Sony Corporation (New Business integration via Sony Ericsson expansion)

Background:

Sony Corporation in India was mainly selling consumer durable products and wanted to enter the mobile phone distribution space to improve their revenues. More and more people were embracing mobile technology and they saw a clear threat to their personal hand held devices like Walkman and Cybershot. Moreover due to the joint venture that they had with Ericsson, all assets were to be shared including brand names. To rapidly enable their growth in the Indian sub continent they decided to enter the mobile phone space.



Design of the project:

Strength of the company was in distribution nationally and their incorporation of consumer behaviour at retail. The plan was to leverage both of these to expand into the mobile phone sales using their own brand retail centers, consumer audio and video outlets (selling TVs, HiFis, etc), camera shops (colour film sales and digital cameras) and modern trade which was just setting up in the country. Due to the large distribution network, the company had access to warehouses across the country and a network for replenishment. These were to be leveraged for distribution to modern trade which were dispersed across the country and wanted “Just-In-Time” inventory. Key Account management in the retail sector to drive sales was another advantage. Due to the large retail presence of the company, they were invested in a national training schedule and deployment of retail excellence which was key to developing a premium image for Sony India. Own experience stores for Sony Ericsson which would up the ante for the brand.

Project execution :

The project was designed along three pillars

  • Sell more categories to the same channel. Sony already owned Sony Centers across the country. Build a complete sales pitch to our partners to keep and sell mobile phones as a category
  • Develop new channels to sell additional products. Mobile phone sales were getting established in camera and music shops as they encroached on both camera and music storage and playback in addition to the core capabilities of the phone. These were important channels to develop for Sony India.
  • Build a halo effect for the brand. We needed to premiumize the brand within select owned channels. This would build desire for other channels to sell and stock our products

Delivery of the Project :

  • People : In depth training was given through the internal training teams to our sales managers and get them to look at the mobile phone business as an additional piece of pie which would help them drive revenues for their regions. Deployed a training schedule which would enable their partners on field to understand and better deliver customer satisfaction to their clientele

Processes :

Redeployed resources and infrastructure within the organization to deliver to the ask.

  • Got the customs clearance team (incoming logistics) to contribute in the understanding of clearances and duty structure to shorten lead time from order to sales
  • Key account managers training for financial process adherence for the new category
  • New processes streamlined with Finance to help in combating price drops in reaction to competition

Infrastructure : :

  • Got the product incorporated into SAP and linked it with all warehouses for movement to modern trade, Audio-Video Outlets and own brand stores.
  • Designed the entire retail planogram for the brand by each category of store catered. to by Sony.
  • Lobbied for the deployment of a Sony Ericsson Experience Store in India.
  • Designed the store in consonance with Sony Ericsson global team.
  • Templatized the roll out and Franchised it to 60 stores across the country.
  • Key result for this entire project was the revenue growth of almost 15% for Sony India and an increase in bottom line of almost 4% across 3 years

  • Process Reengineering

    Organizational Restructuring for customer experience

  • Retail Excellence and Training
  • Deliver business benefits for Services, FMCG and consumer durable companies

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