Feature: Brand Sony: Room for improvement

Let’s face it, brand Sony has seen better days. Recently it was announced that operating profits in 2006 are to be 78% down on 2005; they’ve had to recall millions of laptop batteries at huge expense; and production delays mean that the European launch of the PlayStation 3 has been delayed to March 2007. Even worse, the brand that became synonymous with 60’s rock culture (transistor radio) and 80’s individualism (Walkman) is no longer viewed as cultural reference point. Social commentators do not refer to the ‘PlayStation 3’ generation; they refer to the “iPod” generation. Detractors argue that Sony has suffered bad luck and that it’s still a world class innovator bringing out leading edge products in other areas like the LCD market. This may be true but the evidence doesn’t always support it.

Let’s face it, brand Sony has seen better days. Recently it was announced that operating profits in 2006 are to be 78% down on 2005; they’ve had to recall millions of laptop batteries at huge expense; and production delays mean that the European launch of the PlayStation 3 has been delayed to March 2007. Even worse, the brand that became synonymous with 60’s rock culture (transistor radio) and 80’s individualism (Walkman) is no longer viewed as cultural reference point. Social commentators do not refer to the ‘PlayStation 3’ generation; they refer to the “iPod” generation. Detractors argue that Sony has suffered bad luck and that it’s still a world class innovator bringing out leading edge products in other areas like the LCD market. This may be true but the evidence doesn’t always support it.

At the heart of the problem with the Sony brand is that its core values, those established decades ago by founder Masaru Ibuka, have been undermined by reality. Adjectives such as “quality”, “world class innovator” and “reliability” have long been core values that have justified the premium price consumers were willing to pay for Sony products. But if the offering does not match the brand values - as the PS3 delays, general lack of technological innovation, and laptop batteries recall have demonstrated - consumers will no longer pay a premium for your products. Hence falling sales and the negative outlook from market intelligence firms like Fitch Research which recently stated: “Sony will need a longer time to restore its underperforming electronics operations, while its game segment will likely incur large losses over the next three to five years given the huge investments and intensifying market competition.” Competition is certainly a big issue, making it harder for Sony to differentiate itself. Microsoft and Apple have been eating away at Sony’s market share for years now.

But it’s not just the technology which needs attention. Another issue is that the global nature of the Sony brand has led to a ‘blanding down’ of its in-country marketing. Potential Sony customers now feel they are dealing with a globalised mega corp, rather than a brand that understands them as individuals. The delayed European P3 launch is indicative of a lack of localised focus. While Sony has gone ahead with the November launch in Americaand Japan, Europeans will have to wait until March 07. How special and loved does that make European consumers feel? Not very!

The current brand partnership between Sony and McDonald’s is a prime instance of a confused marketing strategy. The ‘Big Mac Meal Tracks’ promotion involves offering a free music download from Sony with each Big Mac purchased. McDonalds is a great brand. It’s just that McDonalds and Sony don’t seem a natural fit. Can we imagine Apple making this form of partnership? Not likely.

However, it’s not all doom and gloom. Sony has got some brand partnerships, such as that with the V&A art gallery, right on target. This partnership allows Sony to market themselves to an older demographic which is increasingly spending more on games consoles than teenagers. Sony has also sponsored a number of cutting edge art installations in association with cool brands like Massive Attack. This campaign also keeps the brand fashionable in the eyes of the over 25’s and works because it allows the technology to be demonstrated in various different ways.

But it’s one step forward and two steps back when it comes to non global ‘localised’ campaigns. On the surface the recent ‘black and white’ campaign in Hollandwas innovative and controversial. Adverts features a white model clad in white and black model in black under the slogan: ‘White is coming’. This has sparked controversy surrounding the racially charged nature of the images that depict aggressive versus passive poses. Sony immediately went on the defensive saying that it wasn’t trying to play the race card. However, Faux paus like these don’t help create the image of an ‘intelligent’ brand.

Another problem Sony faces is the huge range of products in now produces. Over 25 at the last count. Each one has its own market place and needs its own brand personality. But a brand made by a committee of products will always be a camel, whilst what Sony needs right now is a racing horse. Sony needs to rebuild its brand profile around one product, in a similar way to Apple and they allow that product to create real value for the rest of its range. Maybe the PS3 offers this opportunity, but it’s not off to a great start.

It is true that on the whole Sony still make good quality products, but they need to worry less about a cohesive global brand strategy, which often leads to the lowest common denominator of creativity. And, they need to focus more on getting back to what they did well in the past – allowing each brand to create its own personality in each individual country. Time is ticking as a new generation of technology buyers come of age, a generation reared on iPods, X-boxes and Nokia phones. The time for Sony to launch a brand fight back in now, but can global head office let go and allow each country to do its own creative brand thing? Only time will tell.