Sonance Harvard Case Solution & Analysis

Sonance Case Study Solution

Alternative 3: Rebuilding the Relations

As the company retails its product through specialty retailers and custom retailers, now the company should also sell its product to small or individual owners, in order to grow its revenues. There are very few companies which operate with large custom installation in the country, such as: HI-FI house and mix retail outlets. A survey in 2004 revealed that more than half of the returnswere earned by the retailers because of the improvement in business from 2003. It is also noted by Struthers and Spencer that affluent home buyers want to buy advanced sound systems. By considering this, the company started working on a niche market within high-end audio and super design. The company knew that customers always want the best sound quality; however, the sound system is a high-end tower or ribbon speaker.

Alternative 4: Architectural Series

Sonance also has a good option of introducing the architectural series, because the R&D department of the company has more budget than it had before, and the department is working on innovating its main products,i.e. the in-wall speaker. The team has also designed a sample for the new product without sightlines and flush speakers, with a wall surface. This model was the architectural series of the company. The cost of production is high and so isthe additional installation cost. The estimated cost of the pair is very high although the focus group indicates that the clients want best of their homes, therefore price won’t matter to them. Because of this, Supran was excited about the introduction of architectural series,but when he discussed this idea with the top management; they denied this idea because ofitshigh-cost factor. This was a niche product but the recovery of the cost was at risk. The price per speaker should be $2000, because if the company sells this product at $750; the cost will not be recovered by the company. This will restrict the company from earning profit margins and would push it towards loss incurrence.

Question No. 3


Based onthe above alternatives, the company is highly recommended to go with alternative 4 which is the introduction of Architectural Series. The reason for this recommendation is based onthefollowing marketing strategy and marketing mix.

Marketing Strategy Process

The company should implement a recommended alternative by these marketing strategy processes.

Understand Customer Needs

The marketing strategy states that the firm should identify the needs and wants of their target customers, first. As the focus group said that the high end customers want the best for their homes and high cost is not calculated by them, so making an investment in this alternative will be highly profitable for the company.

Analyze Market

The company has invested a massive capital on its R&D department,which has created a design of new architectural series; having more features than the original series. The market does not have tough completion in this type of series, because it has flush timeless speaker and wall surface. The customer always want a change and an advanced technology, and this will product will meet the customers’ requirements.....................................


This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.