Sony Ericsson

Sony Ericsson Marketing Going to Plan

Nepal

1- Executive Summary 2- Environmental Analysis 3- Strength & Weaknesses 4-Opportunities & Threats
Prepared by:

Market Plan Ahmed Khalifa Presented to: steps Amira Elsayed

Hossam Moustafa Dr/Amr Kheir Eldin Moataz Sadat Rana Rasslan Rawda Sayed

5- Marketing Objectives
6- Marketing Strategies 7- Implementation 8- Budget 9- Control

 Our vision is to become THE communication entertainment brand inspiring you for more than 1- Executive Summary communication tool.
2- Environmental Analysis

Market Plan steps

Our Vision

Our Mission

To provide quality end to end communications 3- Strength & Weaknesses services.

Penetrating Nepal with Fashionable & Trendy 5- Marketing Objectivesmobiles among Youth using Sony influence inside Nepal.
6- Marketing Strategies 7- Implementation 8- Budget 9- Control

4-Opportunities & Threats

Shifting the mobile trend from being a luxury to being a necessity Contributing in introducing new communication technologies to the Nepalese market

 Global liberalization has influenced Nepalese 1- Executive Summaryeconomy.

2- Environmental Analysis Nowadays, Nepal pursues market-based

Market Plan steps

Business Environment

economy.
3- Strength & Weaknesses

Nepal has privatized many public enterprises 4-Opportunities & Threats might be favorable to business community. that
5- Marketing Objectives

Nepal has membership of WTO that has provided some opportunities to the Nepalese 6- Marketing Strategies businessmen.
7- Implementation 8- Budget 9- Control

All of the above are prime issues related to the global business environment that affects Nepalese business community.

2- Environmental Analysis

Nepalese Political Legal Business Environment

Following a nation-wide election in April 2008, the newly formed Constituent Assembly declared Nepal a federal democratic republic and abolished the monarchy at its first meeting the following month. The Constituent Assembly elected the country's first president in July. The Maoists, who received a plurality of votes in the Constituent Assembly election, formed a coalition government in August 2008. Maoist revolution was found as one of the adversely affecting factors in Nepalese business community.

Legal system is based on Hindu legal concepts and English common law; has not accepted compulsory ICJ jurisdiction

2- Environmental Analysis

Nepalese Economic Business Environment

Govt. Nepal provides normal subsidy to Businessmen. Tax system is very tedious for Nepalese businessmen. Nepal is a poor country has low income and low purchasing power of customer which is one of the major limitation.

Nepalese commercial banking lending interest rate as one of the challenge in Nepalese economic business environment.
Nepal is an agriculture country. About 80 present of its population is engaged in agriculture. So, the Nepalese economic system has depended on agriculture.

2- Environmental Analysis

Nepalese Socio Cultural Business Environment

Western culture has led development and variety in Nepalese business sector. Applied education is lacking for the development of Nepalese business sector. Nepalese customers are expecting interested products from the foreign (Western) investors, especially the new generations. Nepalese businessmen have a lack of social responsibility fulfillment. Nepal has always remained a land of religious harmony.

2- Environmental Analysis

Nepalese Technological Business Environment

Nepal lags behind in the sector of science and technology. A country should be economically sound for the development in science and technology sector. Hence, Nepal has adopted the policy for the transfer of new technology, in the following ways:
Directly importing new technology, Opening branches of multinational companies, Handing over management of organizations to foreign firms or persons, and Sending existing manpower for training and development to enhance administrative and technical know how.

Market Plan steps

1- Executive Summary

Strengths

Brand equity: SONY Ericsson has the equity of two

2- Environmentalbrands Ericsson that is known as a pioneer in the Analysis

telecommunication business and SONY that is known for its power in entertainment 3- Strength & Weaknesses
4-Opportunities & Threats

Diversification: The brand has a wide range of

products that could be attractive to different target segments 5- Marketing Objectives

6- Marketing Strategies 7- Implementation 8- Budget 9- Control

3- Strength & Weaknesses

Weaknesses
Lack in understanding Customer Preferences: the market is new and hard to predict Less technology advancement: comparing to competitors SONY Ericsson has the lower hand

Lack of user centered designs: Nepalese consumer is a challenge because their preferences are not yet clear
Modest brand awareness globally: the merged brand SONY Ericsson is not well established in that part of the world

Market Plan steps

1- Executive Summary 2- Environmental Analysis

Opportunities

3- Strength & Weaknesses

Mostly young market: because young adults tend to be up to date with the technology

The Nepalese market is growing and cell phones are 4-Opportunities & Threats going to be a necessity
5- Marketing Objectives 6- Marketing Strategies The cell phone trend is going to take off within the 7- Implementation

next couple of years throughout Nepal The new generation is affected by the western 8- Budget culture

9- Control

4-Opportunities & Threats

Threats
Intense competition.

Nokia is dominating the market (42% market share)

Bargaining power of consumers: because cell phone is yet considered a luxury Landline penetration and comparative cost Poor country (80% of economy is based on agriculture) Tax system is very tedious and unfriendly to new investments Interest rates are very high Government subsidies are very weak

Market Plan steps

1- Objectives

1- Executive Summary there is such a huge market that needs the Since

supply of phones as long as you have a good brand 2- Environmental Analysis image.
3- Strength & Weaknesses will set their objectives as follows: 1. We
2. Setting initial goal of 70 thousand phones. 4-Opportunities & Threats 3. Having at least 10-12% of market share for the first year. 4. Gradually improve to be No.1 in days to come.

5- Marketing Objectives 6- Marketing Strategies doing sales. Leading to Growth in Grow by 7- Implementation 8- Budget 9- Control

Revenues!!!

5- Marketing Objectives

2- Target Market
The young consumer market can be a potential target market for Sony Ericsson mobile phones in Nepal Due to : young adults in Nepalese community have the desire to be up to date with technology.
young adults are likely to spend more money on technological items and devices. Nepal will be advertising cheaper cell phones throughout the country so that more young people can afford them based on their income. There has been a marked increase in income per capita, which allows most people to spend more money on luxury items such as mobile phones

5- Marketing Objectives

2- Target Market
Estimates mobile users in Nepal are approximately 3-4 million.
Out of the total number of mobile users, 7% use Sony Ericsson mobile phones.

Gender : The target market comprises of both male and female individuals. (aged between 15 to 50 years). Lifestyle: The target customers are working executives and college youths. Geographical Profile :in both the urban and rural areas where there is mobile connectivity.

Market Plan steps

1- Executive Summary 2- Environmental Analysis

Product Strategy 3- Strength & Weaknesses

4-Opportunities & Threats 5- Marketing Objectives 6- Marketing Strategies Place & Distributing 7- Implementation 8- Budget 9- Control

Promotion Strategy

Price Strategy

Strategy

1- Product Strategies

Segmentation & Style of Mobile Phone

The style of mobile phone would play a major role as the Nepalese consumers are mostly young adults with an increasing amount of disposable income and they look for brands which are fashionable, especially.

Penetration Technique
SonyEricsson should be differentiated according to pricing and product features. With heavy competition cutting down on the profits, SonyEricsson should look into new markets using the penetration pricing technique and create a new market segment, like what Nokia did in India with their Nokia 1130 mobile which was a dust proof phone with a torch.

1- Product Strategies

Product Differentiation
It could be done on the basis of the respective sub-segment; if it focuses on music player then it should be placed in a separate category from the handset which has camera as its specialty.

1- Product Strategies

After Sale service - Service Plus

The excellent customer service to further competitive advantage over the competitors brands. This could be done by Sony Ericsson Privilege Card holders silver / gold / platinum. The Card will be contingent on the points accumulated. Sony customer care service centers will promise a oneday maximum period within which to respond to queries.

Service representatives handling repairs may extend the option of loaning temporary units at a nominal charge until the user's phone has been completely repaired.
They will also provide assistance to clients who need to retrieve data or contact numbers from damaged units.

1- Product Strategies

Branding and Rebranding

For Sony Ericsson to boost its the corporate identity; it is recommended the rebranding of mobile phones under the umbrella brand, "Sony-.." . The concept is similar to that utilized by Motorola (Moto-Razor, Moto-Flip, etc.). This strategy will help leverage upon the existing strong brand equity of Sony in the "appliance" industry, as well as its reputation for product innovation. This not only reinforces the existing brand awareness of Sony but also tells customers about what advantages Sony Ericsson mobile phones are capable of bringing to them. It is proposed to establish strategic partnerships that will help Sony Ericsson to reach the primary target market as well as the secondary target market more effectively. This will help create a stronger brand recall for Sony Ericsson mobile phones in each category. In addition, a club of Sony mobile users and users of Sony home appliances with cross product discounts, and membership perks in other establishments will be provided upon purchase of the said appliances.

For instance, a customer will be entitled to a certain number of credits which may be used in purchasing a Sony Ericsson mobile phone when he purchases a television

1- Promotion Strategies

1-Advertising
The aim of advertising strategy: is to increase the brand-awareness and brand-recall, while Sony Ericsson has been able to establish its name in the mobile phone market; it has not successfully implanted its image in customers' minds as the first mobile phone of their choices. The high priority of advertising strategy is to be able to communicate Sony Ericsson's stance on giving its customers the ultimate mobile phones equipped with functionality suitable for the professionals and state of the art technology. When marketing goes to the rural area we have to realize that they do not have various methods of communication such as internet and television. To market to the rural area markets we will place add in popular newspapers and magazines as well as send out mobile vans to market our product. Lastly we will participate in trade fairs and flea markets which are immensely popular in the rural area.

1- Promotion Strategies

2-Executive Series
"professional edge" should be rooted in the heart of advertising campaign. The message to be delivered through advertising and promotion strategies is: "Be yourself! Be a Pro! This is to take into account that Sony Ericssons primary target segment is young professionals in the age group of 25 to 40 years who have been able to prove themselves in their fields of work. They know who they are and they are pleased with what they have achieved in their life so far. Their "center of gravity" lies in how they feel and how they look ,They are confident, sure of themselves and know what they want to look for in life. They accept themselves and are keenly interested in the "Pro world" but not transform into someone else rather than themselves. Our target is more mature, more pleased with himself/herself. That's not to say that s/he's perfect.

1- Promotion Strategies

2-Executive Series cont. The advertisement of the above should be featured on television between news or/and informative programs as these are most
watched by this target segment. In addition, it should be printed on magazines such as Himal Magazine, Boss, as well as Nepal which are of high interest to the target segment. Internet advertisement is also highly recommended for this segment. Strategic advertising partnership with the car distributors such as Hyundai, Maruti, Toyota and the like are strongly encouraged so as to build a co-brand awareness and existence for both Sony Ericsson and car manufacturers. The majority of this target segment is existing car owners as well as professionals that will be seeking to own mid to high-end cars once.

1- Promotion Strategies

3-Walkman Series
Sony Ericsson secondary target segment is the urban population in the age group from 15 to 25. People at this age group are seeking to find themselves and their places in the society. Their sense of belonging is of significant importance. They yearn to belong to a certain group and are greatly influenced by their friends/peers. It could be said that this group's behavior is entirely different from that of the primary target segment. Besides the emotional aspect, they are looking for entertainment features in mobile phones such as music, games. As such, there arises the need for a different advertising strategy.

1- Promotion Strategies

3-Walkman Series cont.

Advertisements should focus on featuring Sony Ericsson mobile phones as a way to connect friends and as a status symbol of being recognized as a member of a circle of friends/peers. In addition, they can derive great music, and games out of Sony mobile phones. Television still remains one of the choices of the media, however, cinema, billboard, internet and radio advertising are also chosen for the main reason that this target segment spends much time for these channels. These could prove to be highly effective advertising means. Sponsorship of Musical programs or live concerts by mean of ambush marketing will be an added advantage to the Walkman series.

1- Place & distribution Strategies

Existing Distribution system Sony Ericssons current distribution system consists of one national supplier who acts as exclusive distributor agent to the Nepal. This supplier distributes to: a. 3 distribution centers which are Future tech own store and display ONLY Sony phones. b. Over 150 Authorized dealers which are multibrand stores.

1- Place & distribution Strategies

Channels Members: Proposed Distribution System Traditional Distribution Channels Distributor Retailer / Distributor Consumer Maintaining the traditional Channel will allow us to: a) Reselling units to a network of retailers. OR b) Vending to consumers. In order to optimize product exposure in the retail channels, Sony can issue display racks to high-volume retailers, for free.

1- Place & distribution Strategies

Sony Ericsson Outlet Stores Sony Ericsson should explore the possibility of establishing company-owned outlets, whose product line consists exclusively of Sony Ericsson mobile phones. Repair provisions, however, will not be limited to units within their prescriptive warranty, provided the customer is willing to shoulder incidental costs.

1- Place & distribution Strategies

Factors Affecting Channel Decision: It is recommended that Future tech has a good reputation given by years in trade as well as sales force capabilities in order to maximize market reach while keeping the number of distributors. Those distributors will undergo training for repair of Sony Ericsson products. Dealers should likewise be assessed in terms of store location, reputation. Sony Ericsson outlet stores target the brand loyal segment.

4- Price Strategy

Our pricing strategy is the price penetration strategy.

Which means we are aiming to provide an affordable mobile lower in price relatively to competitors but without affecting the quality & brand image.

Market Plan 1- Product: steps Two product categories: 1- Fun Mobiles: 1- Executive Summary Attractive colors Multimedia Analysis 2- Environmental & Screen resolution.
3- Strength & Weaknesses

2- Place:
Place will be used as a sign of differentiation & excellence.
So Sony Ericsson mobile phone will be placed in Mega Malls & mobile stores with fashionable design to attract youth attention. 3- Price: Discounts will be tied up with corporations to allow the employees or professionals get the mobile at a lower price than the market. To generate sales volume & create brand awareness. Payment Facilities for Teenage

Good camera. Entertainment package. 2- Professional Mobiles: 4-Opportunities & Threats Supporting Microsoft windows with business applications & 5- Marketing Objectives MS office. Building professional customer service team. 7- Implementation R&D investments.
9- Control 8- Budget 6- Marketing Strategies

Dealers store development & fashionable physical displays.

Licensing some new retailers

7- Implementation

4- Promotion

a) Personal Selling: Special regular training programs on how to be presentable, pleasing, and wellmannered and how to handle the customers efficiently.

b) Advertising: Strategic tie-ups with TV, FM. For example, audience tuning to popular TV programs answering questions correctly can get Sony Ericsson mobile phones as prizes. In turn, KTV will indirectly promote Sony Ericsson brand awareness by mentioning the Sony Ericsson as prize-givers.

c) Public Relations: Participating in trade shows and fairs. This will help in spreading information about the various products to be marketed. Ex1: Flash Mob in malls D.J for playing music. Ex2: Cartoon Shows for kids. In between some ads for products. Ex3: Sponsoring Football & art museum events. Successful trade fairs will provide a perfect opportunity to get in touch with the consumers and get to understand their needs regarding the products.

4- Promotion
d) Sales Promotion : Strategic tie-ups with music stores: customers purchasing CDs, VCDs, DVDs from music stores will get their points added in their. Sony Ericsson Privilege Card Club: This club is not only exclusively for Sony Ericsson mobile phone users but also for users of other Sony Ericsson products. Based on the amount of purchase, there will be 4 tiers of membership: 1) Regular. 2) Silver. 3) Gold. 4) Platinum. In this system, customers may earn loyalty points commensurate to the amount of their purchase. Upon accumulating a certain number of points, their membership will be upgraded to Silver or Gold status, allowing them increasing privileges.

4- Promotion
d) Sales Promotion :
a) Sales Promotion : Sony Ericsson Privilege Cards membership benefits: 1- Redemption of loyalty points will be in the form of discounts among an extensive range of Sony Ericsson Products. 2- Offers for extended warranties and product services depending on level of membership. 3- Replacements can be purchased at a discount, using loyalty points as credit. 4- Special promotions and exclusive discounts will be exclusive to members of Sony Ericsson Privilege Cards.

e) Direct Marketing: Online advertisings in popular sites usually visited by youth. like for example songs & tunes sites to place an ad for Sony Ericson in return for promoting the site by Sony Ericson.

1- Executive Summary

Budget Basic Elements: Market Plan 1- Research & Development for innovative mobile steps sets & software.

2- Corporate image package (i.e., logo, stationery pieces, 2- Environmental Expenses on developing the poor retailers). Analysis
3- Strength & Weaknesses 3- Outsourcing advertising professionals to cooperate with

Sony for designing the advertising campaigns, Sony club membership cards. 4-Opportunities & Threats 4- Salaries 5- Marketing Objectives & incentives for the sales persons
6- Marketing Strategies 5- Professional Call Center to handle any complaints or 7- Implementation 8- Budget 9- Control

queries. and also to send direct messages for customers about offers. 6- Online Marketing expenses such as developing & hosting Sony website. And online alliances.

8- Budget

Budgeting Approach: Activity base costing or The Dollar Approach: More Accurate & safer. Defining the dollar figure is challenging the first time round but becomes much easier once you have records of several years marketing expenditures to work from.
Marketing Expense Budget Jan Advertising Online Marketing Promotions Public Relations Training Corporate image expenses Total $30,000 $10,000 $0 $0 $20,000 2012 Feb $30,000 $15,000 $0 $10,000 $20,000 March $40,000 $20,000 $10,000 $15,000 $20,000 Q1 $100,000 $45,000 $10,000 $25,000 $60,000 Q2 Q3 Q4

$50,000 $110,000

$0 $75,000

$0 $105,000

$50,000 $290,000 $580,000

Market Plan steps

1- Executive Summary

Four essential Types of Control:

1- Annual Plan Control 2- Environmental Analysis Include: a) Sales Analysis (comparing the final results with 3- Strength & Weaknessesthe forecasted). b) Market share analysis 4-Opportunities & Threats based on relative & served market share. 5- c) Marketing expense to Marketing Objectives sales analysis . 6- Marketing Strategies
7- Implementation 8- Budget 9- Control

2- Strategic Control Include: a) Marketing Audit. b) Review of excellence

3- Profitability Control

4- Efficiency Control

9- Control

Finally : Personal: Develop Certain standards to evaluate the quality of serving the customer across all outlets.

Then make a monthly evaluation report on each employee.

Based on the total score incentives will be given on a quarterly basis (every 3 months).

Sales commission for achieving the sales target.

Any one achieved beyond the sales target consequently will get a job raise to motivate employees.

References
Marketing Management, 13th edition, Philip Kotler. http://www.jpec.org/handouts/jpec32.pdf http://gettingattention.org/articles/195/plann ing-budgets/nonprofit-marketing-budget.html http://www.aafp.org/fpm/2001/1100/p39.ht ml