2 Sony: the pioneer brand
Sony was founded in 1946 by Akio Morita and Masaru Ibuka. Originally, it was a radio repair firm, but by the 1950s it was producing its own Sony-branded products.
Sony quickly developed a reputation in its native Japan for innovative products such as the first effective transistor radio (in 1958) and the first all- transistor TV (1960). These innovations helped the firm expand throughout Asia, and then to the United States and Europe. In 1961, it became the first Japanese company to be listed on Wall Street.
Throughout the decades, Sony has led the way, producing one innovative product after another. In 1971, it created the world’s first colour video recorder. A few years later it created another revolutionary product: the Walkman. On its launch in 1979 few within the industry took the Walkman seriously. It was seen as a gimmick that would probably die an early death. In fact, it went on to become the most popular consumer electronics product in history, and has led to newer versions such as the CD Walkman and MiniDisc. Sony has achieved similar success in other areas with its TVs, videos, DVDs, hi-fis and game consoles (the Sony Playstation).
Of course, being an innovator has its risks, and Sony has had one notable flop, having been the company behind the ill-fated video format Betamax, which I have written about in detail elsewhere (in Brand Failures).
However, Sony has been smart enough to realize that hardware is only one side of the consumer equation. In the book Cool Brand Leaders (Knobil (ed), 2003), Sony is singled out for its ability to see the larger picture: ‘[The] ability to identify and act on consumer and industry trends has served Sony well over the years. It was arguably the first global electronics corporation to recognise the importance of synergy – the interface between hardware and content.’
In 1988, Sony bought CBS records and the following year it acquired Columbia Pictures Entertainment. Sony Music Entertainment is now one of the largest players in the music industry, and Sony Pictures Entertainment has produced massive blockbusters such as the Charlie’s Angels franchise.
Sony is, without doubt, one of the world’s healthiest brands. Part of this health is down to what Akio Morita (who led the company until he resigned in 1993 after suffering a brain haemorrhage while playing tennis) referred to as the brand’s ‘pioneer spirit’. The other part is due to successful marketing. Sony’s marketing philosophy is very different to that of many other companies, especially in the West, as the secrets of its success reveal.
Secrets of success
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A distrust of market research. As a true pioneer, Sony has often been wary of market research. The Walkman, which was Akio Morita’s own invention, would certainly not have been invented if it had been dependent on market research. ‘I do not believe that any amount of market research could have told us that it would have been successful,’ said Morita, adding: ‘The public does not know what is possible. We do.’
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Innovation. Sony is the innovation brand and looks set to remain so in the future, with its new focus on ‘connectivity’ – the meeting of computing and home entertainment.
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A belief in buzz. When the Walkman first appeared in Japan, Sony workers walked the streets of their native Tokyo with Walkmans strapped to them, creating a valuable buzz. When the MiniDisc was launched in the UK, postcards advertising the product were placed in trendy bars and clubs.
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A belief in people. People are important to Sony. The human element is never neglected in its advertising (hence the recent slogan ‘Products for People’). It always finds a way to make technology accessible and friendly. This belief in people extends to the employees themselves. ‘Never break another man’s rice bowl’ was Morita’s motto. Morita also believed it was better to sacrifice a profit than lay off employees in a recession.
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