Some solutions to complete the marketing mix for bravia LCD TV series of sony vietnam in 2012

VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS

VU XUAN TUNG

SOME SOLUTIONS TO COMPLETE THE
MARKETING-MIX FOR BRAVIA LCD TV SERIES
OF SONY VIETNAM IN 2012
Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Dr. Tran Doan Kim

Hanoi – 2012


TABLE OF CONTENTS
ACKNOWLEGEMENT
ABSTRACT
TÓM TẮT
TABLE OF CONTENTS
TABLE OF FIGURES
INTRODUCTION
1. Reasons to choose this topic
2. Objectives of the Study
3. Subjects and Scope of the Study
4. Methods of study and process of data
5. Significance of the Topic:
6. Structure of the Thesis:

CHAPTER 1: LITERATURE REVIEW
1.1. Overview of Marketing
1.1.1. The Formation and Development of Marketing
1.1.2. Definitions of Marketing
1.1.3. Concepts of Marketing
1.1.4. Role of Marketing
1.2. Marketing Environment
1.2.1 Political and legal environment
1.2.2 Economic and Demographic environment
1.2.3 Cultural - Social environment
1.2.4 Technological and Natural environment
1.3. Target Market Identification
1.3.1. Concept of market:
1.3.2. Market Classification
1.4. Positioning
1.4.1. Definitions
1.4.2. Positioning methods
1.4.3. Stages of market positioning:
1.5. Marketing-mix
1.5.1. Product strategy
1.5.2. Price strategy
1.5.3. Place (distribution) strategy
1.5.4. Promotion strategy
1.6. The relationships between product and other remaining factors of Marketing-mix:
CHAPTER 2: ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT
SITUATION OF MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY
VIETNAM
2.1. General introduction of Sony Vietnam

2.1.1. Overview of the Company
2.1.2. Objectives and Purposes of the Company
2.1.3. Main products of the Company
2.1.4. Activities and Sale performance of Bravia LCD TV Series
2.2. Target markets of Sony Vietnam:
2.3. Analysis of Marketing environment of Sony Vietnam
2.3.1. Macro-environment
2.3.2. Micro-environment
2.4. Analysis of product positioning strategy of Bravia LCD TV:
2.5. Analysis of current situation of Marketing-mix for Bravia LCD TV Series of Sony
Vietnam:
2.5.1. Product
2.5.2. Price
2.5.3. Distribution
2.5.4. Promotion
CHAPTER 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR BRAVIA
LCD TV SERIES OF SONY VIETNAM IN 2012
3.1. Development orientations and objectives of Sony Vietnam
3.1.1. Development orientations:
3.1.2. Marketing objectives of Sony Vietnam
3.2. Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony Vietnam
3.2.1. Product:
3.2.2. Price:
3.2.3. Place/Distribution:
3.2.4. Promotion
3.2.5. Some support measures:
3.3. Marketing Action Plan from June to December, 2012
3.3.1. Objectives
3.3.2. Sales Activities
3.3.3. Promotional program

3.3.4. Marketing Budget
CONCLUSION
LIST OF REFERENCES
LIST OF APPENDICES


SOME SOLUTIONS TO COMPLETE THE
MARKETING-MIX FOR BRAVIA LCD TV SERIES
OF SONY VIETNAM IN 2012
VU XUAN TUNG
MBA candidate, 2009 - 2011
School of Business
Vietnam National University, Ha Noi
Supervisor: Dr. Tran Doan Kim
INTRODUCTION
1. Reasons to choose this topic
Sony Vietnam introduced its Bravia LCD TV series and considered this to be the
strategic product line of the Company... This is also the reason why the author decide to
carry out the dissertation: "Some solutions to complete the Marketing-mix for Bravia LCD
TV series of Sony Vietnam in 2012".
2. Objectives of the Study
To conduct a comprehensive study of the theories on Marketing, Marketing
mix and methods to develop Marketing mix strategy for a product;
To research about TV market in general and LCD TV market in particular,
both globally and in Vietnam;
To analyze current situation and evaluate Marketing strategy of Bravia LCD
TV series of Sony Electronics Vietnam;
To suggest some solutions to complete the strategy of marketing mix for
Bravia LCD TV series of Sony Electronics Vietnam.
3. Subjects and Scope of the Study

Bravia LCD TV Series and Marketing environments (internal and external of Sony
Vietnam).
4. Methods of study and process of data
Methods of study: quantitative and qualitative study in combination with
expert method, summary, statistics, comparison method, etc.
Interview method: direct interview over 300 respondents with a questionnaire
by selective sampling method to identify consumers' opinions on factors that affect on
Marketing mix strategy (product, price, place, and promotion).
Data processing tool: SPSS 13.0 software.
Base on data collected from quantitative and qualitative study, solutions shall
be suggested to complete Marketing mix strategy for Bravia LCD TV Series of Sony
Electronics Vietnam.

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5. Significance of the Topic:
Help the managers to see clearly Marketing operation of Bravia LCD TV
Series of the Company, its ability to cope with internal and external influencing factors, and
its competitive status compared to other rivals in the market;
Research about consumers' knowledge about various types of TVs and assess
their opinion on factors affecting on Marketing mix for Bravia LCD TV Series of the
Company;
The conclusions of the dissertation shall serve as reference materials for
marketing managers to know and understand better about current situation of LCD TV
market as well as the positioning of Bravia LCD Series of Sony Vietnam. In addition,
strategies of product, price, place and promotion for Bravia LCD TV Series as suggested are
practical for business situation that of Bravia LCD TV Series now occupies.
6. Structure of the Thesis:
In addition to the Introduction and Conclusion parts, the Thesis is consisted of three

parts:
Chapter 1: Literature review
Chapter 2: Analysis of Marketing environment and current situation of Marketingmix for Bravia LCD TV Series of Sony Vietnam
Chapter 3: Some solutions to the Marketing-mix for Bravia LCD TV Series of Sony
Vietnam in 2012

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CHAPTER 1: LITERATURE REVIEW
1.1. Overview of Marketing
1.1.1. The Formation and Development of Marketing
1.1.2. Definitions of Marketing
Marketing is considered a science, an art of business. It never ceases to be useful and
has been supplemented and developed constantly; therefore, there have been a number of
definitions of Marketing by various authors and scientists:
- Definition by Philip Kotler (U.S.) - President of World Marketing Association:
“Marketing is the science and art of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines measures and quantifies the size of the identified market and the profit potential. It
pinpoints which segments the company is capable of serving best and it designs and
promotes the appropriate products and services.”[3]
The differences between traditional and modern Marketing are shown in the
following diagram:
Objective
Traditional
Marketing

Product

Modern
Marketing

Satisfy customer’s
needs

Means
Sales & Advertising

Result
Generate profit by
selling many products

Generate
Adopt comprehensive
satisfying
Marketing strategies
needs

profit by
customer

1.1.3. Concepts of Marketing
During the development of Marketing, there have been 5 fundamental concepts of
how to organize Marketing activities, specifically as follows:






Production concept:
Product concept:
Sale concept:
Marketing concept:
Social Marketing concept:

1.1.4. Role of Marketing
Marketing plays a very important role in business. It guides and coordinates the
operating activities of a company.
Marketing is also helpful in adapting a product to market needs. It promotes research
and development activities.
Marketing has delivered success for many companies. So, it has been praised as "new
theory of business", "theory of market take-over", "behaving etiquette in modern business",
"golden key", "secret of success in business", etc.

3


1.2. Marketing Environment
Marketing environment is understood as follows:
The set of active entities and external forces of the company that affect on the control
of marketing unit, establishment and maintenance of good cooperative relationships with
target customers.
Marketing environment consists of micro and macro-environment. The Marketing
environment may be analyzed under PEST model, which comprises the following factors:
Political-legal, Economic, Social, Technological and Natural factors (or environments). In
order to succeed, enterprises must be able to adapt to the changing Marketing environment
while not resisting those trends [4].
1.2.1 Political and legal environment

Government, interested parties (in some other countries), public interest protection
groups, etc. are those affecting the political environment, which, in turn, cause policy
makers to enact new laws and regulations impacting on consumers and enterprises. These
enacted laws, directly or indirectly, influence the practical implementation of marketing
policies of a company, such as: anti-monopoly law, environment law, consumer protection
law, etc.
1.2.2 Economic and Demographic environment
Factors of economic environment affecting Marketing activities include income and
distribution of income, price, consumption and savings-investment, debt and borrowing
capacity, debt payment, and expenditure pattern.
Development level and model of the economy are fundamental factors of the economic
environment.
In addition, population scale, structure and growth rate are having considerable
influence on the marketers. Population together with economic growth is the measurement
of market scale.
In the demographic environment, age structure, race, education level and others are
factors to divide the market into segments of different scales and characteristics.
Expenditure pattern of families of two or more generations as well as type of
products/services that they choose tends to be decided on basis of people community
preferences. The movement of living places and among people groups will also affect the
changes of needs; therefore, marketing policy should also adapt.
1.2.3 Cultural - Social environment
The society where people grew up defines the basic believes, values and standards.
There are three aspects that should be considered in cultural - social environment:
Core values: it is necessary to define the belief or core values that tend to last for
long and identify which are vulnerable to change.
Cultural branches: a group of people share values acquired from certain living
experience and conditions. Religions have influence on the consumption of goods and
services defined by religious rules and social traditions.

4


1.2.4 Technological and Natural environment
Natural environment results in changing trends of production materials, energy cost,
environmental pollution level and attitude of governments toward environmental protection.
Technological environment is always the most important force to improve the quality of life
for humans, as it becomes more effective at harnessing the natural environment’s resources.
1.3. Target Market Identification
1.3.1. Concept of market:
Under marketing concept, a market is the actual and potential buyer of a certain
product/service. A market consists of buyers while an industry consists of sellers.
Phillip Kotler’s definition: “A market is the set of actual and potential buyers of a
product. These buyers share a particular need or want that can be satisfied thought the
exchange.”[7]
1.3.2. Market Classification
1.3.2.1. Reasons of market segmentation and market targeting
A market consists of buyers that are different in single or many aspects; for example,
they may be different from each other by their desire, purchasing power, location,
purchasing attitude and pattern. No company has the capacity to satisfy the needs of all of
its potential customers. In addition, there are many other rival companies in the market so, it
has to face the challenges posed by competitors. Anyway, each company has strengths in
certain aspects so that it can use such strengths to satisfy part of market needs.
1.3.2.2. Market Segmentation

Definition
Market segmentation is defined: “Dividing a market into instinct groups of buyers
with different needs, characteristics or behavior, who might require separate
products or marketing mix”. [8]


Segmentation criteria:

Segmentation basis Segmentation criteria
Geography

Region (North, South), area (urban, rural, etc.), town,
district, commune, etc.

Demography

Age, gender, family generation, family life cycle, income,
profession, education level, religion, ethnicity, etc.

Psychology

Attitude, motivation, social class, life style, personality.

Consumption
behavior

Purchasing reason, desired benefit, consumer status,
loyalty level, readiness stage, and attitude toward
products.

1.3.2.3. Market targeting


Definition

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“Market targeting is the process of evaluating each market segment’s attractiveness
and selecting one or more segments to enter.”[10]


Reasons of market positioning

Coverage of the whole market:
-

Insufficient resources.

-

Includes of unattractive segments.

May not be able to satisfy the best needs of a customer group since trying to
satisfy too many segments.
-

Suitable to multinational and transnational corporations.



Basis of market positioning

-

Scale and development potential of the segment.

Attractiveness of the segment: large number of customers, diversified and
abundant needs, changing consumption style, few competitive threats, high profit, favorable
macro-environment.
- Suitable to resources of the organization.
1.4. Positioning
1.4.1. Definitions
Although there are different definitions of positioning, probably the most common is:
“Arranging for a product to occupy a clear, distinctive and desirable place relative to
competing products in the minds of target consumers. Formulating competitive positioning
for a product and a detailed marketing mix”[11]
1.4.2. Positioning methods
- By competitors
- By attributes of products
- By benefits offered to the customers by products
- By other products
- By price and quality
1.4.3. Stages of market positioning:
- Summarize brands and attributes of products (important attributes to consumers).
- Find out about consumers' awareness of such attributes.
- Analyze current status of such attributes of products compared to those of
competitors and products of the organization.
- Identify a unique selling proposition (USP).
Market positioning should also identify a company’s competitors. In devising a
positioning strategy, a company must understand the weaknesses of its competitors so that
its own positioning can become a competitive advantages.

6

1.5. Marketing-mix
Marketing-mix implementation [15]
Marketing-mix

(Price)

(Promotion)

Target market

Source: “Quan tri Marketing” – Prof. Dr. Vu The Phu

(Place)

(Product)

1.5.1. Product strategy
 Definition
“Product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. It includes physical objects, services,
persons, places, organizations and ideas.”[16]
 Product levels:

Source: Marketing management, Philip Kohler

 Product classification
Marketers traditionally classify products on the basis of different attributes of those
products. For each classification of products, there should be a suitable Marketing-mix plan.
1.5.2. Price strategy

 Definition
"Price is an important factor of Marketing-mix. It plays an important role in the
purchase of certain product by consumers. For a company, price plays a decisive role in
determining its competitiveness in the market.”[17]
Product pricing is a crucial matter to a company since it directly affects revenue and
profit.
 Factors affecting pricing:


Internal factors:

- Marketing objectives
- Marketing-mix plan
- Production cost


External factors:

7


- Market and needs
- Competition
- Other external factors include legal and political environments
 Pricing methods:

Cost-based pricing method:

Purchaser-based pricing method:


Competition-based pricing method:
 Mark-to-market pricing:
 Bid pricing
Pricing strategy is mostly decided by target market segments and positioning
objectives of the company. Pricing will affect and be influenced by decisions on products,
place, and promotion. Therefore, pricing decisions should be considered carefully and
coordinated with other factors within Marketing-mix in developing a marketing strategy.
1.5.3. Place (distribution) strategy
 Definition
“Place (distribution) involves activities related to the organization, operation and
distribution of goods and services from manufacturers to consumers.”[18]
 Distribution channels
Type of Distribution channel
Manufacturer

Manufacturer

Manufacturer

Wholesale
ssagent
Retailers
Retailers

Manufacturer

Wholesale
agent
Retailers

Retailers

Consumer

Consumer

Consumer

Consumer

Direct Channel

Channel Lv. 1

Channel Lv. 2

Channel Lv. 3



1.5.4. Promotion strategy
This strategy involves various activities including: Advertisement, promotion, offer,
dissemination, and public relation... to satisfy and promote the needs of customers.
1.5.4.1. Advertisement
 Definition

8


According to the American Marketing Association (AMA): “The placement of

announcements and persuasive messages in time or space purchased in any of the mass
media by business firms, non-profit organizations, government agencies, and individuals
who seek to inform and/ or persuade members of a particular target market or audience
about their products, services, organizations, or ideas.”[19]


Components of an advertising campaign:

-

Advertiser

-

Advertising agent or firm

-

Communication media

-

Advertising services



Roles and effects of advertising
 Roles: In commercial markets, advertisements play the role of a guide, informer, and
salesman to sell more products and satisfy the needs of purchasers:
- Customer-oriented consumption.

- Customer support.
- Development and promotion of product demands.
- Introduction to matters in relation to the products, support for sales activities.
 Effects of advertisement:
- For companies:
 Help the manufacturers to generate more demand for products, increase sales
and market share.
 Provide updated information to any change of products and services to be
distributed;
 Build up a competitive environment for companies to improve their quality,
innovate their design, and enhance their services.
-

For consumers:

 Provide information on products; equip the consumers with necessary
knowledge for them to select suitable products at their demands.
 Help consumers save time buying products.
 Encourage consumers to improve their living standards and use new products
instead of old ones.
A decision on advertising is made on basis of 5 "M" of advertising strategy, which is
Mission, Message, Media, Money, and Measurement.
1.5.4.2. Promotion
 Definition
“Promotion is a marketing activity that distinct from direct sales, advertisement and
dissemination, which is conducted to motivate the consumers to buy the products and
enhance efficiency of agents.”[20]
 Purposes of promotion:
-

To motivate and promote the efforts of sales force.

9


- To motivate intermediaries to push the sale of products to consumers for trial purpose or
for ongoing consumption.
1.5.4.3. Public Relation
 Definition
Public relation (PR) is a broad and diversified area involving many activities in
addition to communicating information to potential customers and factors affecting the
purchase of products. PR is also used to demonstrate that the behavior of the company
benefits the society in which it is operating. This concept implies that the company has a
clear accountability to increase social welfare.
 Role of public relation
To develop and improve a positive image of the company in the opinion of related
parties, to persuade related parties that the company is an ethical organization, that they
should do a transaction with the company.
Certainly, a positive image of the company in customers' opinion will be very helpful
at a greater level in affecting their final purchase decision-making. In fact, this is clearly one
of the ultimate objectives of any relation campaign.
1.5.4.4. Dissemination
Dissemination is the communication activity carried out to make public aware of the
positive effects of company activities by publishing news or images on newspapers, local
news or television.
1.5.4.5. Direct sale
 Definition:
Direct sale is a direct promotion method between the salespeople and customers with the
purpose of persuading the customers to buy products. This method is carried out on face-to-face
basis. In recent times, direct sale being implemented over the telephone call or online has become

widespread in many countries.
 Role of direct sale
Direct sale allows marketers to tailor their communications to influence individual
customers (or the people around them who influence their purchase decision).
Salespeople become the main source of information communicated to those
customers that are intending to buy a product. Even the customers may rely largely on
salespeople for provision of fundamental information for their purchase decision-making.
1.6. The relationships between product and other remaining factors of Marketing-mix:
Product plays an especially important role because it must meet the needs and
perceptions of the customers, if it does not deliver the expected benefits then the entire
Marketing strategy would be undermined. Therefore, product is the sharpest weapon of
competition in the market.
Product strategy ensures to allow the company to carry out some fundamental
objectives of a Marketing strategy:


Profit objective:



Market power objective:

10


Chapter 2: ANALYSIS OF MARKETING ENVIRONMENT AND
CURRENT SITUATION OF MARKETING-MIX FOR BRAVIA
LCD TV SERIES OF SONY VIETNAM
2.1. General introduction of Sony Vietnam
2.1.1. Overview of the Company

2.1.2. Objectives and Purposes of the Company


Objectives:



Purposes:

2.1.3. Main products of the Company
2.1.4. Activities and Sale performance of Bravia LCD TV Series


Market share by production of Sony Vietnam:

According to the data of GFK market research firm, as at the end of March 2007,
Samsung Vietnam held the leading position in term of production percentage in Vietnam
(20.7%) then LG Vietnam, second position, (18.8%) and Sony Vietnam, third position,
(17.4%). Followed by Panasonic, JVC, TCL, Toshiba, VTB, etc.
In general, in the past years, Samsung Vietnam and LG Vietnam managed to hold on
to the 1st and 2nd positions in term of production percentage in TV market of Vietnam
However, looking at Figure 2.1, it can be seen that in recent years since 2009, Sony
Vietnam has been trying to narrow the distance of market share compared to these two
leading manufactures and by March 2010, Sony Vietnam was only 1.4% behind LG
Vietnam and 3.3% behind Samsung Vietnam. Therefore, the 1st position of TV market share
by production is not an unattainable objective to Sony Vietnam.
Figu1



Market share by revenue of Sony Vietnam:

In contrast to the production market share, according to the data of GFK market
research firm, as at the end of March 2007, Sony Vietnam hold the 1st position in term of
revenue percentage in Vietnam (25.9%) Next manufactures in the list were Samsung
Vietnam (18.0%) and LG (16.9%). Followed by Panasonic, JVC, Toshiba, TCL and VTB,
etc.
Since the end of 2009, the distance between Sony Vietnam and other manufactures
has been increasing. This, once again, indicates the leading status of Sony in TV market of
Vietnam in recent years and even in the future.
2.2. Target markets of Sony Vietnam
Sony Vietnam has chosen Ho Chi Minh City and Hanoi as its key markets to develop
a correct and effective Marketing strategy.
2.3. Analysis of Marketing environment of Sony Vietnam
2.3.1. Macro-environment


Economic environment

The problems of economic environment because of frequently increased interest rate
of VND and high inflation rate. When VND interest rate is increased, saving trend will be

11


also increased, while consumption is reduced.
In addition, high inflation will cause raw material costs to increase, resulting in
increased selling price of products.


Political and Legal Environment

Sony Vietnam, the political and legal environment that the Company pays attention
to concern the laws and regulations on environment protection, equality of employment,
labor use, export/import procedures, and change of tax regulations, etc.
 Technological influence:
Recognizing the importance of technological influence, Sony Vietnam always
researches the most advanced technologies to apply to its production processes. Sony tried
to research modern technologies and processes to apply latest inventions of the industry to
protect the environment and reduce negative impacts on environment from the use of energy
and resources.
2.3.2. Micro-environment
 Suppliers:
Suppliers are critical external factors to the business production process of a
company. At Sony Vietnam, its accessories and parts for assembly of a TV are supplied
from two sources:
 Imported parts from foreign countries
 Domestically manufactured parts
 Distributors
Sony Vietnam has established a number of policies to address and develop its
distribution network, closely monitor performance of its agents to provide financial aids
(discount, price reduction, etc.) if necessary, train them about sales skills, support store
decoration by providing: panels, signs, shelves, and so on.
 Customers
Customer orientation for Bravia LCD TV Series: In times of tough competition
among rivals not only by means of products, but also by means of price and quality, Sony
Vietnam has decided to satisfy customers' needs with its products while offering them
intangible values when they use its products.
 Competitors:
An important task in checking external factors is to identify competitors and

determine their strengths, weaknesses, opportunities and challenges.
 Competition by technology, product:
 Engineering technology:
 Utilities:
 Product diversity:
 Co-operation among competitors.
2.4. Analysis of product positioning strategy of Bravia LCD TV:


Outstanding attributes of Bravia LCD TV Series:

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- High-resolution screen
- Improvement of color refresh rate
- Picture and Picture mode (PA)
 Customer characteristics and purchase preferences for Bravia TV series:
- Gender: products intended for long-term use and of high value, male customers
tend to be the ones to select and make purchase decisions.
- Profession, Status, and Financial capacity: potential customers are normally those
with high income and savings, who are capable of buying these products.
- Consumption attitude
 To assess product positioning strategy for Sony's Bravia LCD TV Series in LCD
TV market, the following factors may be considered:
- Market share
- Innovative capacity
- Distinctiveness creation
- Quality
- Cost and Price

- Brand
2.5. Analysis of current situation of Marketing-mix for Bravia LCD TV Series of Sony
Vietnam:
 Introduction to Bravia LCD TV Series:
Bravia is shorted for Best Resolution Audio Visual Integrated Architecture,
consisting of three series: High-end V-series, medium-class S-series and Standard B-series
(with computer connection input).
 Product life cycle:
Since the Sony Bravia LCD TV introduced at the end of 2005, this product is in the
growth stage of the product life cycle.
 Product strategy for Bravia LCD TV Series of Sony Vietnam:




Product line filling strategy:
Product line pruning strategy:
Product line stretching strategy:

2.5.2. Price
 Pricing methods:
Currently, the pricing method adopted by the company is "cost-based pricing", which
is more of enterprise-oriented than market-oriented.
This pricing method may help the company ensure the safety of its financial position (if all
of forecasts are correct), however, it cannot ensure the company's competitiveness in the market
because cost-based-price are determined on the basis of supply-demand relationship, competitors'
prices and market potential.

13

 Price strategy:
Price strategies that Sony Vietnam has adopted for its Bravia TV series in recent
years are:




Market penetration price strategy:
Price regulation strategy:
New product introduction:

2.5.3. Distribution






Current distribution channels of Sony Vietnam:
Ordinary agent channel:
Affiliated agent channel:
Exclusive agent channel:
Display store channel:

SONY VIETNAM

Ordinary Agent

Affiliated Agent

Exclusive Agent

Sony Display Store

Sub-Agents Lv. 2, 3…

Individual Clients, End-users…

 Distribution strategy of Sony Vietnam:
Sony Vietnam has chosen selective distribution strategy instead of other strategies
such as widespread exclusive distribution.
 Some weaknesses of distribution network of Sony Vietnam:
- The main weakness point is its sub-agent channel, the largest percentage channel
(>95%) of the whole distribution network. It is necessary that the Company should solve
certain problems with this channel to be able to promote its performance more effectively.
- In addition, though the distribution network has been outlined in the above figure, in
fact, there are some major agents that still re-distribute products of other minor agents. Thus,
Sub-Agents will not be able to directly access policies of the Company and it will be
impossible for the Company to maintain close control over actual situation in the market and
the needs of end-users.
- Currently, the Company’s does not target corporate accounts (such as: office,
hospitality, government, etc.), which is high potential customers for LCD TVs.

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2.5.4. Promotion
Since the first introduction of Bravia LCD TV Series to the market, Sony Vietnam
has not really focused on using sales promotion tactics for its strategic product lines but

only carried out some marketing activities, which affect at a certain times only.
 Public Relation:
- To counter-act this problem, Sony Vietnam held press conferences to introduce
Bravia LCD under the title "A Breakthrough Technology - Impressive Bravia" in two main
markets: Ho Chi Minh City and Hanoi City.








Sponsorship for annual contest of "The Green Invention"
Advertising activities
Television
Newspapers:
Online:
Promotional activities:
Direct sale:

Summary of Chapter 2:
After analyzing factors of the internal and external Marketing environment for Bravia
LCD TVs of Sony Vietnam, here is the summary of existing weaknesses in the production
management and operation of the Company that should be addressed:
 Monitoring the target markets
Customer research: there has been no customer research conducted on large a scale to
identify needs and demands for Bravia LCD TVs to determine more accurate production.
 Product:
- Product line strategy for Bravia LCD TV Series is for short-term only: pruning

small-size TVs and developing larger-screen TVs, however, no intensive development
strategy has been adopted to improve the functions, outstanding features or utility of the
products.
- Model design is simple and not distinctive and eye-catching.
 Price:
- Pricing method is enterprise-oriented but not market-oriented.
- Production costs of Bravia LCD TV series are high; as a result, cost prices are less
competitive and reduce the size of the potential target market of the Company.
- Not participating in price war, high-price strategy.
Besides such features as durability and high quality, the products fail to offer
distinctive or breakthrough functions or features for the prices to be persuasive in the long
run.
 Place/Distribution:

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- The development of policies offered for agents is strict and depends on the
experience of salespeople.
- There are still some intermediary agents that widen the distance between the
Company and its final consumers.
- Many potential customers are missed such as: potential corporate accounts.
- Distribution channels are not diversified and convenient for consumers.
 Promotion:
Information on TVs in general and Bravia LCD TVs in particular are not delivered to
consumers sufficiently.
- There is no long-term, specific marketing strategy (promotion, advertisement, direct
marketing, public relation, etc.) with clearly defined budget for Bravia LCD TV Series.
- There are not many diversified customer services.

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Chapter 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN
FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012
3.1. Development orientations and objectives of Sony Vietnam
3.1.1. Development orientations:
- Growth.
- Development
- Profitability.
3.1.2. Marketing objectives of Sony Vietnam
 Mission of the Company
 Objectives of the company
3.2. Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony Vietnam
3.2.1. Product:
Among 4 factors of Marketing-mix, product seems to be the most important factor
that we should pay attention to.
- Focus on updating appearance of the Bravia LCD TVs by researching and offering
new, unique designs that satisfy consumers' preferences..
- Offer uniqueness for its products by outstanding and specific features. It should
continue investing in researching new technologies to add more functions for Bravia LCD
TV Series while timely responding to continuous and changing needs of the customers.
- Manufacture Bravia LCD TVs at lower price to take over the future market.
Although Sony Vietnam has developed a detailed strategy for its Bravia LCD TV
Series, it is a core requirement that the company strictly follow its policies of "continuous
innovation" and "unique and impressive products" to maintain the leading position of its
products compared to those of other manufactures in the market.
3.2.2. Price:
 Change its pricing and price list development methods.
 The following measures will help product price of the company be more

competitive while still maintain a reasonable profit margin.
Reducing cost price can be achieved by either of the following two measures:



Reducing costs of electronic components
Reducing production cost

Increase the productivity of Bravia LCD TV production line.
Gradually upgrade the production equipment to suit the development of products on
a long-term basis and with close co-operation of product development team to prevent from
sudden increase of defective products.
3.2.3. Place/Distribution:
 Improving and developing relationships with agents
 Revising distribution network to be more efficient
 Target a new customer segment to distribute Bravia LCD TVs - corporate clients

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 Developing new distribution channels for customers' convenience
In summary, Sony Vietnam may improve the performance of its distribution system
by following the figure below:
SONY VIETNAM

Ordinary Agent

Affiliated Agent

Exclusive Agent

Sony Display Store

NEW

2

Sub-Agent: Lv. 2, 3...

Online,
Tele Sales

Individual clients, end-users

Corporate Clients

3.2.4. Promotion
Promotion is a very important activity in Marketing-mix plan to consumers and remind
them of the existence of the product, which helps to build its market share.
In the section below, the author would like to recommend some solutions to correct
existing weaknesses of promotional activities for this product line of Sony Vietnam:
 Supplying customers with information on TVs in general and Bravia LCD TVs in
particular
 In addition, Sony Vietnam needs to continue its advertising programs
 Selecting suitable promotion methods
 Promotional activities
 Preferential policy
 Direct Marketing
 Building up a good image of display stores of Sony Vietnam
 Carrying out public relation activities in an effective and significant manner

 Provide support sales services:
In summary, marketing activities of the company are important and should be
supported by detailed, professional strategy, which is operated frequently and continuously.
However, in implementing these activities, it should be noted to allocate budget
appropriately to generate the highest efficiency, so that marketing activities may generate
profit for the enterprises.
3.2.5. Some support measures:

products




Developing adequate human resources to monitor the market and develop the
Co-operating to conduct scientific research and technology innovation
Maintaining business code of conduct and healthy competition
Committing to protect the living environment

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 Quickly responding to external changes
3.3. Marketing Action Plan from June to December, 2012
3.3.1. Objectives
-

To improve awareness of target customers of the products;

-

To promote sales during the key season in 2012;

-

To enhance brand value for Bravia LCD TVs of Sony VN.

3.3.2. Sales Activities
During this period, it is very important to prepare the sales force at promotional sites
and agents to provide such services as: giving advice, helping distributors to promote the
products...
 June: Salespeople are assigned to various locations to prepare sales activities for
distributors and regional agents.
 Jul, Aug, Sep: Regional employees will carry out their tasks: inform distributors
of promotional programs, provide customer care service, supervise the performance of
distributors, collect statistics and make monthly and quarterly reports.
Conduct weekly and monthly survey on sales performance of distributors and
competitors’ activities.
3.3.3. Promotional program



Mass Media
TVC Plan

Details of broadcasting time on TV channels are as follows:





Print Ad Plan
Newspapers:
Magazines:

Details of issuing date and edition issues are as follows:

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


PR Plan:
Key Media Seeding

To provide reviews on outstanding features of the technologies of Sony's
Bravia LCD TVs compared to product of other competitors in the market through
these newspapers:



TV Reportage:

To introduce to and re-affirm the quality of Sony's Bravia LCD TVs so that
consumers are aware of the outstanding features of this product line compared to
those of other competitors in the market.


Experts and Endorsement:
- To invite famous characters to be the ambassador of the brand to

advertise Bravia LCD TVs to the public;
- To introduce about rewards granted to Bravia LCD TVs;

Online Marketing:
 Re-design current web page of the Company:
 Join in affiliates with other web pages about advertisements and sales




Sales promotion
Free uniform gift:
Free Sony's DVD player:

3.3.4. Marketing Budget

Summary of Chapter 3
In Chapter 3, the author has summarized a number of solutions to improve
Marketing-mix plan for Bravia LCD TVs of the Company, emphasizing on the follows:
- Firstly, develop a detailed product strategy, in which, it is required that products
delivered to consumers must be really high-end, unique, and impressive to be more
outstanding than products of other firms.
- For price, main strategy is "not to participate in price war", instead, adopt the
strategy of "skimming price" that is suitable to high quality of the products. With its

20


reputation and a consumption notion of Vietnamese that "Quality is indicative of Price", it is
sure that Bravia LCD TVs will lead the market not only in term of sales but also in term of

production volumes.
- For distribution, maintain selective distribution strategy while paying attention to
enhance the performance and effectiveness of distribution channels of the Company: build
up new sales channels, reduce the number of intermediary distributors and develop channels
to address new customer segment - corporate customers.
- For promotion, it should be carried out more strongly and broadly to help reinforce
the image of Sony Vietnam, especially Bravia LCD TV series, to increase sales and profit
for the company.
In addition, it is necessary to take some support measures such as promoting
research, survey and monitor of target markets; training human resource about forecasting
and researching the market; improving the workmanship of engineers and workers
adequately to the features and quality of products; continuing researching and applying new
technologies to protect living environment, etc. These activities will help enhance the
performance of Marketing-mix activities for Bravia LCD TV product line - strategic
products of the Company.

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CONCLUSION
Though LCD TV products of Sony Vietnam still lead the market in terms of quality,
reliability and durability, there is an undeniable fact that consumers are being pulled into a
tornado of LCD TVs of various manufacturers with eye-catching designs and reasonable
prices. Therefore, without continuous innovation to adapt to changes of market demand, the
position of Sony Vietnam will be endangered.
In general, selling price of the products is still less competitive while promotion
activities to improve the image of Sony Vietnam in general and Bravia LCD TV product
line in recent years have lagged behind aggressive competitors such as: Samsung Vietnam
and LG Vietnam, etc. Therefore, though Sony Vietnam is currently ranking the first in the
market in term of sales and third position in term of production, it is important for Sony to

devise a correct and detailed strategic guideline, especially a Marketing strategy, to be able
to lead the market in all terms.
This dissertation will provide a more general overview of LCD TV market in
Vietnam, consumers' opinion on Bravia LCD TVs in the market by conducting a survey that
will be very useful for Sony Vietnam to develop effective tools in assessing its capacity and
position in the market. By analyzing the results of this survey, the author suggests a
Marketing-mix plan for Bravia LCD TV products to reinforce the position of Bravia LCD
TVs in Vietnam electronic market.

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