Segmentation, Targeting, Positioning in the Videogame Console Industry

Microsoft Xbox 360 Kinect vs.
Sony Playstation 3 Move vs.
Nintendo Wii
Segmentation, Targeting and Positioning in the Videogame Console Industry

2
FREE TEACHING RESOURCES
ONMARKETING MANAGEMENTatwww.smathur.com/teaching.phpOver 100,000 views by
ManagementStudents and
Business Professionals fromover 74 different countries
These presentations are part of Sameer Mathur's teaching portfolio.
They are free to view or download for non-profit, academic use.
Disclaimer: These teaching materials have been compiled from multiple, non-creditedsources for non-profit, academic use. Copyright is retained by the original content creators.
Sameer Mathur, Ph.D.
Assistant Professor (Marketing)
Web: www.smathur.com
Email:sameer.mathur@mcgill.ca
Twitter: @ProfessorMathur
Facebook:Click Here

Agenda
Historical Context
Current-Generation Consoles
Introducing the Kinect
+ Introducing the Competitors
Segmentation / Positioning Analysis
Perceptual Map / Trends
Suggestions for Repositioning the Wii

Historical Context
Seven generations of home video game consoles since 1972

Sixth Generation (1998 – 2004)

Seventh Generation (2005 - Now)

Comparison of Sales, Year-by-Year

Gaming Market Trends (US)

Microsoft’s Response:
Demonstration Video

Kinect Details
Product: A “controller-free gaming and entertainment experience” - Xbox 360 add-on
Price: $299 bundle w/ Xbox 360
$150 for controlleralone
Release Date: November, 2010

Competitor #1:
Price: $199 bundle

Competitor #2: PlayStation Move
Product: A Wii-like motion controller add-on for the PlayStation 3
Released: September 17, 2010
Price: $399 bundle w/ PS3
$99 for existing PS3 users

Segmentation
“What are the consumer segments targeted by these three brands?” – Wii, Kinect, Move

Market Segmentation

Approaches to Positioning
Head-to-head positioning
Differentiation positioning

Segmentation & Targeting: Wii
Released: 2006

2006: “Our focus is interactive game play, a whole new way to play, that puts fun back into this business. It allows everybody to pick up and play and isn't focused on the core gamer” – President, Nintendo US

2006: “… In the end, prettier pictures will not bring new gamers and casual gamers into this industry. It has to be about the ability to pick up a controller, not be intimidated, and have fun immediately” – President, Nintendo US

Targeting: Wii
2006: Nintendo chose differentiation positioning
Expansionary strategy
Target “casual/non- gamers”
Segmentation:
Behavioural
Demographic
Psychographic

Wii Targeting - Behavioural
Benefits sought
Usage rate
User status

Wii Targeting - Demographic
Gender
Age
Family Status

Wii Targeting - Psychographic
Lifestyle
Personality

Positioning: Wii
2006: “Wii would like to play”

Top 10 Games: Xbox 360 (2010)

Top 10 Games: PlayStation 3 (2010)

Top 10 Games: Wii (2010)

Wii Positioning Results
Best-selling console of the 7th generation thus far
Female users outnumber overall male users
Wii has particularly high levels of appeal to boys 6-11, women above 35

Choice of Female “Primary Players” (US)
"This didn't happen by accident .. It's the result of a deliberate attempt to expand the market“ – President, Nintendo US

Segmentation & Targeting: Kinect

“Easy to use and instantly fun, Kinect… gets everyone off the couch. Want to join a friend in the fun? Simply jump in.”

Kinect Flagship Games

Segmentation & Targeting: Kinect
Kinect looks positioned to go head-to-head with Wii
Segmentation:
Behavioural
Demographic
Psychographic

Kinect Targeting: Behavioural
Benefits sought
Usage rate
User status

Kinect Targeting: Demographic
Gender
Age
Family Status

Kinect Targeting: Psychographic
Lifestyle
Personality

Segmentation & Targeting: Move

“PlayStation Move takes family ‘Games Night’ to a whole new level. … Enjoy hours of fun with top-tier games for the core gamer in your family [and] party and sports titles for the kid in all of us”

PS Move: Selection of Games

Segmentation & Targeting: Move
PS Move is using differentiating positioning
Flexible game selection – casual & hardcore games
A motion controller for “real games”
“It only does everything”
Segmentation:
Psychographic
Behavioural
Demographic

Move Targeting: Psychographic
Lifestyle
Personality
“Move into the Action”

Move Targeting: Behavioural
Benefits sought
Usage rate
User status

Move Targeting: Demographic
Family Status

Summary
Wii and Kinect: head-to-head competition targeting casual gamers
Move: differentiation strategy with focus on flexibility
Targeting casual & hardcore gamers

Positioning
What is the positioning for each brands on a perceptual map? Are there any trends favour one brand over the other?

Perceptual Map:
Expensive
Casual /
Family
Game
Oriented
Hardcore
Game
Oriented
Inexpensive

Primary Trends Affecting Brands
Price sensitivity
Casual gamers very price sensitive (The Economist)
Current economic climate
Activision CEO: “Kinect’s price must come down”
Favours Wii ($199)
Vs. Kinect ($299)
Vs. Move ($399)

Repositioning the Wii?

Repositioning the Wii
No re-positioning
Change marketing only slightly in response to Kinect

Emphasise Social Aspects
Emphasise that four players can play at once
Vs. Kinect – only 2 at once

Emphasise Simplicity
Emphasise simple, quick, uncomplicated fun
No complicated graphics, gestures, controls
Just “make your Mii” and play

Emphasise Value
Most important: Emphasise the price of the Wii
$199 vs. $299/$399
Potential price cut in 2011 to $149

Repositioning the Wii - Conclusion
Emphasise simplicity, social aspects, and especially value
Attributes important when going head-to-head
Maintain brand loyalty among core target audiences

53
RELATED SLIDESCLICK BELOW TO LEARN ABOUT: 1. Consumer Decision Process 2. New Product Development
POPULAR SLIDESCLICK BELOW TO LEARN ABOUT:
1. Segmentation and Targeting 2. Positioning, Perceptual Maps
Facebook:Click Here

54
FREE TEACHING RESOURCES
ONMARKETING MANAGEMENTatwww.smathur.com/teaching.phpOver 100,000 views by
Managementstudents and
business professionals fromover 74 different countries
These presentations are part of Sameer Mathur's teaching portfolio.
They are free to view or download for non-profit, academic use.
Disclaimer: These teaching materials have been compiled from multiple, non-creditedsources for non-profit, academic use. Copyright is retained by the original content creators.
Facebook:Click Here

http://www.smathur.com	4334
http://smathur.com	2278
http://gc.initelabs.com	93
http://aulavirtual.utel.edu.mx	8
http://seleccion.utel.edu.mx	4
http://www.ebookssave.com	1
http://10.1.46.12	1

Segmentation, Targeting, Positioning in the Videogame Console Industry

by Sameer Mathur on Apr 16, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

7 Embeds 6,719

Statistics

Segmentation, Targeting, Positioning in the Videogame Console Industry — Presentation Transcript