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Introduction
For a product to be developed there should be idea generation, product design, and then engineering (Meerman, 2007, p.15). There should be proper market analysis and research. This is the only avenue that companies can grow their market share; by developing new products that their competitors do not have.
The new product needs a marketing plan to succeed in the market. This is a layout that shows the necessary actions that will help it to achieve its marketing objectives. For it to achieve its course it should be formalized to cover the customer needs and groups that are supposed to be served properly.
This process is very tiresome and needs commitment. It includes; idea generation, idea screening, concept testing and development, business analysis, market tests, technical implementation, commercialization, and new product pricing.
These products that are developed should not conflict with the companys goals and objectives. It should also be in need with the customer needs and the plan is supposed to be aligned with the company strategy. There needs to be a way by which the process will improve as the product is not guaranteed to be widely accepted from the first production.
This is a challenge to companies as they do not know which projects to undertake in maximizing returns. It can be achieved by proper maximization of the value, realigning, and balance of the new product. This paper will focus on Sony coming up with a new TV card because it has been selling TVs. This is a potential market that the company can tap into.
Although there are many producers of TV cards, the company has an upper hand as it is already producing complementary products that can be used with it. They are also called video capture cards because they allow videos to be recorded on hard disks. This card will comprise of a tuner and an analog to digital converter.
It seems like the mobile TV card tuner will be more lucrative as people move to watch TV on their handsets. There is also an opportunity for diversification in the production of video capture cards. Sony has a wide pool of engineers that will ensure that the new TV card is well developed. The TV cards produced will be for the mobile TV and the videos (capture cards). Ideas will be generated from the existing TV cards to enhance the quality. After the product has been developed it will be subjected to market tests that will allow improvements. This will ensure that the new TV card is unique, a key strength of Sony coupled with technology.
The Marketing strategy will give the company a chance to limit its resources to the greatest opportunities that will help it to increase sales and have a more competitive advantage over other companies. This strategy will mostly be directed towards the attainment of market satisfaction.
Segmentation
The market segment will involve a sub-set of the market. This group comprises customers who share some common characteristics that will make them demand the same product based on its qualities (Lipe, 2002, p.29). The segment will be reached through a proper market intervention that will respond similarly to the market stimulus.
Sony will produce TV cards for the mobile TV and the videos (capture cards). The companies will target mobile phone users and video editors who will highly demand these products. This group of users promises more returns as they are still growing.
The segmentation criteria will be done using income. These will target middle-income customers as they are likely to embrace this new product. 90% of Japans population comes from the middle-income group (Lie, 2001, p.6). This makes it a very large market that Sony will strive to capture. Some of these people can not access the highly-priced TV cards offered by other companies.
With these groups owning high-quality phones, it is clear that they will demand TV cards so that they can watch their favorite programs at the comfort of their handsets. Another integral section of this middle-income group includes those people who need videos for their editing from different sources. The company will make high-quality video capture cards that will guarantee returns in this market.
Target Market
The target market is important to the marketing strategy. In the long run, the target market will help in the success of the new product in the marketplace.
After identifying a target market, the company will be able to come up with a marketing mix strategy, promotion, distribution, and market-friendly prices that will be effective in maintaining this market. The target market is mostly identified through differentiated or undifferentiated marketing. In the process, it will outline the basics of market segmentation.
The company will target the middle-income end market youths in towns. The youths form 64% of the countries population most of them in urban areas (Lie, 2001, p.12). They are targeted because most of them have been born in the technological era and will continue embracing any new advances in technology. On the other hand, they tend to display high levels of brand loyalty (Lipe, 2002, p.9). The youths dont like being lumped together with the other segments and will appreciate it if given personal attention through the product. Target marketing will give the company a special focus for all the marketing activities.
This target market has a large number of customers (64% of the population) and it is clear that the youths form a majority of the population in different countries. In addition to these, this population continues to increase which will allow the product to grow further. The company expects to get high sales and good profit margins in these target markets.
The company believes that this group will exhibit some strong brand loyalty to the new product hence forming a strong customer base. Uniqueness in this product will be instrumental in forming these target markets by bringing out the best characteristics.
Further research will be instrumental in knowing the emerging trends in this group to comfortably cater for them. In addition, there is also the need to pay attention to both micros as well as macro-environmental variables, and the impact that they have on the target market.
Differentiation
Differentiation will distinguish Sonys TV cards from others to make them attractive to this target market. This will be achieved through additional features and more reliability than other competitors in this sector who dont have these. Sonys TV card will be unique through the enhanced quality of pictures from the TV stations. This will be done by the large pool of engineers who have been designing the companys products.
On the other hand, the TV cards will be retailing in different stores for enhanced convenience. When customers can conveniently get these TV cards they will easily differentiate them from other TV cards. The size will be reviewed to enhance compatibility as there are various sizes of mobile phones in the market.
Marketing Objectives
The companys marketing objectives will be clear, measurable, and have a time frame that will lead to success. Marketing objectives need to be realistic. In addition, they should also be quantifiable and specific within a given timeframe. These objectives will in turn lead to high sales of the new product from the company. In the first year, the company will seek to increase product awareness among the target market by more than 30%. This will be done by aggressive marketing campaigns through the media. It is projected to increase in the second year to 60% after more intensive campaigns.
The other objective will be to inform the target audience about the benefits and features of the new product. This will also be communicated through the media and promotional campaigns in selected areas that can influence the market. It is projected to increase the competitive advantage through differentiation and lead to a more than 10% increase in sales as the product gains market acceptability. On the other hand, the company plans to have a strong marketing team in place that will help in all promotional campaigns. This team will specifically be tasked with promoting the new Sony TV card.
In addition, the company has enough resources that will help it to accomplish these vital objectives in both the short and long run. This is because the new product will be approved by the directors as it will enhance the companys product portfolio. Therefore the company will develop a good promotional plan to support these objectives.
Marketing Mix
The marketing mix will involve the four Ps that are product, price, place, and promotion (Kotler & Keller, 2006, p.25). Products from Sony will be produced en mass on a large scale with a specific volume that can satisfy the market. This will be increased as the market share grows. Since the company intends to target the middle-income end market which is dominated by the youths, there will be a need to ensure that the quality of the product is maintained.
Pricing will be instrumental in guaranteeing success. This means that the company must provide affordable TV cards that will entice the market. The middle-income market segment demands quality and affordable products. In the long run, Sony will review its pricing to be in line with the demands of the market (low prices).
Sonys TV cards will be sold in selected stores and on the internet for increased and easy accessibility. These will ensure that the customers can easily access the products at their place of convenience.
Promotion is necessary to show the communication strategy that the company will use in the marketplace. The company will use promotional campaigns and the media to enhance more awareness about the new TV cards. The management will mainly focus on the youths who will form an integral part of the companys market.
Costs of the Marketing Strategy
The company expects to sell 500,000 units within the first year before it goes fully into the global market. In launching the product the company will need $1million. Since this is an expansion program that the company will be undertaking, it will be wholly financed by the companys shareholders through a rights issue. All the other costs (development, production, and distribution) will be catered for by this issue. This is expected to succeed as it will ultimately add value to the shareholders.
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Expected Sales in the first year $ 18,000,000 ($36.00 * 500,000)
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Development costs $ 5,000,000
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Production costs $ 3,000,000
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Launching costs $ 1,000,000
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Distribution costs $ 4,000,000 6,000,000
From the above information, the venture looks lucrative as the company has a chance to break- even in the first year.
Conclusion
Sony is a global company that continues to provide innovative and high-quality products to cut a niche in the market. Intensive marketing will continue to play an important role in ensuring that the company remains competitive.
Reference List
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Kotler, P. & Keller, L, K., 2006. Marketing Management. New Jersey: Prentice Hall.
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Lie, J., 2001. Multiethnic Japan. Cambridge, Mass: Harvard University Press.
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Lipe, B, J., 2002. The marketing toolkit for growing business. Minneapolis: Chammerson Press.
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Meerman, S, D., 2007. The new rules of marketing and PR. New Jersey: Hoboken
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