Aibo Case Write-Up

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Identify Issues

* 1st question: Should Sony keep this product line– negative productivity? [3C – company – customer – competitor] * 2nd question: If yes, how do we market the product (market strategy)? US vs Japan or both * 3rd question: If yes, should we just focus in US/Japan? * AIBO -> high upfront cost to create a customer based * Product is not duplicable -> but many copy cats

* Size of the market? Market growth? R&D cost is pretty high. * No clear positioning marketing strategy
* Competitive threat
* Distribution channel (wholesale/ retail)?
* High or low end products?

(Adrienne)
* Segmentation
* Age
* Income level
* Urban
* Geographic
* Targeting – a family product
* Kids/teenager
* Parents
* Elderly (security, handicap aid)
* Positioning – functionality (Productive robotic system) * Entertainment tools
* Utilities
* Education tools
* Elderly that distance with technology (aid for the elderly, medical, motion sensor

Analysis
4Ps – Price (Jenny)
high end – 3000 (high functionality, anyone in the family can use, software – accessories (software apps, educational, speaker, digital hub) medium end – 1700
low end $100 AIBO pupps

Promotion (Lawrence)
* Integrated marketing campaign (incorporate with Sony entertainment) * Commercial
* Incorporate net (vertical world)
* Animation
* TV shows (Lassie front , each Episode- AIBO family is the hero, advertising the latest) * AIBO fans club

Distribution channel (Shakir)
* Lehman market (high end)
* Sony stores (mid end)
* Toy’rus, best buy, internet (low end)
* Alliance with the pet stores

Product – a family product (John)
AIBO 1, 2, 3
High end, medium end,

High end – more software capability, digital hub, security feature, can be connected to all electronic device, Mid end – status...
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