Sony Brand Power
Intersting article over on Joystiq, which talks about how powerful the Sony brand is.
According to a study by AlixPartners, Sony is the most poerwful brand based on consumer trust (as opposed to any brand power a product or company aquires based on short term actions such as mass marketing, price cutting etc).
Sony came in first place followed by Johnson & Johnson and Kraft. Dell and Hewlett-Packard were the only other consumer electronics in the top ten and they were way at the bottom. No word on Microsoft or Nintendo brand power.
There’s no arguing Sony’s brand power and it’s a good sign that in 5,000 consumer’s minds it’s the tops. Thing is with the PS3 nobody had issue with the brand power, just look at the sales of the PlayStation 2 — that thing is still a money making monster. Not to mention at $130 the PS2 is worth every penny for a family. A DVD player and an amazing game console in one small neat little package. Sony’s problem with the PS3 isn’t brand, it’s price. Forget us as gamers and techno-babble Blu-ray freaks who will fanboy flame-out and just spend money. Sony execs should talk to the single mother waiting at the bus stop in the morning, go to a neighborhood barbershop, find a sixth-grade elementary school teacher to talk to. Nobody will ever deny Sony’s brand power, but people are stuck at $600 as a jumping-off point for a game console.
I agree completely with the above. People are not so caught up in a brand that they are willing to spend money above and beyond what is rational, especially for a product that will become discounted at some point in the future.
While a company (any company, not just Sony) can often sell a product based on their brand alone, consumers are getting wise to the fact that they can often buy similar products at a lower price from less well known companies, at the same (or better) quality. While this doesn’t particularly apply to items such as the PSP or PS3, it does apply to consumer electronics such as TV’s, camera’s, video/DVD players etc.
For gaming electronics however, brand is an important to an extent, as is consumer loyalty (those who buy a PSone are more likely to buy a PS2, an person who buys a PS2 is more likely to buy a PS3 etc), but price is the critical factor.
