Analyze Consumer Markets & Consumer Buyer Behavior of Sony Television: Rangs Electronics Ltd.
In 1984 Ranges Electronics Ltd. (REL) have established in Bangladesh. This private limited company is registered under the company act of 1913 and incorporated in Bangladesh on 29th March, 1984.
REL is one of the most reputed organizations in Bangladesh. The company has always been known as a pioneer in the field of consumer technology in Bangladesh . it holds the top position in assembling, manufacturing, importing, exporting, repairing and marketing all sorts of electronics goods.
Some of its electronics goods include color television, black and white television, HIFI system, radio cassette recorder, CD players, VCD and DVD players, VCPs, VCRs, Digital cameras, Radios, Cordless telephone, batteries, walk mans. Some home appliances products am refrigerator, deep fridge, washing machine, Micro ovens, Gas burners, gas ovens and all sorts of kitchen appliances. Other supportive miscellaneous items are voltage stabilizer, fans, air conditioners, different energy saving lights for better illumination.
In 1986, the organization started with only one 12” Black & White TV and one VCR of the SONY brand. Since then the product line up of Rangs Electronics has increased to 350 different varieties of products.
REL is the only authorized license of SONY CORPORATION, TOKYO, JAPAN. This organization is serving, marketing, assembling, and distributing Sony products all over Bangladesh for the last 16 years. REL is also authorized distributor of world famous brands AIWA, FUJI, ENGER, RANGS & ICHI BAN. Side by side it has developed its own brand name RANGS. T he company is also dealing with big projects in the fields of telecommunication, television broad casting, transmitters, Lather radars, steel bridges and marine port infrastructure.
REL aim is to achieve business excellence by satisfying consumer expectation by serving quality products of Sony. The company has a active network of 56 sales & service centers and more than 150 authorized dealers throughout the country. This distribution network enables REL to offer the products and services to the consumers door to door. Most of the RANGS products carry a warranty of one to five years. REL is committed to provide services to the consumers without sacrificing quality of their product. Each and every sales & service centers carry necessary spam parts and Ill trained technicians to serve the consumers. Now ranges electronics is the biggest distributing company of home appliances in Bangladesh occupying 35% of the total color TV market sham and 15% only in home appliances.
Organizational management team is always trying to create an environment where quality control and customer satisfaction are the main goal of this organization. The organizational strength lies in Reels fully dedicated team of sales personnel. Each area of work is departmentalized on a purely functional basis and is directed to achieve qualitative superiority.
2.1. THE COMPANY INFORMATION
NAME OF THE COMPANY:
RANGS ELECTRONICS LIMITED
Established as a private companyin 1984
NATURE OF BUSINESS:
Ranges electronics is engaged in assembling, manufacturing , retailing, distributing, importing, exporting and marketing electronic products in all segments of Bangladesh.
“Providing better services to all customer segments as days to come.”
“To continue with the existing marketing position and to achieve the yearly sales target”.
CORPORATE HEAD OFFICE:
Sonartori Tower(3rd , 4th and 5th floor)
12, sonargaon road, Banglamotor , Dhaka-1000,
FAX: (880-2) 9663554
335/c tejgaon industrial area
Telephone: (880-2) 606605
FAX: (880-2) 8829964
Authorized capital: 10 (TEN) core TK.
Paid up capital: 7(Seven) core TK.
Annual Turnover: 50 million US$
Fully trained & experienced personnel working in the field of Manufacturing, marketing sales, distribution, finance, accounting and audit.
Messars Ashraf Uddin & Co
Rahman chamber (Ground floor)
12-13, Motijheel Commercial Area
STANDARD CHARTERD BANK
2, Hadi Manson
EASTERN BANK LIMITED
BOARD OF DIRECTORS
Managing Director: MR. AKHTAR HUSSAIN
Director : MR. MAHBUBUL GANI
Director : MRS. SACHIMI HUSSAIN
Director : MR. J. EKRAM HUSSAIN
Director : MS. BEANUS HUSSAIN
Director : MR. SABUR AHMED
Secretary : MR. ASHRAFUDDIN AHMED, F
The factory of REL, a multistoried modern building is located at 335/c Tejgaon Industrial Area, Tejgaon, Dhaka. Rangs is the one and only organization which is assembling Sony electronics goods in Bangladesh. The assembly plant was first established in 1987 with the help and assistance of Sony engineers. At first they started with assembling Black and white TV. In 1989 this organization started assembling Sony Color Television as Ill. Basically this organization is importing different spam parts of the specific product. Then they fix the physical setup in their factory. Now, the REL factory employs 145 skilled personnel including engineers, supervisors and technician who have been discharging their labor and talent for producing standard quality product. The factory now assembles 14”, 21”, 25”, 29” sizes color television, HI FI, Radio cassette Recorders, VCPs and VCRs. Most of the employees work under a friendly environment. Some of them trained from abroad. The production manager controls the whole assembly plant.
2.3 OBJECTIVE OF THE ASSEMBLY PLANT
The assembly plant department of REL has the following broad objectives to pursue,
# To Ensure timely production.
# To Ensure prescribed quality.
# To Ensure proper specification of bulk and finished goods.
# To Achieve and maintain consumer trust.
# To Maintain maximum utilization of company’s resources.
2.4THE MARKETING AND SALES TEAM
The marketing staff and sales team have enabled the company to be a leader in the consumer electronics market. Some of the duties of the REL marketing department am to monitor product trends. The major activities of the sales team am to look after competitors activities, to arrange various sales campaigns and to observe marketing advertising matters. The marketing department maintains all the relationship among the sales and showrooms centers. The overall activities of marketing team of REL are directed. Each and every activities am directed by a marketing in charge. He always keep close contact with the general manager and managing director and project reports to them promptly. To monitor showroom and dealers sales REL divided the whole country into nine different regions. They are Dhaka, Chittagong, Bogra, Rajshahi, Khulna, Choumohani, Barisal, Jessor and Sylhet. Each region except Dhaka and chittagong has an area in charge and he is responsible for his own coverage.
REL provides one to five years warranty for most of the products they sale. This warranty includes spam parts, picture tubes and much more. REL has already 56 sales and service centers all over the country to ensure the after sales services. They are serving the consumers by the skill supported by the Sony Corporation JAPAN. They are also provided technology by SONY CORPORATION Japan.
Rangs Electronics limited (REL) has 06 different sister concerns. Every sister concern has its own business rule and management. Every sister concern is directed through individual broad of directors:-
Sister concerns are…………..
- HUSSAIN TRADING COMPANY LIMITED
- WHITE PRODUCTS AND ELECTRONICS LIMITED
- RIAN MOTORS LIMITED
- TOKYO LIGHTING INDUSTRIES LIMITED
- S&Y COMPANY LIMITED
- SONNET LIMITED
2.9 Sales outlets
REL has 56 Exclusive showrooms allover the country. The entire showroom are decorated and Ill organized with modern marketing concept. Visitors with their family feel comfortable in the wide space of show room and can choose any product from a wide range of display. Skilled sales personnel’s customers demonstration the product until the consumer is satisfied.
As earlier I have mentioned that REL has 56 sales and service centers all over the country along with 150 dealers.
2.7List of the showrooms
AREA NO. SHOW ROOMS
|MODEL||MRP||VAT 15%||SELLING PRICE|
3.1 SWOT ANALYSIS
· Internationally Recognized Brand
· Efficient Distribution Channel
· Large Number of Show Room Across the Country
· High Brand Awareness in Bangladesh
· Sole Agent Ship
· Own Assembly Plant
· High Consumer Preference
- Trained Sales Team
- Sales Service centers throughout the country
· Large Customer Base
· Low Marketing Activities
· Market Positioning
· Too Much Break Down in Organization Structure
- Dilution of Market by New Low Price Brands
- New International Brand Am Opening
- Loss of Market sham Due to low Marketing Activities
- Consumers now have More Options to Choose from
· Can easily utilize the outlet to promote Diversity product along with television
· Introduce Low Price Brand to give Consumers more Options to choose from
· Full Line Expansion of Sony.
4.0 Market-Product Focus
4.1 Target Market
Generally target market is done based on many different situations.
But Sony Ranges Brand makes its target market depend on income level. In this case, they divide their customers in three different types. They are:
1) Upper class level
2) Middle class level
3) Lower class level
Though Sony Ranges brand has covered their upper class customers for example by Sony T.V. they mainly target the middle class people. For Them, they always tries to make the price affordable so that they can buy the T.V. according their economic position.
At present market the Korean technology get introduce a new T.V. named Aiwa . As its price is low its demand is very high. And Ranges is another bran of this company.
4.2 Points of Difference
1. Provide good service.
2. Have brand loyalty.
3. Employees are skillful.
4. Having different products of different price for different types of customers.
5. It is a multinational company.
6. It has a wide network spread out the whole over the world.
7. Highly organized.
8. Always try to fulfill the demand of customers and is committed to serve the customers.
9. From production to sell to the customers, every step is done with carefully, sincerity and cordiality.
The Company must decide on its market positioning strategy –on which positions to occupy in its chosen segments. A company tries to position products, services and companies in the consumer mind. A product’s position is the complex set of perceptions, impressions, and feeling in their minds. A product’s position is the complex set of perceptions, impressions, and feeling that consumers have for the product command with competing products.
From the point of positioning of SONY Brand, it places First in the list. There is a perception building in the minds of the consumer about the SONY brand. They see it as the symbol of quality, glory, status etc. So they want to enhance their marketing programmed to go to the better position.
Mainly, The SONY Company in Bangladesh is under the RANGS Company. It’s a representative office of the company. They make a high brand building in the minds of the consumer. Though there is many MALOISIAN non-expansive televisions in the market, the SONY stands on an important position in the minds of the consumer. Market positioning of the SONY RANGS Company is very brighter.” Let’s make things better” is the famous slogan which only indicates the SONY RANGS Company.
The RANGS Electronics believes that it holds the number one position in the TV market of Bangladesh. In future the main objective of the company is to retain its current Number1 position and introduce the full SONY product line in Bangladesh in upcoming years.
4.5 BCG Matrix
Using the BCG approach, SONY RANGS classifies all its SBU’s according to the growth sham matrix which is shown in the following table .On the vertical axis, market growth rate provides a measure of market opportunities and on the horizontal axis, relative market sham means company strength in the market As time passes, SBU’s change their positions in the growth sham matrix.
=hifi &hifi vcd
= Telephone & Cordles
=Radio cassette recorder
=Micro cassette recorder
4.6 Industry Analysis
Due to flexible government policy and growing consumer demand for home appliances goods, a few no of international companies am currently operating in Bangladeshi market. Major international brands like SONY, LG, SINGER, SAMSUNG, PANASONIC, Philips, SHARP, BPL, ONIDA, TOSHIBA, KONKA have setup their own show room through authorized agents for selling their products in the country. The market for Television in Bangladesh has different target segments as the income range & preferences for particular television vary from sector to sector and also among the social classes. The major criterion in segmenting the current market is still based on the price and awareness of that particular brand.
The companies have also targeted their potential segments into different strategic groups and have drawn the line between the upper segment and other half of the society by promoting different styles in different price.
Recently some Chinese low priced brand KONKA, TCL, CHANGHOWANG have also entered the market to serve the untapped market. By segmenting these markets the companies have opened an opportunity for general people to access the world of Mass communications.
11 brands am competing strongly with the Sony TV. Sony has a good position in the market for its market image and good service. Though Sony bulb has the highest market sham in the bulb market, SONY T.V. has also has a good demand in the market.
SONY T.V. is in now the first position in the market of Bangladesh. The main competitors of SONY brand are Philips, TOSHIBA, KONKA, SINGER and SAMSUNG. They compete with SONY in different Stages for different types of customers. For its quality, experience and good service the products of SONY have more acceptability to the people of the whole world.
To have a good position in the market, SONY RANGS has to do many things. They give many sales promotion and different types of
Without this they always try to improve their market strategy. On the whole they do every necessary.
5.0 Marketing program
5.1.1 Product Mix:
An company with several product lines has a product mix. Each product line consists of several sublimes and each line and sub line has many individual items.
SONY Company is a Multinational company. So they have also some Product Mix These product mix dimension provided the handles for defining the SONY company strategy. By using this dimension, company can add up new version. The dimension is described in the following
|Sony Color TV||Sony HIFI VCD||CD Radio Cassette Recorder||Radio Cassette Recorder||VCP& VCR||VCD VCD
|Multimedia Projector||Handy cam||CD Walkman||Walkman||Micro Cassette Recorder||Headphone||Telephone &
Table: Product mix Width and Product Line Length Shown for Selected “SONY RANGS COMPANY”
5.1.2 Product Levels
A product is more than a simple set of tangible features. Consumers tend to see products as complex bundles of benefits that satisfy their needs.
SONY RANGS think about their product as services on these three levels
Core benefit of SONY TV:
Entertainment or amusement is the core benefit of the SONY TV
The Company has three Brand name .And that’s are
SONY RANGS Company is Internationally Certified.
The SONY 21 ” Real Flat Television has some important features:
Real Flat Screen:
Real Flat provides an undistorted picture from any angle. Light reflection is decreased considerably, offering improved contrast. Power (160W PMPO)
Digital Sound Surround:
DSC offers different sound settings optimized for specific musical styles. Examples are JAZ, POP, and ROCK settings, each specifically tailored to produce optimum listening pleasure for its corresponding style of music.
Digital Noise Reduction:
DNR images are noise free any time. DNR even repairs noise generated by bad cables and connectors.
- An incredible sound with extra depth and an unbelievable three-dimensional effect that surrounds the user completely without the need for additional surround speakers.
- Enhances TV contrast by making the white whiter and the black blacker.
- Unprecedented bass performance from small speakers.
Power Chip (ULTIMATE ONE CHIP)
After sale service: 1-year
Warranty: Picture Tube 5-years
Delivery and Credit:
If it is within Dhaka, then company carry the transportation cost and post the delivery.
There is an installment facility. Firstly, you have to pay 40%of the whole amounts down payment and first month installment
Packaging is the last stage of the production process. It includes some benefits like protection, economy, convenience, and promotion. Increased competition and clutter on retail store shelves means that packages must now perform many sales tasks—from attracting attention, to describing the product, to making the sale. Companies are realizing the power of the company or brand. In this highly competitive environment, the package may be the seller’s last chance to influence buyers. It becomes a ‘five –second commercial’. It also influence in positing of the products.
SONY Television has also an attractive packaging system. it controls the production unit. There are mainly two parts in one packet:
1) Primary Container
2) Secondary Package
1) Primary container:
Primary container is protects the product from any harmful accident .The primary container of 21” Real Flat TVs are:
c) Plastic paper
2) Secondary package:
The secondary packaging system is a ha h is 26.5 c. and 22.5c.m in the length box which wide.
Price is the most flexible elements in the marketing mix. It represent revenues and other elements represent cost. Price is the major factor affecting buyer choice despite the increased role of non-price factors in the modern marketing process.
Philip Company’s pricing decision can be affected by both internal and external factors. These are:
Companies set prices by selecting a general pricing approach that includes one or more of three sets of factors. These approaches are:
1) Cost-Based Pricing
2) Value-Based pricing
3) Competition =Based pricing
“Bring Customer satisfaction” is the main speech of the Company. As SONY RANGS follows the marketing Philosophy for their company, they do not think about the profit. The SONY RANGS Television is not assembling in Bangladesh. And it is not pricing internationally .So it’s fixed price according to their competitive market and of course, a fixed rate of mark-up also included Markup pricing is only works if that price actually brings in the expected level of sales It’s a competing market and now Chinese TV sales in lower amount or price, and so it is difficult to deal with the competitors.
Examining competitor pricing in the following:
Table: Price List of 21” Real Television
(In terms of T.K)
Mainly, Sony television is assembling in Bangladesh and also assembles in JAPAN and others categories am assemble in the MALYSIA and KOREA. Sony exports their Television product in many countries And it covers more than 100 countries which are shown in the following map:
There are mainly two distribution channel:
1) Exclusive channel
2) Non-exclusive channel
Exclusive Channel means those dealers who only buy and sell Sony product. And they will fill up some agreement with the company for this.
Non-exclusive Channel means those dealers who can buy and sell every type of product including Sony. And company don not think about these dealers.
5.4 Rangs promotional activity
Ranges electronics ltd,under take different types of activities regarding its promotion. One of them is Sony ranges mega offer . Among the activities the following are most frequently used by Rangs electronics to promote their product throughout Bangladesh.
@ Special Discount Offer (During the EID festivals).
@ Sony Days.
@ Discounts during football and cricket world cup.
@ Show room incentives.
@ Special bonus package.
· Bill Boards
· Neon Signs
· Showroom Signs
· Road Signs
· Brochure / Placards
Advertising is a media, which are paid by a seller to inform, persuade, and remind about its product or organization. It’s a strong promotional tool. The most frequent media is Television for advertising of SONY RANGS Company. SONY RANGS use some tools for advertising:
Business promotional tools.
Color TV Preference for sales Promotion
|PROMOTIONAL TOOLS||NO.OF RESPONDENT||PERCENTAGE|
|AFTER SALE SERVICE||2||20%|
Findings: Out of 10 respondents, 40%respond for Installment, 30% for Discount and so on.
We have surveyed near about 35 respondents to collecting the data. After collecting the data we have prepared a tally sheet. This tally sheet will helps us to know what we actually want to know.
Our basic objective to prepare the tally sheet is to show the flow chart of each and every question. These flow chart will help us to know the respondent opinion about the different question.
Because of clumsiness of some tally sheet I have consider the 50 respondents opinion out of 35. So our following chart will prepare by using those respondents opinion.
Q.1. Our very first question in the questionnaire was to know how the consumers have build perception to measure the quality of the marketing campaign. The respondents have been asked to rank the different packages offered by Sony according to their importance.
By the following charts I have tried to should the position of each and every respondents response. I have selected different marketing activities which would help the consumer to answer the question. The selected options which Ire used to preparer the question no. there as follows:
1. Meet few Expectations
2. Meet some Expectations
3. Meet Most expectations
4. Meet All Expectations
5. Exceeded expectations
The result of the question no. 1 is presented by using the tally sheet in the following:
|1)Preferred brand Sony is satisfying the customer|
|asking of the Scale||No. of respondents/%|
|2)the specification written on the packet is perfect|
|Ranking of the Scale||No. of respondents/%|
|Strongly agree||8 (11.43)|
|3) the price of Sony TV|
|Ranking of the Scale||No. of respondents/%|
|4) the price reliable with the quality|
|Ranking of the Scale||No. of respondents/%|
|5) The price of TV determine your purchasing decision|
|Ranking of the Scale||No. of respondents/%|
|6) The quality of Sony TV|
|Ranking of the Scale||No. of respondents/%|