Sony Marketing Plan

SONY Computer

Entertainment Europe’s

Marketing Plan

Feb 27, 2004

-- Sachin Kumar Singh

Objective

§༊  SCEE needs to develop a marketing

strategy that is concerned with the EyeToy’s

appropriate development pipeline, future

EyeToy software development and releases,

and expanding the EyeToy market.

§༊  Strategy to advertise, price and bundle the

new products and allocate recourses to

EyeToy’s development.

Segmentation

Consumer Segmentation:

Male

(17-30 Yrs)

Children

(11-16 Yrs)

Family

(Women)

u༇  Most Dominant Segment in Gaming Industry.

u༇  Strong position of SCEE due to strength of PS2

console which targeted hardcore gamers.

u༇  Estimate till 2003, 70 % - SCEE, 30 % - Others

u༇  Entertainment as a value proposition.

u༇  EyeToy was successful in this segment.

u༇  Gaming for happiness in family.

u༇  Not much competition till now.

u༇  EyeToy was very well appreciated.

Segmentation

Video-Game Industry:

Hardware

u༇  Dominated by: Sony, Microsoft & Nintendo.

u༇  Limited Life cycles of product.

u༇  High barrier to entry and threat of substitutes.

u༇  SCEE – 30%, Microsoft – 15%, Nintendo – 15%

Software

u༇  Hardware manufacturers.

•  Sony – 7%, Microsoft – 3%, Nintendo – 9%

u༇  Third-party developers.

•  Electronic Arts – 19%, Activision – 7% etc.

Bundle

(H/S)

u༇  Improve sales with proper bundling strategy.

u༇  Sony is a market leader.

u༇  No entry for sole software developers.

Target Segmentation

Mass Market target strategy:

u༇  Male (17 – 30 Yrs):

•  Dominant Segment existing.

•  Better growth opportunities.

•  Already established customer base.

•  EyeToy has technological advancements which can attract this

segment by setting challenging hardcore gaming.

u༇  Children (11 – 16 Yrs) and Family

•  EyeToy as an entertainment package is well liked in this segment

•  No competition.

•  Better growth opportunities.

Target Segmentation

Bundling strategy:

u༇  The EyeToy...