a case study

1. SONY: BETTING IT ALL ON BLU-RAY Prepared by, Sunil Chhajar CASE STUDY:

2. Q1.Classify the high-definition DVD market using the product life-cycle framework. Based on this analysis, what objectives and strategies should Sony and the other competitors pursue ? Are any of the competitors deviating from this formula?

3. Product Life Cycle Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($) Sales and Profits ($) The course that a product’s sales and profits take over its lifetime

4. Product Development : When the company finds and develops a new-product idea . During product development, sales are zero and the company’s investment costs mount. Introduction : It is a period of slow sales growth as the product is introduced in the market. Profit is nonexistent because of heavy expenses of product introduction. Growth : It is a period of rapid market acceptance and increasing profits Maturity : It is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyer. Decline : It is the period when sales fall off and profits drop.

8. Q2.As sales of the new DVD players increase, what will happen to the characteristics of the home video market and the strategies employed by Sony and other competitors?

11. STRATEGIES 1.PRODUCT 2.PRICE 3.DISTRIBUTION 4.ADVERTISING 5.SALES PROMOTION I NTRODUCTION 1.OFFER BASIC PRODUCT 2.USE COST PRODUCT 3.BUILD SELECTIVE DISTRIBUTION 4.BUILD PODUCT AWARENESS AMONG EARLY ADOPTER 5.USE HEAVY SALES TO PROMOTION ENTICE REATIL GROWTH 1.OFFER PRODUCT EXTENSION AND SERVICE 2.PRICE TO PENETRATE MARKET 3.BUILD INTENSIVE DISTRIBUTION 4.BUILD INTENSIVE DISTRIBUTION 5.REDUCE TO TAKE ADVANTAGE OF OF HEAVY CONSUMRE DEMAND MATURITY 1.DIVERSIFY BRAND AND MODEL 2.PRICE TO MATCH& BEAT COMPETITOR 3.BUILD MORE INTENSIVE DISTRIBUTION 4. STRESS BRAND DIFFERNCES AND BENEFITS 5. INCRAESE TO ENCOURAGE BRAND SWITCHING. DECLINE 1.PHASE OUT WEAK ITEMS 2. CUT PRICE 3. GO SELECTIVE PHASE OUT UNPROFITABLE OUTLETS 4. REDUCE TO LEVEL NEEDED TO RETAIN HARD CORE LOYALS 5. REDUCE TO MINIMAL LEVEL

13. Q. 3 Analyze the development of Blu-ray and HD DVD according to the stages of new product development process?

14. Theoretical Framework

17. Q4. Who are the current combatants in the battle for the home video market? Who will they be in five years?

20. THANK YOU