand name and the company was successful with the Cassette, CD and MD Walkman in the 80s and 90s. However, the company missed the rapid development in the hard battled MP3 player market. In this study the Sony’s portable audio devices were analyzed by using Boston Consulting Group approach and Product Life-Cycle. Sony arranges now gradual phasing out of DOGs like Cassette, CD and MD Walkman and has a new challenge by growing the STAR MP3 Walkman. A benchmark of a current Sony’s MP3 player (Walkman NWZ-A818) to a competitor product (Apple’s iPod Touch) was accomplished. The “4 P’s” marketing mix method (Product, Price, Promotion and Place) was applied for the product comparison. Apple’s iPod scores in modern design with touch screen and multi-functionality while Sony’s Walkman convinces for excellent sound quality and high technical standards.
Moreover the Sony’s brand leverage strategy, in particular the brand extension strategy like category and line extension, was assessed. Despite of its strong brand name and high quality, Sony’s Walkman is out of the market leader and outrider role due to some failures: too late entry to the MP3 player market, strong focus only on technical features and missing out to make the MP3 player a fashion article. In the future, Sony has to maximize the market share in this growth stage. A proposed portable audio device for the future could be an all-in-one device with multi-functionality for multimedia.
“After a match is before a match” is a good slogan for the future. The winner is someone who has strength in speed, innovation and global impact. Sony should continue making innovation and expanding its demographic market as well as considering and fitting the customer needs.
Table of Contents
1 Introduction
2 Main Part
2.1 Product analysis using BCG approach and PLC
2.1.1 Methodology
2.1.2 Analysis of Sony’s portable audio device
2.2 Comparison between Sony’s MP3 Walkman and Apple’s iPod
2.3 Evaluation of Sony’s brand leverage strategy
3 Conclusion
4 ITM checklist
Objectives and Topics
This study aims to analyze and evaluate the marketing strategy of Sony regarding its portable audio devices by assessing the product lifecycle and market positioning against major competitors. The research focuses on the transition from traditional media devices to digital MP3 players and the efficacy of brand leverage strategies in a highly competitive market.
- Strategic portfolio analysis using BCG matrix and Product Life-Cycle (PLC) models.
- Benchmarking Sony’s Walkman against Apple’s iPod using the "4 P's" marketing mix.
- Assessment of brand extension and leverage strategies in the digital era.
- Evaluation of management failures and market entry timing in the MP3 segment.
- Development of proposals for next-generation multi-functional audio devices.
Excerpt from the Book
CD, MD and Cassette Walkman:
The Cassette Walkman (MC) was a very successful product of Sony in the audio portable devices market segment in the 80s and until late 90s. It has been a successful selling of over 250 million units in 100 different models. Sony permanently tried to expand the product line by launching new models with additional items, e.g. auto-reserve, remote control, pop-up ejects, Mega Bass, cordless earphones, solar-powered, water-proof, ultra-light etc. The newest models (WM-EX194, WM-EX525, WM-FX 197) offer very long battery life (up to 35 h), high sound quality, analog/digital tuner, low weight and chic design. However, by the triumphant advance of the digital age in the 90s, the Cassette Walkman lost gradually the popularity and the market shrunk by launching new techniques like CD, MD and MP3. In addition, the audio devices market is over flooded with cheap products particularly from China and the South East Asia which led assumedly to a significant decrease of market share of Sony’s Cassette Walkman. Today, Sony still continues to make the Cassette Walkman with new styles and features, in particular deluxe models, but the business is considerably declined. Therefore, the Sony’s Cassette Walkman can be classified as a DOG in the BCG matrix. In my opinion, the product is located on the decline stage of the PLC and it will be phased out someday.
Summary of Chapters
1 Introduction: Provides an overview of Sony's history as an electronics pioneer and identifies the management challenges faced during the transition to the digital music era.
2 Main Part: Evaluates Sony's product portfolio using BCG and PLC models, compares the Walkman with the iPod, and assesses the impact of brand leverage strategies.
3 Conclusion: Summarizes the findings regarding the decline of traditional Walkman products and provides strategic recommendations for Sony's future competitiveness in the multi-functional device market.
4 ITM checklist: Outlines necessary management considerations ranging from general economics and strategic planning to HR and legal aspects for future success.
Keywords
Sony, Walkman, Apple, iPod, Marketing Strategy, BCG Matrix, Product Life-Cycle, Brand Leverage, Consumer Electronics, MP3 Player, Brand Extension, Strategic Management, Digital Music, Competitive Benchmarking, Innovation.
Frequently Asked Questions
What is the core focus of this study?
The study focuses on evaluating Sony's marketing strategy for portable audio devices, specifically analyzing why the company lost its market leadership to competitors like Apple following the rise of digital MP3 technology.
What are the primary thematic areas covered?
The main themes include strategic portfolio analysis, the product lifecycle of audio devices, benchmarking of marketing mixes, and the effectiveness of brand extension strategies.
What is the primary objective of this research?
The objective is to diagnose the reasons behind Sony’s market decline in the digital age and propose future strategic improvements for developing competitive, multi-functional audio devices.
Which scientific methods are employed?
The author utilizes the Boston Consulting Group (BCG) matrix for portfolio classification and the Product Life-Cycle (PLC) model to analyze market growth and profitability stages.
What is analyzed in the main body of the text?
The main body contains a detailed analysis of Sony’s product history (Cassette, CD, MD), a comparative benchmark between the Sony Walkman NWZ-A818 and the Apple iPod Touch, and an evaluation of Sony's brand leverage strategy.
Which keywords characterize this paper?
Key terms include Sony, Walkman, iPod, BCG Matrix, Product Life-Cycle, Brand Leverage, and Competitive Benchmarking.
Why did the author classify the Cassette Walkman as a "Dog" in the BCG matrix?
The Cassette Walkman was classified as a "Dog" because it suffers from low market growth and low market share in the modern digital era, necessitating a phase-out or disinvestment strategy.
How does the author characterize Apple’s branding approach compared to Sony’s?
The author argues that Apple uses a modern, fashion-oriented "i" sub-brand strategy that resonates with lifestyle trends, whereas Sony’s branding is perceived as too technically focused and burdened by confusing, outmoded product designations.
- Quote paper
- Dr. Khanh Pham-Gia (Author), 2007, Marketing strategy of Sony for portable audio device business, Munich, GRIN Verlag, https://www.grin.com/document/132246
