Marketing Distribution Channels of Sony's Playstation: Manufacturer Distributor Consumer
Marketing Distribution Channels of Sony's Playstation: Manufacturer Distributor Consumer
Sony ranks on top when it comes to gaming console markets and it has the largest market
share. It has sold over 75mn Ps4 since its launch in 2013.
When it comes to distribution channels, Sony is largely dependent upon its suppliers as they
are major provider of resources to the company when it comes to supplying of raw materials.
It has a requirement of different parts which are assembled in the console. It has maintained
good relationship with its supply partners like NVidia for graphics cards, Terra Soft Solutions
for Operating system and IBM for its processors.
If we talk about the sale of its consoles, it utilizes online as well as offline market. Online
distributors like Amazon cover major online business for playstation. Whereas when it comes
to offline markets, Sony’s playstation can be purchased from exclusive Sony stores and at
electronic chains. Sony has its worldwide market and it present in nearly 120 countries
including India. There are more than 2000 exclusive stores worldwide. Hence, it can be
clearly inferred that distributor’s role plays a vital role in sale of consoles.
In India stores like Croma, Reliance Digital, Sony World are the major distributor of
consoles. They have a large footprint in the country with 7000 channel partners and more
than 260 Sony outlets and 21 branch locations.
The distribution channel which Sony follows is of one level distribution. The distributor has
to be verified from Sony in order to sell the verified products. Thus distributors are also know
as channel partners.
Online Market
Sony has established its online presence quite well. It has seen the opportunity in
ecommerce and grabbed it. Sony’s playstation can be found on various websites and there
are various discount offers which are also given on such websites. People can also purchase
the consoles from Sony’s official website.
In India, Ecommerce handles like Amazon, Flipkart are selling Sony consoles. These
platforms provide discounts on special occasions and festive seasons for boosting the sales
of the product.
Offline Market
Offline Market is the major area from where the sales generate. Sony has one of the widest
distribution channels for selling its products offline. The majority of console fans still prefer
to buy it from stores. More than 90% of the consoles are purchased from offline market
from the 74Mn consoles sold. Also people feel a sense of satisfaction when they get a
console from a store and it gives them assurance of quality.
Individual Learning
By studying the marketing distribution of an actual company I was able to relate the topic
which was taught in the class. I could understand the importance of having a good network
of channels for success of the product. Distribution channels play a crucial role in making the
final product available to the customer and hence provide a sense of satisfaction for them. I
could understand the connect of distribution channel with the revenues of the company and
overall growth of the company.