SONY'S Failure in MP3 Market

1. CASE STUDY BY:
Bhagya Lakshmi
Brahmu P A
Christo Lorence
Dershana Cheriyan
Devijith
S4 MBA MACFAST THIRUVALLA KERALA Eldo Varghese Paul

2. SONY CORPORATION commonly known as SONY is a Japanese Multinational Conglomerate Corporation that is
headquartered in Kōnan, Minato, Tokyo. Its diversified business includes consumer and
professional electronics, gaming, entertainment, and financial services. The company is one of the leading
manufacturers of electronic products for the consumer and professional markets. Sony was ranked 116th on the
2015 list of fortune global 500.
The group consists of Sony Corporation (Holding and Electronics), Sony Interactive Entertainment (Games), Sony
Pictures Entertainment (Motion Pictures), Sony Music Entertainment (Music), SONY/ATV Music Publishing (Music
Publishing), Sony Financial Holdings (Financial Services) and others.

3. SONY PRODUCTS
A product is anything that can be offered to the market for attention, acquisition, use or consumption that
might satisfy a need or want.
Product decision usually base on brand name, functionality, styling, quality, safety, repairs & support,
warranty, accessories & support. These product attributes can be manipulated depending on what the
target market wants.

4. • 1. Television & projectors
• 2. Home video
• 3. Home audio
• 4. Home theatre system
• 5. Digital photography
• 6. Hand cam video camera
• 7. Computer peripheral
• 8. Portable audio
• 9. Game
• 10. In-car entertainment
• 11. Mobile phones
• 13. Batteries & chargers
• 14. Other accessories

5. PRODUCTS

6. CURRENT MARKETING STRATEGY
The continuous youth marketing strategy aimed at capturing young consumers & enhancing an
innovative brand image will also be employed through product groups, incorporating a series of
out-of-box marketing campaigns to convey a unique lifestyle to consumers such as the lets color
strategy under which SONY makes its colour products available in all colour product groups,
ranging from BRAVIA, CYBERSHOT CAMERAS, to WALKMAN & VAIO laptops.

7. ADVERTISING
It is any paid form of non-personal mass communication through various media to present &
promote product, services & ideas, etc by an identified sponsor.
Sony has advertised through various forms of media:
1.SONY advertises their products through Television ads. For ex: BRAVIA or Sony Wega.
2. It targets those favourable television programs, like sports series & it also has its own TV
channel called SONY TELEVISIONS.
3. Sony uses some events like Miss India 2008 to promote its products.

8. 4. They advertise their laptop range through sports events like the England Premier League.
5. Sony also uses direct-response advertising, thus encouraging the consumer to respond by providing feedback
to the advertiser. This is usually done through mails & catalogues.
6.It also incorporates co-operative advetising by providing the dealers with materials guidelines to develop ads
for print & radio commercials.

9. PUBLIC RELATIONS & PUBLICITY
Public relations is a broad set of communication activities employed to create & maintain
favourable relationship with employees, shareholders, suppliers, media, educators, potential
investors, financial institutions, government agencies & officials & society in general.
Through its website (www.sony.co.in) SONY CORPORATION has provided their contacts for those
customers who will be in need of any information from the company. This way it has created a
mutual relationship with its customers & ensures that it serves the wishes & demands of its
customers.

10. WHY DID SONY FAILED IN MP3 PLAYER
MARKET?
FAILURES ARE IRREVOCABLE
VS

11. J

12. WHY DID SONY FAILED IN MP3 PLAYER
MARKET?
• LACKED INNOVATIVE SPIRIT
• PROGRESS THAN DEVELOPMENT
• LACK OF COMMITMENT FROM THE DIFFERENT DEPARTMENTS
• Sony’s strategy to stick on with the ATRAC music format than mp3.
• ADAPTIVE TRANSFORM ACOUSTIC CODING (ATRAC) is a family of proprietary audio compression
algorithms developed by SONY CORPORATION.