Executive Summary
Sony
Ericsson launched a new multimedia Smartphone- Xperia x10 in a maturing market.
Despite the Smartphone leaders i-Phone, HTC, O-2, NOKIA, Samsung Xperia x10 can
compete because this product offers a unique combination of features at a
value-added price. Sony Ericsson is targeting specific segments in the consumer
and the business markets, taking advantage of opportunities indicated by higher
demand for easy to use Smartphone with expanded communications, entertainment,
softwares and storage facility. The primary marketing objective is to achieve
good BD market share. The primary objectives are to achieve first year second
highest market share in the Bangladesh smart phone market by increasing their sales.
In second year objective is to decrease the difference with market leader
Nokia.
Current Market Situation:
Mobile
phone has become an indispensable part of Bangladesh’s everyday-life and has
made a “safe haven” in one of our pockets much like our wallet that
we never want to leave at home while we head for our work! Thanks to the
telecom-revolution and its relentless evolution that together have made it possible
even in developing countries like Bangladesh. This is the dominant device that
we now express ourselves through, get our work done and share our pains and
pleasures with.
In
tandem with the growing subscriber base, sales of mobile handsets has increased
at a phenomenal pace. However, nearly 70% of mobile handsets available in the
local market have been entering through informal channels, depriving the
Government and importers of a huge amount of revenue each year. According to
BIS Shrapnel research, Bangladesh’s mobile handset market is dominated by
first-time users (nearly 85%), as the country is still in its infancy in terms
of mobile phone usage. Further, 80% of the handset market is dominated by
ultra-low to low-end handsets, available for less than US$68; due to the
country’s low per capita income levels. As with many other Asia-Pacific
countries, the Bangladesh Smartphone handset market is predominantly captured
by global handset giant Nokia (approximately 48% market share).
Market Description:
Google’s
Android operating system captured 52.5 percent of the smartphone market during
the third quarter, more than doubling its share from the same time period last
year, according to data from Gartner.”Android benefited from more
mass-market offerings, a weaker competitive environment and the lack of
exciting new products on alternative operating systems such as Windows Phone 7
and RIM, Symbian captured the second place spot with 16.9 percent of the global
market, but that was down from 36.3 percent last year. Apple’s iOS rounded out
the top three with 15 percent, down slightly from 16.6 percent.”Apple’s
iOS market share suffered from delayed purchases as consumers waited for the
new iPhone. Among handset makers, and while Nokia was the leader in mobile
phone device sales, Samsung was the world’s number one smartphone maker.
Samsung sales reached 24 million and Apple was number four.
Product Review:
Sony
Ericsson have worked on the X10 for quite a long time, taking the utmost care
to make sure its software offers the best user experience possible. They wanted
their first adroid to be perfect and perfection requires time. That’s right –
the XPERIA X10 is the first Android to roll off the Sony Ericsson assembly
line, hard as it might be to believe. But it certainly is not the kind of the
phone to quietly disappear in the crowd of first-generation androids. Androids
just keep coming and a look at our front page will tell you any newcomer will
need big ideas to make a splash. The popularity of Google’s mobile OS is
reaching unprecedented levels and the handsets adopting Android grow in number
every day. And while Microsoft will try to unify their Windows Phone 7 and
limit customization, Google favor the opposite approach. Sony Ericsson
immediately took on board the possibilities offered by customization and really
ran with it. Their blue-themed interpretation breathes new life into the
familiar Android OS and tries to give the user a whole new experience. But they
didn’t stop there. The unique Timescape and Mediascape interfaces are supposed
to give the XPERIA X10 a much-needed edge in the high-end class. Trying to
compete with the HTC Sense is a tough job, but Sony Ericsson have managed to
offer something completely different – giving media and communications a
central place in their UI.XPERIA X10 comes with top-notch hardware to meet its
software demands. Here is the impressive specs sheet along with some potential
drawbacks.
Key
features
- 4″ capacitive touchscreen of WVGA (480 x 854
pixel) resolution and scratch-resistant surface
- Android OS v1.6 with complete Sony Ericsson UI
customization
- Excellent social networking integration and Great audio
quality
- Qualcomm QSD8250 Snapdragon 1 GHz CPU, OpenGL ES 2.0
support; 384 MB of RAM
- 8 MP autofocus camera with LED flash, touch focus,
image stabilization, geotagging, face and smile detection
- Wi-Fi and GPS with A-GPS
- Accelerometer and proximity sensor
- Document viewer
Needs and Corresponding Feature for Xperia X10:
|
Targeted Segment |
Customer need |
Benefits |
|
Professional |
Stay
Perform Smooth |
Built Voice High |
|
Students |
Perform Express Smooth
|
Voice Its Excellent |
|
Entrepreneurs |
Organize Get
|
No Built
|
is the market leader in smart phone market. Nokia offers wide range of products
for consumers and professionals. They mainly offer symbian operating system
smart phone head set and made it into a separate foundation dedicated to
improving and promoting this mobile software platform. Although Nokia still in
market leader position but their market is going down dramatically last two
years.
is the second leading position in smart phone market. Samsung’s market share is
growing at a good rate and mainly reason of growing popularity because of using
Android OS in smart phone market. Samsung also offers wide range of products
for consumers and professionals like Nokia. In global market, Samsung became
the worldwide number one for the first time, selling 24 million smart phones,
three times as many as it sold during the third quarter last year and this
statistics shows how fastly Samsung growing their market share in the market.
iPhone 4S
was announced on October 4, 2011, improving upon the iPhone 4 with a dual core A5 processor,
an 8 megapixel camera capable of recording 1080p video at 30
frames per second, World phone capability allowing it to work on both GSM
& CDMA networks. Despite the iPhone 4S failing to impress some critics at
the announcement due to their expectations of an “iPhone 5” with
rumored drastic changes compared to the iPhone 4 such as a new case design and
larger screen. Along with the iPhone 4S Apple also released iOS 5 and iCloud, untethering
iOS devices from Macintosh or Windows PCs for device activation, backup, and
synchronization, along with additional new and improved features. There are
about 35 percent of market share in global market and in Bangladesh also
iphone’s popularity increasing day by day due to comparatively lower price than
previous year and market availability.
in motion makes the light weight blackberry wireless multifunction products
that are especially popular among corporate users. Research in motion’s
continuous innovation and solid customer service support clearly strengthen its
competitive standing as its introduces smart phone with enhanced features and
communication capabilities. Researches in Motion’s newer smart phones come
equipped with the Blackberry OS.
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of the world’s most appealing mobile communications brands in the world.
Especially among young generation Sony Ericsson is the most popular brand for
their walkman, cyber shot series. The company, which is 50:50 joint venture
between Sony and Ericsson, was created in October 2001 combining the talents of
Sony and Ericsson has enabled us to create a world class portfolio of products
and services which differentiate them in the market.
Line:
Ericsson offers diversified products to their customers. They offer various
categories mobile head set such as walkman series, cybershot etc. Each category
of product has different types of target customers. Music lovers are the main
target customer for walkman series where they use high bass surround sound
system. On the other hand, who wants to use touch phone with high resolution
camera Xperia X10 head set is made for them. Its not only phone it’s a more
than a phone.
Benefits:
showcased a number of new and emerging technologies, designed to improve
productivity for mobile corporate users, allow developers to create more
compelling applications and give firms new ways to reach out to customers. They
use recent advances in mobile technology, including increased processor power,
improved connectivity and convergence of devices.It is now possible to have
Skype in a mobile phone … CPU will increase by almost 10 times by 2012. One of
the new technologies to be demonstrated was Sony Ericsson’s Capuchin project,
which bridges Java ME and Flash Lite technologies to allow developers from both
communities to create more compelling applications more quickly.
X10 is the first android hand set made by Sony Ericsson. Now a days Smartphone
market is flooded it is very difficult to buy perfect phone that fits consumers
requirement, this year android phones have created new revolution in Smartphone
market, now people want some extra in Smartphone, its become great experience
using different application in Smartphone. Here are some of the figures that
indicate the booming demand of android phones, in this year android phones
shipment reach close to 52% of the Smartphone OS market share. And 52 million
new android phones have been added in to the stores user base. If the scenario
will continue the same then android definitely reach top. This popularity of
android OS is one of the most important strength for Sony Ericsson.
Ericcsson comparatively late starter of new technology of Android OS than its
competitors Samsung. Due to joint venture most of the cases they need much time
to take any decision. Such problem most of the time tends them to adopt any new
technology lately than their competitors and that sometimes one of the main
causes of failure in the market.
activities:
promotion is one of the four aspects of promotional mix. (The other three parts
of the promotional mix are advertising, personal selling, and publicity/public
relations.) Media and non-media marketing communication are employed for a
pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. In today’s competitive market promotional
activities like advertising, personal selling, and publicity/public relations
plays an important role in sales. However, Sony Ericsson has less interest on
promotional activities and that sometimes hamper on their sales due to
unawareness of the new model handsets.
Enterprise:
stated reason for the venture Sony and Ericsson is to combine Sony’s consumer
electronics expertise with Ericsson’s technological leadership in the
communications sector. Initially, the company did well with its Walkman branded
mobile phones, but has been hit by the rise of music phones from other
manufacturers, including the ever present iPhone and also from a weak portfolio
of low-end handsets for developing markets. In addition to, due to joint venture
most of the cases they need much time to take any decision.
for multimedia smart phones
mobile phone considered as just a phone for calling but now these days has
gone. Now People thinks a mobile phone more than a phone they want various
multimedia applications for entertainment. Smartphones represent the
fastest-growing and most lucrative segment of the global cellphone business.
Because of this, the smartphone has become the central focus for mobile handset
makers. With only so many hours in the day, time is of the essence. Although
the studies are essentially just statistics, they highlight the American
consumer’s value for efficiency. Internet accessibility means less time needs
to be spent waiting at a computer. Instead, people can find information on the
go. Texting gives people the ability to send a quick and concise message,
especially in situations where answering a phone call might not be easy. The
growing connections between smart phones and social media means people can stay
connected to their friends and family wherever they go. Considering the great
strides our mobile industry has taken, from large clunky phones created for the
sole purpose of making a call, to the sleek phones we see today, one can only
imagine what’s coming next for this industry.
is now available at a lower cost than ever before. Thus, Sonic can incorporate
advanced features at a value added price that allows for reasonable profits.
sets:
hand sets are one of the biggest threat for renowned brand like Sony Ericsson in
Bangladesh. In small economic countries like Bangladesh, numbers of mobile
phone user are increasing day by day. Now a days people thinks a mobile phone
more than a phone they want various multimedia applications for entertainment.
Due to economic problem these people are buying cheap Chinese branded sets
which are offering various multimedia applications at a very cheap rate.
in the market:
Smart phone market is one of the most lucrative markets for mobile hand set
manufacturers. Now consumers want a phone that can perform many functions hands
free without carrying multiple gadgets. As a result demand of smart phone now increasing
and the market competition as well. All most all of the manufacturers are
trying to introduce new innovative and stylish hand sets in the competitive
market. Nokia N9, Samsung Galaxy SII are the examples of them. So that, to
compete well in the market Sony Ericsson need to introduce stylish with new
technology hand sets frequently otherwise it will be vey though to survive in
competitive market.
economic crisis is now a common buzzword in today’s business world. As like
many others developed countries Bangladesh economy also affected for this.
That’s why now consumers buying power is not so high that they can buy a smart
phone that worth more than 20 thousands. Now people want to buy multiple
function phone but at a lower price. Due to less buying power many of
Bangladeshi people look price of the product more than a brand name.
marketing mix refers to the combination of elements within a companies
marketing strategy, these are designed to give the customer what they want and
in the long term are designed to maximize profits. The marketing mix is based
around the idea of the 4 P’s:
product is the centre of the marketing mix and the other three P’s are based
around it. Consumers purchase goods and services for a variety of individual
reasons and a company must be aware of all of these when selling a product
(that is why they conduct market research).Strong brand image Sony Ericsson is
an advantages and for this branding image they can easily create a innovative
and most reliable product for Xperia X10 campaign. As like other competitors
Nokia, Samsung they should sold it with a 1- year warranty.
is a key factor in the selling of a product, and is usually the one that is
open to the most change based on different pricing strategies. For example
competitor based penetration or skimming. The three main factors affecting the
amount charged for a product or service, are; the cost of production, customer
demand and competition. For Xperia X10, Sony Ericsson can follow market
penetration pricing strategy. They should set an initial price in order to
penetrate the market quickly and deeply to attract large number of buyers
quickly and win large market share. Moreover,
because of its relatively high price they can offer 0% interest free credit
payment system through credit card.
chosen outlets for a product or service, for a product to be very successful it
must be easy to access, Mobile phones are very easy to access nowadays, they
are sold in supermarkets, specialized outlets (either by network or brand) and
all major department stores. Sony Ericsson can use following distribution
channels for Xperia X10
Phone retail Store: various mobile phone retail stores especially in
metropolitan city
Service Provide: Cellular service provider’s outlet can use for selling their
smart phone.
specially Store: They can use electronic specially store like MK Electronics.
over a variety of media platforms, using radio, television and print
advertising as well as using other promotional tools.