Sony Music India Case Solution
Â Marketing Mix Strategies:
The marketing mix strategies used by Sony Music India for targeting its above-mentioned segments include the separate marketing strategy to target each segment which is evaluated on the basis of separate product strategy, pricing strategy, place and promotional strategies. Enthusiasts segment of the market of the mobile phones and online channels follows the marketing strategy of broad differentiation. It involves this service to be present to the large audience by visiting the website which will provide the free access to music to the customers and it will be giving them a convenience based product. The customers can utilize this facility by getting a subscription for listening to the music of their favorite artists through metadata.
The company charges perceived value pricing as it charges a price relative to the value provided. The company tries to maximize its profits through the involvement of its value chain partners. It tries to promote its product through social media such as Facebook and its Sony TV app and other online mediums. Moreover, the company has reduced the distribution network by doing dis intermediation for its digital segments and the major channels are online medium and YouTube.
The remaining segments which include casuals segment which has lost its market share with each passing year and was based on the low-cost leadership marketing strategy and the price charged is mark up price to maintain its market share.It has become difficult for the company to maintain its market share and has started incurring losses. The company has the network of different distributors and retailers for the supply of its CDs and DVDs which are promoted in the Movie Ads and TV ads along with billboard marketing and sales promotions.
The fanatics segment is following niche market cost leadership segment which provides convenience with great life experience to meet in person with the favorite artist. Sony uses skimming based pricing strategy for the sale of its artistic based product. It is distributed through the agents and marketing agencies who promote the artists and promotions are done through sales force, billboards, and pamphlets.
Moreover, the indifferent segment follows a mass marketing strategy to cover its the market. The company provides easy access to music at home and a variety of soft and pop music as well. The company has low cost leadership pricing strategy for its product so that it does not lose its market share. It is distributed by giving ads on its drama channels and movies. It is followed by the company to promote its product by commercials and organizing events.
Q4: Segment Selection:
On the basis of the above-mentioned segments and the relative marketing mix, it can be determined that the trend has been evolving and the consumerâ€™s preference is changing from physical products to digital products. The company is able to receive a great response from its customers and the revenue of the company in the digital segment is increasing with each passing year.
The major segment of this strategic business unit would be those customers who are moving with the technology and prefer to listen to online music that is the Enthusiasts segment of the market. The company can target the market of Tamil Movies which are having greater scope in terms of return on investment.
Marketing strategy for targeting such segment of customers would be the broad differentiation strategy by targeting the larger customer base with unique facilities and features in its services. However, the company can also penetrate its market for those customers who are listening to music from their smartphones. It would be beneficial for the company to attract more and more customers for enhancing the share of its digital segment business unit for generating the highest return on investment and offset the cannibalization effect of the sale of its physical based products.
The strategy can also be a geographical expansion or market development by providing its existing services through targeting the under-served market segments and enjoying the first mover advantage which will eventually result in a competitive edge for the company. The company is following product development by launching Sony Unlimited which follows different pricing base for the customers.
The marketing strategy of the company revolved around product development strategy by introducing a new product to capture the existing customers. This may result in offering diversified products to meet the different needs of its customers through its diversified marketing strategy by targeting the untapped market with its new brand name Sony Unlimited.
This will create a better brand positioning in the mind of its customers by changing the brand name from Sony Music to Sony Unlimited so that it creates different branding by giving a feel to download unlimited music from its webpage and it shows the convenience based product to the customers.
This new brand will give the Sony music a chance to enjoy the first mover advantage by launching this service before its competitors and charge perceived value pricing by targeting the niche marketing segment of the digital segment with innovation through technological advancements. It will let the company increases its market share with the defensive strategy……………….
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