Sony India- An Overview 262n

Rahul Saini- Dhruv Goswami MBA 2 Sec- A

22 May 2012: Sony India achieves sales of Rs. 6,313 crore in FY11, Aims 30% growth in sales in FY12 India to be 5th Largest Contributor to Global Sales by FY12

• BRAVIA is No.1 in Flat Market with 18.8% share (In Qty.) in CY11(As per Display Search) • CYBER-SHOT is No.1 in Compact Digital Camera market with 34% share in FY11 (As per Import Data) • VAIO for the first time hit No.1 share of 20% in Q4, 2011 (As per IDC Report)

• Enhance existing distribution network from 10,400 in FY11 to 12,200 in FY12 • Boost after-sales service with 285 service touch points across India in FY12 • Allocate marketing budget of Rs. 450 crore in FY12 • Plan headcount increase by 500, to take the total no. to 3,800 in FY12

FY09

FY10

FY11

Rs. 3,694 crore Rs. 5,446 crore Rs. 6,313 crore

BRAVIA, VAIO and Digital Imaging (Cyber-shot, Handycam, Alpha & Photo Frame) have been the growth drivers of the business in India, contributing 35%, 20% and 15%, respectively to the total sales in FY11.

• As per Display Search, Sony India hit Number One position with 18.8% share (In Qty) in FY11. • As per latest GFK Research Findings, BRAVIA is the top selling brand in all screen sizes right from 22/26 inch up to 46/55 inch. • Sony BRAVIA Internet TV has been the favourite in India, garnering a whopping market share of 53% of Internet TV (with Browser) Sales in CY11. • In FY10, Sony sold 8.3 lakh BRAVIA TVs, which went up to 9 lakh units by end of FY11.

• Sony retains its No.1 position in Compact Digital Camera market with an unbeatable market share of 34% (In Qty.) in FY11 (As per Import Data), which is much ahead of the nearest competitor. • In FY11, Sony sold 11 lakh Cyber-shot cameras, which is expected to go up to 14 lakh units by end of FY12. • SONY Handycam has approximately 90% share of the camcorder market, and Sony is the only player to drive this market in India.

• As per Customer Equity Tracking Study done by Nielsen in March 2012, Sony has been ranked as the No. 1 brand that comes to consumer’s mind, when prompted with the word ‘General Electronics’. • Sony obtained highest satisfaction scores with the biggest gap noted for Retail Price Stability, from the competition. This is a result of our Dealer Satisfaction Study done by Nielsen, where selected dealers were asked to give an overall satisfaction rating from a scale of 1 to 10 for each company

Sony plans to increase its sales turnover by 30% in FY12 Time period

FY11

FY12 (Est)

Headcount

Rs. 6,313 crore

30% over FY11

FY12 Marketing Calendar Sony India’s brand campaigns for Cyber-shot (with Brand Ambassador Deepika Padukone) and Handycam are currently on-air. They started from last week of April and will be visible till end of May, 2012. VAIO campaign, with Brand Ambassador, Ms. Kareena Kapoor, is expected to hit in June, 2012 followed by BRAVIA campaign in the month of August, 2012.

• Sales Channel Expansion • Service Operation Enhancement • Aggressive Brand Promotion • Local Talent Development

Sony has its footprint across all major towns and cities in the India through a very wide distribution network. Currently Sony has 10,400 sales channels including brand shops, national chain stores and distributors. Sony plans to aggressively increase the network to 12,200 channels by FY12. Time period

FY09

FY10

FY11

FY12 (Est.)

Service Network

4,400

6,300

10,400

12,200

• Customer Centricity is part of Sony’s DNA. Sony currently has 255 conveniently located service touchpoints, which it plans to step-up to 285 by FY12 • Sony has gained No. 1 position for after sales , which is a reflection of Sony’s excellent service quality provided to its customer. Time period

FY09

FY10

FY11

FY12 (Est.)

Service Network

214

234

255

285

Sony followed a strong brand promotion strategy and invested Rs. 360 crore in FY11. All the brand campaigns were ed with extensive Above-theline and Below-the-line activities, including print and television commercial, Web, PR, cinema and shop-front. In FY12, Sony plans to pump up an investment of Rs. 450 crore, which will be in sync with the business growth. Time period

FY09

FY10

FY11

FY12

Investment Amt

Rs. 250 crore

Rs. 350 crore

Rs. 360 crore

Rs. 450 crore

Sony India has a very favourable presence over the digital domain as well and the website (www.sony.co.in) is a ready reckoner for product information, retail outlets and help guide and tutorials for product usage. With about 3 crore visit in FY11 alone. Sony’s Facebook page has more than 6.5 lakh fans and over 5 lakh channel views on youtube.

Sony plans to increase its manpower by 500 employees in FY12, to match the growing business requirement. Time period FY09

FY10

FY11

FY12

Headcount 2,000 2,500 3,300 3,800 •Sony India has the highest score based on parameters such as Talent Management, Innovation, Collaboration, Empowerment, Leadership, Values & Objectives etc •Sony India also has a very low attrition rate •Vacancies are quickly replenished with fresh talent, Sony India works towards creating a strong career development programme for existing employees which helps limit the attrition. •Sony has also facilitated Indian employees with international career opportunities to work in Sony Group companies across the world