CASE-II: Panasonic PC

Matsushita is a large Japanese electronics producer renowned for its Panasonic, Quasar, and
Technics brands. It markets personal computers worldwide as a part of its overall program for the
PC and PC peripherals market. A diversified conglomerate, its computer products include
notebook computers, computer peripherals, multimedia products, displays, printers, scanners,
and storage and networking devices. In addition to manufacturing computers, printers, scanners,
and CD-ROM drives, Matsushita also produces consumer products such as VCRs, CD and DVD
players, TVs, and home appliances, which account for 40% of their sales. As of 2008, the
Matsushita group includes about 380 operating units in more than 50 countries. Its products are
sold world-wide, and Asia accounts for more than 70 % of sales.
The marketing department of Panasonics office automation group designed a promotional
campaign for their new desktop and notebook computers (PCs), targeting India. While the
computers were suited to both the household and business markets, depending on the model,
Panasonic wished to determine executives willingness to buy Panasonic PCs. Management
particularly wanted information in three areas: the reactions of businesses of various sizes; the
impact of familiarity with Panasonic PCs on willingness to buy; and how businesses were using
PCs in the workplace. This led to the related question of whether sales of peripherals to
technically oriented PC users could be increased.
To address these issues, 1080 company executives throughout India were selected based on
stratified random sample and sent a questionnaire designed to uncover executives willingness to
purchase a Panasonic PC, assuming they were in the market for a PC. The company executives
were stratified along three variables: company size, familiarity with Panasonic PCs, and business
application of PCs. Each of these variables could assume one of three values as shown:
Company Size
Small/entrepreneurial
Medium/private
Division of major corporation

1
2
3

No experience
Less than 3 years of experience
More than 3 years of experience

1
2
3

Individual use (word processing and data analysis)

Departmental use (functional computing, networking)
Corporate use (enterprise integration)

1
2
3

Familiarity with Panasonic PC

Business Application

Forty respondents were randomly assigned to each of the 27 possible combinations of variables
(i.e. 40 respondents with Low-Low-Low rating, 40 with Low-Low-Medium ratings, etc.). The
respondents stated willingness to purchase a Panasonic PC was measured on an 11-point scale.
The principal consultant of the firm has asked you to analyze the data and to prepare a thorough
report detailing the results of the analysis and offering recommendations for Panasonic
management on their promotional program for the PCs. Remember that your target market is
Indian business executives. Your mission-help Panasonic penetrate this market and thus enable
Matsushita to retarget India.