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Sony vaio case study
Richard Lopez needs to choose a market segment for Sony Vaio laptops in China. Three market research reports analyzed Chinese consumers: 1. The Shanghai Report found a growing segment of "detail oriented" post-1980s consumers seeking status and technology. 2. The CLUES report identified six laptop user segments, including "Entertainment Lovers", "Business focused", "Family users", and "Tech enthusiasts". 3. The Project Compass global research found six segments, including "Technosocializers" who are interested in multimedia and social media. The solution is to target the business professionals with high incomes identified in the Shanghai Report, the "Business focused" segment from CLUES, and
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Sony vaio case study
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- 2. Problem • Richard Lopez(product manager) • Marketing plan presentation to senior management • Struggle: too much data • 3 market research reports • Which segment to choose ? • Best plan for vaio in china
- 3. Introduction • Sony corporationbegan in 1946 • Major player in multiple electronic markets • 171000 employees worldwide including japan, US, Europe and China. • Total annual sales: $89 billion in March 2010
- 4. Product Details • Afterhandycam camcorders and Walkman personal stereo Sony introduced series of computer products in mid 1996. • Vaio desktop • Vaio laptops in Japan
- 7. Strategy for Vaio •High end niche products • Consumers who give top priority to style and design • Competitor: unexciting designs • Existing laptops: grays, blacks, boxy, bulky and heavy.
- 8. • Vaio 505line (1998) gain significant awareness and recognition • Positioned as “statement computer” • “sleek” • Available in colours (first production run) • Iconic: rich purple • Popular with image conscious people • Focused on reducing weight and size
- 11. • Installed softwareproviders • Distinctive advantage: (multimedia software) computers were not likely to have • Premium offering • Higher avg selling price • Kept away from attracting mass audience like others • Outstripped desktops in late 2000’s
- 12. • Individual consumersand business professionals • Not suitable for businesses • China: moderate success • Replica • Copycats less successful imitating branding and aesthetics •
- 13. Shanghai Report • Early2010 research • Education and income gaps, inequality among Chinese consumer gaps • Low quality products and pirated softwares. • Growing segment enjoyed status, money and technology • “Detail oriented consumers” • Post 1980’s generation were more status seeking and powerful
- 14. • 50% laptopowners • 75% desktop owners • Male laptop owners 57% • 36% of laptop buyers are between 25-34 • Upper class 46%
- 15. Customer interviews • 40vaio users and 4 non-sony users • Self expression • Lenovo vs. sony • Consumers sought knowledge and advice from family and friends • “Meaningless information”
- 16. 1- some usedlaptop for social connection 2- some used as a productive tool 3- Some used for everyday tasks, confused by extra features 4- (Growing segment) used it for multimedia. Eg: games, movies, shows and social media
- 17. CLUES report • 760surveys (face to face and video conference) • 18 and 55 years of age • Participants owned or were interested to purchase laptops • Rate laptop and its characteristics • Six segments of Chinese laptop users
- 18. • Entertainment Lover •Business focused • Family user • Tech enthusiast • Fashion oriented • Heavy user
- 19. Project compass • Crosscompany cross regional segmentation • Global research • 30,000 respondents • 4000 participants from eight countries • 16-65 age • Interested in any one: tv, digi cam, dvd player or audio system. • Six global consumer segments
- 20. • Technosocializers • Performanceseekers • Status focused • Unfussy basics • Functional socializers • Quality of lifers
- 21. Solution • Business professionalswith high income. • Customer interviews (target the growing segment) • Clues (family users and business focused) • Compass (technosocializers), (word of mouth)