Sony China Market Segmentation Essay
Sony China Market Segmentation
Sony VAIO is the best computer that serves the needs of every customer and is not comparable at all.
From the conducted 760 surveys, 18 percent are grouped in the segment of entertainment lovers.
Then 88 percent of all the entertainment lovers plan to by a laptop within the next 12 months, according to Exhibit 8. Therefore, there are approximately 120 entertainment lovers likely to purchase a laptop within a year, of who about 8 would buy a Sony. In the Clues report there is an equally distribution across segments, although the problem is that the sample size is not sufficiently large and the gap between the last column of each segment is not obvious enough, which may make comparison more difficult to conduct. For the Compass report, the advantage is that the sample size is good and diversity of respondents is taken into account. There are clear gaps between the final results of each segment. However, the disadvantage is the bound for segmentation is unclear, which can cause confusion in selecting target segment.
Mr. Lopez, as your market strategy is focused on the current loyalty and interest in Sony, the target of segmentation is to retain existing customers while at the same time grow the share of customers Sony’s products. Therefore, we believe that Sony should segment the market from a global perspective.
Consequently, the Compass report, which segmented the market by purchase motivations, would be a better foundation under this marketing strategy because it involved a much larger base of respondents from various countries and regions of the world. It took much more diversified factors into the investigation of motivations behind buying decisions, which offered a crucial facilitation to the company to expand its foreign markets.
With reference to the Compass study data in China shown in table 2, the best segments to be targeted are Techonosocializers, performance seekers and status focused customers, as the probability of purchasing a Sony computer within the next 12 months by these segments are relatively high than the remaining three segments. The motivations of buying decisions made by the three segments are to capture information from multimedia access, to facilitate online social networking and to reflect the social status of an individual. These motivations can be best served by Sony brand.