An investigation about the brand values of Sony Television and Panasonic Television.

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(Chapter 1) Introduction.

This dissertation is an investigation about the brand values of Sony Television and Panasonic Television. It is a research which will find out the basis of customer preference. It is important to know how the customers actually make their buying decisions. A customer is faced with so many brands in the market. They view brands primarily as a means of providing a consistent quality guarantee and reducing the risk involved in the buying decision. Although some brands are differentiated, many lack relevant added values, which encourages consumers to also consider price. Sony and Panasonic are the top most brands in the market. But it is not known clearly why does a customer prefer Sony and why does one prefer Panasonic. Through this study I will investigate what are the important factors which influence the consumers brand preference. According to an article consumer, in general, buy their favorite brands on the basis of quality. The main purpose of this dissertation is to study the basis of consumer's preference. We will see that what social and personal factors acts as influencer. What are the reasons for preferring one brand to the other? Following are the aims of the research:

* What factors influence in brand preference?

* The influence of social and personal factors on brand preference.

* Why does the customer prefer one brand to the other?

The product that I have chosen is television. Selecting a product category for a research is one the most important criteria. It depends on the interest for a specific product. I have that for the past few years there has been not much innovation in the technology of televisions. The only biggest innovation is the digital flat screen technology. Almost all the brands are offering the same features. There is very less differentiation in features. This is what has created interest in me to investigate the reason why customer prefers one brand to the other. Since Sony and Panasonic are the top brands in the market so I have decided to carry out the study on these 2 brands. Both brands provide good quality and hence there is less differentiation. So we will see what are the factors which will influence the consumer to prefer one brand over the other.

Company Profile:

Sony:

Sony Television is a product of the Sony Corporation.

The Beginning:

In a burnt-out department store in Tokyo in May 1946 just after World War II, Masaru Ibuka and Akio Morita founded Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company), with the aim of developing products and technologies that would help rebuild Japan's economy.

In January 1958, the company name was subsequently changed to Sony Corporation. The name "Sony" was created by combining two words. One is 'sonus' in Latin, which is the root of such words as 'sound' and 'sonic'. The other is 'sonny' meaning little son. The words were used to show that " Sony" comprised a group of young people who have the energy and passion toward unlimited creation.

An electric rice cooker was one of the first ideas spawned by our founders. The breakthrough came in 1955, when they developed the world's first transistor radio. This was subsequently followed by many revolutionary products such as the: Trinitron color television (1968); Walkman personal stereo (1979); Compact Disc player (1982); Betacam for broadcast use (1982); Floppy Disk (1983); Handycam (1985); MiniDisc (1992); PlayStation (1994); DVD (1997); Memory Stick (1998); AIBO (1999); PlayStation 2 (2000) and CLIE, Sony's personal entertainment organizer (2000)

Source:

www.Sony.com, www.sony-ae.com, www.jumbocorp.com, www.pro.middle-east.sony.com

Sony Today:

Today, Sony is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With music, pictures, computer entertainment and online businesses, Sony is uniquely positioned to be a leading broadband entertainment company in the world. Globally, Sony has: Operations spanning over 70 countries 1,080 subsidiaries 189,700 employees Achieved consolidated annual sales of more than US$63 billion (for fiscal year ended March 31st, 2000) In the 21st century, Sony continues to strive for excellence in all areas of their business.

Sony In U.A.E:

The distributor of Sony TV in the U.A.E market is Jumbo Electronics Company Ltd (LLC). Jumbo Electronics Co. Ltd is an ISO 9002 company. It was founded in the United Arab Emirates in 1974. Their U.A.E. presence encompasses the seven Emirates of Dubai, Sharjah, Abu Dhabi, Ras Al Khaimah, Fujairah, Ajman and Al Ain. They are one of the largest distributors of Sony products in the world.1

Panasonic:

Panasonic Television is a product of the Matsushita Electric Industrial Co. Ltd, Japan.

2Panasonic's vision of the digital future is driven by the needs and aspirations of its business customers and millions of consumers around the world who use their products every day. Panasonic shares their dream to live a fuller life by providing ways of working smarter and enjoying the rewards of technological advances.

Source:

2www.panasonic.com, www.panasonicuae.com,

The founder of the company Konosuke Matsushita began the journey in 1918 by inventing a two-socket light fixture. Profound in its import yet elegantly simple, Konosuke Matsushita's breakthrough led to what is now one of the world's largest electronics companies. As he built Matsushita Electric Industrial Co., Ltd., he never lost sight of the importance of putting the needs of his customers and the public first.

Panasonic will continue its Customer First tradition of creating new products that resolve the challenges in business and personal life, helping us all enjoy more of what life has to offer. The name Panasonic is synonymous with innovation, quality, performance and ease of use.

Panasonic in U.A.E:

Oman National Electronics, a part of the Al-Futtaim Group - one of the most diversified trading houses in the lower Gulf, is the sole distributor for Matsushita Electric Industrial Co. Ltd. Japan. With six branches employing over 250 people and a UAE-wide distribution network of over 400 dealers, it has helped the brand to establish a unique niche and enjoy a pre-eminent position in a highly competitive market.

Oman National Electronics' association with Matsushita, dates back to the year 1971, when the UAE was a very small market and trade very traditional. This partnership has evolved over the last 30 years and continues to grow from strength to strength. In these 30 years, they have seen a dramatic change in the UAE. Growing markets, changing lifestyles and a vibrant trading activity has always thrown up new challenges, and they have successfully lived up to these by creating value through change.

In these 30 years, they have continuously reviewed their business practices and set new standards. This can be well illustrated by the fact that Panasonic enjoys prominent awareness and visibility through Oman National Electronics' large network of dealers. From the smallest grocery store, to souks, shopping malls and hypermarkets, you are likely to see a Matsushita product. Today, with a fully networked inventory management system operating on SAP, and centralized service operations (CSO), it not only provides excellent logistic support to its dealers, but also complete after-sales support to its consumers.2

Product Profile:

Sony Televisions:

Sony has a wide range of models. It has 4 series of models which are as follows:

* DRC-MF

* WEGA

* Trinitron

* Projection TV Technology.

Panasonic Televisions.

Following are the wide range of models available in Panasonic Televisions:

* Twin Top Dome.

* Sophia.

* TAU Digital Flat CTV.

* GIGA Flat CTV.

* Plasma Color Monitor.

* Projection CTV.

(Chapter 2) Literature Review.

A literature review gives researcher knowledge of the works already conducted on the subject. It will give me guidelines and will help me in conducting the research properly. It helps to understand the topic better.

Defining Marketing:

Marketing is one of the most powerful tools used by organizations in their struggle for survival and growth. There are varying views on marketing. Many authors have given different definitions for marketing. However the main purpose of marketing is identifying a certain group of people and then marketing a product for them, which satisfy their needs.

3Marketing can be defined as

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individuals, organizations, and society. 3

4According to the UK Chartered Institute of Marketing,

Marketing is the management process responsible for identifying, anticipating and satisfying consumer's requirements profitably.

A rather different definition has been developed by the American Marketing Association (AMA):

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. 4

The above two definitions are widely accepted by academics and marketing managers. They emphasize that marketing focuses on planning and executing activities to satisfy the demands of the customer. The definitions are broad enough to indicate that marketing can occur in non-business organizations.

Sources:

3Douglas /Leonard J. Parsons, Marketing Management Text and Cases, Sixth Edition, pg. 2

4Dibb/Simkin/Pride/Ferrell, Marketing Concepts and Strategies, Second European Edition, pg. 4

Marketing Concept.

An organization must be in tune with consumers needs. They must adapt to changing environments and meet competitive threats to prevent loss of market share, stagnation and bankruptcy. The belief that satisfying customers can achieve organizational goals has gained so much importance among managers that it is now known as the marketing concept. According to the marketing concept, an organization must try to provide products that satisfy the needs of the customers through a coordinated set of activities that also allows the organization to achieve its objectives. The major aim of the marketing concept is customer satisfaction.

Brand:

5 The American Marketing Association defines a brand as follows:

"A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." 5

6A brand in short is an identifier of the seller or the maker. A brand name consists of words, letters, and/or numbers that can be vocalized. A brand mark is the visual representation of the brand like a symbol, design, distinctive coloring or lettering. A trademark is a brand that is legally protected. All trademarks are brands and include both the brand name and the pictorial design. Exclusive rights to use the brand in perpetuity are granted by the trademark law, unlike the Patents and Copyright Laws which have expiry dates.6

A brand is a promise of the seller to provide a particular set of benefits or attributes or services to the buyer. Each brand symbolizes a level of quality. Apart from attributes and benefits, it also reflects values, culture, personality and etc. so we can say that brand is a very complex symbol. It is not just a name.

Source:

5Philip Kotler, Marketing Management, Tenth Edition, pg no 404.

6S.A.Chunawalla, Product Management, pg no 165.

Brand gives an identity to a product. Brand differentiates one product from other. A brand can convey many levels of meaning. A brand brings in mind some attributes like Lexus suggests expensive, luxury, and high-prestige automobile. These attributes must be translated into functional and emotional benefits. The brand tells about the producer's values like for example Range Rover stands for high performance and prestige. Brand also represents certain culture and can project certain personality like Nokia communicator mobile phone may suggest a businessperson. It represents the kind of consumer who buys or uses the product. We would expect to see a 20-30 year old behind the wheel of a Porsche not a 50-60 year old.

Brands vary on the amount of power and value they have in the marketplace. We have brands that are not known more by the people and on the other hand we have brand that are known to the people and has a very high degree of brand awareness. Sony is one of the highly recognized brands in the world.

A Brand Is A Concept.

7The terms "brand" and "product" are not interchangeable. Chevron noted that "product" refers to the physical attributes and style of an item, especially its function and form. These attributes and characteristics are easy to communicate, and they are easy to modify in order to improve the product. In order to properly describe a product, you need focused communication that avoids complexity and confusion. "Products" are by nature extroverted, or focused on the consumer, and his or her wants and needs.

A "brand," on the other hand, has no corresponding physical body or characteristics. It is a concept, a collection of values that represents an unwritten covenant with the consumer. It is the sum of the expectations and associations that the brand conveys. A brand is difficult to communicate quickly, and it cannot be changed. It demands unfocused communication, in which the richness and the complexity of the communication support the values. "Value and identity statements that are required for effective brand -

Source:

7http://www.findarticles.com/cf_0/m3183/2_101/65369025/p1/article.jhtml?term=branding

communications always require conceptually oriented communications," Chevron said. The values and associations that form a brand are never one-dimensional. The complexity and depth of the brand messages are the core assets of a brand. 7

Brand Equity.

8A brand is an asset of any company. Its as much an asset as a factory and machinery are. A brand is not an asset by birth. It is built over a period of time. Brand equity is just the process of brand building. 8

9The term brand equity refers to the value inherent in a well-known brand name. From a consumer's perspective, brand equity is the added value bestowed on the product by the brand name. 9

Brand equity makes it possible for the company to charge a premium price. Brand names are the most valuable assets for many companies. Brand equity facilitates the acceptance of new products and the allotment of preferred shelf space, and enhances perceived value & quality, and premium pricing options. Brands differ in the amount of power and value they have in the market. On one hand there are brands that are not known by many buyers and on the other hand are brands that have a high degree of brand awareness. Then there are some brands that have a high degree of brand acceptability. Beyond this are brands which have a high degree of brand preference. And finally there are brands that have a high brand loyalty.

Source:

8S.A.Chunawalla, Product Management, pg no. 214

9Schiffman & Kanuk, Consumer Behaviour, 6th Edition, pg no. 224
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0The overall description of brand equity incorporates the ability to provide added value to a company's products and services. This added value can be used to the company's advantage to charge price premiums, lower marketing costs and offer greater opportunities for customer purchase. A badly mismanaged brand can actually have negative brand equity, meaning that potential customers have such low perceptions of the brand that they prescribe less value to the product than they would if they objectively assessed all its attributes/features.

One of the best examples of brand equity is in the soft drink industry. ...

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