Principles of Marketing (MAR001-1): Sony AIBO Value Proposition Report

This report provides an analysis of the value proposition for Sony's AIBO robotic pet. The assignment begins by defining the concept of a value proposition and its importance in marketing. It then examines the original value proposition of the AIBO, highlighting its shortcomings and the need for a new approach. The core of the report proposes a new value proposition that focuses on providing companionship, love, and emotional support, shifting from a functional helper to an intelligent friend. The report emphasizes the importance of understanding the target market's desires, particularly young people, and suggests strategies to reach them effectively. The report also discusses the need for research and financial investment, as well as the potential for creating a new niche in the market and expanding functionality. The analysis concludes with a discussion of marketing strategies and the potential benefits of the new value proposition, including increased sales and brand loyalty. The report is based on the Principles of Marketing (MAR001-1) course.

PART 1
Value proposition is a marketing statement which explains the patrons why should they buy a product or services. This is helpful in
galvanising strategic marketing plan for the offering of several organisations. In the present task, new value proposition is suggested for the
product AIBO offered by Sony. AIBO is an acronym for Artificial Intelligence Robot. It is a prototype of robotic pets which is designed and
manufactured by Sony. In the beginning it was made to perform complicated tasks, but gradually the cited organisation realised that there are
some technological flaws in the project (Osterwalder Pigneur and et. al., s2014). As the company has made heavy investments in this project,
there is a need of new value proposition for this product for giving a clear aim to aid in making a strategic plan for helping in generating
revenues. The new value proposition initiates with addressing a question- Why not make a robot which does not do any useful task, why not
make a robot which entertains people? The solution to this question is the core gist of the new value proposition for AIBO which is advised to
the chosen organisation.
The new value proposition is based on the idea that customers are desiring for a product which will give them love, healing and easiness
(Michelini and Fiorentino, 2012). Thus the new value proposition focuses on creating a robotic pet which is having a capacity of feature of a
real pet. The quoted firm will now concentrate on “lovability” factor and it would be a good strategic positioning. An essential aspect of the
new value proposition is that it will be able to understand the wants and desires of its target market. It knows that people wants an adorable
friend and they are open with the concept of robots. Positioning being an intelligent friend instead of a helper. This new value proposition will
help the cited organisation to cross demographic hurdles to reach its prospective consumers. This new value proposition will prove to be
fruitful for Sony as the company will meet the actual needs of its customers. The old value proposition was not according to the wants, desires
and preferences of the target patrons. The old products was just a helper and nothing else. It would do all the chores of the patrons but was not
able to make them happy and contented. Thus, the new value proposition is going to prove very satisfactory for the customers (San Juan,
2017). They will get love, affection and companionship from that robotic pet which they crave for.This new value proposition will need a
heavy research and it will also need heavy financial funds. But this will yield long term benefits for the product and generate profits. The
intelligent usage of new value proposition will help the chosen organisation to shape out a brand new niche in the sector. Along with this, it
will also facilitate Sony to play aroung with new concepts for functionality in the near future. The new value proposition will market the
product as a “serious productivity tool”.
For the purpose of marketing the new value proposition, Sony company will target a new market segment. Earlier the robotic pet was
made for everybody for old to young people and for children also. But the new market segment will be targeting only young people. This is
because today's youth is technology oriented. They like to buy new and fresh products with advanced technological up-gradations in it. Thus it
is suggested to the chosen firm to target mostly young people. This will definitely boost the sales of this products having a new value
proposition.