The case study of: “Sony Targets Laptop Consumers in China” -By: Kellogg School of Management, Sachin Waikar
PROBLEM DEFINITION
BACKGROUND AND DATA ANALYSIS
In China 74% of the people own a desktop and about half the population owns a laptop, considering that half of the country has broadband internet connection, and of the households that own a laptop almost 80% have internet at home, the market for laptop in China is very interesting for Sony. Howeve, in the past years, Sony has been facing only a moderate success with a low market share and low brand awareness in China.
Global image of Sony VAIO
Globally the brand VAIO is known for being a “statement computer” a high-end niche product that attracted consumers for whom style and design were a top priority.
Value Proposition
The VAIO 505 differentiates itself by being a one of kind portable laptop available in different colors and light in weight. It distinguished itself by having the software already loaded and came with a distinctive advantage of the multimedia software, which allows video and photo edition, and music software.
Target
Throughout the globe the brand “VAIO” of Sony is a premium offer, and considered to be higher than the average selling price which consequently attracts certain consumers that are willing to pay more for genuine brand rather than imitations. Hence, most-likely individuals and not business professionals nor enterprises, mainly image-conscious business professionals, who want to create a statement about the brand of computer they buy.
Chinese perception of Sony and VAIO
VAIO is valued mainly by high-end consumers, who typically prefer to buy genuine brands rather than copycats, consequently are willing to pay a premium price for the intangible benefits. However, it is important to highlight that even if Sony brand in China was considered a premium brand, and is seen as “young and trendy” Chinese are generally unfamiliar or