India contributes 5 percent to the total revenues of the Japanese electronics giant Sony Corp. Nonetheless, India is an important market for Sony and the company will be spending Rs. 250 crore this year to promote its products in the country. The parent company is focusing on 3D technology to return to profitability next year after posting consecutive annual losses. To take on its rivals and gain market share, Sony India is introducing the latest technology across categories. In an interview with FE’s Rahul Sharma, Sony India MD, Masaru Tamagawa, talks about the company’s performance last year and its plans for the current year..

You have recently entered the Blu-ray segment. How big a market you see in this space and how are you planning to tap it?

Blu-ray market is expected to grow up to 5 lakh units by 2011-12. We plan to capture 60% market share and sell more than 3 lakh units by 2012. We have introduced Blu-ray audio-visual products at a starting price of Rs. 9,990 and doubled the number of Blu-ray movie titles to 500. Additionally, we have introduced Blu-ray technology in a wide range of products including Blu-ray Disc players, home theatre systems, PlayStation3 and VAIO laptops, which will provide high definition picture and audio quality to consumers. We also plan to increase number of outlets to 4000 by 2011-12.

Which are your top selling categories and how much they contribute to the revenues?

The key growth drivers for Sony India include BRAVIA LCD TVs, VAIO laptops, Cyber Shot digital still cameras, Walkman MP3 players and Play Station.

The contribution is as follows: BRAVIA – 35%, Digital Imaging – 20%, VAIO – 10%.

BRAVIA is our flagship product and we are very confident about it. We plan to achieve 30% share in the LCD TV segment by Financial Year 2010. This was 25% in the corresponding period last year. We have lined up an investment of Rs. 140 crore towards comprehensive marketing activities that involves print and electronic media, online, outdoor and shop-front.

We have big plans to capture the excitement of millions of football fans in India during the FIFA world-cup. We will make heavy investment of Rs. 10 crore in marketing activities including television commercials, print campaigns, outdoor and shop-front display. There would be lot of on-ground activities including contests; we will provide you the details closer to the world cup

How much does India contribute to the overall revenues of Sony? How much do you expect it to grow in the coming years?

India is amongst the top 10 priority markets for Sony and thus, we plan to make huge investment to penetrate deeper into the market. At present, India contributes 5 per cent to the global revenues of Sony. We wish to increase India’s contribution in the future.

How much investments have you lined up for this year apart from the marketing and advertising expenditure? Where would it be directed at?

Our total marketing spends would be 250 crore. Our target consumers are people who want best quality products. A new generation of the Indian consumer has emerged who desires aspirational and high-end quality products. Value enhanced features, quality and a convenient lifestyle are all rather important to him. These consumers are of value to us. It would be directed at all key categories.

The focus would be to strengthen the brand image with ATL and BTL activities that involves print and electronic media, online, outdoor and shop-front.

What plans you have on the distribution side?

We plan to expand our distribution network further, Currently Sony has its footprint across all major towns and cities in the country through a distribution network comprising of over 5000 dealers and distributors, 240 exclusive Sony outlets and 19 direct branch locations. Sony India also has a strong service presence across the country with 20 company owned, 190 authorized service centers and 16 exclusive demonstration centers.

Sony India has traditionally not used any brand ambassadors in its advertising whereas recently you roped in actors Kareena Kapoor Deepika Padukone to promote digital cameras. What explains this shift in strategy

Using a celebrity is not the end objective. If we see a possible synergy that a celebrity might have for our product that will bring in a positive association and benefits, then we definitely like to explore the option. We roped in Kareena Kapoor because synergy between the product/brand and Kareena was perfect. Both are famous for being size zero (slim) and stylish.

For Cyber-shot, we were looking for a celebrity who could mirror the technological superiority and stylish aesthetics of Cyber-Shot camera range and Deepika coming as free spirited, bubbly young girl who at the same time is extremely talented and professional did fit the bill to the T.