MKT10007: Sony's Smartphone Marketing Strategy and Analysis Report

This report provides a comprehensive analysis of Sony's marketing strategy, focusing on the challenges and opportunities within the smartphone industry. The report begins with an executive summary, followed by an introduction that outlines the scope of the analysis, specifically examining the Sony Xperia flex product launch. Section 1 delves into the marketplace and influencing factors, including an industry overview highlighting the rapid growth of the global smartphone market and Sony's position within it. The report analyzes key trends, such as the impact of consumer lifestyle changes and increasing disposable incomes. It then proceeds to evaluate the micro-environment, identifying key competitors like Apple and Samsung, and comparing their brand positioning, product specifications, and marketing strategies. The macro environment is also explored, considering technological and cultural factors influencing consumer behavior. Section 2 offers recommendations for future research, suggesting methodologies like surveys to gather data on consumer preferences. Section 3 presents a consumer segmentation framework, categorizing consumers based on lifestyle, motives, and demographics. The report concludes by summarizing the key findings and emphasizing the need for Sony to innovate and adapt to regain market share, especially in markets like Australia. References are provided to support the analysis.

Running head: FUNDAMENTALS OF MARKETING
Fundamentals of marketing
Name of the student
Name of the university
Author note

1FUNDAMENTALS OF MARKETING
Executive Summary
This report investigates the present environment of Sony for developing effective marketing
strategy and gaining competitive advantage in the market. Sony had diversified into various
segment and the report deals with the smartphone industry. The global smart phone industry
has been growing at a rapid rate and expected to show a CAGR of 7.9% and 5.9% in terms of
value and volume respectively. This has been forecasted between the time periods of 2016 to
2024.
The smartphone device industry is one of the most demanding industry in the electronic
segment due to the change in lifestyle of the consumers. The increase in disposable income
of the consumers have increased the expenditure of entertainment, media and networking.
This provide higher potential of selling consumer electronic device into the market.
This study will use a survey to perform market analysis using statistical tools and techniques.
The data will be collected in all the major cities in Australia to understand the perception of
all the consumers.

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Table of Contents
Introduction................................................................................................................................3
Section 1: Marketplace and Influencing Factors........................................................................3
Industry Overview..................................................................................................................3
Sony in the Smartphone segment...........................................................................................3
Key trends in the market........................................................................................................4
Micro Environment................................................................................................................5
Key competitors..................................................................................................................5
Another key player.................................................................................................................7
Macro Environment...............................................................................................................7
Technological Factors.......................................................................................................7
Cultural Factors.................................................................................................................7
Section 2: Recommendations.....................................................................................................8
Methodology and Justification...............................................................................................8
Section 3: Consumer Segmentation...........................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

3FUNDAMENTALS OF MARKETING
Introduction
This report investigates the present environment of Sony for developing effective
marketing strategy and gaining competitive advantage in the market. Sony has diversified
into various segment and the report deals with the smartphone industry. The product chosen
of analysis the Sony Xperia flex and the product is expected to launch this month in the
global market.
The report has been divided into three sections, the first section analyse the wider
marketing environment and provides an overview of the industry. This will include analysis
of two key competitors Samsung and Apple. The section of the report provides
recommendations for performing further research on the existing topic. The final section of
the report portrays a segmentation framework. The report will facilitate Sony to regain
competitive advantage in market which is highly competitive in nature.
Section 1: Marketplace and Influencing Factors
Industry Overview
The global smart phone industry has been growing at a rapid rate and expected to
show a CAGR of 7.9% and 5.9% in terms of value and volume respectively
(Persistencemarketresearch 2019). This has been forecasted between the time periods of 2016
to 2024. The forecasted analysis shows that the smartphone industry is expected to grow at a
rapid rate.
Sony in the Smartphone segment
Sony has been one of the major players in the smartphone industry for the beginning
and launched a number of flagship smartphones (Androidheadlines 2019). The company has
rebranded their smartphone series more than once. The company launched its first

4FUNDAMENTALS OF MARKETING
smartphone flagship in the year of 2013 and the company again rebranded their smartphones
in the year of 2019 (Persistencemarketresearch 2019). It can be considered as one of the key
players in the high end of the smartphone industry. However, in the recent times, the
company has been facing issues in sustaining their smartphone brand which is the reason that
they have withdrawn from markets such as India and other countries. The company is trying
to keep catering their products to Japan, Hong Kong, Europe and Taiwan (Rowland 2019).
This shows that the company has been not been to maintain their share in majority of the
global markets. In respect to Australia, the sales of the company has been decreasing for the
past few years and has the left the market in Australia due to its lack of innovation and ability
to keep up with the competitors.
Key trends in the market
The smartphone industry is driven by constant innovation and enticing range of
flagship products. The new competitors in the segment such as Oppo, Vivo and Xiaomi are
rapidly increasing their market share. The smartphone device industry is one of the most
demanding industry in the electronic segment due to the change in lifestyle of the consumers.
The increase in disposable income of the consumers have increased the expenditure of
entertainment, media and networking (Persistencemarketresearch 2019). This provide higher
potential of selling consumer electronic device into the market. The adaption of smartphones
is significantly higher among the urban population when compared to the rural population.
This results in increase in demand for smartphones in the urban market when compared to the
rural market. The key competitors like Apple, Samsung, Huawei, Sony and Lenovo are
investing in the production and development of their application processor to increase market
share and gain competitive advantage (Persistencemarketresearch 2019).

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Micro Environment
Key competitors
The major competitors of Sony in the smartphone industry are Samsung and Apple
which are the market leaders.
Apple Inc.
Apple is the leading global brand in the smartphone industry and is known for their
premium luxury brand and lifestyle value to the consumers. Apple Inc. has been a forced to
be reckon with in Australia and the global market (Turner 2018). They have dominated the
industry for decades with their superior technology, user friendly application and quality of
the products offered. Apple Inc. entered the Australian market a decade back and now more
than 50% of the smartphone users use iPhone (Turner 2018). Moreover, the repeat purchase
rate of Apple products are very high and 80% of consumer are retained by the brand which
shows the success of the company. Apple is already planning to launch their Fold devices in
the year of 2020 and they position their products as premium devices with highest quality of
experience for the consumers.
Samsung Electronics Co. Ltd.
In respect to global domination in the Smartphone industry, Samsung is one of the
two colossus companies. However, the success of Samsung in Australia is from their low end
product than the high end devices and their flagship brand of Galaxy S and Note (Kidman
2017). Samsung has continuously used innovation to remain competitive in the market and
compete with Apple. However, they have developed products both in high end ranges and
low end ranges which helps to gain more share in the market. Samsung is launching their fold
device which is kept at a premium price and provides quality experience to the consumers.

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Competitor analysis
P Sony Apple Samsung
Brand + Sub Brand Sony Xperia flex Apple Fold Samsung Fold
Brand positioning Premium Brand Premium product
with unique features
Premium product
with style and
technological
superiority
Product
specifications
Dual Sim, 3G, 4G,
VoLTE, Wi-Fi
Octa Core, 2.8 GHz
Processor
8 GB RAM, 128
GB inbuilt
5000 mAh Battery
6.2 inches, 1080 x
2280 px Display
19MP + 12MP
Triple Rear + 13MP
Front Camera
Android, 10 (Q)
Product specification
has been kept secret
as the product is still
in research.
7.30-inch
(1536x2152)
Processor
octa-core
Front Camera
10MP
Rear Camera
16MP + 12MP +
12MP
RAM
12GB
Storage
512GB
Battery Capacity
4,380mAh
OS
Android Pie
Place Retailers both online
and brick and
mortar, Sony outlets
Apple Stores Samsung stores,
online stores, other
retail outlets
Price 1,237.89 AUD 2,905.20 AUD
Promotion Online, TV and
outdoor
Online, TV and
outdoor
Online, TV and
outdoor
Advantages and
Disadvantages with
our Brand and
Good design, high
quality product, lack
of innovation and
High quality
innovative product,
premium pricing so
High quality product
and premium design,

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Sub-brand brand awareness not affordable by
everyone
Affordability
Other factors
important to
prospective buyers
Product features and
camera
Brand association Classy design
Date as of September, 2019
Source:
Another key player
The consumers can be considered to be another key player in the market and
consumers have changed their choices towards luxury premium phones which can be
understood by the success of companies like Apple and Samsung. The lack of response from
the consumers has led Sony to exit from the Australian market. Even though Sony was one of
the most promising handsets in terms of design and quality, it has failed to keep up the
technological advancement and have not released any new product in the market.
Macro Environment
Technological Factors
The rapid change in the technology has caused the need for continuous innovation in
the market. Social media provides instant opportunity to review latest products and brands
having effective social media presence have gained significant competitive advantage in the
market.
Cultural Factors
There has been change in the purchase behaviour and consumer attitude towards
Smartphone. They are willing to purchase good quality products at reasonable pricing, The
increase in disposable income of the consumers have provided them with the opportunity of
purchasing premium quality products. The majority of the millennials and younger

8FUNDAMENTALS OF MARKETING
generations are looking to live a luxurious lifestyle and want premium phones as it is one of
the major touch points of the company.
Section 2: Recommendations
This section identifies the purpose of gathering information for re-entering into the
Australian market for Sony smartphone devices. The questions are as follows:
 What are the current preferences of high end consumers?
 How does consumers decide upon their choice of product?
 Do consumers have positive view of Sony products?
 What can Sony do to re gain their share in the market?
Methodology and Justification
The research proposes an explanatory survey design to collect data using primary data
collection method. The study will aim to understand the perception of the high end
consumers towards smartphone products (Taylor, Bogdan & DeVault 2015). This study will
use a survey to perform market analysis using statistical tools and techniques. The data will
be collected in all the major cities in Australia to understand the perception of all the
consumers. Stratified random sampling will be used to select the respondents and correlation
analysis will be used to understand the factors that are significant in the research.
Section 3: Consumer Segmentation
Characteristics Type of Segmentation Description
Lifestyle psychographic Consumers preferring
luxurious and high end

9FUNDAMENTALS OF MARKETING
products
Motives Psychographic Relating to using
technologically superior
products
Disposable income Demographic High disposable income
would prefer making
purchase of premium
products
Conclusion
It can be concluded from the research, Sony has been struggling in the global and
have exited from Australia. In order to prelaunch their latest product, they require superior
technology and product design to gain the attention of the consumers. The two biggest
competitors are also launching similar products so in order to gain competitive advantage, the
brand needs to offer similar products at lower price.

10FUNDAMENTALS OF MARKETING
References
Androidheadlines 2019. History Of The Sony Xperia Flagships | Android Headlines. [online]
Android Headlines. Available at: https://www.androidheadlines.com/2019/03/history-of-the-
sony-xperia-flagships.html [Accessed 14 Sep. 2019].
Kidman, A. 2017. The secret to Samsung's success isn't high-priced Galaxy S phones | finder.
[online] finder.com.au. Available at: https://www.finder.com.au/australia-q3-2017-
smartphone-sales [Accessed 14 Sep. 2019].
Persistencemarketresearch 2019. Smartphones Market Share in 2016 to 2024: Global Market
Value, Volume, Size, Trends, Demand and Sales - PMR. [online]
Persistencemarketresearch.com. Available at:
https://www.persistencemarketresearch.com/market-research/smartphones-market.asp
[Accessed 14 Sep. 2019].
Rowland, C. 2019. After years of flagging sales, Sony Mobile has quietly left Australia
behind - Ausdroid. [online] Ausdroid. Available at: https://ausdroid.net/2019/03/05/years-
flagging-sales-sony-mobile-quietly-left-australia-behind/ [Accessed 14 Sep. 2019].
Taylor, S.J., Bogdan, R. & DeVault, M., 2015. Introduction to qualitative research methods:
A guidebook and resource. John Wiley & Sons.
Turner, A. 2018. A trillion lessons in Apple's success for Australia's leaders. [online]
Australian Financial Review. Available at: https://www.afr.com/technology/hey-boss-its-not-
the-incremental-changes-you-should-be-worried-about-20180802-h13hwg [Accessed 14 Sep.
2019].