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MG2048 ANALYSIS OF THE INTEGRATED MARKETING COMMUNICATIONS MIX FOR SONY MOBILE

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Contents

Executive summary........................................................................................................................3

1. Introduction............................................................................................................................4

2. Literature Review...................................................................................................................5

2.1 Criticisms of the theory...................................................................................................5

2.2 Branding..........................................................................................................................5

2.3 Segmentation..................................................................................................................6

2.4 Public Relations...............................................................................................................6

2.5 Direct Marketing and Sales Promotion............................................................................7

3. UK smartphone market environment review..........................................................................7

3.1 Samsung..........................................................................................................................7

3.1.1 SWOT Analysis.........................................................................................................8

3.1.2. Specialised marketing communications strategy......................................................8

3.2 Apple..............................................................................................................................9

3.2.1. SWOT Analysis.........................................................................................................9

3.2.2 Specialised marketing communication strategy........................................................9

3.3 Current UK market trends..............................................................................................10

4. Sony Mobile Company Strategies..........................................................................................10

4.1 Target Market...............................................................................................................11

4.2 Sony’s current brand position........................................................................................11

4.3 Media Selection.............................................................................................................11

5. Future Recommendations.....................................................................................................12

5.1 Deeper look into segmentation.....................................................................................13

5.2 Push handsets Individually............................................................................................13

6. Conclusion............................................................................................................................13

7. Bibliography..........................................................................................................................14

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Executive summary

This report will review Sony’s company strategies and use of integrated marketing communications in relation to the current UK smartphone market. An insight in to competitor’s unique strategies and SWOT analysis will also be undertaken.

Through using secondary research it has shown that the competitors have an advantage over Sony, through the use of their brand, amount of handsets on offer and overall dominance of the UK smartphone market. Sony are slowly but with some success raising with in the market through the addition of ‘Remote play’ and ‘Adventure proof’ software’s and hardware’s.

A look in to the target audience (Professionals, aged 25-40), media selection (television and internet) and brand position (mid to premium band handsets) all showed that Sony may need to take a deeper look in to their strategies, although they are not far of where they need/want to be.

The findings have shown that a possible further look into segmentation to potentially widen their target audience would be advised, the progression of which the UK smartphone market is undergoing could suggest that the release of lower rate handsets, along with their flagship handsets could increase revenue and brand loyalty, as long as the right audiences are being targeted. It may also be advised that a push of individual handsets instead of trying to bundle them in with various other products could cause a drastic increase in handsets purchased.

It would be advised that a deeper look into the subject area is committed due to various constraints in relation to the report. It may also be advised to conduct primary research to get a more personalised view on the subject area as this project was solely researched on a secondary basis.

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1. Introduction

“Don’t settle for good. Demand Great” (Suzuki, 2014) By using this motto Sony Mobile has given the individual the power to ask for more, it has given the individual the right to want more. This motto has been used in accordance to various problems which consumers have had with the mobile phone industry (Sony Mobile Communications Inc., 2014). An insight in to the integrated marketing communications (IMC) mix will give for a deep and more effective outlook on how Sony as a brand go about becoming one of the most successful companies within the industry, although as it stands holds 5.6% of the android market (Reed, 2013), which holds 63.5% of the smartphone industry as of 2014 (Napier, 2014).

The key features which should be addressed when developing a new marketing strategy are the perceived view of the brand, customer value and identifying competitor’s strengths and weaknesses (Kapferer, 2012). Applying the key concepts will gain a competitive advantage over competitors and allow for a much better perceived brand identity.

In this report there will be an insight in to the UK smartphone market and Sony’s individual company strategy in accordance to target audiences, brand positioning and media selection through the use of IMC tools. By using these tools new recommendations can be made so that Sony as a company can use more effective strategies, making them more competitive to gain the ability to push to become the market leader within the smart phone market.

Image 1 (Sony mobile communications Inc., 2013).

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2. Literature Review

By definition integrated marketing communications (IMC) is the process of achieving an objective of a marketing campaign, through coordinating the use of all promotional methods, such as advertising, public relations, personal selling and sales promotion (Pickton and Broderick, 2001).

There are various reasons as to why IMC is such a valuable process within companies. It can be argued that by unifying all marketing process under the same strategy can help to obtain larger objectives in a more efficient and effective manner (Reid et al, 2005).

2.1 Criticisms of the theory

As a theory integrated marketing communications has come under criticism in many cases for various reasons, the most notable of these is the breaching of ethical standards (Balmer and Mukherjee, 2006). An ethic is the concept of having morality dictate an individual’s behaviour (Koehler, 2003).

A communications strategy may be within the law however it may not be approached ethically and can generate a negative image for a corporation (Belch and Belch, 2009). An example of this would be testing cosmetics on animals; this is considered wrong by many due to the fact as humans there is no medical gain and this practices is used for vanity gains only, however marketing communications finds a way to justify these practices and shifts people’s values on the matter, making an individual shift their ethical standpoint (Crane, 2001).

Another criticism of integrated marketing communications is that it can be very costly and could if done wrong be crippling for a company (Keller, 2009).

2.2 Branding

A brand is either a name, logo or symbol of which is easily identifiable to the mass market. Brands are used to make a company or product stand out above their competitors, the brand in itself even though it may not contain words, often relays a message to its intended audience (Vaid, 2003, Pg. 2-7).

A brand should be cross platform and show effectiveness regardless of how it used, an example of a brand with the ability to easily identifiable and even iconic would be Coca-Cola (Coke) (Holt, 2004, pg.22-27). Through a highly intense branding strategy, understanding when, where, how and who, along with a deep understanding into the company’s distribution channels can give for an effective brand, leading to an increase into the value of the company and its brand (Vaid, 2003, pg.2-7).

There are various advantages to the process of branding for example, a brand can be used as a positive influencing factor, can build credibility and can cause for a large influx of revenue (Rooney, 1995 and Roellig, 2001). With the positives in mind however there are various negatives and arguments against branding such as the cost being very high, the process is impersonal and it is a very long winded process (Rooney, 1995).

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2.3 Segmentation

The process of which easily identifiable groups of consumers are formed into various divisions within the mass market, this due to their various similarities in perception, evaluation, needs, attitudes and behaviour towards products and their respective marketing activities (Fill, 2009, pg.290).

Both Holm (2006) and Lindgreen et al (2010) explain that there are various different bases for segmentation and they can be divided into five different areas.

Segmentation has come under criticism for various means, one of these reasons as argued by Wright (1996) is due to the assumptions which can be made when identifying each segment, this can cause for an ineffective campaign as bias caused from the assumptions can cause for results to be unfulfilled.

2.4 Public Relations

It is said by Fill (2009, pg.932) Public Relations is a “non-personal form of communication used by companies to build trust, goodwill, interest and relationships, with a range of stakeholders.” The use of public relations is of a high level of importance, especially for large companies, this is due to the heavy reliance on corporate image. Public relations are the process of building and branding this image, ideal or concept (Hatch and Schultz, 1997).

Public Relations is split in to various different areas with the intent of generating different means to reach the same goal of creating and maintaining or even protect a company’s reputation and levels of esteem (Hon, 1998). These areas are publications; the release of annual reports, videos and books etc. events, staff briefings, press relations such as press releases, press conferences and interviews and corporate advertising which solely are used to enhance corporate image (Ledingham and Bruning, 1998).

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Segmentation Areas

Demographics – This is where consumers are divided in to various sections in relation to their age, gender, occupation, education, religion, class, culture and income (Lin, 2002).

Geographic – The segmentation of consumers through the ideal of, Urban vs Rural, North vs South, Coastal vs Mainland and Warm climate vs Cold climates (Thomas, 2007).

Geodemographic – This is a type of segmentation of household via the use of postal codes (Mitchell and McGoldrick, 1994).

Psychographic – Consumers are divided through motivators, value systems, personality traits, attitudes and interests (Lin, 2002).

Behaviouristic – This is the process of segmenting consumers by their buying patterns, lifestyles and usage of products/services (Beane and Ennis, 1987).

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It is argued by Mickey (2003) that the company which undertakes the practices only has personal interest and not in the consumer especially when the product or service can be deemed as controversial. As a theory it is further argued by Mickey (2003) and L'Etang and Pieczka (2006) that public relations as an approach lacks any critical theory to successfully allow for conclusive results.

2.5 Direct Marketing and Sales Promotion

Direct marketing is the process of which a business directly sells products or services to consumers for example, via telesales or direct mailing (Grönroos, 2004). It is seen as a highly important way of developing close relations to consumers by going against the conventional view of mass and concentrating on personal (Fill, 2009, pg.22-23). Direct marketing is used to take away the use of an intermediary and is a measurable practice which is often strongly used within a media basis (Fill, 2009, pg.22-23).

Sales promotion is the procedure of adding value to a product or service to inspire buyers to purchase in the short-term as opposed to the long-term, used to boost sales (Low and Mohr, 2000).

It is suggested by Smith and Taylor (2004) that a clear disadvantage of direct marketing is that many people find the practice very intrusive and abrupt. By continuously using direct marketing it could negatively impact a company’s image (Smith and Taylor, 2004).

One criticisms of sales promotion is that promotional schemes can be unproductive and cause for a product or service to be costly because of this. Sales promotion may boost sales in the short term but abolish the credibility of a brand and relinquish all long term customer loyalty towards the brand (Smith and Taylor, 2004).

3. UK smartphone market environment review

The UK Smartphone market is steadily growing; this has been accredited to the mass amount of smartphones which have entered the market in recent years, as well as the convenience the technology provides. As of 2010 it was noted that more people within the UK owned a smartphone than those who owned a personal computer (Stone, 2012).

Currently there are 2 main contenders with in the UK smartphone market; Samsung and Apple, with Sony, HTC and Nokia/Windows closely behind and slowly breaking in on the top category of smartphone brands (Risselada et al, 2014).

3.1 Samsung

Image 2 (Samsung Mobile, 2014)

3.1.1 SWOT Analysis

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Samsung SWOT Analysis (all infomation sourced from (Jurevicius, 2013 and Samsung, 2014)).

Strengths- Versatile hardware integration- Excellent hardware and software engineering- Leaders in innovation and design of mobile hardware- Low production costs- Largest share in entire smartphone industry- Easy to brand due to company stature

Weaknesses- Lack of own OS- Large patent infringements- Only being able to progress as Andriod does- To many products released at the same time

Opportunities- Huge growth within Asian markets-Growth globally within mobile advertising-Huge demand for Samsung hardware for other brands- Oppotunity to buy out patents

Threats- Highly saturated market within developed countries- Price wars- Rapid technological advancements- Rapid change in demand from smartphones

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3.1.2. Specialised marketing communications strategy

As a company Samsung have very effectively used celebrity endorsements and through heavy use of sponsorship to appeal emotionally to their target audiences (Gupta, 2013). See images 3, 4 and 5.

Image 3 (Samsung, 2014) Image 4 (Samsung, 2013) Image 5 (Samsung, 2012)

Using well known and loved celebrities, as well as sponsoring huge events such as the Olympics allows consumers to relate to a product through events they enjoy and celebrities they view as role models. It can however have a negative effect if the celebrity has seen as unproductive and negative (Spry, 2011).

3.2 Apple 3.2.1. SWOT Analysis

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Swot Analyis for Apple Iphone (All infomation sourced from (Jurevicius, 2014 and Apple, 2014)).

Strengths- Recognised as the original smartphone brand to the masses- Most recognisable smartphone brand in western markets- Highly positive brand reputation- Simple to use operating system- Award winning face to face customer care- Highly loyal consumer base

Weaknesses- Lack of product options- No lower end product availability - No OS versatility and compatibility- Lack of distribution channels within Asian markets- Absence of Innovation

Opportunities- Acquisition of other companies- App exclusivity- Wearable gadgets such as the I-watch- Large corporate integration

Threats- Low levels of customisation in comparison to other brands- Lawsuits over patent infringement- Fading presence in Asian markets

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3.2.2 Specialised marketing communication strategy

Apple specialise in making addictive advertisements using current social trends which result in positive word-of-mouth marketing (Mickalowski et al, 2008). By using catchy music and using bold colours to replicate happiness, with empowering slogans to show the consumer to also show they are special (See Image 6). Apple have managed to make the majority of their advertisements become viral due to nature of them, this is used in order to get consumers and customers talking about the brand, whilst associating positive happy things with it (Millán and Díaz, 2014).

Image 6 (Apple, 2014)

3.3 Current UK market trends

In the UK there are two trends which are currently sweeping the market. These are health and fitness conscious technologies (Forbes, 2014) and consumer acceptance (Sang Ryu and Murdock, 2013).

There is a large emphasis on healthy living at the moment with in the UK and smartphone companies alike, in pushing a healthier lifestyle to consumers and customers it allows for individuals to feel good about themselves and towards the brands, along with showing that the companies care about their customers (Forbes, 2014). By doing this it can cause for increased sales and enhance brand reputation in a positive manner.

Companies like Apple have realised that smartphones until recently were only sort after by a younger demographic, however wanting to grow and create more sales the need for potential consumers to learn and accept new products was key and therefore introducing services to teach potential consumers on how to use their products, would counteract the stigma behind new technologies which older generations may have (Sang Ryu and Murdock, 2013).

4. Sony Mobile Company Strategies

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Image 7 (Sony Mobile Communications Inc., 2013).

Sony holds a heavy reliance on their brand Identity, by branding their products under their corporation name, for example Sony Xperia Z1 (Suzuki, 2014). In using this strategy consumers can relate to what is an already successful brand and make the assumption that their phones will be just as good as the rest of their production lines.

Sony has made all of their devices able to ‘Remote Play’ (Suzuki, 2014). Remote play allows for all Sony current devices and future devices able to synchronise where ever the individual is as long as they have an internet connection (Low, 2014) and this is especially enhance due to the arrival of 4G in the UK and European markets (Suzuki, 2014). Over previous years Sony have not been successful as a consumer mobile brand, to counteract this issue Sony found a gap in the market for remote play (Suzuki, 2014). Many consumers use their phones for various forms of media entertainment; therefore Sony enabled the use of remote servers so that consumers can access their entertainment media from home on the go (Sony Mobile Communications Inc., 2014). In doing this Sony has allowed for an integrated use within all their products therefore hoping existing customers of other services will have continued use of other products.

4.1 Target Market

Through using segmentation Sony have marketed themselves as a premium brand and they do this by targeting consumers who are professionals, aged 25-40, well-educated and business savvy, this is due to Sony’s dependence Business to Business (B2b) sales, however Sony are also trying to target activity intensive consumers such as gamers (through remote play), hikers, cyclists, swimmers and divers through the toughened waterproof and dustproof or as Sony describes as Adventure proof properties of their devices (Hairi, 2013, Sony Mobile Communications Inc., 2014 and Beavis, 2014).

4.2 Sony’s current brand position

Although Sony brand themselves as a premium brand, but they are currently a mid-level brand within the smartphone market (Reed, 2013). Sony is pushing new technologies and are currently undertaking a marketing campaign in order to solidify that Sony are one of the best, which they have done in various other markets (SyncForce, 2014).

Sony has seen by being under the brand Sony they deserve to be noticed as the best, in doing so they must have the best features possible and in using this concept and linking it with current market trends, Sony have labelled their front facing cameras as the best ‘selfie’ taking camera in the world (McCann, 2014 and Sony Mobile Communications Inc., 2014).

They hold heavy dependence on their use of public relations; this is due to a heavy reliance on their brand identity and its hardware to create success in the long term (Walker, 2013).

4.3 Media Selection

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The preferred media style of Sony is advertising through the television and the internet. They use visually beautiful, colourful and technology orientated advertisements (Walker, 2013). Sony does this in order to display to abilities of the hardware with in their products as seen in image 8.

Image 8 (Sony Mobile Communications Inc., 2013)

Sony have often used Direct Marketing in all channels of their business and have on many occasions have seen success for it. Using a loyalty card scheme in order to see and influence purchase behaviours of consumers, this is however achieved through exterior marketing companies (Rangwalla, 2013). With the success the scheme seems to have, it is only however used it in a b2b scenario when in relation to smartphones and it has often been as a part deal in collaboration with Laptops and other relevant business technologies (Rangwalla, 2013).

Sony do perform direct marketing on consumers through direct mail, sending leaflets with various pictures on them, showing how unique their products are (as seen in image 9), however again with the B2B this is usually in accordance to the buying of another product such as a laptop or PC (Dupre, 2014).

Image 9 (Sony Mobile Communications Inc., 2013).

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5. Future Recommendations

In the future when looking at the success of Sony’s current IMC usage and their competitors it would be fair to say that there is still a lot of work which needs to be done, if they want to become market leaders.

It would be advisable to spend a longer time on this subject area and to allow for the possible undertaking of primary research as this report is only secondary research specific.

Further recommendations in addition to their strategies:

5.1 Deeper look into segmentation

It is key that Sony do not restrict their approach to consumers through only targeting a small segment of the market. It has been proven by companies like Samsung and Apple that their products can be used and purchased by many, various forms of the same technology can be created and marketed for consumers who may not be able to afford a premium rate flagship phone; an example of this would be Samsung galaxy s3 and the s3mini (Spence, 2013). In doing this Samsung have seen a wider user base for their phones and therefore have been able to increase their target audience and generate more sales (Dirkse, 2013). However Sony must make sure they do not oversaturate the market when applying this process.

Many consumers have said that the problem with Sony is that they do not have enough variability in handsets and they are too expensive, even though they accept that they are very good phones. In taking a further look into segmentation Sony may find it possible to increase their target audience and amount of sales and revenue generated. This could also help for consumer relations and build a better consumer base away from b2b relations.

5.2 Push handsets Individually

Sony are stuck trying to bundle handsets in with other products through the use of direct marketing. This practice works in a b2b scenario but it is less effective in a retail scenario.

Using public relations especially in the UK market Sony could increase demand for handsets. Sony is highly regarded in the majority of technology markets except smartphones. Increasing public relations and advertisements of their handsets could be argued that due to the dominance they hold over the other markets in the UK, their smartphones would follow and potentially become the market leader. This paired with the fact that Sony has various exclusives technologies such as ‘Remote play’ could help to form a new and heavily loyal consumer base.

6. Conclusion

Sony is currently on the right path to success; however their strategies may need a further look into. With the aid of various IMC tools, such as Segmentation and Public Relations Sony could find that they are not too far from being able to push for market leader status.

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Through comparing and contrasting what Sony’s competitors are doing it shows that Sony may need to make more time for the Retail consumer and give more variation in what they give to their target audience.

It would be advised that a deeper look into the subject area is committed due to various constraints that occurred in relation to the report. It may also be advised to conduct primary research to get a more personalised view on the subject area as this project was solely researched on a secondary basis.

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