Sony Ericcson

1
Sony Ericcson

• Knight Time Marketing

2
Article SummaryAfrican Wireless Growth to
Continue at More Moderate Pace, Ericsson Exec
Says

• Wireless networks are expanding in Zimbabwe even
  throughout the political turmoil
• Companies such as Ericsson and Nokia have seen up
  to 50 growth in some countries, regardless of
  major problems such as lack of electric power

3

• Almost everyone in South Africa has a mobile
  phone
• Penetration rates in many countries are still
  below 20
• Companies even have a target market of those
  earning less than 2 a day
• Many currencies in Africa have depreciated and
  the global credit crunch means that network
  operators will have to pay more to borrow money
  for expansion
• Overall, market research shows that expansion is
  slow but steady

4
Main Issues

• How much will the Global Financial Crisis affect
  the wireless market in Africa?
• Currencies have depreciated (South African Rand)
• Concerns about financial turmoil
  - Believes customers will reduce
  their investments in networks (Jan Embro Vice
  President South Africa)
  - Predicts pace of
  expansion will slow, but demand for wireless
  phones will continue to grow
  - Growth continued amidst war, but
  will it survive U.S. bank failures?

5
Main Issues

• Emerging markets boosted Ericsson's third quarter
  sales by 13
• Developed new strategies to take advantage of
  emerging markets
• One strategy is to redefine music delivered via
  mobile phones
  -
  By partnering with MTV base -to target tech savvy
  young urban adults in Africa
  -
  Introduce new mixes of applications services
  that make it easier to access music anywhere
  
  -Weekly TV series showcasing -music videos,
  celebrities, allow viewers to submit content
  via mobile phone

6
Main Issues

• First quarter of 2008 Sony Ericsson introduced
  new affordable phones to challenge Nokias market
  dominance
• -Worlds 4th largest mobile phone maker,
  thrive to be 3rd largest
• - Previously focused on mid to high end
  phones, heavily marketing phone features
  (Camera and Music)
• - Recently partnered with French
  Electronics, to develop new phones priced as low
  as 60, will market high gloss appeal
• -Nokia phones as low as 20, Sony refuses to
  price phones this low

7
Marketing Implications

• Polycentric Orientation
• Market products according to each individual
  country uniquely.
• Standardization vs. Adaptation
• Ericsson standardizes most products, but adapts
  technology within the cell phone, as Africa is
  far in telecommunication infrastructure.
• Uses Adaptation for promotional purposes.

8
Marketing Implications

• Emotional or Rational Advertising
• Emotional Advertising would best work in Africa.
  As cell phones, in many of less developed
  countries are a symbol of status.

9
Recommendations

• Research rural communities in Africa and target
  them with affordable phones so they can provide
  access to services such as healthcare and
  education and improve poverty and the overall
  quality of life
• Research the most popular African languages and
  have cell phones that are available in those
  languages.
• Research African culture, trends, or religions
  and adapt various phone designs or features that
  would relate to the consumers and would be
  influential to their cell phone provider purchase.

10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
1. Companies such as Ericsson and Nokia have seen
up to ______ growth in some countries.

• A. 75
• B. 30
• C. 50
• D. 25

14
2. Companies even have a target market of those
earning less than ______ a day.

• A. 2
• B. 20
• C. 100
• D. 8

15
3. Overall, market research shows that expansion
is ______ but ______.

• A. slow steady
• B. average declining
• C. average rising

16
4. Almost everyone in South Africa has a cell
phone.

• A. True
• B. False

17
5. Sony Ericsson is the worlds ______ largest
mobile phone maker.

• A. 1st
• B. 2nd
• C. 3rd
• D. 4th