Sony AIBO Group 3 Sec A

8/10/2019 Sony AIBO Group 3 Sec A

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Sony AIBO Case Study

Submitted by-

B Sreenivas

Santosh Bhag

B Padmalatha

Damini Singh

Deepak Ratho


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ValueProposition

Positioning CompetitionMarketingStrategy

ReSt

Benefits

Features

Experience

No need to feed the

AIBO

Personality of real pet

Customized behavior

through training

Personality of real pet

Sensors: Touch,

Vision, hearing and

balance

Entertainment

Lovability Factor

Friend for the life

Healing and Relaxation

Fun of living creature

without hassle

Development stages

like human, eg: Child,

Teen, Adult

Lovable Factor and Companion


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ValueProposition


Re St

Entertainment Customization Feeding Messing He

Relativ

eLevel

Value Curve

AIBO Dog

High

Low


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ValueProposition


Re PStr

Stealth Positioning: Sonys positioning of the AIBO robot as a lovable pet shifted consumers attention aw

as a household aide and turned even the elderly into early technology adopters

Breakaway Positioning:2

nd

generation AIBO has the features of Wireless, Software adoptability, etc. whicategory segment.

Stealth Positioning

Classical Positioning

(Second Gen AIBO)

Product Life Cycle


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ValueProposition


Re PStr

Deep Decisions

Middle of

spectrumDecisions

ShallowDecisions

AIBO

Emo

tionalInvestmentAnd

CoreValuesEngageme

nt


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ValueProposition


Re St

Sony positioned the product as a lovable but otherwise useless pet.

Robotic Pet Category

Segment,Entertainment Robot

American

Citizen

Love

,Relaxation

healing

Brand name

SONY

Customizatio

n , Emotions

Target

Audience

Their

Need

Frame of ReferencePoint of

Difference

Reason to

Believe


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1.

Humanoid useful robots created by well-knownJapanese electronic companies, perceivedfunctional by the American consumers

2. The cheap copycats/knockoffs of the concept

at a much lower price.

ValueProposition


R


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Leverage the economic curve so as tobring the price

affordable to thecustomer

Know theexpectations ofUS consumers

from AIBO

Position forpeople seeking anentertainmentcompanion as wellas interested inIn formationTechnology androbotics

Go for nichemarketing instead of mass advertising in theU.S. market

NicheMarketing

HybridProduct

AffordablePrice

CustomerFeedback

ValueProposition


ReS


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Using Ansoff Matrix for

the American market

ValueProposition


ReSt


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American consumer gives more value for thetangible benefits and features in the robotic toy

market

Product should be based on product modernfeatures which can make the life of the American

consumers easier

So, the productivity part of AIBO should be highlighted.For example the AIBO Messenger software, AIBO

navigation software, AIBO Master studio, AIBO life,

wireless LAN, GPS in AIBO and more updated softwares

Market Development is needed in the US Market

ValueProposition


R


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Steps for successful adoptionof Innovation in the Americanmarket

Trialability

Relative Advantage

Compatibility

AIBO should

match with the

lifestyle of the

Americanpeople

Amw

is lo

ge

Customer need to

understand

the unique feature

and function AIBO

offering compared to the

competitor

ValueProposition



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Project theproduct

as superior

product that thecompetitor or

low casttoy cannot offer

Let the priceat $1500 to

reach the breakeven point as

soon as possible

Give a valueproposition to

the U.S customer

Applications can beprovided at a premium

Research &

Development

Some

morepoints

ValueProposition


RS


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ValueProposition


RS

Price of AIBO: $50 (Loss Leader)

Cost Leadership

StrategyDi

Cost FocusStrategy

Di

PortersStrategy

B

roadMarket

NarrowMarket

Lower Cost Diffe

Cost of $50 will result in strategy of Cost Leadership This will lead to Broad Market competitive advantage

In U.S, it can reach to many people.

Edge over the Competitors like Poo-Chi @ $40, Big

Scratch and Lil Scratch @ $59.99, Me and my Shadow @

$59.99, i-Cybie @ $150


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Documents

Sony AIBO Group 3 Sec A