Sony Shines

Till FY 2000-2001, Sony CDROMs enjoyed just about one percent marketshare in

the country. Marketshare for other peripherals like CD-writer and DVDROM too

stood at less than 10 percent.

In a bid to increase its marketshare, Sony tied up with Rashi Peripherals as

its distributor in November 2001. "We wanted to bank on Rashi’s 22

branches, 3,500-strong channel network and strong presence in the peripheral

market," says Shigeru Iwata, Asst GM, Sony Electronics. 

Explaining why Sony appointed a distributor for peripherals in India for the

first time, Iwata says that Sony´s earlier business model of selling the

peripherals through a Singapore-based exporter was not a success as the products

did not enjoy much visibility here. The company is eyeing for a $50 million

business in India by 2005. 

Sony started its Sony Authorized Partner (SAP) program with Rashi Peripherals

which was a success. In May 2002, Rashi took 27 SAP partners to Singapore to

visit its manufacturing unit and meet Sony officials.

To make products price-competitive, Sony slashed prices of its CDRW
Strengths
	Started SAP program in November 2001 with Rashi PeripheralsÂ
	Cashed on consumables brand recognition to create brand equity for peripherals

GROWTH ALL OVER



According to market sources, Sony FDDs command nearly 60 percent marketshare,

while CDROM, DVDROM and CD-writer claim 12, 15 and 20 percent marketshare

respectively. In the FDD segment, Sony clearly stands apart as the leader, while

in CDROM and DVDROM, Samsung rules the roost. Benq leads the CD-writer bracket

due to its competitive pricing. Says Amit Gupta, Business Manager-Sony, Rashi

Peripherals, "By the end of next year we expect Sony’s marketshare to

double in the CDROM, DVDROM and CD-writer segments."

Achieving this figure should not be difficult. Already there are dealers

selling other peripheral brands who are shifting loyalties to Sony’s range of

peripherals. Says Manoj Aggarwal of Intratech Computers, "Although we sell

Benq peripherals, we are planning to become exclusive Sony dealers."

Says Vikas Dogra of New Delhi-based Neo Peripherals, "While customers do

ask ask for LG and Samsung products, there is a discernible shift to Sony."

REASONS FOR SUCCESS



One reason why Sony peripherals managed to find a foothold in the Indian

market is the increased focus from the vendor. To make the products more

price-competitive, it brought down the prices, especially of its CD-writers.

In addition to this, Sony and Rashi held training for partners, especially

SIs, highlighting the superior quality and the less-than-one-percent failure

rate of its products.

The company also concentrated on roadshows for end-users to generate brand

pull. Sony has been well-known for consumer electronics products. It cashed on

this brand recognition to create brand and conducted the Rally 2002 roadshow

covering nine cities in nine days.

The SAP program also gave Sony the necessary leverage to push its products

through channels. The program recognized partners who were marketing the brand

while also selling it. At the recently held SAP meet, partners were also offered

demo TFT monitors for only 40 percent of the actual price.