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Sony’s Music Section has experienced a 40% decrease in CD sales.

Total Market. SWOT. STRENGTHS. Total revenues in 2008 for all music sales was $27.5 Billion. -Strong Brand Recognition Innovative Company High Quality Products. P ROBLEM. Sony’s Music Section has experienced a 40% decrease in CD sales. WEAKNESSES. MARKET SHARE. -Decline in CD Sales

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Sony’s Music Section has experienced a 40% decrease in CD sales.

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  1. Total Market SWOT STRENGTHS Total revenues in 2008 for all music sales was $27.5 Billion. • -Strong Brand Recognition • Innovative Company • High Quality Products PROBLEM Sony’s Music Section has experienced a 40% decrease in CD sales. WEAKNESSES MARKET SHARE -Decline in CD Sales -Fierce Competition -Poor Marketing Strategy -Weak Financial Position -Follower in Digital Music Distribution SOLUTIONS -Increase marketing for Walkman product. -Discontinue production of CD’s. -Introduce incentives for buying Sony Products such as Sony Music Rewards. OPPORTUNITIES PROBLEM -Growing Digital Industry -High Demand for Music -Product Development RATIONALE -We arrived at the stated solutions because of our findings from our primary and secondary research. Our interviewees made the piracy and album purchase habits clear to us on a small scale, while our secondary sources made it clear how wide ranging piracy really is. -Incentives will encourage customers to be loyal to Sony and purchase music legally. -Strong marketing will help more customers realize Sony’s position in the digital music player market. TRENDS -Digital Music sales are increasing contributing to the decrease in CD sales. -Piracy is increasing as well, it is estimated that 95% of all downloads are illegal. THREATS -Poor economy -Piracy -Currency exchange rates -Alternative Products

  2. RESEARCH SUMMARY PRODUCTS COMPETITOR’S PRODUCTS QUALITATIVE RESEARCH WALKMAN X SERIES APPLE IPOD We conducted interviews from a convenience sample on their opinions on digital music issues and usage. We found that every candidate reported using digital music devices. The X series is the top line product ranging from $300-$400, with a maximum storage capacity of 32GB. The Ipod comes in 4 options: Ipod shuffle, Itouch, Ipod Classic, and Shuffle Nano. Prices ranging from $59-$400. The maximum storage capacity for the Ipod classic is 160GB for $249. QUANTITIVE RESEARCH -Young women are 11% more likely to buy an Ipod brand and 55% more likely to buy Sony brand digital device. -Young men are 27% less likely to buy Ipod brand and 182% more likely to buy Sony brand device WALKMAN E SERIES The E series is the mid-range product ranging from $63-$100, with a maximum storage capacity of 16GB. Microsoft Zune OUR ANALYSIS The Zune ranges from $200-$400 with several models available. The highest storage capacity available is 120GB. Through our analysis we found that music piracy is not only a problem but and epidemic hurting the music industry. Also, the digital music world has more growth potential than expected. Sony can capitalize on these markets by focusing efforts on product development and innovative solutions. Team 1 Consulting: Eric Scheetz, Jeff Lawson, Ryan Orr, AyaSallam.

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