Recommendation

• Position for • Leverage the eco • Know the

• Go for niche people seeking a nomic curve so as expectations o
marketing i n entertainment to bring the price f US consume
nstead of m companion as affordable to the rs from AIBO
ass advertis well as interested customer
ing in the in In
U.S. market formation
Technology and
robotics
 American customer kno
AIBO should
wledge about AIBO
match with the
is low, so more trial need
lifestyle of the
Compatibility Trialability to be set up for
American
generating awareness
people
and interest.

Relative Advantage

Customer need to
understand
the unique feature
and function AIBO
offering compared to the
competitor
 Alternatives

Don’t Enter American Market

Enter As functional ROBOT

Enter As an Entertainment ROBOT/ Companion

Evaluation: Alternative 1
Don’t Enter American Market

Criterion Decision Rationale

Sony’s Overall Strategy & Wanted to put entertainment

competencies ROBOTs worldwide

Potential of the market

There is a huge market base
(Buyer’s prospective)

Competition in the market NOT Applicable

Without tapping the market, we

Profitability
lose the potential market share and
Short Term & Long Term
increase in bottom line
Evaluation: Alternative 2
Enter As functional ROBOT

Criterion Decision Rationale

Sony’s Overall Strategy & Wanted AIBO to be a part of the

competencies family as a companion/ pet

Main stream America wanted

Potential of the market
robots to assist in serious
(Buyer’s prospective)
household tasks

Already established big Names in

Competition in the market
the market

Short Term: Good, as the product

matches what consumers want
Profitability Long Term: AIBO not designed to be
Short Term & Long Term functional product; to add new
functionality, Huge cost & time
requirement
Evaluation: Alternative 3
Enter As an Entertainment ROBOT
or Companion

Criterion Decision Rationale

Sony’s Overall Strategy & “Want to see AIBO playing with the kids or
competencies family in every living room”

Effort required to change consumer

Potential of the market
perception is high; however potential for
(Buyer’s prospective)
ROBOT market is high (Unique Product)

Unique high end product; but competition

Competition in the market
from Cheap knock-offs

Short Term: Medium, as we have to change

consumer perception and it requires time &
Profitability marketing effort
Short Term & Long Term Long Term: Good, as we have the required
competencies & are the pioneer of this
market
 Promotional Mix

Advertisements
in Print Media,
TVCs

Brochures & E-mail Campaign

Materials in to Leads from
Online Stores Early Adopters

Ads in Movie
WOM - Approach
Halls, Shopping
Opinion Leaders
Malls