Conduct a situation analysis for your organization, or an organization you have researched, by preparing a report with the following sections: Organizational analysis
The first component is the expansion of the gaming audience and drawing in new people. The company’s most recent endeavour, the Wii console has been very successful in attracting user who traditionally would not have played video games. Another example of how they have expanded their audience is through the Nintendo DS. They were able to appeal to the female audience through the Nintendo’s game, and were able to appeal to an older audience through the Brain Training game. The second component of the vision is devotion to the entertainment business. This is reflected by the company’s attitude to the collaboration of its employees. The company is a strong advocate of allowing different employee groups, such as engineers and programmers. The result of this collaboration is that groups work on products and no single person takes credit for product. The third aspect of the company’s vision is risk and the encouraging of employees to make creative decisions to challenge the notion of what a video game is capable of being.
Identify the major customer segments by preparing the following analysis (for each complete only the section relevant to your organization and add any others you feel are relevant). What does the customer buy from the
Where does the customer come from?
a) Social class
Benefits are sought by the customer
Has the customer purchased the product from the organization before? a) Yes
How frequently does the customer buy?
How much does the customer buy each time?
Is the customer loyal to the brand?
How does the customer decide which brand to buy?
For technology and History
Where does the customer prefer to purchase the product or service? Retail Store
Analyze each major competitor against the following criteria. Name of competit-or
Current or potential competit-or
Direct or indirect competit-or
Market position/brand image
Size, growth and market share
Brand image and market position
Tablets & iPhones
Integrated w/ mobile
Practical & useful
Filibustercartoons.com state that Nintendo’s previously had strict policy in relation to video game violence and sexual reference. In the early 1990’s Nintendo had a strict no blood policy and refused to publish violent video games. This policy has since been relaxed and video game censorship is now run by independent boards which give games appropriate age rating depending on their content. These include The Pan-European Game Information (PEGI) age rating system. The system was established in 2003 to guide parents in making informed decisions when purchasing video games for their children (Pan European Game Information, 2007). Nintendo still does not publish graphical violent games themselves, but allow third party publishers to release the games on their systems.
If a country’s economy is performing well, people will generally have a higher level of disposal income. In order to be successful a high disposal income is not enough there needs to be an interest in the market. Nintendo selling their products at the lower end of the price scale makes their product affordable to large audience including those who do not enjoy a strong disposal income. This is not the case for Sony who products tend to be quite expensive as seen with the €630 price tag on the Playstation 3, which is possibly too expensive for the average person. Nintendo on the other hand, sold the Wii at a more affordable €270 price tag. The same applies for the games for the system. The Wii games range from 45-60 Euro and the PS3 games can cost up to €75.
Video games have been part of adolescent life world wide now for several years. Many teenagers play video games together both online and at home together. In some cultures especially Japan, video games formed a significant part of young people’s lives. Nintendo is using this to appeal to a wider audience with the Wii and the DS by providing an online community where friends can link up and play games together free of charge anywhere there a Wi-Fi hub. Nintendo is also trying to make video games an activity that an entire family can take part in and for the most part have been successful.
Web Browser for the Nintendo DS: InternetAdSales.com (2006) writes that a Wed browser for Nintendo’s DS was launched in Europe on 6th October 2006. The browser is powered by software from the Opera Company. The device is designed in a similar fashion to a standard DS game cartridge and is available in two versions; one is compatible with the classic Nintendo DS and the other is designed for the smaller DS Lite. The browser utilises the DS’s two screens for navigating the web in addition to providing the touch capabilities unique to the DS. Users may access the Internet via wireless networks at home, at one of Nintendo’s free Wi-Fi Connection Hotspots, or at any public access hotspot.
Wii Remote (“Wiimote”): BBC (2006) states that the remote for Nintendo’s Wii console resembles a television remote control and provides users with the means of interacting with a game environment. It can be utilised to stab like a sword, steer like the steering wheel of a car, and swing like a tennis racket. Nintendo have created this new controller in the hope that it will allow for the broadening of the console’s appeal. The device functions through a three-axis accelerometer, i.e. a motion sensor, which is capable of detecting the angle at which the controller is being held at and how fast it is being moved. It interfaces with the Wii console in a wireless manner via Bluetooth, a short-range wireless technology. This interface is achieved through a senor bar, which is generally mounted on top of the user’s television.
Nintendo DS Wireless Technology: Mobile Technology News.com (2007) writes about how the Nintendo DS allows users to interact with games in an unprecedented way via the dual screens and touch screen technology. In addition to this, the wireless technology feature of the DS permits users to experience real-time multiplayer gaming. The Nintendo Wi-Fi Connection service, which is free, allows users to compete against other users from around the world.
Complete a SWOT analysis using the diagram below
• Strong network of game licensees
• Strong global market position
• Had strict policy in relation to video game violence and sexual reference • Innovation in Remote in Blu-ray
• Nintendo’s policy of having a large number of its game titles designed by the company’s own game designers • Wii doesn’t play DVDs/Blu-rays
• Opening up its software to a wider audience.
• The company claims that the motion-sensitive controller can be copied. • The Wii controller resembles a television remote and has a trigger under the front end.
Market size and growth rate.
Nintendo’s contenders in the portable market are the Game Boy and the DS. Over the years, the Game Boy has faced competition from companies such as Sega, Atari, SNK, Bandai, Nokia and now Sony. Even with rival’s machines been technically superior, Nintendo’s handhelds have come out on top time and time again. Nintendo proved with the Game Boy and now the DS that it is not what you have it is how you use it that counts i.e. instead of adding fancy graphics and numbers of additional unnecessary features, Nintendo spent its time securing key franchises such as pokemon and Tetris. They also greatly increased their machines’ battery life. Nintendo’s handhelds over the years have boasted battery life of up to 15 hours depending on how the machine was used compared to 3 hours or less form Sega’s and Atari’s machines. This was due to the unnecessary battery hogging feature competitors’ machine featured. This has helped Nintendo dominate the portable market for close to 18 years. Today the Nintendo DS out sells the Sony PSP in all regions.
1. Prepare a report analyzing the marketing activities, policies and procedures of your organization or an organization you have researched.
The price of games is quite interesting. Nintendo uses a series of pricing strategies throughout the product life. As the product becomes adopted they will begin to reduce the price of competitive parity, and as you reach the end of their life cycle games will be priced promotionally until they hit the bargain bucket.
The product is distributed in a number of ways. Nintendo manufactures and distribute it to retailers through wholesalers for you. Some very large national accounts will be handled directly because of the huge volumes they buy. Nintendo is available on the street in all major electrical retailers and games, as well as being sold online by known retailers like Amazon.com and play.com, and you can find one or two second-hand bargains on eBay. with.Distribution is ripe for Nintendo and there are few avenues for the market they do not pursue.
When Nintendo launches new products. For example, when the company launched the Nintendo 3DS, a series of special days of release, and even some launch events at midnight. Fans of Nintendo product has a chance to have a go at the new Nintendo system, first buyers get a free box of transportation, and there is always free gifts such as shirts and caps. The launch campaign demonstrates a great effort by Nintendo. For example, over 85% of audience in the UK saw the Nintendo 3DS called campaign believe his eyes. The campaign itself was emphasize the benefits of 3D experience. The campaign was a mash up of consumers who experience the product and innovative advertising.
2. Analyze the previous marketing activities of the organization and evaluate the effectiveness of each activity. Previous marketing activity
Launch of SuperNintendo
Highly effective. It put Nintendo in the first positions of videogame console makers Launch of Nintendo 64
Highly effective. The console and its control were considered great innovations. Launch of Nintendo Wii
Highly effective. Nintendo Wii was a true innovation in the world of games with its blu-ray technology and the idea of making people move their bodies rather than just their fingers. Launch of Nintendo DS / DS 3D
Effective. Nintendo DS was seen by some as a reformulation of the previous GameBoy and therefore not so effective. However, Nintendo DS 3D was considered highly innovative as it allowed the users to enjoy the 3D effects without having to use any other gadgets (i.e: 3D glasses). Intercommunication among Nintendo DS 3D
Effective. It allowed different users to connect their videogames and share data as well as interact.
3. Classify the organization’s current marketing strategy as either a cost-leadership, differentiation or focus strategy.
4. Explain how this strategy affects the marketing activities the organization will use in the future.
Instead of competing for lower prices, Nintendo seems to continuously search
for new usages and technologies, in order to maintain its position as a leader and innovator.
5. Analyze the current marketing mix.
Marketing mix element
In two different colors (but it can be customized if wanted)
Smaller than its competitors
It allows motions and real activity
No violence or sex-related topics are allowed
A wide range of choices
Prices charged for the organization’s products and services Around AU$190.00
Organization’s prices strategy
Nintendo’s strategy is in differentiation, always trying to bring something new for their costumers and therefore, their price strategy conveys with it. Promotion
Promotional tools used by the organization
Internet, Printed media, Television, Outdoor Media, Promotions and Events,
Organization’s promotional strategy
Nintendo uses all range of media to promote their products.
Type of distribution channel – direct or indirect
Mainly indirect, via retailers, shops, department stores, etc.