(LUẬN văn THẠC sĩ) một số giải pháp hoàn thiện marketing mix cho dòng sản phẩm TV LCD bravia của công ty sony việt nam năm 2012

Therefore, in this dissertation, the author will discuss the Marketing environment for Bravia TVs of Sony Vietnam as well as the marketing-mix being adopted by the Company with the purpo

VIETNAM NATIONAL UNIVERSITY, HANOI

MASTER OF BUSINESS ADMINISTRATION THESIS

Supervisor: Dr Tran Doan Kim

Hanoi – 2012

ACKNOWLEGEMENT

First of all, I would like to express my deepest appreciation to my supervisor,

Dr Tran Doan Kim, who has supported my dissertation from the beginning till the end, encouraging me whenever I have had difficulties, whether from clarifying research objectives, building the literature review, finding effective methods to answer the research questions, data analysis to the final writing up of the dissertation Without his guidance and persistent help this dissertation would not have been possible

In addition, I would like to thank to my friends who helped me to send the questionnaires for the customer survey of this dissertation

I also extend my thanks to HSB library staffs for showing me how to access different and useful sources to gather secondary data for the literature review chapter

Last but not least, I would like to take this opportunity to thank my family who supported and encouraged me during the time I took my MBA program at HSB

ABSTRACT

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

July 2012, 102 pages

In recent years, the TV market in general and hi-tech TV market in particular become very hot due to the appearance of a number of new TVs, including LCD TVs of famous brands such as Samsung, Panasonic, Sony, Sharp, and LG, etc Initially, LCD TVs was imported into Vietnam by electronic manufactures with the purpose of introducing hi-technology and setting themselves apart from competitors

However, after a short period, this line of products gained consumers' attention and made significant in roads into the TV market in Vietnam LCD TV now makes up nearly a quarter of the market and demonstrates its advantages over other technical products thanks to its superior bandwidth than other TV technologies and its reasonable price for most consumers

Historically, a TV using cathode ray tube was considered the most famous technology to give an ideal picture in terms of color, image and wide view angle Most important of all was affordable its price for most customers However, It had two weaknesses: its weight and its bulks, which limited its size to 36" display larger than this was impractical

The main advantage of LCD TV is its "model" body The thickness of a 40" LCD display is only about 10 cm while an ordinary 21" CRT display is five times

as thick as an LCD, so, an LCD will take up less space LCD display is also recognized to not cause eyestrain or electromagnetic radiation like traditional CRT displays

Another advantage is its resolution In the era of high resolution HDTV, high definition (at least 1,280 x 720 pixels) is a necessary requirement Most LCD TVs

in the market have resolutions of 1,366 x 768 pixels or higher

Moreover, there are more products of 2 million pixel, or Full-HD, Display (resolution up to 1,920 x 1,080 pixels) in the market Together with high resolution, each LCD TV also provides 2-3 high-definition HDMI ports to connect to appropriate source components such as a Blu-ray disk player, HDTV decoder, or next-generation play station

To take over a quarter of the cake of the TV market in Vietnam, branded electronic manufactures as Samsung, Sony, Panasonic or LG, etc… are applying their own strategies For this large segment, Samsung seems to have an advantage since its products have reasonable prices with high quality

In contrast, Bravia LCD TV series of Sony Vietnam is now facing with tough competition from other TV manufacturers Therefore, in this dissertation, the author will discuss the Marketing environment for Bravia TVs of Sony Vietnam as well as the marketing-mix being adopted by the Company with the purpose of identifying existing weaknesses and recommending solutions to improve marketing-mix for this product line, so that it may compete more effectively with other products in LCD TV market in Vietnam in 2012

Tháng 07/2012, 102 trang

Trong những năm gần đây thị trường tivi nói chung và thị trường tivi công nghệ cao nói riêng đang trở nên rất nóng do sự xuất hiện của nhiều chủng loại tivi mới, bao gồm tivi sử dụng công nghệ LCD của các thương hiệu có tên tuổi như Samsung, Panasonic, Sony, Sharp và LG Ban đầu tivi LCD được nhập khẩu vào Việt Nam với mục đích giới thiệu công nghệ mới và chứng minh thế mạnh của các hãng sản xuất tivi

Tuy nhiên sau một thời gian ngắn những sản phẩm này đã được người tiêu dùng chú ý đến và đã thành công trong việc xâm nhập được vào thị trường Việt Nam Sản phẩm tivi LCD bây giờ đã chiếm lĩnh một phần tư thị trường và đã chứng

tỏ được lợi thế về công nghệ nhờ có bâng thông rộng hơn và có giá cả hợp lý hơn cho phần lớn khách hàng với các sản phẩm tivi sử dụng công nghệ khác

Trước kia tivi bóng đèn hình được biết đến nhiều do sử dụng công nghệ cho chất lượng hình ảnh lý tưởng về màu sắc, hình ảnh và góc nhìn rộng Quan trọng hơn cả, giá thành của nó phải chăng so với đại đa số người tiêu dùng Tuy nhiên tivi

sử dụng công nghệ này sớm bộc lộ hai điểm yếu: ngoại hình cồng kềnh cùng với màn hình không thể lớn hơn 36 inch vì chúng quá nặng

Lợi thế của tivi LCD là độ mỏng của ngoại hình Phần dày nhất của màn hình tivi 40 inch chỉ khoảng 10 cm trong khi màn hình CRT 21 inch có độ dày gấp năm lần độ dày của tivi LCD do đó tivi LCD sẽ tiết kiệm nhiều diện tích hơn Màn hình tivi LCD cũng được công nhận là không gây đau hay mỏi mắt cho người xem

Để có thể chiếm một phần tư miếng bánh trên thị trường tivi Việt Nam, các hãng sản xuất tivi tên tuổi như Samsung, Sony, Panasonic hay LG đều áp dụng những chiến lược riêng của họ Trên phân khúc này Samsung dường như đang chiếm ưu thế do sản phẩm của hang có thiết kế bắt mắt với giá thành hợp lý

Ngược lại, sản phẩm tivi LCD Bravia của Sony đang phải cạnh tranh khốc liệt với các hãng sản xuất khác Do đó, trong bài luận văn này, tác giả sẽ phân tích môi trường Marketing của sản phẩm tivi LCD Bravia của công ty Sony Việt Nam cùng với chiến lược Marketing hỗn hợp mà công ty đang áp dụng để từ đó nhận diện ra những điểm yếu đang tồn tại và đề xuất giải pháp để hoàn thiện chiến lược Marketing hỗn hợp cho dòng sản phẩm này và hi vọng sẽ cạnh tranh hiệu quả với các sản phẩm cùng loại của các nhà sản xuất tivi khác trong năm 2012

TABLE OF CONTENTS

Hanoi – 2012 i

ACKNOWLEGEMENT i

ABSTRACT ii

TÓM TẮT iv

TABLE OF CONTENTS vi

TABLE OF FIGURES x

INTRODUCTION 1

1 Reasons to choose this topic 1

2 Objectives of the Study 1

3 Subjects and Scope of the Study 2

4 Methods of study and process of data 2

5 Significance of the Topic: 2

6 Structure of the Thesis: 3

CHAPTER 1: LITERATURE REVIEW 4

1.1 Overview of Marketing 4

1.1.1 The Formation and Development of Marketing 4

1.1.2 Definitions of Marketing 5

1.1.3 Concepts of Marketing 7

1.1.4 Role of Marketing 8

1.2 Marketing Environment 8

1.2.1 Political and legal environment 9

1.2.2 Economic and Demographic environment 10

1.2.3 Cultural - Social environment 11

1.2.4 Technological and Natural environment 11

1.3 Target Market Identification 12

1.3.1 Concept of market: 12

1.3.2 Market Classification 12

1.4 Positioning 14

1.4.1 Definitions 15

1.4.2 Positioning methods 16

1.4.3 Stages of market positioning: 17

1.5 Marketing-mix 17

1.5.1 Product strategy 18

1.5.2 Price strategy 19

1.5.3 Place (distribution) strategy 21

1.5.4 Promotion strategy 22

1.6 The relationships between product and other remaining factors of Marketing-mix: 26

Chapter 2: ANALYSIS OF MARKETING ENVIRONMENT AND CURRENT SITUATION OF MARKETING-MIX FOR BRAVIA LCD TV SERIES OF SONY VIETNAM 28

2.1 General introduction of Sony Vietnam 28

2.1.1 Overview of the Company 28

2.1.2 Objectives and Purposes of the Company 28

2.1.3 Main products of the Company 29

2.1.4 Activities and Sale performance of Bravia LCD TV Series 29

2.2 Target markets of Sony Vietnam: 31

2.3 Analysis of Marketing environment of Sony Vietnam 32

2.3.1 Macro-environment 32

2.3.2 Micro-environment 35

2.4 Analysis of product positioning strategy of Bravia LCD TV: 41

2.5 Analysis of current situation of Marketing-mix for Bravia LCD TV Series of Sony Vietnam: 46

2.5.1 Product 49

2.5.2 Price 50

2.5.3 Distribution 52

2.5.4 Promotion 57

Chapter 3: SOME SOLUTIONS TO THE MARKETING MIX PLAN FOR BRAVIA LCD TV SERIES OF SONY VIETNAM IN 2012 62

3.1 Development orientations and objectives of Sony Vietnam 62

3.1.1 Development orientations: 62

3.1.2 Marketing objectives of Sony Vietnam 62

3.2 Some solutions of Marketing-mix plan for Bravia LCD TV Series of Sony Vietnam 63

3.2.1 Product: 63

3.2.2 Price: 65

3.2.3 Place/Distribution: 68

3.2.4 Promotion 71

3.2.5 Some support measures: 75

3.3 Marketing Action Plan from June to December, 2012 76

3.3.1 Objectives 76

3.3.2 Sales Activities 76

3.3.3 Promotional program 78

3.3.4 Marketing Budget 83

CONCLUSION 88

LIST OF REFERENCES 89

LIST OF APPENDICES 90

TABLE OF FIGURES

FIGURE 1 FIGURE 2.1: MARKET SHARE BY PRODUCTION OF SOME TV FIRMS IN VIETNAM 30

FIGURE 2 FIGURE 2.2: MARKET SHARE BY REVENUE OF SOME TV FIRMS IN VIETNAM 31

FIGURE 3 FIGURE 2.3: CONSUMPTION MARKETS OF SONY IN VIENTAM 32

FIGURE 4 FIGURE 2.4: CURRENT DISTRIBUTION NETWORK OF SONY VIETNAM 55

FIGURE 5 FIGURE 3.1: PROPOSED DISTRIBUTION SYSTEM IN THE FUTURE 71

INTRODUCTION

1 Reasons to choose this topic

LCD TV is a product that has captured the attention of customers in an era of continuous development of technology, repeated competition among different manufactures By developing ranges of appealing designs, LCD TV has become more attractive than other TV products, satisfying the increasing demands of the market Faced with consumer demands and integration into the global technology revolution, such famous brand names as Samsung, Sony, Panasonic, LG, etc have introduced exclusive lines of products besides traditional ones, for example, a Full-

HD TV with multi-function, super-slim, super-connection, super-fast and environmentally-friendly features

Acknowledging this fact, Sony Vietnam introduced its Bravia LCD TV series and considered this to be the strategic product line of the Company

However, for Bravia LCD TV series to compete with TV products of other major manufacturers in Vietnam market such as Samsung, LG, etc., it is necessary for the company to have an overall vision of the marketing environment for its Bravia LCD

TV series, on the basis of which, solutions can be made to direct its Marketing strategy and enhance business performance of this strategic product line 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

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

Marketing-mix 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

CHAPTER 1: LITERATURE REVIEW

1.1 Overview of Marketing

1.1.1 The Formation and Development of Marketing

Marketing literally means, "doing the market" The concept of Marketing first appeared in America in the beginning of 20th century but was not widely developed and popular until after World War II, then, it spreads to Western Europe and Japan during 1950-1960 Since its first appearance and for a long time, the term

"Marketing" was limited to only commercial business It was recognized as getting the ready-made products/services to be consumed quickly in order to achieve the best efficiency At that time, it was called "traditional marketing"

During 1960 - 1970, from the most complex matters in production and consumption of goods as well as tough competition within capitalist market, the role and significance of Marketing in capitalist economic management was heightened During this period, a number of scientific research institutions, Marketing research centers, and advisory offices within enterprises were established and Marketing became the decisive factor in management and competition among capitalists The term was not limited to only sale and purchase contracts or ready-made products/services, but expanded to embrace the mass market That was the era

of modern Marketing, inclusive of every calculation regarding the objectives and strategic ideas before production, to sales and consumption, and until after-sale services

From 1960, Marketing started to gain acceptance in East European socialist countries such as: Hungary, Poland, Romania, and Czechoslovakia In 11/1976, the international conference - "Marketing Application in Foreign Trade Activities and Socialist Nations" was held in Berlin In 1977, it was affirmed by members at this conference that marketing activities applied not only to capitalist countries but to socialist countries as well

1.1.2 Definitions of Marketing

The concept of Marketing, as an activity to generate economic benefits on many aspects, has been continuously applied, developed and completed since its first appearance, in 1905 at the University of Pennsylvania (U.S.), when Mr W E Kreussi gave a series of lectures on Marketing

Marketing, in the view of economists, is the business approach that orientates production towards satisfying consumer needs Hence, it has been a decisive influence on the development of capitalist economies They assign to Marketing such names as "New business philosophy", "The secret of success in business", etc And 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 Hamilton College (U.S.): “Marketing is the performance

of business activities that direct the flow of goods and services to customers or users.”[1]

- Definition by American Marketing Association (AMA), Board of

Directors: “Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”[2]

- 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]

- Definition by British Institute of Marketing (U.K.):“Marketing is the

management process responsible for identifying, anticipating and satisfying customer requirements profitably.”[4]

- Definition by John H Crighton (Australia): “Marketing is getting the

right goods and services to the right people at the right place at the right time at the right price with the right communication and promotion” [5]

- Definition by Peter Drucker – the American modern economists:

“Marketing is the distinguishing, the unique function of the business It encompasses the entire business It is the whole business seen from the point of view of its final result that is from the customer's point of view Concern and responsibility for marketing must therefore permeate all areas of the enterprise.”[6]

From above definitions, it can be seen that there are many diversified ways

of understanding about Marketing Two first definitions are suitable for traditional marketing while other definitions are suitable for modern marketing However, each definition is correct for its point in time only Therefore, it is not necessary to have a common definition of Marketing A single definition may limit the diversity and dynamics of marketing activities in practice

The differences between traditional and modern Marketing are shown in the following diagram:

Traditional

Marketing Product Sales & Advertising

Generate profit by selling many products

Modern

Marketing

Satisfy customer’s needs

Adopt comprehensive Marketing strategies

Generate profit by satisfying customer needs

 Product concept:

It is considered that customers like to use products that have the highest quality and the best utilities Therefore, enterprises should frequently innovate their products

 Sale concept:

It is considered that customers will not buy many products of an enterprise if

it doesn't spend regular efforts on sales and promotion

 Marketing concept:

It is considered that the key to achieve objectives of an enterprise is to identify the needs of target market and satisfy customer’s needs to the maximum extent and more effectively than those of rivals

 Social Marketing concept:

It is considered that activities of an enterprise is to identify the needs, desire and preferences of target market and take measures to satisfy such customer’s needs more effectively than the rivals do and in such a manner to maintain and promote benefits for consumers and society

In my opinion, currently, most enterprises, even small-scale ones, have considered the change of Marketing concepts Therefore, to various extents, they have applied the concepts of modern Marketing to their business, trying to understand and listen to customer’s needs to modify their products for sales

However, in order to survive and develop in a sustainable and long-lasting manner, enterprises should apply social Marketing concept in their business process while considering supported activities to help maintain and promote benefits for consumers and society For example, companies may research technologies to create products that are better for users' health, make commitments regarding the use of parts, chemicals or technologies that are harmful to living environment, and carry out activities to preserve and build up a green and clean environment, etc

1.1.4 Role of Marketing

Marketing plays a very important role in business It guides and coordinates the operating activities of a company Thanks to Marketing, decisions made during the course of business are based on more scientific and reliable grounds, with companies capturing sufficient information to know how to satisfy customer needs

A product is attractive since it has useful features that are always innovated, updated or improved to satisfy diversified and changing needs of consumers

Marketing is also helpful in adapting a product to market needs It promotes research and development activities It doesn't involve any technical operations, however, producers base on its research to answer the questions such as "what to produce," "how to produce," "how many to produce," and "when to introduce to the market"

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

1.2 Marketing Environment

Marketing environment is the total of "uncontrollable" forces that a company should pay attention to in developing its marketing-mix 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

Given the uncertain climate, Marketing can have a deep influence on operations of a company Because the changes of current environment are rapid and unforeseeable, they may cause sudden impact and result in severe consequences Therefore, a company should monitor and anticipate every change of this environment by applying marketing research and collecting marketing information from current external environment of the company

Marketing environment consists of micro and macro-environment environment includes forces that are directly related to a company and its ability to serve the customers, including suppliers, marketing agencies, customers, competitors and direct public Macro-environment is external forces on social, much broader scale that have influences, including demography, economy, natural condition, technology, politics and culture

Micro-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

Enterprises pay attention to legal and political environment of not only a single country but also on global scale, such as: multilateral/bilateral agreements

between organizations, regions and nations, international treaties such as WTO agreement, free trade area agreements, trade and investment agreements, 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 developed economies, people have high incomes; wider income distribution may assure living standards for the consumers; and many people need high-quality goods and services On the contrary, in underdeveloped economies, consumption trend focuses on essential goods and low-end services However, in such economies, the needs of high-end products/services are increasing rapidly thanks to the industrialization and development of the economy In developed countries, consumers tend to spend more since they can easily borrow money But during recessions, they cut back their expenditure and reduce borrowing, which in turn cause a negative effect on the growth of needs of goods and services

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

Values that are vulnerable to change over time and social trends are both opportunities and threats to marketing activities They can be the trends and preferences among young people about music, fashion or career ambitions, such social trends will then affect on consumers' attitude to themselves, surrounding people and organizations

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

Technological trends are developing and changing at fast pace while product life cycle is shortening; therefore, Marketing-implementing tools are also changing Opportunities for innovation of products and services are unlimited, which causes prices to drop and enable consumers to access products more easily Budgets for Research and Development activities should be increased, especially for enterprises that aim to be market leaders Regulations to control technology are being tightened and tightened to protect the consumers and ensure their privacy

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

Consumers in the market are homogeneous and can be divided into segments by various manners A group of consumer can be segmented on basis of geographical factor (region, city), demographic factors (gender, age, education level), psychological factor (social class, life style), and behavioral factor (purchasing opportunity, consumption rate, benefit-oriented) The segmentation of customer base into groups to highlight the differences of needs, characteristics, or behavior is called market segmentation Each market is constituted of many market segments

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]

 Requirements of an effective market segmentation [9]

- It is internally homogeneous (potential customers in the same segment prefer the same product qualities)

- It is externally heterogeneous (potential customers from different segments have basically different quality preferences)

- It responds similarly to a market stimulus

- It can be cost-effectively reached by market intervention

 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

“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

In Marketing, positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand , or organization and what adds value to the customers

Re-positioning involves changing the identity of a product, relative to the

identity of competing products, in the collective mind of the target market

De-positioning involves attempting to change the identity of competing

products, relative to the identity of your own product, in the collective minds of the target market

The original work on Positioning was consumer marketing oriented, and was not as much focused on the question relative to competitive products as much as it was focused on cutting through the ambient "noise" and establishing a moment of real contact with the intended recipient In the classic example of AVIS claiming

"No.2, We Try Harder", the point was to say something so shocking (it was by the standards of the day) that it cleared space in your brain and made you forget who

was number one, and not to make some philosophical point about being "hungry" for business

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]

Also positioning is defined as the way by which the marketers create impression in the customers mind

Positioning is a concept in marketing which was first introduced by Jack

Trout (“Industrial Marketing" Magazine- June/1969): "Positioning" as a game

people play in today's me-too market place" in the publication Industrial Marketing, stating that the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable (and empty) slot in the consumers mind

Al Ries and Jack Trout developed this theme in their bestseller book

"Positioning - The Battle for Your Mind” They saw it as a creative exercise done with an existing product:

“Positioning starts with a product, a piece of merchandise, a service, a company, an institution or even a person… But positioning is not about what you do

to a product Positioning is what you do to the mind of the prospect That is, you position products in the mind of prospect.” [12]

Also, positioning as "an organized system for finding a window in the mind

It is based on the concept that communication can only take place at the right time and under the right circumstances"[13]

Positioning is therefore a perception that builds up in the minds of the target market It is the aggregate perception the market has of a particular company,

product or service in relation to their perceptions of the competitors in the same category It will happen whether or not a company's management is proactive, reactive or passive about the on-going process of evolving a position But a company can positively influence the perceptions through enlightened strategic actions

A company, a brand or a product must have positioning concept in order to

survive in the competitive marketplace According to the book: “Marketing

concepts that win!” (2011 by Martha Guidry, Live Oak Book Company): Many

individuals confuse a core idea concept with a positioning concept A Core Idea Concept simply describes the product or service Its purpose is merely to determine whether the idea has any interest to the end buyer In contrast, a Positioning Concept attempts to sell the benefits of the product or service to a potential buyer

The positioning concepts focus on the rational or emotional benefits that buyer will receive or feel by using the product/service A successful positioning concept must

be developed and qualified before a "positioning statement" can be created The positioning concept is shared with the target audience for feedback and

optimization; the Positioning Statement (as defined below) is the articulation of

the target audience’s qualified idea that is used to develop a creative brief for an agency to develop advertising or communications strategy

Positioning Statement “For (target customer) Who (statement of the need

or opportunity) The (product name) is a (product category) That (statement of key benefit – that is, compelling reason to buy) Unlike (primary competitive alternative) Our product (statement of primary differentiation).” [14]

- 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)

Once a company has made its decision regarding market positioning, it may start preparing detailed promotion and marketing plans If a company targets premium market segment, it should implement plan that builds the appropriate perception in the minds of those customers For examples, by communicating the high quality attributes

of the products through advertising or PR activities, selecting prestigious distribution channels, considering offering discounts to stimulate the market, etc

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

(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

- The 1st level is the core benefit: the service or benefit the customer is

really buying

- At the second level, the marketer must turn the core benefit into a

basic product

- At the third level, the marketer prepares an expected product, a set of

attributes and conditions buyers normally expect when they purchase this product

- At the fourth level, the marketer prepares an augmented product that

exceeds customer’s expectations

- At the fifth level stands the potential product, which encompasses all

the possible augmentations and transformations the product or offering might undergo in the future

 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 The definition and tools of Marketing presents basic product classification methods by consumers, materials that include ideas of quality of their

marketing With these basic ideas in mind, we are ready to consider information on product portfolio, product types and product categories

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:

- Production cost: fixed cost, variable cost, total cost

 External factors:

- Market and needs: Costs establish the basis of pricing while market and needs set the height for pricing Both consumers and traders consider buying a product or service on basis of balancing between its price and potential benefit received from it Thus, prior to pricing, the marketer must understand the relationship between selling price and demand for his products

- Competition: the decisive factor influencing the pricing strategy of a company is price set by its competitors and their possible response toward the pricing strategy of the company

- Other external factors include legal and political environments The economic situation may significantly impact on the effectiveness of different pricing strategies These economic factors as inflation, growth or recession, and interest rates affect the decision of price since they impact production cost of a product and consumers' attitude toward the value of that product

 Pricing methods:

 Cost-based pricing method:

G = Z + M

G: selling price of the product

Z: cost price of the product

M: marginal profit

 Purchaser-based pricing method:

To determine the price on basis of perceived value, it is necessary to consider various factors such as reputation of the product, quality of service, completion level of the product/service, and customers' satisfaction A company deciding its pricing strategy using this method must try to increase its value in customers' mind

in relation to competitor offerings

 Competition-based pricing method:

 Mark-to-market pricing:

In mark-to-market pricing, a company will base on prices of competitors while not less paying attention to its own demand It may set price at higher, equal, or lower level than that of its competitors Mark-to-market pricing is a very common method

Adopting this method, companies will feel that their prices are marked to and following market prices that are common in the whole industry

 Bid pricing

Competition-based pricing is also the method dominating factories bidding for contracts In this method, a company will set its price on basis of expecting how much its competitors will set their prices instead of relying on the strict relationship between cost and demand of products However, price should not be set below a certain level, which, if it is the case, may endanger the sustainability of the company

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]

Product/service distribution channel strategy is the method by which a company delivers its products and services to the customers in its targeted markets

It contributes significantly to the supply of the right products to customers at the right time and place, through the right channel and flows It can help with strengthen the coherence of the business, reduce competition, and ensure smooth and fast flows of goods

 Distribution channels

Type of Distribution channel

 Direct Channel Channel Lv 1 Channel Lv 2 Channel Lv 3

 Direct Channel: With no intermediary, the manufacturer directly sells products to the consumers There are various ways of direct sales: Door-to-door direct sales, at-store sales, online and telephone sales

 Channel Lv.1: There is only one sale intermediary as retail-sale agent in the market In industrial goods B2B market, this intermediary is a broker or sales representative

 Channel Lv.2: There are two intermediaries who are wholesale and retail-sale agents

 Channel Lv.3: There are three distribution intermediaries

Retailers

Retailers

Consumer

Wholesale ssagent

Retailers

Consumer

Retailers

Consumer Consumer

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: the individual or organization that tries to sell the products or influence on customers purchasing behaviors by means of advertisements

- Advertising agent or firm: an independent and specialized firm in developing and carrying out advertising campaigns for the advertiser

- Communication media: used to communicate the advertising messages

- Advertising services: individuals or organizations that supply specialized services such as print ads, photocopy, TV Commercials, etc

 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

 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:

While the range of promotion activities is diverse, it can be classified into two main categories by target customers and specific objectives, specifically:

- To motivate and promote the efforts of sales force

- 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 This role of PR is different from the roles of other marketing factors that it tries to establish and enhance the brand image of products by which, persuading the customers to buy the products 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

 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) It may adapt to changes of circumstances of both the sellers and

customers via the interaction between both sides, leading to effective solutions and saving time for the customers Effectively, direct sale is a centralized marketing activity that focuses on individual customers in a target market, by building a relationship based on trust and motivating the customers to change from awareness

of situation to purchase decision Many marketers have recognized the important role of direct sales on their business It has the capability to communicate directly with capable customers and potential customers

Salespeople become the main source of information communicated to those customers that are intending to buy a product In industrial marketing, the sales force is considered a reliable information source to provide the feedbacks to the manufactures for their design or production process 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

Factors deciding the position of a company in the market:

- Can products of that company surpass other competitive products?

- How can they surpass?

- What does that company do to persuade its customers to buy?

These questions can only be answered if a company has developed a suitable product strategy and invent a product of appropriate quality The decisive factor to the success of a company is its products Therefore, deciding the right product strategy has a crucial role to the survival and development of that company

It is only when the company is able to develop a product strategy that it attracts funding for investment, design, research and mass production If a product strategy is weak and ineffective without any target market for consumption of the products, those activities will appear too risky and easily vulnerable to failure

Once a product strategy is developed well and appropriately, other strategies

of price, place and promotion may be facilitated and implemented effectively For example, when a company introduces a new high-quality product with outstanding attributes, it may easily deliver the product into consumption channels (place/distribution strategy), increase selling price but customers still accept to buy (pricing strategy), and offer advertising and promotion campaigns that go deeply into consumers' mind (promotion strategy)

Product strategy ensures to allow the company to carry out some fundamental objectives of a Marketing strategy:

 Profit objective:

Quality and quantity of a product; expansion or narrowing its product line, production cost and possible selling price of each type of product are factors that have relationships with each other and determine the profitability of a company

 Market power objective:

Whether or not a company may increase its turnover or expand the market share depends largely on its market penetration ability and product line expansion Whether

or not a company may attract customers relies largely on the quality of its brand, reliability of its products and reputation of the company itself in customers' eyes

 Safety objective:

Product strategy may ensure that the company has a stable and predictable base demand in a loyal market segment thus helping reduce certain consumption level to risk of losses in business, which help to ensure the safety of the business objectives

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

Established on November 01, 1994, Sony Vietnam is a joint venture between Viettronic Tan Binh and Sony Corporation, which specializes in assembling and trading in home electronic devices and providing products to the domestic market

The joint-venture period has been more than 10 years and Vietnamese Party contributed 30% and foreign party contributed 70% of the capital Charter capital: US$2,000,000 and total initial investment capital: US$6,666,000, which was increased to $16.6 million USD in November 1996 The Company has legal status, its own seal and bank account in VIETCOMBANK

2.1.2 Objectives and Purposes of the Company

- To supply the markets with a diversity of high quality products while ensuring profit margin and accumulated value for the Company

 Purposes:

- To assemble and manufacture home electronic devices of the best quality

2.1.3 Main products of the Company

Main products of the Company include: WEGA absolute flat color TV Series (from 14" to 43"), Bravia LCD TV Series (from 15" to 40"), Radio Cassette CD player, Hi-fi studio, Walkman CD, DVD/VCD player, computer, camcorder, digital camera, camera, Projector, Plasma TVs and other devices Moreover, the Company also manufactures electric parts mainly for export such as Deflection coils

2.1.4 Activities and Sale performance of Bravia LCD TV Series

 Market share by production of Sony Vietnam:

To ensure the confidentiality of data, this dissertation will only present figures of percentage of production of each manufacturer in Vietnam market but not provide details of production value

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 thanks to their highly competitive prices and eye-catching designs that are attractive to medium-income consumers For Sony Vietnam, price always goes together with quality under its guideline: Product quality is the leading factor and Sony's products are the most exclusive products; therefore, selling price of its products is somewhat higher than those of Samsung's and LG's

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,