Sony Corp.’s U.S. unit will ratchet up its marketing expenditure by hundreds of millions of dollars this year to attract consumers to its high-definition electronics, including TVs, camcorders and DVD players, according to news reports.
Behind the move is the influx of less expensive TVs, more broadcast channels and next-generation Blu-ray DVD players which are expected to spur demand for HD components.
“We are making a huge investment,” Sony Electronics CMO Michael Fasulo told Reuters last week. “It is the largest in history that I can recall.”
Sony Electronics almost doubled its estimated $100 million in annual advertising spend last year to move flat panel televisions, digital music players and other devices off shelves, reports said.
The company’s advertising and promotional spending would include everything from TV commercials to sponsorship of NASCAR professional auto racing to film-related merchandising, news reports said.
Some 75% of the investment will focus on high-definition TVs, digital camcorders, still cameras and Blu-ray DVD players and related products, Fasulo said.
Sony’s increased marketing spend is also being driven by stiff competition in the HDTV market. The Consumer Electronics Association indicated that unit sales for HDTVs will reach 15.9 million this year, outselling its analog counterpart.
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