California State Polytechnic University, Pomona
California State Polytechnic University, Pomona
CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA
IBM 405 Advertising Management
Spring 2016
Sony Xperia
By: Julian Lugo
Will Ebiner
Ignacio Ponce
Table of Contents
1) Executive Summary…………………………………………………………….1
2) Situational Analysis……………………………………………………………..1
3) The Campaign’s Big Idea………………………………………………………4
4) Integrated Marketing Communication Plan…………………………………..5
5) Media Schedule………………………………………………………………....10
6) Evaluation………………………………………………………………………...11
7) Summary………………………………………………………………………….11
8) Bibliography………………………………………………………………………12
9) Edited Advertising Brief……………………………………………………….....14
Executive Summary
Although Sony Xperia is successful overseas, it fails to replicate that same level
of success in the United States. Currently, Sony Xperia fails to make its presence
known within the United States’ smartphone market, owning only a 1% market share. It
has low to no aided and unaided awareness amongst consumers. Xperia has the
opportunity to redirect its efforts towards the gaming community, which consists of
millions of users. The action of being a firstmover in targeting this market can
potentially result in a turnaround for the company. In an effort to reach a market share of
4%, Sony Xperia will be directing their IMC plan’s towards ensuring that an increase in
aided and unaided awareness are met as well as an increase in purchase intent. The
company will have to use a variety of medias to attract the lucrative gaming community.
Situation Analysis
Expanded Brand Challenge / IMC Objectives
History The history of Sony Xperia dates back to the age of Sony Ericsson. Sony
Ericsson began as a joint venture between Sony Corporation and Telefonaktiebolaget
LM Ericsson back in 2001. After years of flourishing success, Sony Ericsson found itself
struggling by the end of the decade. Sony Corporation decided to take full control of the
company and purchased Ericsson’s half of the shares for $1.46 billion. Sony then
decided to drop the Ericsson name and became Sony Mobile. The company introduced
its new line of smartphones under the name of Sony Xperia (Grundberg).
SWOT The strengths of the Xperia is that it is high quality, caters to gamers, and is
something different from Apple and Samsung. A weakness of the Sony Xperia brand is
that they don’t innovate as much, especially in regards to design. They also have
haven’t been able to successfully appeal to U.S. consumers. There are two
opportunities that can appeal to Sony Xperia: the rise of the gaming industry becoming
mainstream and the growth of the livestreaming industry. Research has stated that “155
million Americans play video games” and is expected to keep growing (Entertainment
Software Association). Also, gamers “watch more livestreaming content now compared
to last year” and nongamers (Lifecourse Associates). The threats are competitors like
Samsung and Apple, which have more resources dedicated to innovating their phones.
Some of the challenges the brand is currently facing are having no support by
carriers in the United States, little to no brand awareness among American consumers,
and delayed software updates to Sony’s modified Android operating system compared
to that of Apple. Most recently, American wireless communications carriers, TMobile
and Verizon, discontinued the sale of Sony Xperia phones due to poor sales. None of
the large service providers currently sell the phone so it must be bought online as an
unlocked phone through Best Buy, Amazon, Walmart, and Sony’s website. One of the
reasons these phones do not sell well in the U.S. is simply a lack of brand awareness.
Consumers know of the Sony name but not of Sony’s flagship smartphones. The brand
has had great success in other parts of the world, like Europe.
Goals The broad goals for Sony Xperia are to increase overall brand awareness,
primarily aided awareness, in the United States, increase market share, and create
interest amongst gamers. The goal is for Sony Xperia to have topofmind awareness
for all gamers when they think of buying a new phone. Sony Xperia seeks to be the
goto phone within the gaming community.
Objectives The overall objective of Xperia is to increase market share from 1% to 4%
in the U.S. within one year. If this percentage is achieved, Sony Xperia will replace LG
as the third smartphone manufacturer in the market. Prior to doing this, however, Sony
Xperia will strive to increase aided brand awareness and future purchase intent.
Obtaining awareness at first will be greatly beneficial for the phone because the name is
not well known in the United States.
Competitive Overview
Apple, Samsung, and LG are the biggest competitors to Sony’s flagship
smartphone, the Xperia. With the greatest market share in the smartphone market, the
Apple iPhone is the smartphone to include exclusive software to satisfy the user
experience with style and ease of use. However, Apple restricts the freedom to
customize how its software operates on the iPhone, unlike Android smartphones.
Fortunately for Apple, this also allows for more frequent software updates to ensure the
user experience stays positive and up to date. In addition, Apple runs the risk of
harming their current brand image if they were to appeal strictly to gamers.
Having the most market share amongst Android smartphones but still behind
Apple overall, the Samsung Galaxy smartphone provides high quality and the latest
technology to its users. Samsung is greatly known to incorporate new innovative
technologies before its competitors. The problem is that the advanced features come at
a high price. Samsung also runs the risk of alienating its current target segment if they
attempt to strictly appeal to gamers. According to the target consumers, Apple and
Samsung are viewed as the smartphones that everybody else has.
With overall market share that ranks it behind Apple and Samsung, the LG
flagship smartphone provides cuttingedge design and convenient product features at a
price that is most affordable. LG has been looking to redesign their smartphones rather
than refine them. A weakness of LG smartphones, however, is the delay in software
updates compared to Apple and Samsung. Interestingly, LG smartphones pose a bigger
challenge to Sony Xperia smartphones in that they could be seen as the alternative
brand to Apple and Samsung.
Expanded Target Market Profile and Consumer Insights
The target consumers are gamers. According to the research found on the target
consumer, the VALS segmentations are strivers and achievers. Interestingly, studies
have shown that the average game player is 35 years old (Entertainment Software
Association). Therefore, the target consumer are in the 1535 age range, in the
middleclass, and mostly male yet more and more females are gaming. Those that are
strivers tend to “use video and video games as a form of fantasy” (Strivers). The target
consumer has a high need for uniqueness. They are smartphone users who don't want
to have the same phone as everyone else, but rather enjoy going against the biggest
trends, even creating their own trends. This also appeals to the achievers in that playing
video games fulfills their need for uniqueness. The older target consumers transitioned
from strivers to achievers once their income levels increased and they started having
their own families. They grew up around video gaming and these are “parents [that]
enjoy playing video games as much as their [children do]” (Entertainment Software
Association).
Value Proposition / USP
The Sony Xperia is the first Android smartphone to keep video game players
immersed in their gaming experience, wherever they go. One of the brand’s competitive
advantages is that it is a Sony product. The Sony name is known for its highquality
products, such as video game consoles, digital cameras, music players, and televisions.
People would expect the Xperia smartphones to be of similar quality. The best of what
Sony offers from its successful products are incorporated in the Sony Xperia
smartphone. The Sony Xperia fills the target consumers need for uniqueness, which
connects to their values of freedom, excitement, and happiness.
The Campaign’s Big Idea
The campaign’s big idea is for the user to always be able to stay connected to
the gaming world. The Sony Xperia is primarily targeted to gamers, which have a need
for uniqueness. With a phone that has capabilities that include a highresolution screen,
a highresolution audio system, and a longlasting battery, target consumers will be able
to effectively use the Sony Xperia smartphone for their gaming needs. According to a
recent study published by Twitch, video game players are “three times more likely to
use their devices when outside their household than nongamers (Lifecourse
Associates). The slogan will be “Stay immersed in your gaming XPERIAnce”.
Integrated Marketing Communication Plan*
*Assuming the media budget is about $10 million for a wholly owned subsidiary of Sony
Corporation.
Traditional Media
Magazines:
Game Informer Magazine Sony Xperia will be advertising in Game Informer, the
widely popular magazine within the gaming community. Currently, the magazine has
almost 7 million subscribers. This is the ideal magazine to advertise in as it completely
encompasses our target market. We will be minimizing wasted reach while at the same
time maximizing our investment. Our phone will be exposed to the gaming community in
an attempt to increase brand awareness and to establish the position as the goto
smartphone for gamers. The goal is to advertise 6 times (one fullpage color ad every
other month) for the year in the magazine for a total cost of about $1.2 million. The use
of a fullpage ad will help to raise aided brand awareness for the Sony Xperia
smartphone. Extensive details about the product can be provided in the copy of the ad,
but the fullpage ad allows for a prominent and bold display of the Sony Xperia.
The use of other traditional media will not be a part of the integrated marketing
communication plan. Studies show that “consumers are increasingly moving away from
traditional television and consuming more entertainment online” (Lifecourse Associate).
Sony can best optimize their advertising budget by directing their efforts towards other
forms of media.
Digital Media
Hulu:
Video ads will be composed to advertise on shows the target consumer watches,
such as anime and superhero shows. A few examples of these shows would be Naruto,
The Flash, Arrow, and Agents of SHIELD. By directing our efforts towards a specific
group, Sony Xperia will minimize their wasted reach. Hulu’s use of unskippable
advertisements make it more likely that the target market will be exposed to the
message (Hulu). Ads will portray the Sony Xperia as the gamer’s phone while also
displaying how their favorite shows like the ones mentioned before can be viewed
in the Hulu App on the Sony Xperia. Wherever the gamers go, the Sony Xperia is right
there with them.
YouTube / YouTube Gaming:
Video ads will be used and displayed during videos searched that are related to
gaming. This includes anyone looking at instructions on how to pass a level, cheat
codes, and recordings of other gamers. Xperia’s video advertisements will display
gamers having the time of their life using the smartphones.
Twitch:
Video ads will be prominently displayed throughout Twitch channels. While most
of the content displayed in Twitch is livestreamed, occasional ad spots emerge. Sony
Xperia will compose ads showing consumers following their favorite gamers from a
variety of devices. It will start with watching Twitch on their video game consoles from
home, followed by watching Twitch through their Sony Xperia smartphone as they ride
public transportation to school. The ads would also show the target consumer chatting
with those who are also watching the same Twitch channel.
Alternative Media/Marketing
Experiential:
First, Sony Xperia will sponsor the monthlong League of Legends North
American Tournament for $500,000. On each day of the tournament, Sony Xperia will
have a large display at each stage of the League of Legends North American
Tournament, held September 29th to October 29th, 2016. There are four stages of the
tournament:
● Group stage: September 29October 2 and October 69 held at the Bill Graham
Civic Auditorium in San Francisco.
● Quarterfinals: October 1316 at The Chicago Theatre in Chicago, IL
● Semifinals: October 2122 at Madison Square Garden in New York, NY
● Finals: October 29 at Staples Center in Los Angeles, CA
Last year, each of these venues had about 20,000 people in attendance. People who
attend these events are within our target market age range and play League of
Legends, the most played PC game in the world. Most of them consider themselves
hardcore gamers who not only play League of Legends but also console games and
other PC games.
The display will be an interactive photoop. The location of the display will be
near the entrance in each of the venues, so people will be able to see it right after they
come in and will also be able to easily come back to it during the event. There will be a
large booth with a big backdrop of an awesome looking League of Legends themed
graphic. People often come dressed up as characters in the game, but Sony will provide
replica accessories from characters, such as helmets, staffs, hats, and realistic looking
foam weapons (to reduce liability). The attendees will be able to choose a character and
the Sony worker will give them the accessories to that character to put on. Then they’ll
make a dramatic pose with their friends, a Sony worker will snap a shot of them, and
give them a card with a link on it. The card will say “Step 1. Share this picture on
Instagram with the hashtag ‘#sonyXPERIAnce’. Step 2.Your FREE legendary skin only
available through this code is now activated! Enter it into your LoL account. Step 3.
Follow Sony Xperia on Instagram, Twitter, and Facebook for more gaming tips and
giveaways.” This is primarily usergenerated content sourced from the Sony Xperia
display. The expectations from this are a huge amount of reach to mainly gamers (at the
venue and friends on Instagram) at a onetime cost.
Ingame content, in this case, a legendary skin for a certain character, is very
sought after among League of Legends players. Some of these skins that have been
obtained at events like this are rare and have been sold on eBay for up to $400. This
makes the booth very attractive to everyone at the venue. About 70% of the attendees
are expected to sit the booth. On average, that would be 14,000 gamers per day. Of
those 14,000, roughly 90% will actually use the code. So that leaves 12,600 per day x
15 days = 189,000 gamers on site. Then they’ll share it on Instagram so that adds even
more reach. One more thing to be incorporated is a sponsored SnapChat geofilter to
use during the event. The geofilter will only be for those within the venue. The total price
for this League of Legends experiential event is estimated at $1,500,000.
PR/Publicity
Donating to Charities We are going to be launching the Xperia Loves Gaming
campaign in which we will donate to several gaming charities. The gaming charities are
going to be: Gamer’s Outreach, Extra Life, Able Gamers, Child’s Play, and Games
Done Quick. $50,000 will be set aside for each individual charity. The purpose is going
to be to encourage gamers to donate to the charity of their choice. Sony Xperia will
match every dollar that is donated to these charities up to $250,000. During the
campaign, Xperia representatives will visit some of the children that these charities
sponsor. Sony Mobile will livestream, through Twitch on an Xperia phone, the
interactions that the representatives have with the children. The children will be joyful as
the representatives play video games with them. The children will have the opportunity
to play mobile games on a Sony Xperia device. The hope is to capture their happy
interaction with Sony Xperia smartphones. Sony Xperia expects to receive numerous
free publicity within the gaming world.
Retail Marketing / Merchandising and Sales Promotion
GameStop (Retail Marketing):
Agreements will be made to have Sony Xperia smartphones sold in GameStop
stores as well as on GameStop.com. Also, a prominent display will be featured in the
physical stores to promote the Sony Xperia. GameStop associates will be trained to use
the phone and recommend the product, especially since many are gamers themselves
and can help influence customers’ purchases. As the United States’s largest video
game retailer, GameStop will help to minimize wasted reach with the target segment
since they shop there. A potential sales promotion would give away two free games with
the purchase of a Sony Xperia, with a limit of $120. The amount is similar to what
wireless communications carriers provide when they are enticing consumers to
purchase a particular phone during a specified sales period in the year. However,
having Sony Mobile pay for the video games to give to new Sony Xperia owners ties in
with the big idea of continuing the gaming experience. Purchasing a new smartphone is
a big investment, as is the purchase of a new video game, so why not show the target
consumers that Sony Mobile wants to help their gaming needs? The sales promotion
would be executed twice in the year, during times when the new, biggest games are
released.
Best Buy (Retail Marketing):
Sony Xperia is going to display posters near the gaming section inside of stores.
Also, advertising conducted through Best Buy’s video displays will be used. These ads
are intended to redirect consumers to the mobile phone area in order to interact with
Sony Xperia products. Plans include having signs with the message of “Stream Live
With The Sony Xperia” and “The Gamer’s Phone.” As a company, Xperia wants to
continue to strengthen the notion of being synonymous with gaming.
Twitch (Sponsorships):
Sony Xperia will partner up with Twitch and various Twitch channels. Twitch will
feature Sony Xperia on their websites and within their video advertisements. Twitch
specifically caters livestreaming to the gaming community. Currently Twitch has 100
million monthly viewers who on average each spend 106 minutes daily watching live
gaming (Lifecourse Associates). While League of Legends tournament is playing, Sony
will be streaming live through Twitch. Twitch will announce on their website, “Streaming
brought to you by Sony Xperia”. Also, sponsoring particular gamers will help associate
Sony Xperia with gamers that the target consumers enjoy watching and following. Sony
Xperia looks to promote the growth of gaming by catering to gamers. The idea is give
Sony Xperia smartphones to popular gamers so that they can recommend them to their
large follower base.
YouTube Gaming (Sponsorships):
Influencer marketing is very strong amongst gamers and their followers. Like
Twitch, which features live streaming and previously recorded videos of gamers playing,
YouTube Gaming gives the potential for brands to associate their products with gamers
that the target consumers resonate with. Sony Xperia will look to sponsor channels of
popular gamers as well as give them smartphones so that they can recommend them to
their followers.
Media Schedule
Pulsing strategy to help raise brand awareness and maintain carryover effects
while having bursts of market spending during big events like gaming tournaments,
such as the League of Legends North American Tournament.
Key Events:
ComicCon: July 2124 (International San Diego) [2016]
Twitch Con: Sept. 30Oct. 2 [2016]
League of Legends LCS North American Championships: Sept.A 29Oct.29 [2016]
Gaming Charities Event: Dec. 2016Jan. 2017
WonderCon: Mar. 30Apr. 1 [2017]
^Continuous scheduling consists of all other media being used in the IMC plan (Video
ads, magazine ads, etc.)
Evaluation
In regards to the 3% increase in market share, Sony Xperia will measure an
increase by comparing company sales and how it relates to the overall sales of the
smartphone industry after the campaign. To measure aided and unaided awareness,
Sony Xperia will conduct focus groups consisting of only gamers. The company will ask
a series of questions, one that addresses “Think of a smartphone brand”, another that
asks “Which of these smartphones do you recognize?” as well as one that asks “What
phone best suits your gaming needs?” After Xperia’s campaign, another focus group will
be conducted to measure whether or not it was successful at increasing aided and
unaided awareness. Also, measurements will be taken to determine if purchase intent
increased since the start of the integrated marketing communication plan and whether
or not the objectives were met.
Summary
For decades, Sony has been a pinnacle of innovation and success. They have
established themselves as a worldwide brand. Unfortunately, it has failed to replicate
that same level of success with their smartphones. Taking the preemptive strategy to
appeal to video game players provides a promising turnaround to the Sony Xperia
smartphones. Sony helped pave the way for what gaming is now and what it will
continue to become for future generations. Let Sony Xperia be the smartphone that
gamers embrace, and let this agency and plan be the ones to make it happen.
Appendix:
Bibliography:
Adweek. YouTube's New Gaming Platform Already Looks Like a Big Hit With
Advertisers. AdWeek. N.p., 26 Aug. 2015. Web. 31 May 2016.
<http://www.adweek.com/news/technology/youtubesnewgamingplatformalread
ylooksbighitadvertisers166570>.
Entertainment Software Association. "Essential Facts About the Computer and Video
Game Industry." (n.d.): n. pag. Essential Facts About the Computer and Video Game
Industry. Entertainment Software Association, 1 Apr. 2015. Web. 30 May 2016.
<http://www.theesa.com/wpcontent/uploads/2015/04/ESAEssentialFacts2015.pdf>
GameInformer. Game Informer Advertising. N.p., n.d. Web. 31 May 2016.
<https://www.gameinformer.com/p/printadspecs.aspx>
Grundberg, Sven. "Sony Buys Ericsson Stake in Handset Joint Venture." The Wall
Street Journal. N.p., 28 Oct. 2011. Web. 30 May 2016.
<http://www.wsj.com/articles/SB10001424052970203554104577001062067170178>
Hulu. "Hulu Advertising." Hulu Advertising. N.p., n.d. Web. 31 May 2016.
<https://http://www.hulu.com/advertising/>
Lifecourse Associates. The New Face of Gamers. Twitch. Twitch, 4 June 2014. Web. 30
May 2016.
<http://twitch.wpengine.com/wpcontent/uploads/2014/06/TheNewFaceofGamers1.pdf>.
Rozelle, Whalen "Magus" "2016 World Championships Hits North America." LoL
Esports. Lolesports, 16 Feb. 2016. Web. 31 May 2016.
<http://www.lolesports.com/en_US/articles/2016worldchampionshiphitsnorthamerica
>
Strategic Business Insights. "Strivers." VALS™ | VALS™ Types | Strivers | SBI.
Strategic Business Insights, n.d. Web. 20 Apr. 2016.
<http:/http://www.strategicbusinessinsights.com/vals/ustypes/strivers.shtml>
Strategic Business Insights. "Achievers." VALS™ | VALS™ Types | Achievers | SBI.
Strategic Business Insights, n.d. Web. 20 Apr. 2016.
<http:/http://www.strategicbusinessinsights.com/vals/ustypes/achievers.shtml>
Advertising Brief
1. Brand/Product
Sony Xperia smartphones
2. Primary Competitors
Apple, Samsung, and LG
Apple iPhone With the greatest market share in the smartphone market, the Apple
iPhone is the smartphone to include exclusive software to satisfy the user
experience with style and ease of use.
Samsung Having the most market share amongst Android smartphones but still
behind Apple overall, the Samsung Galaxy smartphone provides high quality and the
latest technology to its users.
LG With overall market share that ranks it behind Apple and Samsung, the LG
flagship smartphone provides cuttingedge design and convenient product features
at a price that is most affordable.
3. Business Objectives
The primary goal is to increase aided brand awareness of the Sony Xperia
smartphones. Customers in the United States are aware of the name brand Sony in
other product categories, but they do not know of Sony’s Android smartphones, the
Xperia line. In addition, the focus is to increase market share to become the second
biggest provider of Android Smartphones, that is, to replace LG for third in the market
share of the smartphone industry. Therefore, the overall market share should increase
by 4% by the following year. The market share is currently around 1% (comScore).
4. The CREATIVE Challenge
The goal is make the brand relevant to the independentminded people, the
mavericks. These are people who dare to be different, the nonconformists who choose
not to follow what the latest trends are, but rather form their own trends. Thus, the focus
is to make the brand relevant to gamers. The brand wants to appeal to the gaming
community.
5. Target Consumers
The target consumer are in the 1535 age range, middleclass, and mostly male,
although more and more females are gaming (Ramdurai). According to the VALS
segmentation, the target consumers would be strivers, who tend to “use video and video
games as a form of fantasy” (Strivers). The target consumer are smartphone users who
don't want to have the same phone as everyone else, but rather enjoy going against the
biggest trends, even creating their own trends. They have a high need for uniqueness.
6. Brand’s USP/RTB
The Sony Xperia is the first Android smartphone to keep gamers immersed in
their gaming experience, wherever they go. With a longlasting battery, high definition
screen, and fast processor, the Sony Xperia smartphone allows gamers to follow their
favorite games and gamers through Apps like Twitch or YouTube (Gaming). The latest
Sony Xperia smartphones even allow gamers to play their Playstation 4 or Xbox One on
the device.
7. Response Desired
Sony Xperia should be seriously considered when buying a new smartphone.
Raise brand (Xperia) awareness by showing that Sony has a quality smartphone that is
a great alternative to Samsung’s, Apple’s and LG’s smartphones. However, the main
focus is to attract other Android users to switch brands, as there are more consumers
using Android smartphones than iOS (Apple) smartphones (comScore). The ad should
peak the consumer’s interest and drive them to search for more information on the
phone.
8. Constraints
In regards to the project, the name of Sony’s Android smartphones, the Xperia,
cannot be changed to better appeal to consumers. Also, the current line of Sony Xperia
smartphones are only sold in the United States as unlocked phones. This means that
there are no wireless communications operators partnering with Sony to distribute the
phones to consumers (Hill).
9. Evaluation Criteria
Measurements would be taken to determine if the 4% increase in market share
over the next year was reached or exceeded, if an increase in sales was achieved (by
how much), and if aided and unaided awareness was increased. More importantly
though, measurements would be taken to see determine if purchase intent has
increased for the Sony Xperia product line. Before and after surveys within our target
market would be conducted in order to measure the increase in aided brand awareness.
10. Current Primary Agency
The current primary agency is adam&eveDDB, which helped develop the ‘Made
for Bond’ advertising campaign for the Sony Xperia Z5. For the new target market of
Sony’s Xperia smartphones, however, BBH New York is the recommended agency
since they have worked on campaigns dealing with the console gamer. Also, BBH New
York received Gold in the 2015 North American Effie Awards for their campaign
promoting Sony’s video game console, the Playstation 4 (Effie Worldwide). In addition,
Mediakix is a marketing agency that leads in influencer marketing. This consists of
consumers with large follower bases that can promote what products/services should be
used. Mediakix has had success associating major brands, like on YouTube Gamin