Nintendo Wii
Marketing plan
Table of Content 1. Situation analysis 1.1 Macro analysis 1.2 Micro analysis 1.3 SWOT analysis 1.4 Bowman’s strategy clock 1.5 The Product Life Cycle 2. Target Market 2.1 Positioning 2.2 Segmentation 3. Marketing Mix 3.1 Product 3.2 Price 3.3 Promotion 3.4 Place 3.5 People 3.6 Physical 3.7 Process
1.
Situation analysis
1.1. Macro environment
The PESTEL analysis describes a framework of macro-environmental factors. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.
1.2.1. Political
The video game industry is influenced by factors
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1.2.5. Environmental
The video game industry uses a lot of plastic and metal resources for its hardware. Playing video games also consumes a lot of power, Nintendo see to it that their games utilize low power because a majority of people are environmentally aware. Nintendo create games such as Super Mario Sunshine, which challenges players to improve the environment around them.
1.2.6. Legal
Legal factors in the video games industry are: trademarks, copyrights, licensing, online ownership, etc. Some countries might also ban violent games, e.g. GTA. 1.2.
Micro analysis
The Five Forces model by Porter identifies the courses of competition in the video game industry.
1.3.7. Suppliers
Nintendo develops some games by itself, become their own supplier.
1.1.1. Distributors
The distributors such as local/online store distributors, retailers, wholesalers play a vital role in the video game industry. It is also essential to know the potential distributors of video games because some might just act as middlemen to make profit.
1.1.2. Customers
Video game players include a diverse segment of students, employees, military troops, seniors, mothers and fathers. The first gamers have grown up, started their own families and included children in the fun. Because of this the population of games as expanded over years. Game developers make game more accessible to the diverse
Video games are a fast growing form of technology. This issue has to be discussed because of the two confronting sides that embark it. Because of the issue video games have to either continue growing as they are or they have to be stopped completely or a settlement between the two parties has to be
PESTEL analysis is widely used to better understand the external environment of the company. The acronym PESTEL stands for political, economic, sociocultural, technological, environmental, and legal factors. PESTEL analysis helps managers better understand the threats and opportunities a company faces.
Now that technological companies all over the world have set most of the seven billion individuals in the world with a computer, smartphone or tablet, it is time for better software to use with them. This is where games come in. Electronic Arts CEO John Riccitiello stated in a recent interview that PC gaming is the ‘fastest growing platform’. This shows the growing interest in gaming bearing in mind that gamers also have the means to play on. The term ‘gamer’ refers to an individual that plays a game or games, typically a participant in a computer or role playing game. The gaming community has grown so wide in the last few years because of the shift from single player games to multiplayer games on the internet
Pestel analysis consists of environmental factors that lead to the understanding weaknesses and strengths of the organization in an attempt to influence the organization’s success. The macro-environmental factors are political, economic, social, technological, environment and legal.
Macro environment comprises external forces that organisation cannot directly control, instead organisation need to manage their macro environment in a way that benefits them ("The Macro Environment & Pest Analysis", 2016). The PESTLE analysis is the most widely recognized approach for considering the external business environment (Gupta, 2013). PESTLE analysis stands for Political, Economic, Social, and Technological, Legal and environmental analysis and describe a framework of macro environmental factors utilized as a part of the environmental scanning component of strategic management. Generally, all the PESTLE factors might not important for all types of industry its depends up industry nature or size. This PESTLE analysis is based on Accor Hotels in Australia which is a famous and globally recognise hospitality brand.
Macro environment is crucial to the development of a company. All the external factors can have huge positive or negative influences on Travis Perkins plc, therefore a better understanding of the environment of the company is of supreme significance (Peng & Nunes, 2007). Among all the analysis tools, PEST analysis is one of the most effective tools to analyze the external environment of a company (Riley, 2012). This part will demonstrate PESTLE analysis of Travis Perkins plc below. The result of PESTLE analysis can be demonstrated in the following table 1.
Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.
The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.
The five forces that drive industry competition, a model established by Michael Porter, are; threat of substitution, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and intensity of rivalry. The video game industry must deal with all five of these forces. The analysis of the strength of these five forces within the video game industry will help to draw a conclusion as to whether or not it is an attractive industry for Sony to be in.
The role of technology is vital in this industry as it focuses on technological efforts for competitive advantage. Every new development uses new technology. Though there are restricted innovations in the gaming industry, the speed of technological transfer is very high. Nintendo’s role from playing cards to toys to video games and then with each console introduced, included many technological changes. Technological up gradation increased hardware costs and discouraged innovation. The online capability of Nintendo Wii was a major change in the technology of the video game industry though they were not able to do as well as their competitors (Sony, Microsoft).
* Instead of focusing on one particular target segment (18 to 35 year-old male gamers with above average-education and high degree of comfort with new technology) further target segments should also be focused (e.g. women, children, occasional gamers and non-gamers). Some of the further customers require games which are easy to play because they have a low degree of comfort with new technologies. Furthermore some of them don’t want to invest a significant amount of their time to learn and play these games because of their busy lives.
Nintendo however is not present in this new market and therefore it is very important to take in consideration to enter this new area because at the moment the company does not have products that satisfy those new needs resulting in the loose of sales and consequently revenues.
External analysis of general environment will be done using PESTEL which refers to how the political, economic, social, technological, environmental and legal environment affects an organization. Below will be a diagram of PESTEL, followed by a brief explanation of each factor and their examples.
A PESTEL examination is a system or instrument utilized by advertisers to dissect and screen the full scale ecological (outside promoting condition) factors that affect an association. The consequence of which is utilized to recognize dangers and shortcomings which is utilized as a part of a SWOT investigation. This also enables an association to distinguish the outer powers that could affect their market and dissect how they could specifically affect their business. It 's essential when undertaking such an examination, to the point that the variables
The video game console industry is a very competitive segment. This segment requires a keen eye on product development as well as strategic product marketing and a rather large logistics arm to ensure rapid distribution to targeted areas. Video game industry in the US, which is hugely driven by retail sales of software and hardware, registered revenues of USD ~ million in CY'2012. Even so with the advent of new video game players in the industry, the revenues decreased by 11.7% compared to