MAR001-1 Principles of Marketing: Sony AIBO Value Proposition Analysis

This report presents a new value proposition for Sony's AIBO, the robotic pet. The assignment addresses the need for a shift in focus from a functional helper to a companion that provides love, healing, and companionship, meeting customer desires. The report suggests targeting the youth market, emphasizing the technological appeal and emotional connection. It outlines how this new approach can help Sony overcome demographic hurdles and generate long-term profits. The analysis includes strategic positioning, market segmentation, and the importance of understanding customer preferences. The document also references relevant literature on value proposition design and shared value creation. The assignment highlights that the new value proposition will require substantial research and financial investment but will ultimately create a new niche in the market.

Marketing

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.

Cont.
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.

Cont.
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.

Cont.
The new value proposition is based on the idea that customers
are desiring for a product which will give them love,
healing and easiness. 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.

Cont.
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. 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
around with new concepts for functionality in the near future. The new
value proposition will market the product as a “serious productivity
tool”.

Cont.
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.

REFERENCES
Osterwalder, A., Pigneur and et. al., 2014. Value proposition
design: How to create products and services customers
want. John Wiley & Sons.
Michelini, L. and Fiorentino, D., 2012. New business models
for creating shared value. Social Responsibility Journal,
8(4).pp.561-577.
San Juan, R., 2017 Value Proposition and Sony's AIBO.
[Online]. Available
through:<http://www.gaebler.com/Value-Proposition-and-
Sonys-AIBO.htm>. [Accessed on 7th April 2017].

THANK YOU