Sony AIBO

Presented by:-
Section A - Group 6

Amol Parab 13P030
Ritwik Raj 13P103
Tarun Gupta 13P177
Niket Gupta 13P217
Bhaumik Shah 13P236
Dhaval Thacker 13P241

Introduction to Sony AIBO
Sony AIBO was launched in spring 1999
Termed as Worlds First Entertainment
Robot
Personality characteristics of a pet without
inconvenience of a real animal
Only product after Walkman and Play
station to cause such a stir
Success was unexpected as it didnt have
any functional benefits, other than
entertainment


Instant Success in Japan

Time Product Units Price Distribution
channel
Spring 1999 AIBO ERS-
110
5000
Japan: 3000
USA: 2000
$2500 Internet
November
1999
AIBO ERS-
111
10000
Japan: 3000
USA: 2000

$2500

Internet
Feb 2000 AIBO ERS-
111
30000
Japan: 27000
USA: 3000

$2500

Internet
Nov 2000 AIBO ERS-
210
50000; most in
Japan
$1500

Internet
Retail Outlets
Spring 2001: The world has no idea how to categorize this product- GM, Sony
Robot Group
Consumer engaging features of AIBO
Communication with Owner
Ability to learn things over time through
training
Walk well like a pet; imitate movements like
a dog
Need to show emotions
Development of infant AIBO depending
on level of interaction; with distinct
personality
AIBO projected as true companion with real
emotions and instincts
Japan Favorable Factors
Many Japanese lived in small apartments
where real pets were not allowed
Japanese are hard working nurturing a
real pet was difficult in modern times (12
hour workdays)
Japans growing elderly population buying
AIBOs as companions
Japanese general infatuation with virtual
toys success of Tamagotchi, Pokemon
Japanese culture Robots are depicted as
heroes in all of the cartoons
AIBO in American Market
Tightly knit group of hard core AIBO owners
who are passionate about their AIBOs
Older generation not comfortable with idea
of lifelike technology loving something that
isnt alive
Product confusion in minds of the American
mass market What does it DO ?
Americans did not understand what they
were trying to sell. They looked for functional
attributes like a robot which could do
household chores
Contrast in Consumer Behavior

Japanese Consumers American Consumers
Looking for a
companion
Treated AIBO as a
family member
In Japanese culture
Robots are heroes

Looked at AIBO as a
functional product
In American culture
Robots are often
considered to be
enemies

Issues with the American
Market
Sales were not as per expectations
People did not understood what Sony was actually
selling
Americans were further confused by the low end
knock-off toys which sold for less than $50
Increasing popularity of knock-offs made task of
educating U.S consumer more complicated
There was no reference product against which
company can position AIBO
Americans valued and understood functionality
more , currently company has positioned it as
robotic pet

Decisions to be taken
Target Mass Market?
Should they go for Mass Marketing and how
big the campaign should be
Position as a companion or a robotic
pet OR position as serious productivity
tool
What capabilities should be developed in
next generation robots
Pricing of AIBO
Positioning
As seen earlier due to the differences in
consumer behavior company needs to
change the positioning of AIBO
Also there are already few players in
functional household robots and hence they
will help in development of the market
Frame of reference Need to changed
from pet toys to functional robots
Positioning Statement For mainstream
American consumer , Sony AIBO is a
household robot, that is designed to perform
useful household tasks

Recommendations
Focus on the functional aspects of the product
and target it to mainstream American
consumer
Initially Sony should focus on innovators and
early adopters and hence reducing the price
and selling it at losses is not recommended
The focus should be on developing capabilities
which would help its owners in day to day
activities
Focus should be on experiential marketing as
only the people who have used the robots
appreciate its features
Thank You!