Sony is considering targeting laptop consumers in China and must decide whether to take a global or local marketing strategy. Richard Lopez of Sony Corporation in Hong Kong conducted four types of research on Chinese laptop users to inform their strategy: 1) The Shanghai Report provided demographic data on users; 2) Customer interviews identified key user groups; 3) The CLUES Report identified six Chinese user segments; 4) Project Compass provided a global segmentation of over 30,000 respondents across six segments. Lopez must determine which research is most applicable to developing Sony's strategy for the Chinese laptop market.

1. Sony Targets Laptop
Consumers in China:
Segment Global or Local?
Presented by: Surabhi(37), DikshaKumari(26), Swetank Bhushan(49), Harsh
Kumar(33), Saksham Raj(42)

4. Summary
 Sony started its journey in the year 1946 as the Tokyo Telecommunication EngineeringCorporation
as a player in the multiple electronics market.
 In the year 1997, Sony introduced laptops in the market.
 VAIO became a premium brand for the users whose top priority is style and design.
 The VAIO 505 laptop launched in 1998 distinguished itself from the laptops of other brands due to the sleek
nature and availability of different colors. Whereas, the laptops of all the other brands were heavy and of
similar color.
 VAIO also became well-known and the only laptop brand to provide built-in software, which contenders
were not likely to provide.
 The marketing segment of VAIO targeted individual consumers and business professionals. But
VAIO couldn’t attract the IT Managers of medium to big enterprises as the need of the software
provided by it was useless for them. Even after this,VAIO conquered a strong position in the Chinese market
which no one could easily take over.
 Richard Lopez, product manager of Sony Corporation in Hong Kong had done four types of research to plan
for his marketing strategy.
 The researches were -The Shanghai Report - A bigger scenario of the laptop buyers of the Chinese
community. Thereport specified demographic data of the Chinese laptop and desktop users through a
surveyof the consumers.

5.  Customer Interviews - A greater scenario of laptop users in China. The interviews revealed 3key groups
related to the purchase of laptops - Consumers who buy a laptop to maintaintheir social status, customers
who buy laptop taking advise from friends and family andbuyers who exactly wants what they need
without having to see different confusing options.
 The CLUES Report - Chinese Laptop Users Survey was conducted with 760 surveys of Chineseconsumers. Six
user segments were found with this report - Entertainment lover, Businessfocused, Family user, Tech
enthusiast, Fashion oriented and Heavy user.
 Project Compass - It was a cross-company and cross-regional segmentation for a
betterunderstanding of worldwide consumers. It included data from more than
30,000respondents. Six consumer segments were found - Technosocializers, Performance seekers,Status
focused, Unfussy Basics, Functional Socializers and Quality of lifers.
 It was a very hard decision for Lopez and his team to select a marketing strategy with thedata of four
reports.

7. Marketing strategy indicated in the
case.
•Sony VAIO adopted concentrated or niche marketing strategy for its product.
• Targeted a customer segment that preferred style, design and high-end feel which would make
them stand apart from the crowd.
•Company achieved this by working on multiple fronts viz.
* Design
* Software
* Price
•Apart from this, company focused exclusively on laptop production,marketing and sales during a
time when share of desktop outweighed that of laptop.
• Through this strategy Sony VAIOwas able to get itself recognized in the laptop market and in late
2000slaptop sales outstripped desktop sales.

8. Comment on the Chinese consumers based on
the supplementary material in case
A select group of Chinese consumers seeks to have the same degree of status, wealth,
technology and expertise as people in more developed countries. They saw electronic purchase
as strong means of self expression.
Chinese citizens are detail- oriented consumers.
 EXHIBIT 3
• Demographic data for laptop consumer in China
• GENDER - 51% of the Chinese population is male and out of which 57% use Chinese Laptop. On
the other hand, 43% of female population use Chinese Laptop.
• AGE- Age ranging between 25-34 form the maximumpopulation of China i.e. 27 % and out of
which 36% owns Chinese Laptop and it is maximum of all age range.
• EDUCATION- College degree population is nearly 20% of the population and of which 43%
own Chinese Laptop.
• INCOME- Lower income population forms the maximum of the Chinese population i.e. 47% but
out of upper income population 46% owns Chinese Laptop and is maximum of all the income
class.
• MARRIED- 74% of the population is married and out of which 66% owns Chinese Laptop.

9. Contd…
 EXHIBIT 4
Brands like Dell , Lenovohavehigher share in China Market compared to other brands like Apple, Compaq. Sony has
6.1% market share in China.
Lenevowhich is a Chinese company is well-liked as it is regarded as the most established PC brand in China.
 EXHIBIT 5
Six Chinese Laptop user segments are identified by statistical analysis of the CLUES data of which Family has the highest
percentagewhich includes largest number of women and they seek stylish laptops.
 EXHIBIT 6
▪ Six global consumer segments are identified by statistical analysis of the Compass data, Unfussy basics are those
who try to keep their lives as simple as possible and single function program forms the maximum percentagei.e. 24%.
 EXHIBIT 7
China has the maximum percentageof unfussy basics segment i.e. 24%.
 EXHIBIT 8
CLUES Segments (Family user shows a high number of percentagewho is planning to purchaselaptop in coming 12
months).
 EXHIBIT 9
Shows family users havethe highest percentage

10. Six segments of Chinese laptop users (CLUES)
Entertainment Lover - Video game, Music player and video content
lover. Younger than other segments.
Business Focused - Professional from different age. Use their laptop
for productivity
Family User - Seek stylist laptop .I use my children to track of my
children and talk to friends.
Tech Enthusiastic - Wants fastest and most power full computer
products. More focus on hipness and style
Fashion Oriented - Frequently access social networking sites to
discuss trends and fashion.
Heavy User - Use laptop for all life activities. My laptop is like my
best friend

11. Six segments of Chinese laptop users (COMPASS)
Technoscializers = Contact with other and with information at all the time. Keep up
with new technology and share new technology information with peer group.
Performance Seekers = Passionately interested in every aspect of technology. Desire
to be the first to own, adopt and master in the technology.
Status Focused = Show off and that brings more fun into their lives..
Unfussy Basics = Not interested in technology
Functional Socializers = Avoid innovative new technology
Quality of Lifers = Careful about the purchase of new technology.

12. Comparison of CLUES and PROJECT
COMPASS
CLUES REPORT
 Shed some light on the comparison of
consumers in China and their laptop
product preferences.
 Age group – 18 to 55 years of age.
 Customer Segmentation:Entertainment
lover, Business focused, Family user,
Tech enthusiast, Fashion oriented, Heavy
user
 Only 760 participants
 Function segmentationemerged from
CLUES data.
COMPASS REPORT
 Offered a better understandingof Sony's
consumer worldwide.
 The intentionwas to come up with a
detailedview of the users across a range
of markets as well as different products.
 Customer Segmentation:Techno-
socializers, Performance seekers, Status
focused, Unfussy basics, Functional
socializers, Quality of lifers
 More than 30000 Global participants.

13. Similarities and Dissimilarities
SIMILARITIES: Both the studies give us a comprehensiveidea about the customers usage and
purpose from the laptop.
DISSIMILARITY: CLUES data is more focused in the analysisof customers type whereas
COMPASS data is more concentratedon the characteristicsand functions needed by the
customers.
CONTD…

14. Which report is more workable for Lopez?
 Lopez shouldinterpret the test results,according to the goals that Sony is aiming for.
 I would assume that Lopez shoulduse both the CLUES and COMPASS studies in
comparison, and use the best of both these studies to draft a marketing plan for sale
the Vaio in China.
 Based on the research of the CLUES report, the highest percentage of users who
owned or who were planning to purchase a laptop were family users.
 Family users have the potential to be a suitable segment group for VIAO laptops as
their way of thinking can often be linkedwith the values of VAIO, holding the value
proposition of being "young and trendy' while also implying that VAIO users are ‘a
cool and trendy’.

15. THANK YOU!