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Amit project sony finaly end

  2. 2. COLLEGE CERTIFICATE It is certified that the research project report entitled “CONSUMER BUYINGBEHAVIOUR TOWARDS ELECTRONIC GOODS WITH REFERENCE TO SONYIN MEERUT REGION “ submitted in partial fulfillment of the requirement for the degree ofMaster of Business Administration, to Mahamaya Technical University, Noida is a record ofbonafide research project work carried out by Mr. AMIT SRIVASTAVA , Roll No1026370009. The data given in project report is genuine and original to the best of myknowledge. The summer training project report is complete in all respect and is fit forsubmission.Date: (Dr Satish Kumar) Director2|Page
  3. 3. DECLARATION It is certified that the Research Project Report entitled “CONSUMER BUYINGBEHAVIOUR TOWARDS ELECTRONIC GOODS WITH REFERENCE TO SONYIN MEERUT REGION” submitted in partial fulfillment of the requirement for the degree ofMaster of Business Administration of Mahamaya Technical University, Noida is a record ofbonafide research project work conducted by me. I have collected the data personally. The datagiven in the Research Project Report is genuine and original. Further, I also declare that it notsubmitted to any other university for the award of any degree or diploma.Date: Name Amit Srivastava Roll No 1026370009 Session 2011-12 Address 12/75vikas nagar lucknow3|Page
  4. 4. ACKNOWLEDGEMENT It gives me immense pleasure to express my indebtedness and deep sense of gratitude tomy supervisor and guide Dr. Deepali Monga ,college dean, Vidya school Of Business, Meerutfor his valuable and scholarly guidance. His sympathetic and helpful attitude and motivationhelped me to work on this dissertation. I am extremely grateful to Dr. Satish Kumar, Director, Vidya School of Business, Meerutfor having extended his guidance during the course of this research project. I wish to expressmy sincere regards and heartful thanks to Mr.Sachin Chauhan, Class Coordinator and Mr. P. K.Roopak, Co-ordinator , Research Project Report, Vidya School of Business, for theircooperation that enabled me to complete this dissertation. I am extremely thankful to Mr. P.K. Pathak, Librarian, & Mr Pawan Kumar , Asstt.Librarian of this college for gracious cooperation in making this research projects a success.This acknowledgement would be incomplete without grateful mention of all the people whoformed the sample and were kind enough to fill in the questionnaire and respond warmly to myquestions.I acknowledge my heart full gratitude to my dear father and mother Sh. D P Singh &Smt. Shashi respectively I shall be falling in my duty if I do not thank to Bajaj computers whotyped this report well in time. Last but not the least; I thank ALMIGHTY for His blessings. Amit Srivastava (1026370009) (MBA-IV Sem)4|Page
  7. 7. IntroductionOne 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 Sonyproducts in the country. In a span of 12 years Sony India has exemplified the quest forexcellence in the world of digital lifestyle becoming the country‟s foremost consumerelectronics brand. With relentless commitment to quality, consistent dedication to customersatisfaction and unparalleled standards of service, Sony India is recognized as a benchmark fornew age technology, superior quality, digital concepts and personalized service that has ensuredloyal customers and nationwide acclaim in the industry.In India, Sony has its footprint across all major towns and cities through a distribution networkcomprising of over 7000 channel partners, 215 Sony World and Sony Exclusive outlets and 21direct branch locations. Manned by customer friendly and informed sales persons, Sony‟sexclusive 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 and172 authorized service centers. A distinctive feature of Sony‟s service is its highly motivatedand well-trained staff that provides the kind of attentive and sensitive service that is rare today.Sony is committed to ensuring that both the products and the marketing activities employedtruly make a difference to people‟s lifestyles and offer them new dimensions of enjoyment andan experiences which are „like no other‟.7|Page
  8. 8. INTRODUCTION OF TOPICConsumer behavior refers to the mental and emotional process and the observable behavior ofconsumers during searching, purchasing and post consumption of a product or service.Consumer behavior involves study of how people buy, what they buy, when they buy and whythey buy. It blends the elements from psychology, sociology, socio-psychology ,anthropologyand economics. It also tries to assess the influence on the consumer from groups such as family,friends, reference groups and society in general. Buyer behavior has two aspects: the finalpurchase activity visible to any observer and the detailed or short decision process that mayinvolve the interplay of a number of complex variables not visible to anyone.Consumers are mainly focused on the broad-scale adoption of new technologies that canempower them in previously unimagined ways. As a result, buying behavior of consumer ischanging to adapting to new technological advances so rapidly that marketers or the consumerbased enterprises sometimes cannot keep pace.To maintain the pace of consumer for advanced technologies Sony is putting in the effort overthe years in Meerut region and has the limits of possibilities and boggled the mind with itsbreakthrough technology. In fact, it won‟t be wrong to say that it‟s been the soul of technologyfor the past few years.Sony cutting-edge digital products have set new standards in entertainment for Meerutcustomer.They have enriched and evolved Meerut people lifestyle. Whether people consider thebrilliance of the Sparkling Wega technology in its colour televisions or the incredible colour andclarity of BRAVIA in its LCDs, they are engineering marvels that bring images to life of Meerutpeople.8|Page
  9. 9. Company ProfileSony is a name synonymous with technological revolutions. Over the last 53 years, the companyhas evolved into a luminous brand with a unique selling proposition - technology innovation,quality and premium.In the last 50 years, the company had already established itself in the fieldof hi-tech entertainment. Today, Sony has gone further by becoming a preferred choice forprofessional requirements as well, whether it is broadcast media or color monitors. Thecompanys leadership position in the world, today, is a reiteration of its ability to connect withthe customers mental space.Sony is not new to India. Whether it was the television, or the walkman, a Sony alwaysremained a must on the wish list of any Indian returning home. This love for the brandculminated in a new relationship when inspired by a reform friendly Indian businessenvironment, Sony Corporation decided to set up a 100% subsidiary called Sony India on 16thJanuary 1995.In a fiercely competitive Indian consumer durables market, Sony Indias mission is to "make adifference in the lifestyles and introduce new dimension to enjoyment. Offer new agetechnology and digital concepts; work hand in hand with the domestic industry to produce andsell excellence and come closer to the Indian customers through committed service."Since its inception in 1995, Sony decided to have sales and distribution channels, which areexclusive to Sony India. The business partners are country managers in their own areas.SonyIndia today has about 33 distributors and 1475 dealers. In all the metros the Company has directsales operations. The company also has about 13 exclusive Sony outlets, which showcaseproducts ranging from analog to digital throughout the country.9|Page
  10. 10. Company Perspectives:Recognizing that environmental protection is one of the most pressing issues facing mankindtoday, Sony incorporates a sound respect for nature in all of its business activities. With thisphilosophy, Sony has defined environmental conservation as an important part of itsmanagement strategy. The Sony Group has created a global action plan and conductsenvironmental preservation programs. This program has five core components: reducing theenvironmental impact of business activities and production processes; designingenvironmentally sensitive products and promoting recycling; developing environmentaltechnologies; promoting the environmental education and full participation of Sony employees;and disclosing environmental information to the public.Sony’s History -- Through The Eyes of the Company’s LeadersSony Corporation is one of the best-known names in consumer electronics and ranks secondworldwide in electronics behind Matsushita Electric Corporation. Since it was establishedshortly after World War II, Sony has introduced a stream of revolutionary products,including the transistor radio, the Trinitron television, the Betamax VCR, the CD player, theWalkman portable cassette player, and the PlayStation game console. The companyselectronics segment--which includes audio and video products, televisions, personalcomputers, monitors, computer peripherals, telecommunications devices, and electroniccomponents (such as semiconductors)--generates about two-thirds of the overall revenues.Sales of game consoles and software account for about 9 percent of revenues. Another 10percent of revenues are derived from Sonys music businesses, which include the Columbiaand Epic record labels. About 7 percent of revenues come from Sonys motion picture andtelevision business, which includes the Columbia TriStar studio. Sonys other major10 | P a g e
  11. 11. business segment is insurance, from which about 6 percent of revenues originate.Early History: From Tape Recorders to Transistor Radios to theTrinitronSony was founded by a former naval lieutenant named Akio Morita and a defensecontractor named Masaru Ibuka. Morita, a weapons researcher, first met Ibuka duringWorld War II while developing a heat-seeking missile-guidance system and a night-visiongun scope. After the war Ibuka worked as a radio repairman for a bomb-damaged Tokyodepartment store. Morita found him again when he read in a newspaper that Ibuka hadinvented a shortwave converter. In May 1946 the two men established a partnership with$500 in borrowed capital, and registered their company as the Tokyo Tsushin KogyoKabushiki Kaisha (Tokyo Telecommunications Engineering Corporation, or TTK). Moritaand Ibuka moved their company to a crude facility on a hill in southern Tokyo where theydeveloped their first consumer product: a rice cooker, which failed commercially. In its firstyear TTK registered a profit of $300 on sales of less than $7,000.But as the Japanese economy grew stronger, demand for consumer goods increased. Moritaand Ibuka abandoned the home-appliance market and, with injections of capital fromMoritas father, concentrated on developing new electronic goods. Ibuka developed a taperecorder fashioned after an American model he had seen at the Japan BroadcastingCorporation. Demand for the machine, which was introduced in 1950 and was the firstJapanese tape recorder, remained low until Ibuka accidentally discovered a U.S. militarybooklet titled Nine Hundred and Ninety-Nine Uses of the Tape Recorder. Translated intoJapanese, the booklet became an effective marketing tool. Once acquainted with its manyuses, customers such as the Academy of Art in Tokyo purchased so many tape recordersthat TTK was soon forced to move to a larger building in Shinagawa.Norio Ohga, an opera student at the academy, wrote several letters to TTK criticizing thesound quality of its recorder. Impressed by the detail and constructive tone of the criticisms,Morita invited Ohga to participate in the development of a new recorder as a consultant.11 | P a g e
  12. 12. Ohga accepted, and subsequent models were vastly improved.Constantly searching for new technological advances, Masaru Ibuka heard of a tiny newcapacitor called a transistor in 1952. The transistor, developed by Bell Laboratories, couldbe used in place of larger, less-durable vacuum tubes. Western Electric purchased thetechnology in order to manufacture transistorized hearing aids. Ibuka acquired a patentlicense from Western Electric for $25,000 with the intention of developing a small tubelessradio.TTK began mass production of transistor radios in 1955, only a few months after they wereintroduced by a small American firm called Regency Electronics. The TTK radio wasnamed Sony, from sonus, Latin for sound. The Sony radio had tremendous sales potential,not only in the limited Japanese market but also in the United States, where the economywas much stronger.Traditionally, international sales by Japanese companies were conducted through tradinghouses such as Mitsui, Mitsubishi, and Sumitomo. Although these trading companies werewell represented in the United States, Morita chose not to do business with them becausethey were unfamiliar with his companys products and did not share his businessphilosophy. Morita traveled to New York, where he met with representatives from severallarge retail firms. Morita refused an order from Bulova for 100,000 radios when thatcompany required that each carry the Bulova name. Morita pledged that his company wouldnot manufacture products for other companies and eventually secured a number of moremodest orders that assured his companys growth at a measured pace. Another highlight of1955 was the first listing of the companys stock on the over-the-counter market of theTokyo Stock Exchange.The rising popularity of the Sony name led Morita and Ibuka to change the name of theircompany to Sony Kabushiki Kaisha (Corporation) in January 1958. The following yearSony announced that it had developed a transistorized television, which was introduced in1960. That same year, after a business dispute with Delmonico International, the company12 | P a g e
  13. 13. Morita had appointed to handle international sales, Sony established a trade office in NewYork City and another in Switzerland called Sony Overseas.A subsidiary called Sony Chemicals was created in 1962 to produce adhesives and plasticsto reduce the companys dependence on outside suppliers. In 1965 a joint venture withTektronix was established to produce oscilloscopes in Japan.During the early 1960s Sony engineers continued to introduce new, miniaturized productsbased on the transistor, including an AM/FM radio and a videotape recorder. By 1968 Sonyengineers had developed new color-television technology. Using one electron gun, for moreaccurate beam alignment, and one lens, for better focus, the Sony Trinitron produced aclearer image than conventional three-gun, three-lens sets. In what has been described as itsbiggest gamble, Sony, confident that technology alone would create new markets, investeda large amount of capital in the Trinitron.Also in 1968, Sony Overseas established a trading office in England, and entered into ajoint venture with CBS Inc. to produce phonograph records. The venture was under thedirection of Norio Ohga, the art student who had complained about Sonys early taperecorder, whom Morita had persuaded in 1959 to give up opera and join Sony. Thecompany, called CBS/Sony, later became the largest record manufacturer in Japan. In 1970Sony Overseas established a subsidiary in West Germany to handle sales in that country.1970s: Betamax and the WalkmanAfter a decade of experience in videotape technology, Sony introduced the U-matic three-quarter-inch videocassette recorder (VCR) in 1971. Intended for institutions such astelevision stations, the U-matic received an Emmy Award for engineering excellence fromthe National Academy of Television Arts and Sciences. In 1973, the year Sony Overseascreated a French subsidiary, the academy honored the Trinitron series with another Emmy.Sony developed its first VCR for the consumer market, the Betamax, in 1975. The13 | P a g e
  14. 14. following year the Walt Disney Company and Universal Pictures filed a lawsuit againstSony, complaining that the new machine would enable widespread copyright infringementof television programs. A judgment in favor of Sony in 1979 was reversed two years later.Litigation continued, but by the time the matter reached the U.S. Supreme Court theplaintiffs original case had been severely undermined by the proliferation of VCRs, makingany legal restriction on copying television programs for private use nearly impossible toenforce.During the mid-1970s, competitors such as U.S.-based RCA and Zenith and Japanese-basedToshiba and Victor Company of Japan (JVC) effectively adopted and improved upontechnologies developed by Sony. For the first time, Sony began to lose significant marketshare, often in lines that it had pioneered. Strong competition, however, was only one factorthat caused Sonys sales growth to fall (after growing 166 percent between 1970 and 1974, itgrew only 35 percent between 1974 and 1978).Like many Sony officials, Akio Morita lacked formal management training. Instead, herelied on his personal persuasive skills and his unusual ability to anticipate or create marketsfor new products. In typical fashion, Sony introduced the Betamax VCR well before itscompetitors, in effect creating a market in which it would enjoy a short-term monopoly. Atthis stage, however, Morita failed to establish the Betamax format as the industry standardby inviting the participation of other companies.Matsushita Electric (which owned half of JVC) developed a separate VCR format calledVHS (video home system), which permitted as many as three additional hours of playingtime on a tape, but which was incompatible with Sonys Betamax. When the VHS wasintroduced in 1977, Morita was reported to have felt betrayed that Sonys competitors didnot adopt the Betamax format. He appealed to 81-year-old Konosuke Matsushita, in manyways a patriarch of Japanese industry, to discontinue the VHS format in favor of Betamax.When Matsushita refused, many believed it was because he felt insulted by Moritas failureto offer earlier collaboration.14 | P a g e
  15. 15. Matsushita launched a vigorous marketing campaign to convince customers and othermanufacturers not only that VHS was superior, but that Betamax would soon be obsolete.The marketing war between Matsushita and Sony was neither constructive nor profitable;both companies were forced to lower prices so much that profits were greatly depressed.Although Betamax was generally considered a technically superior product, the VHS formatgrew in popularity and gradually displaced Betamax as a standard format. Despite its fallingmarket share (from 13 percent in 1982 to 5 percent in 1987), Sony refused to introduce aVHS line until the late 1980s.In 1979 Morita personally oversaw the development of a compact cassette tape playercalled the Walkman. Inspired by Norio Ohgas desire to listen to music while walking,Morita ordered the development of a small, high-fidelity tape player, to be paired withsmall, lightweight headphones that were already under development. The entire programtook only five months from start to finish, and the products success is now legendary--Walkman even became the generic term for similar devices produced by Sonyscompetitors.1980s: CD Player, Video Cameras, CBS Records, Columbia PicturesDuring the 1970s, Masaru Ibuka, 12 years Moritas senior, gradually relinquished many ofhis duties to younger managers such as Norio Ohga, who was named president of Sony in1982. Ohga became president shortly after a corporate reorganization that split Sony intofive operating groups (marketing and sales, manufacturing, service, engineering, anddiversified operations). While not formally trained in business, Ohga nonethelessunderstood that Sony was too dependent on an unstable consumer electronics market. In oneof his first acts, he inaugurated the 50-50 program to increase sales in institutional marketsfrom 15 to 50 percent by 1990.During this time, Sonys research and development budget consumed approximately 9percent of sales (Matsushita budgeted only 4 percent). Another groundbreaking result of15 | P a g e
  16. 16. Sonys commitment to research and development was a machine that used a laser toreproduce music recorded digitally on a small plastic disk. The compact disk (or CD)player, introduced by Sony in 1982, eliminated much of the noise common to conventional,analog phonograph records. Sony developed the CD in association with the Dutchelectronics firm Philips, partly in an effort to ensure broad format standardization. Philips,which had developed the most advanced laser technology, was an ideal partner for Sony,which led in the pulse-code technology that made digital sound reproduction possible. Soonthe CD format was adopted by competing manufacturers; by the mid-1990s it had virtuallyreplaced phonograph systems as the recording medium of choice.Early in the 1980s, Morita began ceding some of his duties to Sonys president, Norio Ohga,the young opera student hired 30 years earlier to improve Sonys tape recorders. UnderOhga, Sony entered into a new acquisitions phase with the intent of protecting itself fromthe costly mistake it had made with Betamax. One example of the changes Ohga broughtabout was Sonys video camera, introduced in 1985. Lighter, less expensive, and moreportable than VHS cameras, the camera used 8mm videotape, and was incompatible withboth Betamax and VHS machines. The key difference between this and earlier Sonyproducts was that Sony developed the new 8mm video format in conjunction with over 100competitors. While the camera may have been incompatible with the older Betamax andVHS technologies, Sony ensured that it would be compatible with the next generation ofvideo cameras. Within three years of its introduction, the camera captured over 50 percentof the European, 30 percent of the Japanese, and 20 percent of the North American markets.In May 1984 Sony purchased Apple Computers hard-disk-technology operations. As aresult of this acquisition, Sony was able to control about 20 percent of the Japanese marketfor workstations, personal computers used in business offices, thus helping to increase theproportion of its sales derived from institutional customers. Ohga also broke a decades-oldtradition in 1984 when he established a division to manufacture and market electronicscomponents for other companies. By 1988, fueled by strong sales of semiconductors (oncemanufactured only for Sony products), the components division had grown to represent16 | P a g e
  17. 17. about 11 percent of Sonys total sales.Sony also sought to gain control of the software end of the electronics/entertainmentindustry. On November 29, 1985 the Sony Corporation of America, which operated severalassembly plants in the United States, purchased the Digital Audio Disk Corporation from itsaffiliate CBS/Sony. Two years later, Sony purchased CBS Records for $2 billion. CBSRecords, whose labels included Epic and Columbia, was during this time the largestproducer of records and tapes in the world.Sony had learned through its Betamax experience that a superior product alone would notensure market dominance; had Sony been able to flood the market with exclusively Beta-formatted movies, the VCR battle might have turned out differently. Looking toward thefuture development of audio equipment, including digital audio tape (DAT), Sony boughtthe record manufacturer with an eye toward guaranteeing that the products it manufacturedto play music would remain compatible with the medium used to record music. Theacquisition marked less of a diversification for Sony than an evolution toward dominance ina specific market.Sony sought further diversification in U.S. entertainment companies. In 1988, the companyconsidered an acquisition of MGM/UA Communications Company, but decided the pricewas too high. Then in 1989 Sony made headlines around the world when it boughtColumbia Pictures Entertainment, Inc. from Coca-Cola for $3.4 billion. Columbia providedSony with an extensive film library and a strong U.S. distribution system. It also carried $1billion in debt, which almost tripled Sonys short-term debt to around ¥8 billion. Industryanalysts applauded the move; when a recession hit the film industry shortly after Sonyspurchase, however, some began to question Sonys ability to deliver its traditionally strongprofits.1990s and Beyond: PlayStation, VAIO, and the Networked Future17 | P a g e
  18. 18. Sony did deliver, however, posting record earnings in 1990 of ¥58.2 billion ($384 million),a 38.5 percent increase over 1989. In 1992, Columbia Pictures and its subsidiary TriStarjointly captured 20 percent of the U.S. market share, far above the shares held by competingstudios. By this time the entertainment operation had been renamed Sony PicturesEntertainment, Inc.The complexities of operating a truly multinational corporation, however, began taking theirtoll on Sony. Most of the worlds largest economies (Europe, Japan, and the United States)were experiencing a slowdown in the early 1990s. This factor created what Sony called anunprecedentedly challenging operating environment. Although sales in most of Sonysbusinesses increased in 1992, operating income dropped 44 percent to ¥166 billion ($1.2billion). Net income increased slightly to ¥120 billion.The ongoing appreciation of the yen against most major currencies had an even moreadverse effect on Sonys bottom line in 1993: net income fell a dramatic 70 percent to ¥36billion ($313 million) on sales of ¥3.99 trillion ($34.4 billion). Had the yens value heldsteady at 1992 figures, Sonys net income would have totaled about ¥190 billion ($1.3billion).During that year, Ohga assumed the duties of chief executive in addition to his role aspresident. He and Morita responded to Sonys tough economic situation by bolsteringmarketing, reducing inventory levels, streamlining operations, and keeping a watchfulcontrol of capital investments. The company also embarked on an extensive reorganizationeffort with the goal of decentralizing operations and reducing unnecessary management.Despite these measures, Sony was unable to stem the slide. Net income plummeted another50 percent in 1994 to ¥15 billion, on sales of ¥3.73 trillion.By this time Morita had relinquished virtually all his duties in the company, having suffereda stroke in late 1993. In Sonys 1994 annual report, his picture and signature wereconspicuously absent from the letter to shareholders, implicitly announcing Ohgas newleadership position. Under Moritas leadership, Sonys rise to preeminence in the world18 | P a g e
  19. 19. consumer electronics market was almost entirely self-achieved; Sony outperformed not onlyits Japanese rivals, among them associates of the former zaibatsu (conglomerate)companies, but also larger American firms, which by 1995 had all but abandoned theconsumer electronics market.In the late 1980s Morita told Business Week that he regarded Sony Corporation as a venturebusiness for the Morita family, which had produced several generations of mayors andwhose primary business remained the 300-year-old Morita & Company. Under the directionof Akio Moritas younger brother Kuzuaki, Morita & Company produced sake, soy sauce,and Ninohimatsu brand rice wine in Nagoya. The company, whose initial $500 investmentin TTK was worth $430 million in 1995, owned a 9.4 percent share of Sony.In April 1995, Ohga ascended to the chairmanship of Sony, and Morita was made anhonorary chairman. The companys new president was Nobuyuki Idei, a 34-year veteran ofthe company, who had founded Sonys French subsidiary in 1970 and had since played arole in many of the companys major accomplishments, including audio CD technology,computer workstations, and the 8mm video camcorder.Sonys success had been a direct result of the wisdom of its founders, who had the talent toanticipate the demands of consumers and to develop products to meet those demands; Ideispresidency, some suggested, signaled a new era for the company.Immediate among Ideis concerns were helping Sony become an integral player in theinformation highway industry. He also hoped to help the company establish an industrystandard for DVDs, or digital videodisks, CD-like disks capable of holding full-length filmsfor play on television screens via players. Once again, Sony had teamed up with Philips todevelop a DVD format, but the partners quickly discovered they were facing a rival formatdeveloped by Toshiba and Time Warner. This rival format quickly gained the support of anumber of the worlds consumer electronics powerhouses. Rather than face a replay of thebloody battle between the Betamax and VHS formats, Sony and Philips in late 1995 agreedto support the DVD format developed by Toshiba and Time Warner. Sony subsequently19 | P a g e
  20. 20. introduced its first DVD player in March 1997.Meanwhile, Sony unexpectedly entered the video game market in the mid-1990s, making animmediate splash. The development of the Sony PlayStation had actually begun in the late1980s as a joint project with game giant Nintendo Co., Ltd. Nintendo had agreed to helpdevelop a new game console that would combine the graphic capabilities of a computerworkstation with Sonys CD-ROM drive, but then pulled out of the project in 1992. Sonydecided to develop the new machine solo, introducing the 32-bit PlayStation to the Japanesemarket in 1994 and the U.S. market one year later. It was an immediate and huge success, inpart because of the hundreds of software titles that were quickly available for the consolethanks to Sonys ability to entice top Japanese and U.S. developers to create games for thePlayStation. By 1998, the PlayStation had grabbed about 40 percent of the worldwide gamemarket, and Sonys game unit, Sony Computer Entertainment, accounted for 10 percent ofthe companys worldwide revenue and a whopping 22.5 percent of its operating income.Unfortunately, the mid-1990s were also marked by continued problems at Sony PicturesEntertainment. Top management at the motion picture arm spent hundreds of millions ofdollars on a string of flops, such as Last Action Hero and Geronimo, in addition to spendinglavishly on hiring, studio renovations, and other expenses. Sony ended up taking a $3.2billion write-off--one of the largest ever by a Japanese company--related to theentertainment unit during the fiscal year ending in March 1995; consequently, the companyposted a net loss for the year of $2.8 billion (on sales of $44.76 billion). A majormanagement shakeup occurred as well.As Sony attempted to turn around its motion picture unit, in electronics the companysurprised many observers by entering the crowded and low-margin personal computerbusiness in 1997. That year, through a partnership with Intel, Sony began selling its VAIOline of PCs. Including both desktop and notebook models, the line received plaudits for itsquality but got off to a slow start in the United States thanks to its above-average price tags.Sony designed the VAIO computers specifically for the home market, and they sportedunique features that made them particularly well-suited to consumers who owned other20 | P a g e
  21. 21. Sony products. For example, software and ports were included to allow owners of Sonycamcorders to transfer their home videos to the VAIO PC and to edit and manipulate thevideos in a variety of ways. Sony also continued to stay on the cutting edge in the venerabletelevision field, introducing its first flat-screen TV in 1996 and its first digital, high-definition model two years later. Also in 1998 came the launch of AIBO, a robot dog, whichwas touted as having the capability of expressing emotions and learning.During 1999, a year that saw the passing of company cofounder Morita (the other founder,Ibuka, died in 1997), Idei launched a sweeping reorganization to position the company forthe future--in Sonys vision, the network era of the 21st century. In March 1999 Sonyannounced that it planned to cut its workforce by 10 percent and its manufacturing capacityby one-third before 2003. The cutbacks were slated for areas where growth had beenslowing: analog televisions, VCRs, and Walkmans. The company planned to increase theamount of resources committed to such hot areas as digital products and the PlayStation, aswell as placing increased emphasis on developing software, hardware, and services for thenew networks that were beginning to emerge at the end of the 20th century--homenetworks, broadband networks, wireless networks. For Idei, the key for Sony was a historicshift in focus: hardware had traditionally driven product development, but Idei insteadwanted software development and services to drive hardware design.Perhaps the first example of such an approach came with the 2000 introduction of the SonyPlayStation 2. Although it was a technical marvel featuring high-end 3-D graphics and moreprocessing power than most desktop PCs, the 128-bit PlayStation 2 was much more than asouped-up version of the original. It was of course designed for game software but it wasnot just a game console, having been conceived as a home entertainment center. Its DVDdrive not only played game software but also audio CDs and DVD movies. It had thecapability of connecting to the Internet and as such could be used as a broadband devicecontrolling an Internet-connected home network. Despite manufacturing difficulties thatlimited production during the first year, the PlayStation 2 had a stellar debut, with aboutnine million units sold in the first 12 months. The high costs associated with developing and21 | P a g e
  22. 22. manufacturing the machines, however, depressed profits at Sony for the 2001 fiscal year.Also in the wake of its debut came rival Segas exit from the game console business in favorof concentrating on developing game titles for other companies machines, including thePlayStation 2. Sony continued to face competition in the game field from Nintendo, whichplanned to release a new machine in the fall of 2001, and faced the prospect of a newcompetitor, Microsoft Corporation, which was also planning a fall 2001 release of its XBoxmachine.In June 2000 Idei was named chairman and CEO of Sony, while Kunitake Ando, who hadheaded the VAIO unit, was named president and COO. Rounding out the new managementteam was Teruhisa Tokunaka, a former head of the PlayStation unit, who was named deputypresident and CFO. The new team faced a myriad of challenges in the rapidly changinghigh-tech world of the early 21st century. One example was in Sonys music business,which was being rocked by the industry-wide threat of the rampant and unauthorizeddownloading of digital music files over the Internet. Sony joined other music giants in suingNapster, the most obvious threat to their hegemony. The company also entered into a jointventure with Vivendi Universal S.A. to develop an online subscription service that wouldallow music downloads through what was called a virtual jukebox. Such a service was partof a new push by Sony into broadband delivery of the audio and video material owned byits content arms. With its aggressive moves in the areas of games, networking, and deliveryof digital content, Sony was almost certain to remain a frontrunner in the ever broadeningfield of consumer electronics and related platforms and services.Principal Subsidiaries: Aiwa Co. Ltd. (50.6%); Intervision Inc.; Sony IchinomiyaCorporation; Sony Inazawa Corporation; Sony Oita Corporation; Sony Enterprise Co., Ltd.;Sony Kisarazu Corporation; Sony Kita Kanto Corporation; Kibo Industry Corporation;Sony Chemicals Corporation; Sony Kohda Corporation; Sony Kokubu Corporation; SonyCommunication Network Corporation; Sony Computer Entertainment Inc.; SonyComponents Chiba Corporation; Sony Siroisi Semiconductor Inc.; Sony Life Insurance Co.,Ltd.; Sony Senmaya Corporation; Sony Assurance Inc.; Sony/Taiyo Corporation; Sony22 | P a g e
  23. 23. Digital Products Inc.; Sony Denshi Corporation; Sony Tochigi Corporation; Sony TradingInternational Corp.; Sony Nagasaki Corporation; Sony Nakaniida Corporation; SonyNeagari Corporation; Sony Hamamatsu Corporation; Sony Pictures Entertainment (Japan)Inc.; Sony Pictures Television Japan Inc.; Sony PCL Inc.; Sony Finance International, Inc.;Sony Plaza Co., Ltd.; Sony Precision Technology Inc.; Sony Broadcast ProductsCorporation; Sony Broadcast Media Co., Ltd.; Sony Bronson Corporation; Sony MarketingCo., Ltd.; Sony Max Corporation; Sony Mizunami Corporation; Sony MinokamoCorporation; Sony Miyagi Corporation; Sony Music Entertainment (Japan) Inc.; SonyLogistics Corporation; Sony of Canada Ltd.; Sony Computer Entertainment America Inc.(U.S.A.); Sony Corporation of America (U.S.A.); Sony Electronics Inc. (U.S.A.); SonyLatin America Inc. (U.S.A.); Sony Magnetic Products Inc. of America (U.S.A.); SonyMusic Entertainment Inc. (U.S.A.); Sony Pictures Entertainment Inc. (U.S.A.); SonyArgentina S.A.; Sony Comercio e Industria Ltda. (Brazil); Sony Componentes Ltda.(Brazil); Sony da Amazonia Ltda. (Brazil); Sony Chile Ltda.; Sony de Mexico S.A. de C.V.;Sony Corporation of Panama, S.A.; Sony Puerto Rico, Inc.; Sony de Venezuela S.A.; SonyAustria GmbH; Sony DADC Austria A.G.; Sony Service Centre (Europe) N.V. (Belgium);Sony Czech, spol. s.r.o.; Sony Nordic A/S (Denmark); Sony France S.A.; Sony BerlinG.m.b.H. (Germany); Sony Deutschland G.m.b.H. (Germany); Sony Europe GmbH(Germany); Sony International (Europe) G.m.b.H. (Germany); Sony Hungaria kft(Hungary); Sony Italia S.p.A. (Italy); Sony Logistics Europe B.V. (Netherlands); SonyPoland Sp.z.o.o.; Sony Portugal Ltda.; Sony C.I.S. A/O (Russia); Sony Slovakia Spol. Sr.O.; Sony España, S.A. (Spain); Sony Overseas S.A. (Switzerland); Sony Eurasia PazarlamaA.S. (Turkey); Sony United Kingdom Limited; Sony Computer Entertainment EuropeLimited (U.K.); Sony Entertainment Holdings Europe Ltd. (U.K.); Sony (China) Limited(Beijing); Sony Corporation of Hong Kong Ltd.; Sony International (Hong Kong) Ltd.;Sony India Limited; P.T. Sony Indonesia; P.T. Sony Electronics Indonesia; SonyElectronics of Korea Corp.; Sony Electronics (Malaysia) Sdn. Bhd.; Sony Technology(Malaysia) Sdn. Bhd.; Sony Philippines, Inc.; Sony Electronics (Singapore) Pte. Ltd.; SonyIndustries Taiwan Co., Ltd.; Sony Video Taiwan Co., Ltd.; Sony Magnetic Products23 | P a g e
  24. 24. (Thailand) Co., Ltd.; Sony Mobile Electronics (Thailand) Co., Ltd.; Sony Semiconductor(Thailand) Co., Ltd.; Sony Siam Industries Co., Ltd. (Thailand); Sony Thai Co. Ltd.(Thailand); Sony Vietnam Limited; Sony Australia Ltd.; Sony New Zealand Ltd.; SonyGulf FZE (United Arab Emirates); Sony South Africa (Pty.) Ltd.Principal Competitors: Nintendo Co., Ltd.; Matsushita Electric Corporation; Motorola, Inc.;Hitachi, Ltd.; Koninklijke Philips Electronics N.V.; Toshiba Corporation; YamahaCorporation; Victor Company of Japan, Limited; Sharp Corporation; Bose Corporation;Samsung Group; Pioneer Corporation; SANYO Electric Co., Ltd.; Canon Inc.; AOL TimeWarner Inc.; BASF Aktiengesellschaft; Bertelsmann AG; Compaq Computer Corporation;Daewoo Group; Dell Computer Corporation; EMI Group plc; Fuji Photo Film Co., Ltd.;Fujitsu Limited; Harman International Industries, Incorporated; International BusinessMachines Corporation; Intel Corporation; LG Electronics Inc.; Microsoft Corporation; NECCorporation; Nokia Corporation; Oki Electric Industry Company Limited; Viacom Inc.;Virgin Group Ltd.; Vivendi Universal S.A.; The Walt Disney Company.Chronology Key Dates: 1946: Akio Morita and Masaru Ibuka found Tokyo Tsushin Kogyo Kabushiki Kaisha (TTK). 1950: TTK introduces the first Japanese tape recorder. 1955: TTK begins selling Japans first transistor radio; company goes public. 1958: Companys name is changed to Sony Corporation. 1960: Sony introduces the worlds first transistor television. 1968: The revolutionary Sony Trinitron color television debuts; Sony enters the record business through a joint venture with CBS Inc. 1975: Company launches the Betamax VCR.24 | P a g e
  25. 25. 1979: The Sony Walkman is introduced. 1982: Sony introduces the first CD player. 1985: Company introduces its first 8mm video camera. 1987: CBS Records, and its Epic and Columbia labels, is acquired for $2 billion. 1989: Columbia Pictures is acquired for $3.4 billion. 1994: The Sony PlayStation debuts. 1997: The VAIO line of PCs for the home market is launched. 2000: The PlayStation 2, featuring enhanced graphics, processing power, and DVD and broadband capabilities, is released.25 | P a g e
  26. 26. Sony storyIt was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionateand committed group of employees started to build “Tokyo Tsushin Kenkyujo” (Totsuko)or “Tokyo Telecommunications Research Institute” into the billion dollar globalconglomerate that it is today. The main objective of the company was to design and createinnovative products which would benefit the people.From early attempts at creating products like the rice-cooker to the later success of creatingJapan‟s first magnetic recorder, the innovative company went on to create other hit productswhich won the company widespread recognition and international acclaim as a truly globalcompany known for its quality and innovative products. Significant product milestonesincluded Japan‟s first transistor radio (1955), Trinitron colour television (1968), Walkmanpersonal stereo (1979), Handycam video camera (1989), PlayStation (1994), Blu-ray Discrecorder (2003) and PlayStation 3 (2006).The company name of Sony was created by combining two words of “sonus” and “sonny”.The word “sonus” in Latin represents words like sonic sound. The other word “sonny”means little son. Used in combination, Sony is supposed to represent a very small group ofyoung people who have the energy and passion towards unlimited creations and innovativeideas. With the far-sight of expanding worldwide, it was in 1958 that the company formallyadopted “Sony Corporation” as its corporate name. Easy to pronounce and read in anylanguage, the name Sony, which has a lively ring to it, fits comfortably with the spirit offreedom and open-mindedness.26 | P a g e
  27. 27. List of SONY Products BRAVIAThe era of High Definition has arrived and Sony‟s Bravia LCD TVs are here to help youfully enjoy its advantages. Innovation, creativity and technology come into play in thecreation of our LCD TVs, bringing an unprecedented level of realism and stunning clarity toyour movies, both visually and aurally. With slim and stylish designs, Bravia LCDs can fitanywhere in your home. Additional features like faster response time and PC connectivityhelp create the full entertainment experience. X SeriesPrecision colour reproduction and high quality screen resolution are the key factors whencreating the Bravia X-Series. Including features like a Full HD (1920 x 1080) LCD panel,Live Colour Creation and Sony‟s intelligent picture enhancement technology- the BraviaEngine, your movies will come alive. The X-Series also offers astounding stereo sound tomatch the spectacular visuals, providing you a wholesome entertainment experience.Watching movies at home is never the same again. W SeriesThe era of High Definition has arrived and Sony‟s Bravia LCD TVs are here to help youfully enjoy its advantages. Innovation, creativity and technology come into play in thecreation of our LCD TVs, bringing an unprecedented level of realism and stunning clarity toyour movies, both visually and aurally. With slim and stylish designs, Bravia LCDs can fitanywhere in your home. Additional features like faster response time and PC connectivityhelp create the full entertainment experience.27 | P a g e
  28. 28. V SeriesEnjoy stunning image quality and convenience with Sony‟s LCD Bravia V-Series, which ontop of an unprecedented degree of detail, also provides high connectivity, thanks to theHDMI input that allows you to link up to any other HD sources like Blu-ray players,PlayStation 3 gaming console and HD camcorders. It delivers an uncompressed, all digitalaudio/ video interface between your Bravia TV and any HDMI-equipped audio/videocomponents. Turn your viewing into an incredible experience now. S SeriesThe Sony Bravia LCD S-Series follows in the Sony Bravia line of high performance andstylish LCD TVs. Thanks to Sony‟s unique S-PVA technology; you can now enjoy vividcolours, wide viewing angles and quick response time. Designed to be versatile, the S-Series is equipped with an extensive range of input interfaces; the PC input allows your TVto double up as a computer monitor; while with HDMI, you can hook your TV up withother compatible players. Experience the world of high definition now. G SeriesWith Sony‟s Bravia LCD G series, you get to enjoy stylish design and superior image andsound quality. Be it for home or office use, you will find the G-series a great addition. TheTVs come with user-friendly navigation, convenient front mounted controls, and an easilycomprehensible remote control. You can also adjust the angle of the TV to suit viewers‟position with the base stand that can tilt, or choose to mount it on the wall with the Sonywall mounting bracket. Home Theatre SystemCombining the latest in video and audio technologies, Sony has developed a series of HomeTheatre Systems that provides you with an enhanced home theatre experience. Our upscaling DVD players ensure the delivery of the best in video performance while our Digital28 | P a g e
  29. 29. Signal Processing guarantees a surround sound environment. Some are even compatiblewith the latest digital television and have dedicated audio input for connecting to yourportable digital music players. Cyber-shot (Digital Camera)Everyone can be a photographer with the wide range of Cyber-shot cameras of Sony thataim to provide you utmost satisfaction. Packed with plentiful features like Super SteadyShot, High Sensitivity and Real Imaging Processor, you can be sure that each of our Cyber-shot cameras delivers a superior performance. To complement their functions, Sony has alsodeveloped a series of accessories that specifically caters to the Cyber-shot range. Handycam (Video Camera)It doesn‟t matter if you are making family videos, filming documentaries or developingfeature films. Whatever the purpose, we have the right kind of camcorder you need and canafford. Sony‟s Handycam® Camcorders have a variety of different features and functionsthat help deliver spectacular video performances of stunning clarity. VAIOCombining form, function and the latest in technology, Sony provides a range of IT andcomputing devices, storage media, accessories and peripherals to better serve all your ITneeds. PlayStationGaming would not be the same without the invention of the Sony PlayStation series. Inaddition to the highly popular PlayStation 2, there‟s the handy PlayStation Portable andnext-generation console PLAYSTATION 3. Powerful consoles must be accompanied withcompelling games, and Sony offers games of all genres to match your gaming preference.29 | P a g e
  30. 30. X-plodIf you spend long hours in your car everyday, it‟s important to equip it with enoughentertainment so that you‟ll never have a dull moment. Car audio entertainment need not belimited to just your favorite radio stations or CDs. Thanks to Sony Xplod mobileentertainment technology, you can enjoy music from more sources. You now can evenexperience visual entertainment with our innovative Touch-Screen Multimedia Centrereceiver. Riding the car is never the same experience again. Hi-Fi SystemAudiophiles need look no further than Sony‟s selection of high-power Hi-Fi Systems thatcan fill your whole room with high quality stereo sounds, thanks to superb speakers andpowerful components. Sony EricssonWith Sony Ericsson‟s colourful and innovative collection of mobile phones, you candefinitely find one that will fit into your lifestyle, budget and shows off your character.We‟ve also created a series of handy mobile phone accessories so you can spruce up yourmobile phone‟s appearance, prevent it from damage, or enhance its usage WEGA (CRT) TVIt‟s all about features, quality, style and price with Sony‟s CRT TVs. Our range of CRTTVs offer analog and digital high-definition inputs, superior audio features and picture-enhancing technologies for superior visual and aural results.30 | P a g e
  31. 31. Sony: The Leader in Product InnovationThe new millennium is here and Sony has plenty to celebrate. The company‟s approach –doing what others don‟t – has paid off, in the form of great products that people covet.Throughout its history, Sony has demonstrated an ability to capture the imagination andenhance people‟s lives. The company has been at the cutting edge of technology for morethan 50 years, positively impacting the way we live. Further, few companies are as wellpositioned to drive the digital age into homes and businesses around the world for the next50 years and beyond.Sony innovations have become part of mainstream culture, including: the first magnetictape and tape recorder in 1950; the transistor radio in 1955; the world‟s first all-transistorTV set in 1960; the world‟s first color video cassette recorder in 1971; the Walkmanpersonal stereo in 1979; the Compact Disc (CD) in 1982; the first 8mm camcorder in 1985;the MiniDisc (MD) player in 1992; the PlayStation game system in 1995; Digital Mavicacamera in 1997; Digital Versatile Disc (DVD) player in 1998; and the Network Walkmandigital music player in 1999.Today, Sony continues to fuel industry growth with the sales of innovative Sony products,as well as with the company‟s convergence strategy. Examples include: VAIO notebooksthat raise the bar in both form and function; digital cameras that capture pictures on a floppydisk, CD-R or Memory Stick; a handheld device that lets you store and view photos as wellas moving photo; MiniDisc recorders with a digital PC Link to marry high quality digitalaudio with downloadable music; DVD/CD multi-disc changers that playback both audioand video; digital network recorders that pause, rewind and fast-forward "live" televisionusing a hard-disc drive; and Hi-Scan flat screen TVs that deliver near HDTV picture quality31 | P a g e
  32. 32. through Digital Reality Creation (DRC) circuitry.But Sony is not just the market leader in consumer electronics.Through research and development, the company has made considerable inroads in theareas of professional broadcasting (with the creation of the Betacam, DVCAM, HDCAMand 24P formats); mobile communications (with digital phones and the CLIE handheld);PCs (with VAIO notebook and desktop computers); storage and media (with the inventionof the floppy disk, AIT and DTF drives, and the Memory Stick) and, now, the Internet.Sony‟s future brand success will be determined by how the company meets the challengesof change. Sony has always led the market in terms of innovation. But in a digitalnetworked world, products will no longer be developed with just hardware in mind. Theconvergence of technologies – consumer electronics, computing and telecommunications –is a reality, with new competitors forming and consumer mindshare up for grabs. Broadband Network EraSony is a corporation with convergence at its very heart. Driven by an integrated businessmodel, the company is well positioned to bring new benefits to consumers by combininghardware, software, content and services.Sony‟s approach is to make it possible for consumers to enjoy various forms of content onboth "home networks," consisting of connected electronic devices, and "mobile networks"that are accessible through mobile terminals.Products such as the i.LINK® interface and Memory Stick® digital storage media providegreater connectivity between digital devices and will help create seamless home andpersonal networks.From a hardware perspective, Sony‟s strategy is focused on four gateways to the networkedworld: 1) Digital televisions and set-top boxes; 2) VAIO personal computers; 3) Mobile32 | P a g e
  33. 33. devices, such as the CLIE handheld devices and digital phones; and 4) PlayStation2 gameconsoles.The company‟s software strategy includes the development of new audio-visualapplications designed to personalize technology. Recent examples include updated OpenMG Jukebox music management software, and digital video editing products, such asPictureGear, MovieShaker and DVGate.Sony‟s vision is to give consumers easy, ubiquitous access to entertainment and informationanytime, anywhere – no matter whether the content comes from cable, satellite, terrestrial,packaged media or the Internet.In the company‟s view, the Internet is an "e.Playground" where consumers can collect,share and manage everything from data and text information, to digital images, movie clipsand music. The result: New ways to enjoy Sony products.Sony is also giving consumers new reasons to visit the Internet, including the recent launchof, a new information rich, e-commerce site for everything Sony. Designedto build a closer relationship between Sony and its customers, the site will offer a variety ofcommerce, content, community and connectivity options planned for the near future.Other new service offerings include and helps consumers create, share and enjoy digital pictures and video. Theservice offers free online albums and eCards, and members can share their favorite picturesas gifts, keepsakes and high-quality prints in a variety of sizes. Select Sony hardware andaccessories are also available for purchase in the is an online service that puts an end to the most frustrating part of hearing asong on the radio -- not knowing the title or the artist‟s name. By pressing the button on thetiny eMarker device, people can "eMark" songs they hear on the radio and locate theinformation through the site.33 | P a g e
  34. 34. Sony has been at the forefront of the movement to help consumers adopt digital lifestyles,which, in a broadband network era, means helping them maximize the power and controlfound within digital technology.However, even in this broadband network era, one fact about Sony remains the same: thecompany‟s fundamental philosophy of providing products that are fun to use.Sony‟s vision is not necessarily about refrigerators talking to toasters. It‟s about bringing tomarket products that capture the imaginations of consumers and enhance their lives in theprocess.In the future, look for Sony to create entirely new forms of entertainment, blending movies,computer generated worlds, games and music. Sony has the vision, technology and contentto forge a direction in consumer entertainment that no other company can match. Promoting a World Class BrandThe phenomenal strength of the Sony brand worldwide is surely a testament to thecompany‟s reputation for producing innovative products of exceptional quality and value.And while traditional brand theory says brand essence should be narrowed down to oneelement, Sony celebrates brand diversity -- with the Trinitron, VAIO and Walkman sub-brands, to name just a few, each connecting with consumers across various lifestylesegments.Sony has the brand recognition and marketing savvy to create new product categories andrevitalize mature ones. Look no further than what the company did with the Walkman brandand for the MiniDisc format.34 | P a g e
  35. 35. Sony, the company that changed the way the world listens to music with the introduction ofthe Walkman personal stereo, again set its sights on transforming the portable musiclandscape when it kicked off a comprehensive, integrated marketing campaign to relaunchthe Walkman brand in June 2000.Titled "The Walkman Has Landed," the marketing campaign, which included broadcast,print and online advertising; Internet and dealer events/promotions; and grassrootsconsumer and public relations components; strategically communicated the lifestyleattributes of the Sony Walkman line to generation Y, its primary target market.Additionally, the campaign brought together an entirely new product line up comprised ofCD Walkman, MD Walkman and Network Walkman personal digital audio players.The company knew that it needed to reinvent the Walkman brand for today‟s younger, moredigitally inclined music lovers. (To many, the brand had become generic, representing"older," analog-based cassette technology.) Sony promoted a new Walkman ideology basedon personal freedom, independence, imagination and creativity in a way that appealed tonew techno-savvy, style-conscious consumers who favor digital downloading and rippingCDs.The star of the television commercial from the campaign is an alien character named Plato,who is "quintessentially diverse and knows how to have fun." His persona offers Gen Y abit of humor and a good dose of enjoyment.Another example of Sony‟s ability to reposition itself and its products is found in the35 | P a g e
  36. 36. MiniDisc. A huge success in Japan, where it has become the dominant recording format,MD did not become a success in the U.S. until it was marketed as a digital music player thatcould record from the Internet. With its inexpensive media and versatility (units are capableof recording Internet music, tracks from personal CD collections and favorite songs off theradio), MD has become a gen Y favorite. U.S. sales have increased by more than 40% sincethe MD to PC link was introduced.However, the company doesn‟t just rely on brilliantly executed advertising campaigns tosecure consumer attention. The company utilizes world class public relations to enhanceSony‟s value, reputation and brand image. Communications campaigns are conducted onboth an individual product and strategic platform basis. This process ensures exposure forthe company‟s most important products as well as for the company‟s role in key industryissues that cross multiple product categories and disciplines, including electronic musicdistribution and digital television Brand ValuesWhen remarking about the importance of the Sony brand name, consider this quote fromChairman of the Board, Norio Ohga: "In April of every year a large number of newemployees join the company. And what I always say to them is that we have manymarvelous assets here. The most valuable asset of all are the four letters, S, O, N, Y. I tellthem, make sure the basis of your actions is increasing the value of these four letters. Inother words, when you consider doing something, you must consider whether your actionwill increase the value of SONY, or lower its value."In the minds of consumers, Sony is one of the world‟s greatest brands -- the company wasonce again rated the number one brand in the U.S. by the 2000 Harris poll. As noted, much36 | P a g e
  37. 37. of the brand equity Sony enjoys is rooted in product innovations.However, to ensure the future of its brand, the company recently embarked on an extensive,company-wide initiative in the U.S. designed to foster a common understanding of the Sonybrand among employees, customers and consumers. The project, dubbed Being Sony, wasnecessitated because of expansive company growth, an influx of new employees, andconverging business opportunities.Sony executives felt the need to clearly articulate the meaning and values inherent in theSony brand (to both internal and external constituencies), while re-examining the uniquerelationship of the brand in American culture.Despite involvement in disparate businesses, the company‟s desire is to leverage the brandbeyond the products -- the primary touchpoint with consumers, and add to the brand‟s valueby re-focusing it to the outside world.In essence, Sony, the box manufacturer, is being replaced by a new Sony – a customer-centric entity centered around broadband entertainment, yet driven by the venture spirit ofSony‟s founding days. We Help Dreamers DreamSony is a company devoted to the CELEBRATION of life. We create things for every kindof IMAGINATION. Products that stimulate the SENSES and refresh the spirit. Ideas thatalways surprise and never disappoint. INNOVATIONS that are easy to love, andEFFORTLESS to use, things that are not essential, yet hard to live without.We are not here to be logical. Or predictable. We‟re here to pursue INFINITE possibilities.We allow the BRIGHTEST minds to interact freely, so the UNEXPECTED can emerge.We invite new THINKING so even more fantastic ideas can evolve. CREATIVITY is our37 | P a g e
  38. 38. essence. We take chances. We EXCEED expectations. We help dreamers DREAM. Things You Didn’t Know About SonySony‟s first product was a rice cookerSony establishes its first major overseas operation in New York City (514 Broadway) in1960 with a capital investment of $500,000. Sony becomes the first Japanese company inthe United States to make a public offering of 2 million shares of common stock in the formof American Depository Receipts (ADRs) in 1961.In 1986, Walkman was included in the Oxford English DictionaryBefore the Walkmanpersonal stereo became a worldwide brand name, it was introduced under a variety ofnames, including the Soundabout in the U.S., the Stowaway in the UK and the Freestyle inAustralia.38 | P a g e
  39. 39. OBJECTIVE OF THE PROPOSED RESEARCH 1. To study the buying pattern of people towards consumer goods. 2. To determine the major factors influencing the buying decision process of the target group. 3. To set out some basic marketing implications for the marketers to cater to different needs of the targets group. 4. To have some insights on the relationship between marketing stimuli and youth responses. 5. To serve as guideline for further research in this area39 | P a g e
  40. 40. Chapter -II LITERATURE REVIEW40 | P a g e
  41. 41. Literature reviewMoneesha PachauriNottingham University Business SchoolThe Marketing Review, 2002, 2, 319-355Consumer Buying Behaviour: a Literature Review In order to develop a framework for thestudy consumer behaviour it is helpful to begin by considering the evolution of the field ofconsumer research and the different paradigms of thought that have influenced the discipline.As described in this article, a set of dimensions can be identified in the literature, which can beused to characterize and differentiate, the various perspectives on consumer research. It isargued that consumer behaviour itself emerged as a distinct field of study during the 1960s; andis characterized by two broad paradigms, the positivist and the non-positivist. The positivistparadigm encompasses the economic, behavioural, cognitive, motivational/trait/attitudinal,and situational perspectives; these perspectives are referred to as the traditional perspectives asthey pre-date the development of the non-positivist paradigm. The positivist paradigm, which isstill the dominant paradigm, emphasizes the supremacy of human reason and that there is asingle, objective truth that can be discovered by science. This paradigm regards the world as arational and ordered place with a clearly defined past, present, and future. The assumption ofrationalism is therefore fundamental to the traditional perspective.The opposing, non-positivist paradigm, envelops the interpretive and postmodern perspectives,which have emerged more recently during the period post-1980 to date. The proponents of thisemerging perspective argue that positivism overemphasizes the rational view and the ideology41 | P a g e
  42. 42. of a homogenous social culture and thereby denies the complex social and cultural world inwhich consumers live. This paradigm instead stresses, the importance of symbolic andsubjective experience and the idea that consumers construct meanings based on unique andshared cultural experiences, and thus there can be no single unified world view.Unsurprisingly, the two paradigms differ in their views on the benefits derived fromconsumption and the objectives that underscore consumer research. The traditional, positivistperspective takes a very utilitarian approach to the benefits from consumption. While the non-positivist perspectives place much greater emphasis on the symbolic dimensions of choice. Theobjective of non-positivist research endeavour is to achieve a better understanding of consumerbehaviour with no specific intent to influence consumer processes.Conversely, outcomes ofpositivist research are directed toward advancing the goals of marketing practice. By identifyingthe paradigmatic shifts within the field, this article aims to identify different streams of thoughtthat could guide future consumer research.IntroductionConsumer is the study “of the processes involved when individuals or groups select, purchase,use, or dispose of products, services, ideas, or experiences to satisfy needs and desires”(Solomon 1995, 7). In the marketing context, the term „consumer ‟ refers not only to the act ofpurchase itself, but also to patterns of aggregate buying which include pre-purchase and post-purchase activities. Pre-purchase activity might consist of the growing awareness of a need orwant, and a search for and evaluation of information about the products and brands that mightsatisfy it. Post-purchase activities include the evaluation of the purchased item in use and thereduction of any anxiety which accompanies the purchase of expensive and infrequently-boughtitems. Each of these has implications for purchase and repurchase and they are amenable indiffering degrees to marketer influence (Foxall 1987).The Traditional Perspectives on Consumer Research42 | P a g e
  43. 43. This first section outlines the perspectives that emerged during the traditional-positivist era inconsumer research. Thus, a brief discussion onthe early models of buyer behaviour, proposed byeconomists is presented,followed by a discussion on each of the traditional perspectives inconsumerresearch that emerged thereafter. These are the behavioural, cognitive, trait,motivational, attitudinal, and situational viewpoints. Overall, the objective of this section is tooutline the features and the central arguments of each of these perspectives. While a detailedanalytical review of the paradigms is presented in section two, at this stage it is worth noting,that the traditional perspectives while diverse with respect to the many aspects of consumerbehaviour they investigate, are fundamentally similar in terms of their philosophical andmethodological bases for undertaking the examination of consumer issues. That is, they arebuilt on the common foundations of “rationalism” and share allegiance to the principles of asingle traditional, positivist-based approach to consumer research.The Rational PerspectiveThe economists were the first to dominate model building, in the area of buying behaviour. Theearly economic view considered consumer behavior in terms of a single act of purchase itself,and post-purchase reactions.Economic theory holds that purchasing decisions are the result of largely “rational” andconscious economic calculations. Thus, the individual buyer seeks to spend his income on thosegoods that will deliver the most utility (satisfaction) according to his tastes and relative prices.The antecedents of this view can be traced back to Adam Smith (1776). Alfred Marshall (1890)consolidated the classical and neoclassical traditions in economics, into a refined theoreticalframework which came to be known as the theory of marginal utility. His theoretical workaimed to simplify assumptions and thereby examine the effects of changes in single variables(e.g., price) holding all other variables constant.The Behavioural Perspective43 | P a g e
  44. 44. As mentioned above, in contrast to the economic view which underscores the importance ofinternal mental processes in consumer decision making, the behavioural perspective emphasizesthe role of external environmental factors in the process of learning, which it is argued causesbehaviour. the behaviourists approach the consumer, as a “black box” and thereby assume thatconsumer behaviour is a conditioned response to external events. The behavioural perspectivetherefore focuses on external environmental cues (such as advertising) that stimulate consumerresponse through learning. The strategic emphasis, of the behavioural modification theories, forexample, are to devise a set of expanded behaviour modification techniques (e.g., respondentconditioning; operant conditioning; vicarious learning etc.) that can be used to influence,modify, and control consumer behaviour (Peter and Nord 1982). While a number of researchershave proposed models to study learning principles e.g., Thorndike (1911); Watson and Rayner(1920), this view is represented by two major approaches to learning: classical conditioning andinstrumental learning.The Cognitive PerspectiveIn contrast to behavioural theories of learning, the cognitive perspective stresses the role ofinformation processing in consumer decision making. This perspective views people as problemsolvers who actively use information from the world around them to master their environmentHowever, much debate surrounds the issue of whether or when people are actually aware ofthese learning processes. On the one hand, there is some evidence for the existence ofunconscious procedural knowledge. That is, people apparently do process at least someinformation in an automatic, passive way, which is a condition that has been termedmindlessness (Langer 1983). Nonetheless, many modern theorists are beginning to regard someinstances of conditioning as cognitive processes, especially where expectations are formedabout the linkages between stimuli and responses. Studies using masking effects, wherein it isdifficult for subjects to learn CS/UCS associations, show substantial reductions in conditioning(Allen and Madden 1985).44 | P a g e
  45. 45. The Evolution of Consumer ResearchThis section aims to paradigmatically identify the developments within the field of consumerresearch. Paradigms in consumer research can be broadly classified as a set of fundamentalassumptions that researchers make about what they are studying and how they study it. Asdescribed below, a set of dimensions as identified by the literature, are employed to characterizeand differentiate, chronologically, the paradigms enveloping various perspectives. To furthersupport the discussion, this section provides a diagrammatic representation of the evolution ofthe field of consumer research6, as identifiedConclusionOverall, it is argued that the study of consumer behaviour is rapidly evolving as researchersrecognize and implement new techniques and trans- disciplinary perspectives to understand thenature of purchase and consumption behaviour. This wider view attempts to study consumer.BUYER BEHAVIOUR TOWARDS ELECTRONIC GOODSInternational Journal of Enterprise and Innovation Management Studies (IJEIMS) Vol. 1 No. 3Mrs. K. RAJASELVIAssistant Professor in Commerce, Emerald Heights College For WomenFinger Post Ootacamund- 6.ABSTRACTBuyer behavior is the outcome of both individual and environmental influences‟ –BOONEKURTZ. Buyer behavior is a study of how individuals make decision to spend their availableresources (time, money and effort) on consumption related items (what they buy, why they buy,When they buy, Where they buy, How often they buy and use a product or service).45 | P a g e
  46. 46. I. INTRODUCTIONBuyer behaviour is a study of how individuals make decision to spend their available resources(time, money and effort) on consumption related items (what they buy, why they buy, Whenthey buy, Where they buy, How often they buy and use a product or service).II.FACTORSINFLUENCEBUYERBEHAVIOURThe major factors influencing buyer behaviour are cultural, social, personal and psychological.III.BUYINGROLESFor many products, it is fairly easy to identify the buyer. Many other products involve adecision making unit consisting of more than one person. Five roles people might play in abuying decision.1. Initiator: A person who first suggests the idea of buying the particular product or service.2. Influencer: A person whose views or advice carries some weight in making the final decision.3. Decider: A person who decides on any component of a buying decision. Whether to buy,what to buy, how to buy,or where to buy.4. Buyer: The person who makes the actual purchase.5. User: A person who consumes or uses the product or service.A company needs to identify these roles because they have implication for designing theproduct, determining and allocating the promotional budget.46 | P a g e
  47. 47. IV. PURCHASE DECISIONIn evaluation stage, the consumer forms preferences among the brands the choice set. Theconsumer may also form a purchase intension to busy the most preferred brand.V. RESULTS AND DISCUSSIONSOCIAL- ECONOMIC CONDITION OF THE RESPONDENTSVI. BRANDAWARENESSAND PURCHASE DECISIONVII. POSSESSION OF ELECTRONIC GOODSVIII. CONCLUSIONDespite the basic characteristics of consumers the behavior pattern of consumers are more orless similar to eachother, particularly in the aspects like quality, preference and decisionmaking. However it is evident that the presentapproaches to draw the attention of customers arenot adequate. The consumers are particular about the appropriatesystem of distribution andhence there is a great need for change in the distribution system. It may not be always correct tosay that consumers behave in the same way as it much depends on type of products, quality ofthe products and price of the products. Therefore the producer must be paid special attention atleast with regard to price and distribution system to cover the large number of customers. Thisis mainly because of the fact that the buying capacity of the consumers may not be equal to thebuying capacity.47 | P a g e
  49. 49. RESEARCH METHEDOLOGY Research methodology is simple framework or plan for the study that is as guide incollection and analyzing the data. It is the blue print that is followed in completes the study.Thus, good research methodology ensures the completion of project efficiency and affectivity.Since there are many aspect of research methodology, the line of action has to be chosen fromthe variety of alternatives, to choose the suitable method through the assessment from variousalternatives.Research can be classified from three perspectives:1. Application of research study.2. Objectives in undertaking the research.3. Inquiry mode employed.APPLICATION: From the point of view of application, there are two broad categories of research: PURE RESEARCH APPLIED RESEARCH.Pure research: It involves developing and testing theories and hypotheses that areintellectually challenging to the researcher but it may or may not have practical application at49 | P a g e
  50. 50. the present time or in the future. The knowledge produced through pure research is sought inorder to add to the existing body of research methods.Applied research: It is done to solve specific, practical questions; for policy formulation,administration and understanding of a phenomenon. It can be exploratory, but is usuallydescriptive. It is almost always done on the base basic research. Applied research can be carriedout by academic or industrial institutions. Often, an academic institution such as a universitywill have a specific applied research program funded by an industrial partner interested in thatprogram.Objectives:From the viewpoint of objectives, a research can be classified as -descriptive -co relational -explanatory -exploratoryDescriptive research: It attempts to describe systematically a situation, problem, phenomenon,service or program, or provides information about , say, living condition of a community, ordescribes attitudes towards an issue.Co relational research: It attempts to discover or establish the existence of a relationship/interdependence between two or more aspects of a situation.50 | P a g e
  51. 51. Explanatory research: It attempts to clarify why and how there is a relationship between twoor more aspects of a situation or phenomenon.Exploratory research: It is undertaken to explore an area where little is known or toinvestigate the possibilities of undertaking a particular research study (feasibility study / pilotstudy).In practice most studies are a combination of the first three categories.Inquiry Mode:From the process adopted to find answer to research questions – the two approaches are: Structured approach Unstructured approachStructured approach: The structured approach to inquiry is usually classified as quantitative research. Hereeverything that forms the research process- objectives, design, sample, and the questions thatyou plan to ask of respondents- is predetermined. It is more appropriate to determine the extentof a problem, issue or phenomenon by quantifying the variation, e.g. how many people have aparticular problem? How many people hold a particular attitude?Unstructured approach:51 | P a g e
  52. 52. The unstructured approach to inquiry is usually classified as qualitative research. Thisapproach allows flexibility in all aspects of the research process. It is more appropriate toexplore the nature of a problem, issue or phenomenon without quantifying it. Main objective isto describe the variation in a phenomenon, situation or attitude. e,g, description of an observedsituation, the historical enumeration of events, an account of different opinions different peoplehave about an issue, description of working condition in a particular industry.Both approaches have their place in research. Both have their strengths and weaknesses.In many studies you have to combine both qualitative and quantitative approaches. Forexample, suppose you have to find the types of cuisine / accommodation available in a city andthe extent of their popularity.Types of cuisine is the qualitative aspect of the study as finding out about them entailsdescription of the culture and cuisine The extent of their popularity is the quantitative aspect asit involves estimating the number of people who visit restaurant serving such cuisine andcalculating the other indicators that reflect the extent of popularity.52 | P a g e
  53. 53. THE RESEARCH PROCESS The research process is similar to undertaking a journey. For a research journey there aretwo important decisions to make-1) What you want to find out about or what research questions (problems) you want to findanswers to;2) How to go about finding their answers. There are practical steps through which you mustpass in your research journey in order to find answers to your research questions. The path tofinding answers to your research questions constitutes research methodology. At each operational step in the research process you are required to choose from amultiplicity of methods, procedures and models of research methodology which willhelp you to best achieve your objectives.This is where your knowledge base of research methodology plays a crucial role.53 | P a g e
  54. 54. STEPS IN RESEARCH PROCESS:1. Formulating the Research Problem2. Extensive Literature Review3. Developing the objectives4. Preparing the Research Design including Sample Design5. Collecting the Data6. Analysis of Data7. Generalization and Interpretation8. Preparation of the Report or Presentation of Results-Formal write ups of conclusions reached.54 | P a g e
  55. 55. Objectives of ResearchThe objective of the study is to ensure that I as a management student develop in real life forhandling the specific project and also to develop all roundness in various managementactivities related to the area of my specialization. This project gives me a substantialcorporate exposure and also serves as a useful tool of interaction with the corporate sector.The project has been derived from the field of „Marketing‟ and is entitled as “BuyingBehavior/Need Analysis & Generation of Prospective Customer List for Sony Products inMeerut”. The main idea behind this project is.To get an overall view of the product sale, promotion and problem faced by SONY Products.To make a knowledge about the market strategy of SONY in meerut .Sample Size: 100Primary Data: Questionnaire distributed among 100 customers.Secondary Data: Internet, Magazines and Newspapers.55 | P a g e
  57. 57. DATA ANALYSIS1. WHAT ARE YOUR FAVOURITE BRANDS OF ELECTRONIC PRODUCTS ? favourite brands 70 60 50 40 30 20 10 0 SONY SAMSUNG LG TOSHIBA Series 1 60 30 8 2 60 people says that SONY is the favourite brand of electronic products. 30 people says that SAMSUNG is the favourite brand of electronic products. 8 people says that LG is the favourite brand of electronic products. 2 people says that TOSHIBA is the favourite of electronic products.57 | P a g e
  58. 58. DATA IN PERCENTAGE : 2% 8% SONY 30% SAMSUNG LG 60% TOSHIBA 60 % says that SONY is the favourite brand of electronic products. 30 % says that SAMSUNG is the favourite brand of electronic products. 8 % says that LG is the favourite brand of electronic products. 2 % says that TOSHIBA is the favourite brand of electronic products.58 | P a g e
  59. 59. 2. HAVE YOU HEARD THE BRAND OF SONY PRODUCTS ? sony products 120 100 80 60 40 20 0 YES NO Series 1 100 0 100 people says that they heard the brand of sony.59 | P a g e
  60. 60. Data in percentage : 0% YES NO 100% 100% says that they heard the brand of sony.60 | P a g e
  61. 61. 3. DID YOU KNOW ABOUT SONY PRODUCTS ? sony products 35 30 25 20 15 10 5 0 CYBER HANDYCA PLAY WALK SONY BRAVIA VAIO X-PLOD SHOT M STATION MAN ERICSSON Series 1 10 6 20 4 15 5 10 30 10 people says that they know about the BRAVIA . 6 people says that they know about the CYBER SHOT. 20 people says that they know about the VAIO. 4 people says that they know about the X-PLOD. 15 people says that they know about the HANDYCAM. 5 people says that they know about the PLAY STATION. 10 people says that they know about the WALK MAN.61 | P a g e
  62. 62. 30 people says that they know about the SONY ERICSSON.Data in percentage : 10% BRAVIA 30% 6% CYBER SHOT VAIO 20% X-PLOD 10% HANDYCAM 5% PLAY STATION 15% WALK MAN 4% SONY ERICSSON 10 % says that they know about the BRAVIA . 6 % says that they know about the CYBER SHOT. 20 % says that they know about the VAIO. 4 % says that they know about the X-PLOD. 15 % says that they know about the HANDYCAM. 5 % says that they know about the PLAY STATION. 10 % says that they know about the WALK MAN. 30 % says that they know about the SONY ERICSSON.62 | P a g e
  63. 63. 4. WHICH PRODUCT YOU HAVE BUYED IN SONY OR HAVINGINTERESTED TO BUY ? sony products 25 20 15 10 5 0 SONY PLAY ERICSS HEAD BRAVI CYBER X- HAND WALK TABLE SONY VAIO STATI ON WEGA PHON A SHOT PLOD Y CAM MAN T HI-FI ON MOBIL ES E Series 1 5 10 15 2 8 5 10 20 2 8 0 15 5 people says that they have buyed BRAVIA or having interested to buy. 10 people says that they have buyed CYBER SHOT or having interested to buy. 15 people says that they have buyed VAIO or having interested to buy. 2 people says that they have buyed X-PLOD or having interested to buy. 8 people says that they have buyed HANDYCAM or having interested to buy. 5 people says that they have buyed PLAY STATION or having interested to buy.63 | P a g e
  64. 64. 10 people says that they have buyed WALK MAN or having interested to buy. 20 people says that they have buyed SONY ERICSSON MOBILE or having interested to buy. 2 people says that they have buyed WEGA or having interested to buy. 8 people says that they have buyed TABLET or having interested to buy. 0 people says that they have buyed SONY HI-FI or having interested to buy. 15 people says that they have buyed HEAD PHONES or having interested to buy.Data in percentage : sony products BRAVIA 5% CYBER SHOT 0% 15% 10% VAIO 8% 15% X-PLOD 2% HANDYCAM PLAY STATION 20% 8% WALK MAN 5% 2% 10% SONY ERICSSON WEGA TABLET SONY HI-FI64 | P a g e
  65. 65. 5 % says that they have buyed BRAVIA or having interested to buy. 10 % says that they have buyed CYBER SHOT or having interested to buy. 15 % says that they have buyed VAIO or having interested to buy. 2 % says that they have buyed X-PLOD or having interested to buy. 8 % says that they have buyed HANDYCAM or having interested to buy. 5 % says that they have buyed PLAY STATION or having interested to buy. 10 % says that they have buyed WALK MAN or having interested to buy. 20 % says that they have buyed SONY ERICSSON MOBILE or having interested to buy. 2 % says that they have buyed WEGA or having interested to buy. 8 % says that they have buyed TABLET or having interested to buy. 0 % says that they have buyed SONY HI-FI or having interested to buy. 15 % says that they have buyed HEAD PHONES or having interested to buy.65 | P a g e
  66. 66. 5. FROM WHERE YOU LIKE TO BUY THE SONY PRODUCT AND WHY ? sony stores 60 50 40 30 20 10 0 SONY WORLD SONY EXCLUSIVE MULTI-BRAND COUNTER Series 1 56 26 18 56 people like to buy the sony products from SONY WORLD. 26 people like to buy the sony products from SONY EXCLUSIVE. 18 people like to buy the sony products from MULTI BRAND COUNTER.66 | P a g e
  67. 67. Data in percentage : 18% SONY WORLD SONY EXCLUSIVE 26% 56% MULTI-BRAND COUNTER 56 % like to buy the sony products from SONY WORLD. 26 % like to buy the sony products from SONY EXCLUSIVE. 18 % like to buy the sony products from MULTI BRAND COUNTER.67 | P a g e