1. Sony AIBO: A Marketing Dilemma
Slide 2 – Tom
Slide 3-5 – Doris
Slide 6 – Tom
Slide 7-9 – Alejandra
Slide 10, conc – Tom
Sony AIBO: A Marketing Dilemma

2. Background Information
World’s first entertainment robot (1999)
Japan sold the AIBO at great pace
Constant questioning of purpose of existence
First Generation AIBO
Second Generation AIBO

3. Discussion Problem Recognition Situational Analysis
Evaluative Criteria
Alternatives and Recommendations
Consumer Profile
Distribution Channels
Pricing Strategies
Promotional Strategies

4. Problem Recognition Sony AIBO’s possible expansion into the U.S.
Promotional mix
Companion or Productivity Tool?
Ability to sell to mainstream market
Premium Pricing

5. Situational Analysis Strengths Weaknesses Innovation Leader
Superior Technology
Software Adaptability
Sony´s Specialized Department
Strengths
Price
High Cost of R&D
Weaknesses

6. Situational Analysis Opportunities Threats
American robotic market in infancy
Growth of American toy market
Opportunities
Perception of robots in U.S.
Aging American Market
Aversity to Technology
3 Possible markets are saturated
Threats

7. Evaluative Criteria Ability to Maintain Competitive Advantage
Risk Minimization
Long Term Profit Potential
Short Term Profit Potential
Ease of Implementation

8. Alternatives and Recommendation
Pricing
Positioning
Promotional
Target
Distribution
Long Term Strategy
Productivity
Tool
Superstore
Typical Toy
Consumer
Captive
Pricing
Expand to U.S
Companion
Mass
Marketing
Short Term Strategy
Educational
Toy
Niche
Premium
Pricing
25-40 Affluent
Parents
Niche Store

9. Consumer Profile 25-40 year old mom Affluent Consumer
Seeking educational product benefit
Early Adopters

10. Distribution Channels
High End Stores – Neiman Marcus, Sachs Fifth Avenue
Online Retail
Mass Retail Distribution (Long term)

11. Pricing Strategies Early Adopters – Premium Pricing Strategy
Price - $1500
Early Majority – Captive Pricing Strategy, after next generation release
Price - $300

12. Promotional Strategies
Viral Marketing: Word of mouth, social networking
In-store display
Parenting and related magazines
Crossing the chasm: cartoon, books, software, etc.