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Video Game Console Essay

Introduction

This three year strategic marketing plan for the Alpha System has been created by its founders to secure additional funding for growth and to inform employees of the company’s direction. The first year of the marketing plan will be a tactical/guerilla approach to marketing with certain objectives and goals to meet. Even though Alpha Systems was launched 2 years ago on a Kickstarter campaign, the firm has seen tremendous growth over the last several months. We have had a lot of recognition from major video game publications and blogs. Our beta group has given us the right feedback to improve our video game system and worked out all of the major flaws in the system. The demand for our console is predicted to be high after we tried to get funding on “Shark Tank”. There was enough demand that we had to limit the number of beta tester request. Our pre-sale Kickstarter campaign saw high demands for people wanting day one systems.

The market segment we service has been very receptive to our system launched with a high quality aluminum console, which is available in several popular colors to reflect our user’s personal style. Over the next three years, Alpha Systems can increase distribution, and enter a new era for our console and accessories; which will increase our bottom line sales and affect our return on our investment into our system and winning customers from the major gaming system platforms.

Mission Statement

“Our mission is to merge the valleys and gaps between the popular gaming platforms. It will allow users to play all popular games across multiple platforms on a single system; eliminating the need for multiple video game machines and accessories.”

Product Description and Classification

Alpha Systems video game console system will support all major video games system platforms, and allow you to use the online content provided by the game. There is a custom dashboard and the operating system reads all of the codecs that PlayStation ™, Xbox ™, Nintendo™, and retro games. The Alpha Console will have the ability to support surround sound and high definition video. The system will also support DVD, and Blu-ray codecs. There will be two controllers in the box with an optional smart controller that customers can purchase. The system will have 16 GB of DDR3, and a two terabyte SSD hard drive. The operation system will be based upon open source Ubuntu with a dashboard look at feel. There will be support for web browsing and online video streaming. Applications like Spotify and Netflix will be pre-installed.

Product Classification

The Alpha System will fall under the classification of a Specialty Product Offering classification of the three-way product classification system. By providing a single console for you to play all of your favorite games on without the need for multiple systems to play the games one. Alpha System will become the premier video game system.

Target Market

Our target market is parents of teens who are looking to give their children the latest in technologies, and young adult’s age 19 to 25 who are avid game players, and have the disposable income to buy a higher end gaming system. Also we would target people who would want a single system, but yet would want to play games exclusive to PlayStation ™ and XBOX ™ and other gaming systems.

Competitive Situation Analysis

Analysis of Competition using Porter’s 5 Forces Model
Competitive Rivalry:
Our business model and advertising is directly pointed to compete in the same arena as Microsoft and Sony for the premiere video game systems. By doing this it will show the larger video game systems that will we not back down and that we are confident in our product.

Threat from New Entrants:

After Alpha System enters the market, our business model is structured about gaining a majority of ground in the market place, and taking user away from XBOX™ and PlayStation™ and allowing them to play all the proprietary games all on one system. While we always will work hard on our product to stay current in an ever changing video game world. We have developed work around all of the major media digital rights management codecs. This will allow all major games to be played regardless of what system they are designed for. This will allow the optical drive to read the gaming media.

Threat from Buyers:

The number one threat from buyers in this market segment is loyalty to another brand. They may simply choose to buy an XBOX™ or PlayStation™ simply because they are used to buying those systems. There is a certain social stigma attached to owning an XBOX™ or PlayStation™ since they are for the most part the only video game systems on the market. Getting Vloggers, and bloggers to give our system positive review can go a long way towards neutralizing the negative stereotype a new system may or may not have.

Threat from Suppliers:

Many of the suppliers of the raw goods needed to develop the cross-platform gaming systems may have exclusive deals with Microsoft or Sony to build gaming systems. With that being said we may have to find new suppliers or research other avenues to get the gaming system made, and have to make a well informed and financially sound choice as to the direction we will go with manufacturing the system.

Threat from Substitutes:

Microsoft and Sony will always be a direct substitute for our console, but our job is to show the customer how our product is different and a better solution to their gaming system even if it is the smallest differences and, in our humblest opinion, superior.

SWOT Analysis

In this first paragraph, please introduce the SWOT analysis. For more information, see the recommended text, index topic “SWOT analysis.” This section is laid out to summarize the analysis in a table, and is then followed by more detailed explanations of each item. Please see specific instructions in the four sections below the table. STRENGTHS *indicates core competency

Strengths

We will be the first non-major bard video game system on the market that will play games from every video game system.

Alpha Systems will not succeed without an innovative product. We have established that we can be as flexible as our users need us to be. If there is a game that we cannot play we will develop a way to play that game.

By creating a market for the all-in-one gaming systems, we will be the gaming system that plays all of the major games from the major gaming machines.

Weaknesses

Low name recognition- At first we will have to hustle to find our share of the 55 billion dollar gaming industry. We will have to have a heavy ad campaign to get our name out there fast.
Being we are going to be an unknown system at first we have to be creative in how we select our suppliers. Any mistake we make could and will be fatal to our company.

Opportunities

Some of our target demographic will not go away from their video game console at all. We can understand that, but we will use target ad campaigns that will attract the users in that demographic via YouTube and viral videos, and social media buzz. These will get the people we want to reach at the rate we need to reach them at which is fast and immediate.

We will also use a hands on approach at E3, CES, Insomnia Gaming shows and pretty much every comicon in the US and Europe and Japan. This will give our target demographic a hands-on time with our gaming system. We will have several systems set up on a local area network, and have a championship game battle.

Job creation we will create jobs in America for the system and put people back to work.

Threats

The major video game manufactures like Microsoft, and Sony will likely take us to court and try to stop us, but we will prevail because of the ability to have free market competition, and they will be looked at as having a majority of control over the market.

They may make changes to their digital right management coding to try to stop us from having their games played on our systems, but we will work with them and come up with a deal as long as they are willing to play fairly, and allow open source game codec development.

Sony and Microsoft my push out the newer systems before they are due on the market; which means we will have to adapt to their new DRM. They may also try to purchase us in order to put an end to interfering in their 55 billion dollar market place.

During the next three years, Alpha System seeks to achieve the following objectives using our marketing mix, including product, price, distribution, and marketing promotions strategies. If core financing is approved for this marketing plan, Alpha System will ramp up manufacturing, allowing Alpha System to achieve the following:

Market Objectives
Product Objective
Expand into 5 major retailers buy 1st black Friday we are on the market. To hit our 2.5 million dollar sales goal.
Price Objective
To maintain our 15% ROI by the end of the fiscal year.
Place Objective
To add 10 more major retail chains throughout the world by the end of the second fiscal year.
Promotion Objective
To achieve 50 percent market awareness by the end of the 2nd fiscal year.
Marketing Strategies

We will have the most useful mix of marketing strategies, because focusing on getting our name out there will our primary focus. We will launch up to 30 viral video, and we will harness all of the video game YouTubers, bloggers to review and rate our game system by shipping them two free game systems. One to play and one to give away. The game systems will be in a special color because they are going to be limited pre-launch editions. These will create the buzz we need pre-launch. We will also use gaming convention in the USA and Europe and Asia to allow our system to be been prior to launch. This will allow people to get hands on experience with the system and allow them to see the capabilities of what is possible with our technology. Product Strategies

Customizable Colors
Sleek design
No additional cost to online services

Price Strategies
Research the price points.
Set a mid-range price point that will make the system desirable.
Stage focus groups in regards to price.
Place Strategies
Develop relationships with major retailers, and find out supply chain requirements.
Work out requirements with 3rd party logistic providers.
Plan logically which distribution hubs product will be shipped from in relationship to retail locations.
Promotion Strategies
Viral Videos on YouTube, Social Media, Web launch day
Game Trade Shows
Give away systems pre-launch/ Day One Special Edition

Explanation of Strategies

This is the most effective strategies for our gaming device. We have thought out the development, and distribution, and promotion that will work for our product. Our product is simply the best system on the market and we will push it out to people, and allow them to realize what they have been missing out on over the past 30 years of video gaming, and show them the future of gaming and that they have a choice that is not Microsoft or Sony.

Tactics and Action Plan

Our Tactic and action plans are designed precisely from date of design to the 3rd year of product life. We feel that we will not have to micromanage our people, but yet make them accountable for their role in the greater good that is to place Alpha System on the market.

Product Action Plan
Tactic
Due Date
Responsible Party
Develop System Blue print
Month 1
Engineering
Operating System and Codecs
Month 1 and 2
Programming
Source raw materials
Months 1 to 4
Sourcing

Price Action Plan
Tactic
Due Date
Responsible Party
Research Competition
Months 5 to 9
Marketing
Focus Groups
Months 9 to 13
Marketing
Pre-Launch Trade shows
Months 3 to 24
Marketing

Place Action Plan
Tactic
Due Date
Responsible Party
Develop Retail chains placement
Year 2
Sales
Choose Logistics partner
Months 23 to 24
Operations
Supply Units prior to commitments
22 to 36
Operations

Promotion Action Plan
Tactic
Due Date
Responsible Party
Produce Videos
Months 23 to 36
Marketing
Celebrity endorsements
20 to 36
Promotions
Give Aways
35 to 36
Promotions

Monitoring Procedures

Monitoring is the most important procedure we will have weekly conference calls with suppliers to make sure our raw materials and finished goods are underway, and will make the cargo ship in time to be shipped to our logistics partner. We can hold in person meetings to discuss development and pre-launch status. Prior to launch of the system we will hold a companywide conference to show people what their hard work contributed to. We will also seek to make a positive Return on our investment through the distribution chain, and seek to make sure we are complying with retailer’s requirements. Also we will ask retailers for reports to see how many units are moving off the shelves.


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