Analyze Consumer Markets & Consumer Buyer Behavior of Sony Television

Analyze Consumer Markets & Consumer Buyer Behavior of Sony Television: Rangs Electronics Ltd.

Sony Television: Rangs Electronics Ltd.

1.1 INTRODUCTION:

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.(Sony Television)

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 Television.

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:

SONY RANGS

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.

VISION:

“Providing better services to all customer segments as days to come.”

MISSION

“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,

Bangladesh.

Telephone: (880-2)9663551-3

FAX: (880-2) 9663554

EMAIL: rangselc@bol-online.com

rangselc@citechco.net

IBSITE: www.rangselectronics.com

FACTORY ADDRESS:

335/c tejgaon industrial area

Dhaka, Bangladesh.

Telephone: (880-2) 606605

(880-2) 601794

FAX: (880-2) 8829964

EMAIL: moslefac@bol-online.com

FINANCIAL INFORMATION:

Authorized capital: 10 (TEN) core TK.

Paid up capital: 7(Seven) core TK.

Annual Turnover: 50 million US$

MANPOWER:

Fully trained & experienced personnel working in the field of Manufacturing, marketing sales, distribution, finance, accounting and audit.

EXTERNAL AUDITORS:

Messars Ashraf Uddin & Co

Chartered accounts

Rahman chamber (Ground floor)

12-13, Motijheel Commercial Area

Dhaka, Bangladesh.

BANKERS:

STANDARD CHARTERD BANK

2, Hadi Manson

Dilkusha, Mtijheel

Dhaka, Bangladesh.

EASTERN BANK LIMITED

Sonargaon Branch

Sonargaon road

Dhaka, Bangladesh.

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

2.2ORGANIZATIONAL CHART

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.
  •  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.

2.5 REL SERVICES

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.

2.6 SISTER CONCERNS

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………

  1. HUSSAIN TRADING COMPANY LIMITED
  2. WHITE PRODUCTS AND ELECTRONICS LIMITED
  3. RIAN MOTORS LIMITED
  4. TOKYO LIGHTING INDUSTRIES LIMITED
  5. S&Y COMPANY LIMITED
  6. 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

DHAKA 22

CHITTAGONG 08

RAJSHAHI 05

BOGRA 06

KHULNA 02

BARISAL 02

JESSOR 04

CHAUMOHANI 02

SYLHET 05

Total 56

2.11Sony Color televisions Price List

MODEL MRP VAT 15% SELLING PRICE
KE-42MR1E 6,65,025 9,975 675,000
KP-ES61MN1 3,80,000 5,700 3,85,700
KP-EF48MN2 2,45,000 3,675 2,48,675
KP-ER43M61 1,95,000 2,925 1,97,925
KV-AR34M66 1,21,182 1,818 1,23,000
KV-XA34M80 1,10,000 1,650 1,11,650
KV-XG29M83/3D 52,990 775 53,785
KV-AR25M80A 36,936 554 37,490
KV-HA21M83A 26,354 396 26,700
KV-XA21M83 27,488 412 27,900
KV-XF21M83 26,946 404 27,350
KV-XA21M80 25,270 380 25,650
KV-HF21M80 24,778 372 25,177

3.1 SWOT ANALYSIS

Strength:

  1.  Internationally Recognized Brand
  2.  Efficient Distribution Channel
  3.  Large Number of Show Room Across the Country
  4.  High Brand Awareness in Bangladesh
  5.  Sole Agent Ship
  6.  Own Assembly Plant
  7.  High Consumer Preference
  8. Trained Sales Team
  9. Sales Service centers throughout the country

· Large Customer Base

Weakness

  •  Low Marketing Activities
  •  Market Positioning
  •  Too Much Break Down in Organization Structure

Threats:

  • 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

Opportunities:

  1.  Can easily utilize the outlet to promote Diversity product along with television
  2.  Introduce Low Price Brand to give Consumers more Options to choose from
  3.  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 Television 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.

4.3 Positioning

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.

4.4Future Plans

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.

HIGH High

Low

LOW HIGH

=TV

Color Tv

=hifi &hifi vcd

= Telephone & Cordles

=Main disc

=Car audio

=Radio cassette recorder

=Micro cassette recorder

=Headphone

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.

Table:

COMPETITORS
SAMSUNG
PHILIPS
KONKA
TOSHIBA
SINGER

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 Product

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

PLAYER

DVD DVD

PLAYER

RADIO CAR AUDIO
Ke-42MR1E DAV-S880 CFD-V7 CFS-515 SLV-ED1PS DV-45 DVP-K380DVP-S345 ICF-7601E XRS-22W
KP-ES61MN1 DAV-SA-SC8 CFD-V27 CFS-777 SLV-GA30 DV-55 DVD-NS575 ICF-SW10E XRS-300
KP-FS53M61 MHC-FL7D CFD-S32 CFS-1065 SLV-GA50 DV-J65 DVP-NS300 SRF-S56 CDX-L460K
KP=FX53M61 MHC-FL5D CFD-S41 CFM-S1 SLV-GA35PS MCE-S78K DVP-K360 SRF-S54 CDX-L460K
KP-FX432M91 MHC-GN88 CFD-G50L CFM-S1MK2 SLV-GA55P MCE-F808K DVP-NS305 ICF-10 XR-CA340
KV-AR34M66 MHC-RV60 CFD-CD777 CFM-D1 CX-80K ICF-SE12E
KV-XR29M80 MHC-V990D CFD-V177 CFM-D1MK2 ICF-SW22
KV-A25M80A MHC-RV660 CFD-V77S CFS-616S
KV-HAR21M83A MHC-RV20 CFD-S250 CFS-717S
KV-XA21M80 MHC-V50 KW-300S
KV-HF14M80 CFS-929
KV-J14PF2 CFS-828
CFS-1085
B5SMKI
Multimedia Projector Handy cam CD Walkman Walkman Micro Cassette Recorder Headphone Telephone &

Coddles

VPL-CS6 DCR-HC201 EX-170 DEJ-625 M-560 MDRV-200 ITB-1
DCR-HC301 EX-277 DEJ-725 M-430 MDR-IF230 ITB7
DCR-HC401 GX-322 DE-J825 M-450 MDR-IF330 SPP-9
DCR-TRV460E GX-400 DE-J955 M-540V PLM-A35 SPP-11
DCR-TRV265E WM-EX192 DE-J100 M-640 PCG-FX990 SPP-69
CCD-TRV428E WM-FX193 M-650V SCPH-3006R SPP-79
CCD-TRV228E WM-FX195 TCM-150 SPP-99
DSC-P10 WM-FS420 TCM-343 SPP-151
DSC-P8 WM-FS491 SPP-121
DSC-P32 WM-GX221 SPP-208
DCS-F828DSC-V1 WM-GX100 SPP-M502
DSC-T1 WM-SR10 SPP-888
DSC-P92 WM-SR1 SPP-884
DSC-P72 WM-EX190
DSC-P52 FS-473
CCD-TRV550 FX-493

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

Actual Product:

Brand Name:

The Company has three Brand name .And that’s are

1) SONY

2) Aiwa

3) Rangs

Quality Level:

SONY RANGS Company is Internationally Certified.

Design:

Real Flat

Features:

The Sony Television 21 ­­” Real Flat Television has some important features:

Real Flat Screen:

Model No-EV-XA21M83

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.

Incredible Surround:

  • An incredible sound with extra depth and an unbelievable three-dimensional effect that surrounds the user completely without the need for additional surround speakers.

Contrast Plus:

  • Enhances TV contrast by making the white whiter and the black blacker.

Ultra Bass:

  • Unprecedented bass performance from small speakers.

S-Video Connector:

Power Chip (ULTIMATE ONE CHIP)

Augmented Product:

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

5.1.3 Packaging

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:

A) cock-sheet

b) Foam

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.

5.2 Price

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:

Pricing Approach:

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 Television) or 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

BRANDS PRICE (INCLU.VAT)

(In terms of T.K)

Philips 21000
KONKA 14500
WALTON 15400
TCL 13000
LG 19500
SAMSUNG 20000

 

 

 

 

 

 

 

Price(including vate)

(interns of take)

Brand sony

5.3 Place

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.

SALES CAMPAIGN

  1.  Special Discount Offer (During the EID festivals).
  2.  Sony Days.
  3.  Discounts during football and cricket world cup.
  4.  Show room incentives.
  5.  Special bonus package.

PROMOTIONAL CAMPAIGN

Outdoor Advertisements

  •  Bill Boards
  •  Neon Signs
  •  Showroom Signs
  •  Road Signs
  •  Brochure / Placards

Advertising:

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(Sony Television):

1) Mass

2) Radio

3) Television

4)Internet

5) Newspapers.

Business promotional tools.

a) Conventions

b) trade-show

c) Sales-contest

Color TV Preference for sales Promotion

PROMOTIONAL TOOLS NO.OF RESPONDENT PERCENTAGE
INSTALLMENT 4 40%
DISCOUNT 3 30%
AFTER SALE SERVICE 2 20%
GIFT 1 10%
TOTAL 10 100%

Findings: Out of 10 respondents, 40%respond for Installment, 30% for Discount and so on.

6.0 Findings

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