According to given case which pricing option is opted by Sony . Sony is pursuing right pricing strategy , comment .Suppose you are being hired by Sony to devise a retail pricing strategy for their upscale retail store. Briefly discuss the steps you will take to develop an effective retail price strategy?

Q1: Case Study: Sony Looks to a Small Store Sony is now gearing up to sell its TVs, DVD players, and other electronics through a number of small company owned Sony Style stores. Since it began this strategy, Sony has opened more than 25, stores, with plans to expand significantly. While apparel manufacturers such as Coach Burberry and Ralph Lauren typically have hundreds of company-owned stores that compete with department and specialty stores, this strategy is uncommon for electronics manufacturers. Due to its belief that many conventional electronics stores do a poor job in demonstrating its goods to women, Sony plans to place stores in upscale shopping centers and central business districts. It will open stores near such female oriented fims as Sephora Tiffany and Louis Vuitton. Sony seeks out mall locations in the nation's largest 20 markets and bids for the best locations in these malls. This locational strategy is in sharp contrast with that of large electronic stores such as Croma/NEXT), which are situated in smaller malls. Sony's stores feature a concierge desk where each shopper is greeted. Aisles are designed to easily accommodate strollers. And unlike conventional electronics stores where competing brands are lined up in rows, each Sony model will be placed on a different stand This gives consumers a better idea of what the TVs or home theatres will look like in their living room or den And all TVs will be tuned into the Discovery Channel or to movieclips from Sony Corporation movies, not to sports channels Sony's newest strategy focuses on using small store formats. Its GKI, New Delhi, store is 6,000 square feet in size, this is about one-seventh the size of a typical Croma. The store caries a wide assortment, ranging from $20,000 televisions, but its selection is limited to about 18 different models of TVs, 15 computers and 12 camcorders. This strategy has created a significant concern among Sony's traditional retailers. Many fear that Sony will become a direct competitor, as well as their supplier. These retailers are further worried that manufacturer retailer competition for the final consumer market will intensify as other electronics fims such as Panasonic and Samsung copy of this strategy. Toreduce their concerns, Sony invites retailers that have nearby stores to their newestlocations prior to their opening Sony has also undertaken marketing research studies showing that the new stores, by better educating customers about the features of a Sony model, increase the sales of all stores in the area. Some retail analysts, on the other hand, feel that Sony will probably take away sales more from smaller chains than larger ones. Sony claims thatitis not trying to undercut its retailers and comparison shopping around a Delhi store confims this. As an example, Sony's price for a 42 inch plasma TV was Rs. 42,000 more than the price for the same set offered by a NEXT store located eight miles away. And Electronic Junction (leading Consumer durable store) prices were within Rs. 300 of the Sony store's prices for two DVD players. Questions: 1. Identify the three parts of trading areas. Mention different types of planned shopping center and identify which type of location Sony prefers for its store. Keeping in view Sony image and positioning give your recommendation on most suitable location for Sony. (2+4+6) 2. Identify the pros and cons of Sony's small-store format. Should Sony use prototype stores? Should it use rationalized retailing? Explain your answers. Give reason for your choice? (4+8) 3. Defines operations blueprint .Describe the pros and cons of a top-down space management approach for Sony, as well a bottom-up space management system Briefly discuss the suitable merchandise mix caried by Sony to maintainits image? (8+4) 4. According to given case which pricing option is opted by Sony Sony is pursuing right pricing strategy, comment Suppose you are being hired by Sony to devise a retail pricing strategy for their upscale retail store. Briefly discuss the steps you will take to develop an effective retail price strategy? (2+2+10)