Marketing Mix of Ea Sports

990 WordsOct 24, 20114 Pages
ASSIGNMENT OF MARKETING MANAGEMENT TOPIC :- MARKETING MIX MARKETING MIX OF EA SPORTS INTODUCTION : – EA Sports is a brand name used by Electronic Arts since 1993 to distribute games based on sports. Formerly a gimmick inside Electronic Arts sports games, that tried to mimic real-life sports networks, calling themselves “EA Sports Network” (EASN) with pictures or endorsements of real commentators such as John Madden, it soon grew up to become a sub-label on its own, releasing game series such as FIFA, NHL, Madden NFL, and NASCAR. EA Sports’ early motto, If it’s in the game, it’s in the game, (later abbreviated to just It’s in the game.) reflects the aim of the early games to portray reality as best as the technology would…show more content…
Hawkins was determined to sell directly to buyers. Combined with the fact that Hawkins was pioneering new game brands, this made sales growth more challenging. Retailers wanted to buy known brands from existing distribution partners. Despite this, revenue was $5 million in the first year and $11 million the next. [Former CEO Larry Probst arrived as VP of Sales in late 1984 and helped the company sustain growth into $18 million in its third full year. Teaming with the existing sales staff that included Nancy Smith, David Klein, and David Gardner, Probst built the largest sales force of any American game publisher. This policy of dealing directly with retailers gave EA higher margins and better market awareness, key advantages the company would leverage to leapfrog its early competitors. Net revenue was $3 billion – up 19 percent. Gross margin was at an all time high of 62.7 percent. Operating income was up 70 percent to $776 million while operating margin reached 26 percent. Their operating cash flow was $669 million and their return on invested capital was a record 70 percent yet as successful as EA is today, the biggest opportunities are still ahead… Promotion : – EA has adopted a strategy of platform-agnostic development and the creation of strong multi-year franchises for promotion. EA was the first publisher to release yearly updates of its sports franchises- Madden, FIFA, NHL, NBA Live, Tiger Woods, etc. – with
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