Sony is finally turning around in the US LCD TV market after falling behind throughout most of 2009, according to

iSuppli. In the fourth quarter of last year, Sony was the best performer with a 13.2% market share, a dramatic rise
from 7.7% a quarter earlier. As we all know, price erosion in the LCD market has been rampant and Sony responded
with great promotions and pricing schemes. As you may recall from the recent Executive Roundtable, Sony stated
that in collaboration with Best Buy, they sold 12,000 BRAVIA TV bundles that included a PS3, one game and a Blu-
ray movie late last year. It was the best bundle deal Best Buy has ever done and that Sony has ever done. Sony also
mentioned one day record sales with another bundle during Fall of last year, where they sold a BRAVIA TV and a
PS3 at SonyStyle for a great price, which helped Sony move three times more TV’s than the prior year.

Despite these initiatives and growth from the previous quarters, Sony ranked in third place based on sell-in numbers
throughout 2009.

Vizio was the leading LCD TV brand in the US in 2009 – their shipments nearly doubled throughout the year at 5.9
million units, up 92.1% from 3.1 million in 2008. They were third place in overall sales ranking in 2008, and is Sony’s
strongest competitor in the USA. During the US recession, Vizio has established itself as a price leader in the market
for LCD TVs, and continues to offer attractive promotions that hurt the higher priced premium brands.

Another strength for Vizio is the fact that they are incorporating premium features in their products, such as LED
backlighting, high framerate (120hz, 240hz, etc) technology, and Internet connectivity. When a consumer compares
specifications between a Vizio and a Sony, and sees that the lower-priced Vizio has many of the same features,
suddenly the word “premium” becomes a blur. Vizio also is preparing a very strong line-up of affordable 3D TVs that
will most certainly disrupt pricing strategies for Sony and other premium brands later this year.
Samsung was the overall US flat-panel leader in 2009, which is a segment that includes LCD’s and Plasma sets.
Samsung’s overall shipments were 6.6 million units in 2009, which is a 22.6% increase from the 5.4 million units in
2008. This contributed to a steady 18.4% market share, virtually unchanged from the year prior.

We must note that iSuppli bases their information on sell-in information, which is not point of sale information.
Technically, “sell-in” isn’t even shipped. It’s any TV that Sony has taken an order for, including the ones still sitting in
their own warehouse. The only source of POS information is the NPD, but Walmart, Costco and other major retailers
do not report to them so their numbers are
Sony :
Sony Group No. 7 Jennifer Busacca, Trevor Helms, William Logan, Stephen Remillard & Stephen Giusti

Sony Company Background:

Sony Company Background Sony Corporation has been a leader in motion picture, television, computer
entertainment, music and online businesses. In the past year, annual sales in the fiscal year end of March 31, 2008
estimated $88.7 billion, and it employs 180,500 people worldwide. With a high level of brand awareness amongst
most consumers, Sony has become a widely recognized global brand. The company operates globally in over 204
countries across Japan, North America, Europe, and Asian countries

Sony Marketing Objective:

Sony Marketing Objective Our marketing team is focused on increasing sales for Sony’s electronic products, as well
deliver corporate value to their customers and partners. Because the electronic consumer market is such a large
industry, there is a great opportunity for Sony to capture a large share of this market, despite the economic down turn
in the U.S.

Sony Marketing Challenge:

Sony Marketing Challenge Sony has experienced declining sales in consumer electronics, which in-turn, has forced
the company to respond to the declining unit price. Overall, this has resulted in size reduction of TV screens, as well
as fierce price-cutting competition. Elimination of more than 16,000 jobs, and a shutdown of a total of six production
bases. Joint-ventures including Sony Ericsson Mobile Communications & Samsung LCD panels. Price increases in
both raw materials and parts will be a challenge to manufacture electronic devices and maintain competitive pricing.

Sony SWOT ANALYSIS: Strengths:

Sony SWOT ANALYSIS: Strengths One of the world’s largest manufacturers of electronics, video, communications,
and information technology products Innovative quality products “Sony’s innovation has become a part of mainstream
culture” Long list of First Diversification across markets

Sony SWOT ANALYSIS: Weaknesses:

Sony SWOT ANALYSIS: Weaknesses Decline in product competiveness Inefficient manufacturing structure
Consumer Satisfaction

Sony Opportunities:
Sony Opportunities Business Reorganization Allocate management resources Divest, downsize, withdraw from
certain areas Large scale, world wide layoffs Partnership with FIFA Sponsorship includes 2010 & 2014 World Cups
Enhance brand awareness, recognition, and trust Expand Consumer Electronics Market Industry expected growth of
$171 billion in 2009 Blu-Ray DVDs expected sales more than $1.2 billion for 2009

Sony Threats:
Sony Threats Integration of joint ventures & alliances Aligned with Samsung to market S-LCD panels Result was net
loss of $100 million for fiscal year 2005-2006 Increasing price of raw materials Unstable supply & demand conditions
Currency exchange risk Expected increase of $350 million for 2008-2009 fiscal year (little Sony can do about it)
Counterfeit goods Intense competition (more on next slide)
Sony Competitor Analysis:
Sony Competitor Analysis Huge competitors in every business at every level (consumer electronics, music industry,
movies, games) Low PBR (price-to-book ratio) LCD TVs are Sony’s leading revenue driver At a disadvantage since
they don’t make LCD panels (all their competitors do) Toshiba and Sharp top competitors in Japan Panasonic net
income, profit, operating profit ALL increased in fiscal year 2007-2008 Sony operating income down 57.2% for same
period

Sony Product Strategy :

Sony Product Strategy Sony has been a leader in motion picture, television, computer entertainment, music and
online businesses. The product that demonstrates this leadership is Sony’s new BRAVIA XBR9 series televisions.
Major Features: Ethernet connection that gives the largest selections of free and premium movies, TV shows, and
sports out there. Full HD vibrant screen Sony ’s new Motion flow 240Hz technology, which delivers exceptionally crisp
and detailed images by quadrupling the frame rate of conventional LCD TVs.

Sony Pricing Strategy :

Sony Pricing Strategy The suggested retail price will be: $3,599.99 for 52” $3,099.99 for 46“ $2,799.99 for 40” The
price of the XBR9 series is designed and priced to be competitive with Samsung and LG HDTV’s

Sony Marketing Strategies:

Sony Marketing Strategies

Sony Target Market :

Sony Target Market Demographics Sony is a diverse brand that provides products and services for a wide variety of
people. Sony will focus on expanding their segments in the women’s market. Women make up over half the sales in
consumer electronics and influence over 80% of purchases.

Sony Differentiation :
Sony Differentiation Quality Sony strives on innovative products that are easy for consumers to use. Market Leader
Sony is the market leader in electronics. In particular Sony is the number one leader in television market share.

Sony Positioning :
Sony Positioning Sony is one of the world’s greatest brand in the eye of the consumer. Sony products are considered
to be high quality, unique, and convenient. Mainstream culture has embraced Sony’s innovation.

Sony Promotional Strategies :

Sony Promotional Strategies No interest and no payments for 24 months if the customer applies for the new Sony
Financial Services Card at point of purchase. Save up to $360 when they bundle the BRAVIA XBR9 series LCD
HDTV with the new BDP-S360 Blu-ray Disc Player ($299.99 retail $360 for the 55”, $300 for the 46”, $280 for the 40”
Introduction of a new tagline created to target LG Electronics tagline “Life’s Good” “Now Life’s Better”
Sony Managerial Implications & Recommendations:
Sony Managerial Implications & Recommendations Sony will have to retool their products, and overall marketing
attitudes to suit different demographics, and capture the growth opportunities in technology developments . Decrease
the number of materials and parts required to manufacture, and keep costs down. Bring a strong presence to e-
products & innovative devices, which will provide an opportunity to capture a large share of the electronic market.
Computer/handhelds & Peripherals. Digital Cameras & Camcorders Mobile Phones LCD Televisions Semiconductor
Innovation.