99 in which the following were included: five family-friendly games, a wireless controller, a high-definition multimedia interface (HDMI) connection enabling high-definition output (if desired) and 256 MB of memory, useful for storing games and entertainment content. These five games included: "PAC-MAN Championship Edition," "Uno," "Luxor 2," "Boom Rocket" and "Feeding Frenzy."
Microsoft's attempt was the only one that came close to being a good competing product for Wii. Nintendo, however, is struggling with production issues for Wii product as despite U.S. economy meltdown, the company can't keep us with the increasing demand - 45% from 2007 to 2008. Thus, consumers might have to switch to one of the more expensive, but with similar specifications products if Nintendo is not able to satisfy this demand.
Position/Distribution. According to Iwata, the company's CEO, Nintendo's original distribution plan for the Wii had been to sell the console through a network of retail outlets alongside videogame stores in order to reach a greater market penetration. That plan is currently off the table, he said, because "[we] have to supply enough to meet the demands from our existing customers before we try to expand to new outlets" (CNET News, May 2007). Nintendo is currently facing a production bottleneck for Wii, not being able to forecast demand with precision and thus fall behind with the supply. On the hardware distribution side, Nintendo has a healthy network of distributors, over 50 in the Americas and plenty more abroad. Additionally, the company set up a new channel for games distribution -- WiiWare. Games are downloaded over the internet by using WiiPoints, available to be purchased at the Wii Shop Channel or at retail outlet. This system's advantage is that kids can now buy the points over the counter with cash, rather than rely on an adult with a credit card (although there are parental controls).
Promotion. Wii's promotion strategy includes: mass selling, middleman (Wal-Mart, Best Buy and Game Shop) and push and pull techniques. Push techniques refer to advertising through commercials, ads, circulars, magazines, and internet, while pull techniques refer to keeping on-hand inventory low leaving customers returning to check availability.
A people standing side by side, representing players gathering together.
One specific promotional activity adopted by Wii is the mall experience. It consists in getting the people out to a nearby mall to show off their skills in public. The method draws attention to the game console and increases product awareness among new comers to play and get involved.
Target Market
In terms of behavior, Wii competes with Xbox 360 and Playstation 3, which are similar game systems. The Nintendo brand is familiar to gamers through older products such as: Nintendo, Super Nintendo and Gamecube, which made Wii backwards compatible.
In terms of demographics, Wii is aiming for a generous age target. Recently, the company launched a $200 million ad campaign targeting the adults. Thus, the company is trying to get rid of the perception that Nintendo games are for children and teens. Nintendo is communicating to all potential buyers that Wii is a game for the entire family and therefore any member of the family can play regardless of their age.
In geographic terms, Nintendo Wii is distributed worldwide. The Wii is a big hit in Japan and the United States, which account for 7.7 million of the 10.57 million Wii products that have been sold worldwide.
Positioning
Many Wii ads are trying to convince consumers that the Wii is fun for the whole family.
Our message is that everyone's a gamer, Whether it's bringing joy and happiness to mothers and fathers as they experience Wii for the first time playing Wii Bowling or Wii Tennis, or whether it's bringing a game like Nintendogs to a fifteen or sixteen-year-old girl who has a puppy that responds only to her voice. That passion is what's driving us, and that passion to be part of shaping the future is really why we're here," stated Reggie Fils-Aime, President and COO of Nintendo of America (Gamasutra, 2007).
Financial-wise, Wii is positioned as an affordable game. Casual gamers (Nintendo's target market segment in this case) don't buy games at $100, let alone $110 or $120. They buy them when they're $30-50, as the success of the Sony "party starters" has shown.
Global events
Today is dominated by seventh generation video games. The major players are fighting for the top spot in a market where overall revenue is expected to increase by 42% in 2009. Total sales of current top three - the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360 - are expected to reach 210m by 2012, when the companies are likely to move to the eighth generation of machines.
Currently,...
There is a risk, however, that the company begins to lag the pace of technological change, and in such a situation would see reduced relevance in its industries. What the PEST analysis shows is that in general the external environmental forces have either a favorable or neutral impact on Apple's operations. Traditional sources of external risk (political/legal) are minimal and the other key risk source (technological change) has traditionally
This represents a risky move in this oligopolistic industry. The price of the PS3 was set at $499 for the 20 GB model and $599 for the 60 GB model. The Xbox360 is $200 less and the Wii was priced at $250 (Ono, 2006). Sony's goal with the pricing strategy was twofold -- to connote the premium nature of the product and to cover the costs. The cost structure
The most relevant competitors at this stage are represented by the Microsoft Corporation, the SEGA Corporation and the Sony Corporation (Hoovers, 2010). In terms of the second persona, the competition is less concentrated as the hi-tech consumers will often renounce brand loyalty and will look for products which serve their needs, even if these products are sold by small size companies. This status quo is due to two primary elements: On
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now