Sony Style Presentation
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Transcript of Sony Style Presentation
Sony Style
Prepared by: Sophilea Soloman,
Ong Zhong Hong, Afizz b. Adlan and Sia Tin Jiu.
Background
•Sony is established in 1946• Dealing with TVs, DVD players, and other electronics•Small company owned Sony-Style Shop•Sales reached $740 million in 2006• Annual revenues are in the range of $1 billion
Features: Sony Style Stores• Convenient Stores Location – Can be located in up-scale shopping centers• Small sized format retail – Small if compared to other electronics retailers• Targeting at Woman- aisles designed to accommodate strollers / opening stores near female-oriented firms•Training and concierge services- each shoppers can be greeted
Sony Style Stores
Sony Style Stores
Sony Style Stores
Question 1
• Identify the pros and cons of Sony small stores format.
Question 1 : Answers
• PROS:o Shoppers friendly product displayo Convenience / Store Locationo Personalized Customer Serviceo Customer Feedbacko Hands-on Experienceo Well educated staffs
Question 1 : Answers
• CONS:o Limited Product Range – Focus on High Return Profit itemsoHigh operating costso Limited size of stores – Considering : Store layout, Merchandise assortment and fixtureso Lack of attention – Consumer may not notice them
a) Should sony use prototype stores?
b) Should it use rationalized retailing?
Question 2
Question 2: Answers
Prototype Stores Defined :Multiple outlets conforms to relatively uniform construction, layout and operations standards.
Question 2: Answers
Prototype Store
Question 2: Answers (a)
Should Sony use prototype stores?Prototype stores can make:a) Centralized management control easierb) Reduce construction costc) Standardized operationd) Facilitate the interchange of employees among outletse) Allow fixtures and other materials to be bought in quantity. (Cost Saving)f) Display a consistent chain image
Question 2: Answers (a)
However, relying on prototypes may lead to:
- Inflexibility- Failure to adapt to or capitalized on customers need- too little creativity
Question 2: Answers (b)
Rationalized Retailing Defined:
combined a high degree of centralized management control with strict operating procedures for every phrase of business.
Question 2: Answers (b)
Should Sony use Rationalized Retailing?
- virtually identical- Rigid control and standardization (easy to enact and manage)- Add significant numbers of stores
Question 3
a) Pro’s and Con’s of a top-down space management approach by Sony
b) Pro’s and Con’s of a bottom-up space management approach by Sony
Question 3 : Answers (a)
Top down space management defined:With a top down space management approach, a retailer starts with its total available store space (by outlet and for the overall firm, if a chain), divides the space into categories, and then works with the product layout.
Question 3 : Answers (a)
Top down space management
Question 3 : Answers (a) Pro’s and con’s of top down space management approach by Sony:PROs:-Quick and easy to implement-Easier to manage- Greater impactCONs:-Provides limited coverage in the first phases-The implementation costs is likely to be higher
Question 3 : Answers (b) Bottom-up space management defined:A bottom up space management approach begins at the individual product level and then proceeds to the category , total store and over-all company levels.
Question 3 : Answers (b) Bottom-up space management
Question 3 : Answers (b)
Pro’s and Con’s of a bottom-up space management approach by Sony:PROs:
-Higher impact to the organization
- User and business awareness of the product (benefits are realized in the early phases)
CONs:
-Practicality :- Some consumers may prefer to have a “showroom” like the top-down space management. Its easier for them to get the whole concept of Sony product.
Question 4
Discuss the inventory management issues Sony needs to understand in managing its stores.
Question 4: Answers
Definitions:Inventory :-goods or materials held available in stock by a business.
Inventory management :-primarily about specifying the size and placement of stocked goods.
Question 4: Answers
Issues Sony Needs To Understand:
Purchasing Plan:-Hold products in stock at the moment products are needed. -Purchasing requires advance planning.-Avoid last minute panic orders.-Must determine how long the inventory will last.
Question 4: Answers
Issues Sony Needs To Understand:
Controlling Inventory:- Visual Control - Tickler Control - Click Sheet Control - Stub Control - Control Of Outside Agency
Question 4: Answers
Issues Sony Needs To Understand:
Developments In Inventory Management :- Material Requirements Planning - Just-in-time
ReferencesWolf, Alan. 2007. “Toys 'R' Us Opens Sony Shop”.Twice.
http://www.twice.com/article/260207 Toys_R_Us_Opens_Sony_Shop.php (accessed September 2)
Sony.2011.http://store.sony.com/webapp/wcs/stores/servlet/ContentDisplayView?hideHeaderFooter=false&storeId=10151&catalogId=10551&langId=1&cmsId=sony_retailer_landing (accessed September 2)
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