Will Sony's Brand Revival Salvage Its Reputation?

Once a company with a reputation for being first in innovation – the Trinitron color television in the 1960s, for example – Sony is now widely seen as a technology has-been. The company has two basic problems: the Sony brand is being out-maneuvered in virtually every product category, and its products are generally not up to the standards of its halcyon days.

Samsung and Vizio in televisions, Nintendo in video games, Dell, HP, and Apple in laptops, and Amazon's Kindle in e-book readers – all of these brands are formidable competitors that are winning in Sony product categories.

That's why Sony is ready to "reinvent its marketing," says the company's senior executives. "We cannot just rely on the brand to sell products."

As a result, Sony's $5 billion ad budget next year will likely be spent on supporting a smaller number of products more aggressively, rather than try to cover the company's wide spectrum. In effect, they'll spend money only on the products most likely to succeed.

Rejiggering its ad budget won't help Sony solve its quality problems, however. SmartHouse notes that while Sony previously manufactured its own products, "due to mass sackings, billions in losses and the closure of factories the company has resorted to third party manufacturer companies in Taiwan, China, and Vietnam." Sony's TVs and laptops have faced "several recalls or service bulletins this year due to product failures."

Beleaguered Sony saw its sales and operating revenue decline nearly 20% in the second quarter of its fiscal year, (July-September), even as technology companies like Apple and Samsung are reporting strong profits. One has to wonder if "reinventing its marketing" is enough to make Sony viable again.