Marketing Mix and SWOT Analysis

Panasonic Corporation

Panasonic Corporation Headquarters in Kadoma-shi, Osaka, Japan (left) and Panasonic

Solution & Innovation Center in Thailand (right). In order to promote global growth and
retain its leading position in the fast food restaurant chain industry, Panasonic Corporation
utilizes its marketing mix (4P).

Panasonic’s Marketing Mix

Introduction
Panasonic is mainly known around the world as a consumer electronics brand. There
are however, several less well-known parts of its sector that work profitably as well. In four
business fields, the brand operates: consumer electronics, automotive, B2B, and housing. One
of most significant strengths is also its market leadership.

Panasonic, a customer-focused organization, aims to create better lives for individuals

around the world. The company has some unifying factor that is becoming aggressive in key
regions of the world, including Europe and Asia, regarding its future growth. The brand
recorded strong profits despite a minimal drop in sales in 2016. Currently, Panasonic is
geared to its next growth period, for which it will begin to realign its business. A large global
business, however often entails significant risks, including economic, social and systemic
ones. A SWOT review that illustrates how the brand is doing in its respective fields and the
main pillars that push Panasonic's success around the world. Through this SWOT review, it
will allow you to understand the key strengths and limitations of the brand in the short and
long term, as well as its opportunities and challenges.
Panasonic’s Products (Product Mix)
Panasonic started off with the manufacturing of wiring Instrument and then moved on
to double-cluster socket, bullet-shaped bicycle lamps, electrical appliances and components
like light fixtures and electric irons. Post world war, Panasonic started its dealings in radio
and in 1961, started producing television sets. At present, Panasonic has a variety of services
and products in its portfolio related to electronic goods, semi-conductors, home appliances
and non-electronic services like the home-renovation services. Product portfolio of the
Panasonic brand is broadly classified into following Business Units:
1. Appliances Company: Televisions, Air Conditioners, Refrigerators, Home and
Kitchen Appliances, Personal Care items etc.
2. Eco Solutions Company: Industrial Lighting and wiring, Energy Solutions, Housing
Development etc.
3. AVC Networks Company: Professional Cameras and Broadcasting recording devices,
IT Solutions etc.
4. Automotive & Industrial Systems Company: Automotive Spares, Infotainment
Systems etc.
5. Other Businesses: Real Estate Development

This covers the products in the Panasonic marketing mix. The company allows every
individual to bought household products even in poor regions. The company’s purpose is to
give quality easy works for people more especially with the women who leads the household
shores.

Place/Distribution in Panasonic’s Marketing Mix

This marketing mix element lists the venues or locations where goods are sold and
where they can be accessed by customers. Panasonic Stores are the most popular locations
where the goods of the company are delivered. However the company uses different locations
as part of this 4P variable. The main locations from which Panasonic distributes its items are
as follows:

1. Panasonic Stores
2. Shopping Malls
3. Home Appliance Centers
4. Panasonic Official Website
5. Other Online Shopping Websites

Panasonic is a global brand whose business is globally spread across several

countries. Japan is its home country. However the entire business, which operates through a
number of divisional companies, is spread from the United States to Asia and Europe in a
number of countries. In recent years, China and India have been Panasonic's most important
markets.

Panasonic Stores are where the company produces much of its sales revenue because
it is directly delivered from its manufacturer. It guarantees that all electronics items offered
by them in its branches are exclusively belonging to the brand. But to properly spread their
brand, the company decides to place their items in Shopping Malls, which attracts more
customers and adds the availability percentage of the brand since malls are highly anticipated
place where consumer wants to purchase their needs and wants. There are local places that
don’t have malls in their area, so Panasonic have to consider other options to completely
extend the products to the local consumer and that’s when Home Appliance Centers were
found. As a great example, the Municipality of Midsayap doesn’t have any malls, but has
Home Appliances Center, people can purchase home appliance there and Panasonic never
failed the segmentation of their brand for there are electronic devices available in Midsayap’s
Home Appliance Centers. Purchase is also possible through Panasonic’s official website and
other online shopping sites, in fact that the internet has become a major sales outlet for the
brand.

Panasonic’s Promotion (Promotional Mix)

Among the 4Ps (Product, Price, Place, Promotion), this variable focuses on marketing
communication with their target customers. Promotion is very beneficial in the business as it
can be a way to create a source of information to the consumers and creates differentiation as
well. A brand needs to be different to survive and stand out from the crowd. It adds unique
value to a customer, creating a reason to choose your product in a crowded market.
As of now, Panasonic had countless marketing strategies which have helped the brand
grow, such as follows;
1. Product/service innovation
2. Advertising investment
3. Patron experience and etc.
Panasonic believes in large-scale campaigns to promote its manufacturer and its
products and services. It has stepped up its advertising promos to expand the brand visibility
in the purchaser eyes. Panasonic has determined on various sponsorship which offers to
maintain its visibility in the global market.

Panasonic’s Prices and Pricing Strategies

This marketing mix element specifies the price points and the price ranges of the
electronic products of the company. The goal is to use prices to increase profit margins and
sales volumes. Panasonic uses the following pricing methods in combination:
1. Penetration Pricing Strategy
2. Price Skimming Strategy
3. Discounting Strategy
 Penetration pricing is a pricing strategy which the price of a product is initially set
low to rapidly reach a wide fraction of the market and initiate word of mouth. The strategy
works on the expectation that customers will switch to the new brand because of the lower
price. Panasonic is a multinational brand that believes in quality goods to appeal to global
audiences. Its primary aim is the middle class through its consumer electronics devices. The
largest number of products is intended for them. Since they are after of middle class
consumers, they assure that there products will be reached consumers. On the other hand, in
price skimming, the marketer sets a relatively high initial price for a product or service at
first, then lowers the price over time. It is a temporal version of price discrimination/yield
management. Since Panasonic is a Japanese company, we have this impression of them about
being durable and effective in their products/services. So we assume of it a bit costly for its
guaranteed performance of the product. As a result, the pricing strategy of products also
affects the class, business, geographical area and level of demand in specific markets.
Panasonic also offers on credit terms, installments, and discounts in a period of time. The
company will be able to win market share based on discounted pricing. Panasonic
understands that a lot of customer will refuse to buy their products because of the price,
nonetheless it lowers the price over time, for they knew that they'll be selling much advance
and expensive products in the future.

Panasonic’s SWOT Analysis & Recommendations

Introduction
Panasonic is a joint - stock multinational firm in Kadoma, Japan. Established in 1918,
this Japanese based company is active in the electronics and home appliances industry.
Panasonic represents the international market and is one of the world's largest manufacturers
of electronic products. By associating itself with the 'Go Green' campaign, it has been able to
create a market identity for itself. The corporate world has become extremely competitive,
which is why Panasonic has demonstrated a strong focus on R&D. The brand reported total
revenue of 7343.7 billion Yen in the fiscal year ended April 1, 2017, of which the largest
percentage came from Appliances and Automotive and Industrial Systems.

Panasonic’s Strengths (Internal Strategic Factors)

Panasonic’s strengths make it a leading contender in the electronic device market. This aspect
of the SWOT analysis shows the internal strategic factors that contribute to organizational
viability. Panasonic’s main strengths are as follows:

1. Notable brand name around the world

2. Enormous and rich item portfolio
3. Strong monetary position
4. Innovative innovation to help quick business development
5. Strong situation in developing Asian business sectors
6. Strong spotlight on R&D
7. Focus on CSR and HR variety
1. Notable brand name around the world. Panasonic's principle strength is its image name
and a solid brand picture. Its business has developed further through mechanical
advancement. While it is chiefly known for its customer hardware business, the brand is
additionally working in different territories including auto-motives and B2B.
2. Enormous and rich item portfolio. The brand has a huge and rich arrangement of items. It
makes and sells a few items and administrations in every one of the four business
classifications. From Air molding and housekeeping types of gear to housing hardware,
renovating, infotainment frameworks, car gadgets, aeronautics arrangements,
manufacturing plant arrangements, food dissemination arrangements and some more. The
brand gives an exceptionally huge line of items and administrations.
3. Strong monetary position. The brand is in a monetarily solid position and the explanation
for it are the solid deals of its items and administrations in different business sectors.
While there was a slight fall in its deals in 2016 contrasted with 2015, the working benefit
and overall gain of the brand have risen. Net deals of the brand arrived at 7.7 trillion Yen
in 2015 and tumbled to 7.6 trillion yens in 2016. Nonetheless, the overall revenues
developed further in 2016 and from 381.9 Billion Yen in 2015, it arrived at 415.7 Billion
Yen in 2016. The net gain owing to Panasonic partnership likewise rose from 179.5
Billion yen to 193.3 Billion Yen in 2016.
4. Innovative innovation to help quick business development. The brand is accomplishing
quicker development through interest in inventive innovation. It has brought inventive
security arrangements that consolidate ruggedised PCs and tablets with surveillance
cameras or wearable cameras to make policing successful. It has likewise expanded the
degree of interest in IoT in the administration business. In the field of aeronautics too it
has brought inventive arrangements that are utilized for in-flight correspondence and
amusement. These things have helped it accomplish quicker development universally. It
is the reason its organization with vehicle and flight makers has continued developing.
Panasonic's 'Intense Book' has a particular picture for its quality and ease of use which
even the best brands in PC industry have discovered hard to impersonate.
5. Strong situation in developing Asian business sectors. Panasonic has a solid situation in
the car battery business where it is a pioneer and is ceaselessly putting resources into
quality and controlling costs in order to hold its initiative position. The degree of value
that Panasonic gives here would be hard for any Asian organization to make up for lost
time and it is the reason its authority position there can't be effortlessly tested. Its clothes
washers and vacuum cleaners have additionally accomplished extremely elevated level of
deals in the Asian nations. Deals of the LED lighting apparatuses and lights in the Asian
business sectors has likewise developed. These things demonstrate that to challenge
Panasonic's situation in the present moment would stay hard for different brands in the
Asian business sectors.
6. Strong spotlight on R&D. The brand is center around development to carry new answers
for the market that address unaddressed requirements of its clients. It has a different R&D
office and is putting resources into innovative work in all the four business regions. In the
car fragment, it has zeroed in its assets on fortifying its current Advanced Driver
Assistance System and Battery Business. The Advanced Research Division of Panasonic
is associated with creative exploration in order to advance quicker development of Nex-
Gen Technology arrangements. The R&D division of Panasonic is a very much overseen
angle and furthermore one of the most basic qualities of its business.
7. Focus on CSR and HR variety. Panasonic has not stayed behind in different regions by
the same token. Like the other best worldwide brands, Panasonic too has put resources
into social and natural obligation just as imaginative HR the executives. CSR at
Panasonic is a natural piece of its administration reasoning. Aside from mindful business
in its center business zones, the brand has defined explicit rules to drive fair conduct all
through the association. It has put resources into CSR activities in an assortment of
territories that incorporate climate, human and work rights, security and wellbeing and
has kept up an uncommon spotlight on morals. These activities reach out to its gracefully
chain also where the brand has kept up solid associations with its accomplices. It has
likewise set achievements for itself for the future to make the picture of a brand that puts
stock in maintainable development. Its Green Plan 2018 is a climate activity plan that
assigns its key targets and incorporates the "Key Performance Indicators" which will
assist it with estimating its accomplishments.

Panasonic’s Weaknesses (Internal Strategic Factors)

Weaknesses are part of any business when it operates. Flaws are the areas that could
help a business to improve strategies in making choices by the help of SWOT analysis
bringing innovative ideas on the table and competitive advantages as a core of dominating
business industry. Panasonic’s main weaknesses are as follows:
1. Expensive Products
2. Days Inventory is High Compare to the Competitors
3. Aggressive Marketing Techniques of Competitors
4. Need more investment in new technology
People will normally compare products’ prices and more often choose what they see
is cheaper in price. Panasonic’s highly cost product is a weak point in earning profitable
sales. Days of inventory by other competitors helps to increase their sales as they produce
and place products in daily basis. This could affect the long-term growth of Panasonic in the
business dimension. Competitors will always take a step forward to lead the raise. Their
aggressive behavior would cause a huge change of demand affecting product distribution and
sales. Panasonic needs to invest in the innovative technology coping with a better ways of
introducing its product. These weaknesses show the company’s missing piece in creating the
perfect image of success.

Opportunities for Panasonic’s (External Strategic Factors)

Technology companies are normally similar when it comes to their opportunities.
Panasonic has a few different opportunities stemming out from their high quality, good brand
and diversity:
1. Emerging markets
2. New products

Emerging markets. In addition to providing almost ‘luxury’ consumer electronics,

Panasonic also produces so much global household appliance that is highly demanded. So
therefore, there is demand for Panasonic products even in not progressive regions. In general,
this multinational has plenty of opportunities to expand its markets in Latin America, India
and perhaps one day Africa.
New products. Like most tech companies, if Panasonic can catch the next ‘big thing’
in electronics, there is a lot to be gained. Panasonic’s healthy wealth, large working force
(over 250,000 workers) and innovation might help them to act on their next big opportunities.

Threats Facing Panasonic’s (External Strategic Factors)

The challenges to Panasonic are focused on global rivalries and changing trends. This aspect
of the SWOT analysis deals with external strategic factors which limit business growth. The
main threats Panasonic’s business are as follows:

1. Heavy competition
2. Volatile market

Heavy competition. Sony, LG, Samsung, Philips and Toshiba all compete directly
with many of the products Panasonic manufactures. Each of them has their own strengths—
lower costs, higher efficiency, and even better customer service. Heavy competition. If
Panasonic is unable to keep up with progress, other major multinational technology firms will
be pushed aside. The technology market is evolving every week, if not every day. Who
knows if in 10 years the majority of Panasonics items will still be relevant?

In conclusion, while Panasonic has a reputation for its innovation abilities, high
quality and eclectic product line, it competes in one of the toughest markets in the world.
Panasonic certainly has a chance to supply its home appliances to different emerging markets
across the globe, but they also have to be careful not to be swept away in the competitive
markets of the technology industry.

Panasonic’s SWOT Analysis – Recommendations