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Sony Brand Image Measurement


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Sony Brand Image Measurement

  1. 1. A Project report for Product Brand Management On Brand Image Measurement Submitted to Prof. GovindrajanIn partial fulfilment of the requirements of the course Post Graduate Program in Business Management On June 30th ‘2011 By Abhishek Dujari Ankit Jain Ashwin Agrawal Diya Mazumder Nahid Anjum Praxis Business School Kolkata (2010-2012) 1
  2. 2. CONTENTS 1. History and evolution of Sony 2. Brand Asset Valuator Model(BAV) 3. Data Collection 4. Questionnaire5. Findings and analysis from the questionnaire6. Laddering 2
  3. 3. History and evolution of SonyHistorySony’s beginning started in Japan in1946 from the sheer determination andhard work of two bright and enterprisingyoung men. Both Masaru Ibuka andAkio Morita joined hands and with asmall team of passionate and committedgroup of employees started to build“Tokyo Tsushin Kenkyujo” (Totsuko),or “Tokyo TelecommunicationsResearch Institute” to the billion dollarglobal conglomerate that it is today. The main objective of the company was to designand create innovative products which would benefit the people. The Sony name wascreated by combining “SONUS” the original Latin for “SONIC” meaning sound, with“SONNY” denoting small size, or a youthful boy. It was chosen for its simplepronunciation that is the same in any language.Sony is one of the biggest technology companies worldwide with a history spanningdecades. Most notably, Sony has created their own in-house standards for new storageand recording technologies instead of copying the standards of other manufactures.The most infamous example of this was the videotape format war of the early 80’s. Itbegan when Sony brought out the Betamax system for VCR’s to counter JVC’s VHSformat. Unfortunately, VHS won that battle and Betamax soon became a thing of thepast. However, Sony learned a great deal from this incident, and went on to producethe Betacam format that is still widely used even today, especially in the televisionand filming industry.In 1968 Sony improved upon its line of aperture grill,cathode, and ray tube televisions by adding the Trinitronbrand name. Trinitron is still produced today, but only forsuch markets as Bangladesh, Pakistan, and China. Sonydiscontinued the last Trinitron-based television set in theUSA in early 2007. Sony launched the Betamax 3
  4. 4. videocassette recording format in 1975. In 1979 the Walkman brand was introduced,in the form of the world’s first portable music player. In 1985, the company launchedtheir Handycam products and the Video8 format. Video8 and the follow-on hi-bandHi8 format became popular in the consumercamcorder market. In 1987 Sony launched the 4 mm DAT or Digital Audio Tape as anew digital audio tape standard.In the early 1990s two high density optical storage standards were being developer:one was the MultiMedia Compact Disc (MMCD), backed by Philips and Sony, andthe other was the Super density disc (SD), supported by Toshiba and many others.Philips and Sony abandoned their MMCD format and agreed upon Toshiba’s SDformat with only one modification based on MMCD technology, viz EFMPlus. Theunified disc format was called DVD which was marketed in 1997. Sony introducedthe MiniDisc format in 1993 as an alternative to Philips DCC or Digital CompactCassette. In 1993, Sony challenged the industry standard Dolby Digital 5.1 surroundsound format with a newer and more advanced proprietary motion picture digitalaudio format called SDDS (Sony Dynamic Digital Sound). This format employedeight channels of audio opposed to just six used in Dolby Digital 5.1 at the time.In 1998, Sony launched their Memory Stick format,flash memory cards for use in Sony lines of digitalcameras and portable music players. The productsand revolutionary inventions that have come fromSony are absolutely mind boggling and incorporateinto nearly every product or technology that we usetoday. Many more products would be introduced throughout the next several yearsthat would continue to expand and shape the market. In 1994 the company launchedSony PlayStation, which was a wildly successful personal gaming console that wassucceeded by the Playstation 2 and then the Playstation 3. It became the mostsuccessful personal gaming console of all time, selling more than 140 million units todate and still going strong.Key dates1950-Japan’s first magnetic tape recorder, the “G-type” launched.1955-Japan’s first magnetic transistor radio, the “TR-55” launched. 4
  5. 5. 1960-World’s first transistor TV, the “TV8-301” launched.1961-Japan’s first all-transistor amp tape recorder, “TC-777” launched.1963-World’s first compact transistor VTR, the “PV-100” launched.1965-World’s first home-use open-reel VTR, the “CV-2000” launched.1968-Trinitron color TV, the “KV-1310” launched.1971-3/4 inch u-matic color cassette player, the “VP-1100” launched.1975-Home-use ½ inch Betamax VCR, the “SL-6300” launched.1976-“BV (Broadcasting Video) series”-BVU-200 U matic VTR for professionalbroadcasting use.1976- BVH-1000, 1-inch VTR for professional broadcasting use.1979-First personal headphone stereo Walkman, the “TPS-L2” launched.1982-World’s first CD player, the “CDP-101” launched.1982-Betacam ½ inch camcorder for broadcast-use, the “BVW-1” launched.1982- SMC-70, Sony’s first 8-bit personal computer, featuring the independentlydeveloped Sony BASIC Computing language.1984-Portable CD player (later called Discman), “D-50” launched.1985-8mm camcorder based on universal standard, “CCD-V8” launched.1987-Digital audio tape (DAT) deck, “DT-1000” launched. Audio line for childrenlaunched.1988-Consumer-use still-image camera, Mavica “MVC-C1” launched.1989-Compact and lightweight passport-size 8mm camcorder, the “CCD-TR55”launched.1990-Hi-definition ready, 16:9 wide aspect ratio, 36-inch television for home-use“KW-3600HD” launched. 5
  6. 6. 1991- “Kirara Basso7” Series with “Super Trinitron” picture tube. “KP-41SP/KC-34ST/KV-29T1” launched.1992-MiniDisc system “ZS-M1” launched.1993- Digital Betacam system, a component digital VTR for broadcast use. “DVW-A500” launched.1994- Sony Playstation 32-bit game machine introduced in Japan.1995-Development of new flat Panel Display (Plasmatron)1995-Digital Handycam, first consumer-use digital video camcorder “DCR-VX1000/DCR-VX700” launched.1996-“Glasstron” personal LCD monitor, “PLM-50” and portable player, “D-V500”launched.1996-Digital still camera Cybershot “DSC-F1” launched.1996-“Super Flat Trinitron” colour television with World’s first vertically andhorizontally flat screen “KV-28SF5” launched.1997-DVD video player, capable of playing CD, VCD and DVD video discs “DVP-S7000” launched.1997-VAIO PC series “PCV-T700MR” and “PCG-707/705” launched.1999-Entertainment Robot “AIBO” “ERS-110” launched.2000-Sony Playstation 2 with 128-bit “Emotion Engine”2001-“Infostick” Bluetooth module, developed.2003-World’s first next generation high capacity optical disc “Blue-ray Disc” recorderlaunched.2005-Launch of BRAVIA series of widescreen LCD TVs, featuring Live ColorCreation. 6
  7. 7. 2006- VAIO AR series-World’s first Blu-ray disc notebook computer.2006- PLAYSTATION 3-Next generation computer entertainment system.Sony LogoFrom its introduction, the eye-catching SONY logo was revered within the company.The first version of the logo, which was enclosed in a square box, was registered as atrademark in 1955. Thereafter, the logo went through a succession of changes. In the1960s, when Sony began to seriously develop its brand image overseas, the logo wasdisplayed in neon in New York and Hong Kong, where it competed with famous andwell-established foreign companies. In 1959, the catchphrase “Sony-a worldwidebrand born in Japan” was introduced to capitalize on the logo. This was followed bythe slogan, “Research Makes the Difference.” In 1982, a slogan “It’s a Sony” came upto explain the “S mark” logo.On Sep 2, 2009-Sony announced “make.believe” (make dot believe), as a new sloganof the brand. “make.believe” is the Sony group brand message. “make.believe”symbolizes the spirit of the brand. It stands for the power of the creativity, our abilityto turn ideas into reality and the belief that anything we can imagine, we can makereal. The dot that links make and believe is the place where imagination and realitycollide. It’s the point of ignition that transcends reality.The dot is the role of Sony. “make.believe” unites 7
  8. 8. imagination and reality, designers and engineers, hardware and software, electronicsand entertainment, Sony and its consumers.ProductsSony has a wide range of products with different features. Its product ranges are:  Television and projector  Home video  Home audio  Home theatre system  Compact digital camera  Interchangeable lens camera  Video camera  Computer & peripherals  Tablet  Portable audio  Game  Mobile phone  In-car entertainment  Storage & recording media  Battery & charger  Accessories Brand Asset Valuator- BAV ModelThe Brand Asset Valuator (BAV) is a database of consumer perception of brands created andmanaged by Brand asset consulting, a division of Young & Rubicam brands to provideinformation to enable firms to improve the marketing decision- making process and tomanage brands better.BAV provides comparative measures of the equity value of thousands of brands acrosshundreds of different categories, as well as a set of strategic brand management tools forplanning brand extensions, joint branding ventures, and other strategies designed to 8
  9. 9. maintain and grow brand value. BAV has now been linked to a unique set of financialanalytics, which allows determining a brand’s contribution to a company’s intangible value.There are four key components of brand health in BAV- the four pillars. Each pillar is derivedfrom various measures that relate to different aspects of consumer’s brand perceptions andthat together trace the progression of a brand’s development. These four components fordetermining brand value are-Differentiation:Differentiation is the ability of a brand to be able to distinguish itself from its competitors. Abrand should be as unique as possible. Brand health is built, and maintained by offering a setof differentiating promises to customers and delivering those promises to leverage value.Relevance:Relevance is the actual and perceived importance of the brand to a large consumer marketsegment. This gauges the personal appropriateness of a brand to consumers and is stronglyrelated to household penetration (the percentage of households that purchase the brand).Esteem:Esteem is the perceived quality and consumer perceptions about the growing or decliningpopularity of a brand. The consumer’s response to a marketer’s brand building activity isdriven by his perception of two factors : Quality Popularity.Both vary by country and culture.Knowledge:Knowledge is the extent of the consumer’s awareness of the brand and understanding itsidentity. The awareness levels about the brand, and what it means, shows the intimacy thatconsumers share with the brand. True knowledge of the brand comes through building ofthe brand.BAV groups together indicators, Differentiation and Relevance, and the indicators, Esteemand Knowledge. These two pillars are essential in mapping the life of a brand. 9
  10. 10. The combination of Differentiation and Relevance forms Brand Strength. It is a leadingindicator of a brand’s ability to exist as a viable entry in the marketplace. Brand Strengthallows the brand to both defend itself from competition and generate margin, earnings andcharge premium.The combination of Esteem and Knowledge forms Brand Stature. This captures a brand’spervasiveness in the marketplace. Brands used to be measured only on Esteem andKnowledge. Today, we know that Brand Stature is a lagging indicator of a brand’s weakness;it declines after Brand Strength fades. Differentiation Brand vitality Relevance Brand value Esteem Brand strature KnowledgeData Collection:Models of Data collection: Quantitative research ( Brand Asset Valuator- BAV model by Young & Rubicam) Qualitative research ( Laddering by Reynolds & Gutman)Research Methodology: 10
  11. 11. Exploratory research provides insights and comprehension of an issue or situation. It is atype of research conducted because a problem has not been clearly defined. Exploratoryresearch helps determine the best research design, data collection method and selection ofsubjects. Given its fundamental nature, exploratory research often concludes that aperceived problem does not actually exist.Data collection:In this study internal and external source for data collection has been used. The followingtwo types of data have been taken into consideration- Primary data Secondary dataPrimary data: All the primary data for the purpose of the study were obtained byinterviewing the consumers with the help of a questionnaire. The questionnaire was framedon the basis of the brand. The questions were designed in a way to elicit maximuminformation and data about the product.Secondary data: Secondary data has been collected through websites.Respondents: The respondents are consumers aged between 18 to 50 years.Sample size: The sample size for BAV study is 50. We interviewed college students andprofessionals to obtain a varied response.The sample size for Laddering is 20.Sampling scheme: The sampling technique adopted was “simple random sampling”, since itis not possible to study a huge mass residing in the universe.Research tool: The research tool for Quantitative research is a questionnaire. The research tool for Qualitative research is focus group study and in-dept interview of the targeted segment of consumers.Questionnaire: 11
  12. 12. Specifying data requirements Determining the type of questions to be asked. Deciding the number and sequence of questions. Preparing the preliminary draft of questionnaire. Revising and pre-testing the questionnaire. QUESTIONNAIRE:1) On a scale of 1-5 (5 being the highest) how different is Sony from other brands?2) Rate Sony (5 being the highest) on the following attributes vis-à-vis the other brands (LG, Samsung, Philips) – Attributes Rate After sales Technology Price Style3) Tick the Sony products which either you or your family use :- LCD TV Digital Camera Notebook 12
  13. 13. Tablet Walkman Blue Ray disc players SLR camera Play station Hi Fi systems Home theatre Voice recorders Headphones4) On a scale of 1-5 (5 being the highest) rate how proud do you feel owning a Sony product.5) Which brand do you want to be associated with the most (5 being the most preferred)? Brands Rank Sony LG Samsung Philips Panasonic 6) Tick the following you have heard of- Bravia 13
  14. 14. Cyber shot Vaio PSP Handycam Walkman Tablet7) Tagline v/s Brand- Make Believe Next is what Sense & Simplicity Life’s good8) Which Brand do the following celebrities endorse? Aamir Khan Deepika Padukone Akshay Kumar Kareena Kapoor9) Would you recommend your friend to buy a Sony product? Yes No 14
  15. 15. Findings and analysis from the questionnaire:Questions 1 and 2 were asked to find how different was Sony compared to the other brands(LG, Samsung, Philips). These questions highlighted the Differentiating factor of Sony.At the very start of the questionnaire, we asked the surveyors a very straight forward question as tohow different do they think Sony is from the other electronics umbrella brand. The answer wasalmost unanimous as the surveyors think of Sony as different from the other brands. The mean ofthe collected data was 4.28 out of 5 which meant that the surveyors considered Sony was verydifferent from its other competitors. On a scale of 1-5 (5 being highest) how different is sony from other brands? Column1 Mean 4.28 Standard Error 0.099139152 Median 4 Mode 4 Standard Deviation 0.701019666 Sample Variance 0.491428571 Kurtosis -0.846022289 Skewness -0.451999396 Range 2 Minimum 3 Maximum 5 Sum 214 Count 50On our 2nd question for differentiation, we asked the respondents a comparison question. 4attributes were given to them (After Sales, Technology, Pricing and Style) and therespondents were asked to rate Sony as compared to all the other electronic brands presentin the market. The feedback for Sony was positive and the analysis derived is given below – 15
  16. 16. After Sales Technology Row1 Row1 Mean 3.58 Mean 4.64 Standard Error 0.124834584 Standard Error 0.068571429 Median 3 Median 5 Mode 3 Mode 5 Style Pricing Row1 Row1 Mean 4.5 Mean 3.12 Standard Standard Error 0.086897 Error 0.144674 Median 5 Median 3 Mode 5 Mode 3Respondents felt that the after sales service for Sony has not been good. Also it wasperceived that the prices of its products are a bit on the higher side. On the other hand, itwas also proved from the survey that Sony made its products very stylish and used cuttingedge technology in them.Question 3 was asked to analyse the relevance of Sony products to the consumers.The analysis is represented by the chart below: 16
  17. 17. Relevance Product Wise Series1 Series2 35 35 38 32 30 23 23 18 17 6 4 8Analysis: To find out the positioning of Sony in the top right quadrant of the BAV Model, we askedthe surveyors which Sony products have either they or their immediate family members use or haveever used. It was found from the survey that a lot of people use Sonys LCD TV, Digital camera,Walkman and Headphones. On the other hand Sonys laptop, blue ray disk player, SLR camera andvoice recorder were used by only a few.Question 4, 5 and 6 were asked to find the esteem that the brand Sony has amongst its consumers.On our 4th question for esteem we again asked a straight forward question to the respondents as tohow proud they feel to be related to Sony. It was a rating question where the respondents had togive 5 if they felt very proud of owning a Sony product and 1 in the reverse case. Mean 4.44 Standard Error 0.086472834 Median 4.5 Mode 5A mode of 5 showed that most of the respondents felt very proud of owning a Sony. To see the levelof esteem amongst the respondents, we further asked them if they would recommend a Sony totheir friends and relatives. Out of the 50 respondents – 17
  18. 18. Would you recommend Sony to your friend Yes No 22% 78%Our next question (6th) on esteem was a comparison question where we gave 4 other brands (LG,Samsung, Philips and Panasonic) apart from Sony and asked the respondents to mark 1. Out of the50 respondents (100%) – Which brand do you want to be associated with the most panasonic Philips 8% 10% Sony 46% Samsung 26% LG 10%Close to half of all referred Sony as the most preferred brand. Samsung was only a near competitorwith 26% share. All the questions combined, we figured out that Sony was respected by majority ofthe people.Our next set of three questions was targeted to measure the knowledge portion of the consumersand along with it the depth of the knowledge they possessed. In our 7th question (1st for knowledge)we gave the respondents a list of all the products that Sony has under its umbrella and asked them ifthey had ever heard about them. 18
  19. 19. Product Awareness 50 49 50 48 49 50 19The response to the question made us feel as if the question was irrelevant as all the respondentshad heard about the brands under the Sony umbrella. Only the tablet was a negative as only 19 outof 50 respondents knew about it. It must also be noted here that tablet as a category is well knownby many but the fact that Sony also produces a tablet was known only by a few. Even after gettingthe response we planned to stick to the question as it showed how famous was Sony and its brandsamongst its users. Further, to test the depth of knowledge, we asked the respondents two morequestions on taglines and endorsers. We gave the surveyors a list of taglines and asked them torelate to it. On this front, Sony was a lager as only 21 out of the 50 respondents know their tagline“Make. Believe”. We also found out that LG was almost perfect in this context as 49 out of the 50respondents recognized “ Life’s Good”. Taglines 49 21 20 29 Make. Believe Next is what Sence & Simplicity Lifes GoodOn our last question of the questionnaire, we gave the surveyors a list of 4 brand endorsers out ofwhich 2 were for Sony. 19
  20. 20. Brand Ambassador 34 32 19 14 Aamir Khan Deepika Padukone Akshay Kumar Kareena KapoorAamir Khan was a well known ambassador for Samsung. Kareena Kapoor was the most famousendorser for Sony Vaio.After analysing the responses thoroughly, we came to the following conclusion – Differentiation Relevance Esteem Knowledge 83% 54% 71% 62% 83% 71% 62% 54% Differentiation Relevance Esteem KnowledgeAll the 4 measures when put together give a very healthy picture to Sony. But there is always roomfor improvement. If Sony has to maintain its Leadership position it will have to increase therelevance level, particularly of certain products such as Voice Recorders, Tablets and SLR cameras. Itmay think of taking the option of following a similar aggressive marketing strategy of Sony Vaio andCyber shot(justifying an investment based on the prospects of growth in the markets of therespective products) 20
  21. 21. SONY Qualitative Research Laddering methodLaddering refers to an in-depth, one-on-one interviewing technique used to develop anunderstanding of how consumers translate the attributes of products into meaningful associationswith respect to self, following Means-End Theory (Gutman, 1982).Laddering involves a tailored interviewing format using primarily a series of directed probes, typifiedby the “Why is that important to you?” question, with the express goal of determining sets oflinkages between the key perceptual elements across the range of attributes (A), consequences (C),and values (V).These association networks or ladders, referred to as perceptual orientations, representcombinations of elements that serve as the basis for distinguishing between and among products ina given product class. 21
  22. 22. Values Consequences AttributesFindings and Analysis of Laddering:- Most of the respondents were of the opinion that Sony is an expensive brand. But they associated the high price of Sony products with good quality. The respondents are of the opinion that the price of the Sony product is directly proportional to the quality of its product. The respondents are of the opinion that the sound quality of Sony products is a feature worth mentioning about. They mentioned its “clarity” that sets Sony apart from its competitors. The respondents also mentioned that Sony is a lifestyle product. The products of Sony look good and are a complete Value for money product. The respondents are of the opinion that Sony products are a source of entertainment. Be it the walkman series, Vaio, PSP etc. It is user friendly and has a feel good factor. The respondents are also of the opinion that Sony is anonymous to status. It is a status symbol good. Hence, respondents on acquiring a Sony product feel a taste of accomplishment. It gives them a feel of belongingness. 22
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  25. 25. Conclusion: Sony is a brand with which consumers would like to associate themselves. The brand has highrelevance amongst the consumers. So far as Esteem is concerned, the consumers view Sony as astatus symbol product and feel proud to own a Sony product. 25