Sony AIBO Case Study

Submitted byB Sreenivas

Santosh Bhagat
B Padmalatha
Damini Singh
Deepak Rathor

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Value
Proposition

Positioning

Marketing
Strategy

Competition

Lovable Factor and Companion

Benefits

No need to feed the

AIBO

Personality of real pet

Features

Customized behavior
through training
Personality of real pet
Sensors: Touch,
Vision, hearing and
balance

Experience

Entertainment
Lovability Factor
Friend for the life
Healing and Relaxation
Fun of living creature
without hassle
Development stages
like human, eg: Child,
Teen, Adult

Re Pricing
Strategy

Value
Proposition

Positioning

Marketing
Strategy

Competition

Re Pricing
Strategy

Low

Relative Level

High

Value Curve

Entertainment

Customization

Feeding
AIBO

Messing
Dog

Healing & Relaxation

Value
Proposition

Positioning

Competition

Marketing
Strategy

Re Pricing
Strategy

Classical Positioning
(Second Gen AIBO)
Stealth Positioning

Product Life Cycle

Stealth Positioning: Sonys positioning of the AIBO robot as a lovable pet shifted consumers attention away from its limitations
as a household aide and turned even the elderly into early technology adopters
Breakaway Positioning: 2nd generation AIBO has the features of Wireless, Software adoptability, etc. which are taken from other
category segment.

Emotional Investment And Core Values Engagement

Value
Proposition

Positioning

Competition

Deep Decisions
Middle of
spectrum
Decisions
Shallow
Decisions

Marketing
Strategy

Re Pricing
Strategy

AIBO Position

Value
Proposition

Positioning

Competition

Marketing
Strategy

Re Pricing
Strategy

Sony positioned the product as a lovable but otherwise useless pet.

Frame of Reference
Target
Audience
American
Citizen

Their
Need
Love
,Relaxation
healing

Robotic Pet Category

Segment,
Entertainment Robot

Point of
Difference

Reason to
Believe

Customizatio
n , Emotions

Brand name
SONY

Value
Proposition

1.

2.

Positioning

Competition

Marketing
Strategy

Humanoid useful robots created by well-known

Japanese electronic companies, perceived
functional by the American consumers

The cheap copycats/knockoffs of the concept

at a much lower price.

Re Pricing
Strategy

Value
Proposition

Positioning

Competition

Go for niche
marketing instea
d of mass adverti
sing in the
U.S. market

Know the
expectations of
US consumers
from AIBO

Niche
Marketing

Hybrid
Product

Customer
Feedback

Affordable
Price

Marketing
Strategy

Position for
people seeking an
entertainment
companion as well
as interested in
In formation
Technology and
robotics

Leverage the econo

mic curve so as to
bring the price
affordable to the
customer

Re Pricing
Strategy

Value
Proposition

Positioning

Using Ansoff Matrix for

the American market

Competition

Marketing
Strategy

Re Pricing
Strategy

Value
Proposition

Positioning

Competition

Marketing
Strategy

Market Development is needed in the US Market

American consumer gives more value for the

tangible benefits and features in the robotic toy
market

Product should be based on product modern

features which can make the life of the American
consumers easier

So, the productivity part of AIBO should be highlighted.

For example the AIBO Messenger software, AIBO
navigation software, AIBO Master studio, AIBO life,
wireless LAN, GPS in AIBO and more updated softwares

Re Pricing
Strategy

Value
Proposition

Positioning

Competition

Marketing
Strategy

AIBO should
match with the
lifestyle of the
American
people

Compatibility

Trialability

Relative Advantage

Steps for successful adoption

of Innovation in the American
market

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

Re Pricing
Strategy

American customer kno

wledge about AIBO
is low, so more trial need
to be set up for
generating awareness
and interest.

Value
Proposition

Positioning

Some
more
points

Project the
product
as superior
product that the
competitor or
low cast
toy cannot offer

Let the price

at $1500 to
reach the break
even point as
soon as possible

Research &
Development

Marketing
Strategy

Competition

Applications can be
provided at a premium

Give a value
proposition to
the U.S customer

Re Pricing
Strategy

Value
Proposition

Positioning

Competition

Marketing
Strategy

Re Pricing
Strategy

Price of AIBO: $50 (Loss Leader)

Cost of $50 will result in strategy of Cost Leadership
This will lead to Broad Market competitive advantage
Lower Cost

Scratch and Lil Scratch @ $59.99, Me and my Shadow @

$59.99, i-Cybie @ $150

Differentiation

Cost Leadership
Strategy

Differentiation
Strategy

Porters
Strategy
Narrow Market

Edge over the Competitors like Poo-Chi @ $40, Big

Broad Market

In U.S, it can reach to many people.

Cost Focus
Strategy

Focused
Differentiation
Strategy