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Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
Segmentation, Targeting, Positioning in the Videogame Console Industry
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Segmentation, Targeting, Positioning in the Videogame Console Industry

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Learn about the videogame industry! Visit www.buddingmarkets.com for more information.

Learn about the videogame industry! Visit www.buddingmarkets.com for more information.

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  • 1. SEGMENTATION, TARGETING AND POSITIONING IN THE VIDEO GAME INDUSTRY Prof. Sameer Mathur, Ph.D.
  • 2. Agenda Historical Context Introducing the Competitors Segmentation/Positioning Analysis Perceptual Map/Trends Suggestions for Repositioning the Wii
  • 3. Sameer Mathur BuddingMarkets.com Indian Institute of Management, Lucknow Marketing Professor 2013 – Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009
  • 4. Historical Context Seven generations of home video game consoles since 1972
  • 5. Sixth Generation (1998 – 2004)
  • 6. Seventh Generation (2005 – Now)
  • 7. Comparison of Sales Year by Year 30 25 20 15 10 5 0 2005 2006 2007 2008 2009 Wii Xbox 360 PS3
  • 8. Gaming Market Trends (US)
  • 9. Microsoft’s Response Demonstration Video
  • 10. Kinect Details • Product: A “controller-free gaming and entertainment experience” - Xbox 360 add-on Price: $299 bundle w/ Xbox 360 – $150 for controller alone • Release Date: November, 2010
  • 11. 1st Competitor - Nintendo Price: $199 bundle
  • 12. 2nd Competitor – PS 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
  • 13. Segmentation “What are the consumer segments targeted by these three brands?” – Wii, Kinect, Move
  • 14. Market Segmentation • Geographic • Demographic • Psychographic • Behavioural
  • 15. Approaches to Positioning • Head-to-head Positioning • Differentiation Positioning
  • 16. Segmentation & Targeting: Wii Released: 2006
  • 17. Segmentation & Targeting: Wii 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
  • 18. Segmentation & Targeting: Wii 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
  • 19. Targeting: Wii • 2006: Nintendo chose differentiation positioning – Expansionary strategy – Target: Casual/Non-Gamers • Segmentation: –Behavioural –Demographic –Psychographic
  • 20. Wii Targeting – Behavioural • Benefits Sought • Usage rate • User status
  • 21. Wii Targeting – Demographic • Gender • Age • Family Status
  • 22. Wii Targeting – Psychographic • Lifestyle • Personality
  • 23. Positioning: Wii 2006: “Wii would like to play”
  • 24. Top 10 Games for Xbox 360 (2010)
  • 25. Top 10 Games for PlayStation 3 (2010)
  • 26. Top 10 Games for Wii (2010)
  • 27. 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
  • 28. Choice of Female “Primary Players” (US) Wii PS3 Xbox 360 "This didn't happen by accident .. It's the result of a deliberate attempt to expand the market“ – President, Nintendo US
  • 29. Segmentation & Targeting: Kinect
  • 30. “Easy to use and instantly fun, Kinect … gets everyone off the couch. Want to join a friend in the fun? Simply jump in.”
  • 31. Kinect Flagship Games
  • 32. Segmentation & Targeting: Kinect • Kinect looks positioned to go head-to-head with Wii • Segmentation: –Behavioural –Demographic –Psychographic
  • 33. Kinect Targeting: Behavioural • Benefits sought • Usage rate • User status
  • 34. Kinect Targeting: Demographic • Gender • Age • Family Status
  • 35. Kinect Targeting: Psychographic • Lifestyle • Personality
  • 36. Segmentation & Targeting: Move
  • 37. “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”
  • 38. PS Move: Selection of Games
  • 39. 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
  • 40. Move Targeting: Psychographic • Lifestyle • Personality • “Move into the Action”
  • 41. Move Targeting: Behavioural • Benefits sought • Usage rate • User status
  • 42. Move Targeting: Demographic • Family Status
  • 43. Summary • Wii and Kinect: head-to- head competition targeting casual gamers • Move: differentiation strategy with focus on flexibility – Targeting casual & hardcore gamers
  • 44. Positioning What is the positioning for each brand on a perceptual map? Are there any trends that favour one brand over the other?
  • 45. Expensive Inexpensive Casual / Family Game Oriented Hardcore Game Oriented Perceptual Map
  • 46. 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)
  • 47. Repositioning the Wii • No repositioning • Change marketing only slightly in response to Kinect
  • 48. Emphasize Social Aspects • Emphasize that four players can play at once. – Vs. Kinect: Only two at once.
  • 49. Emphasize Simplicity • Emphasise simple, quick, uncomplicated fun – No complicated graphics, gestures, controls – Just “make your Mii” and play
  • 50. Emphasize Value • Most important: Emphasise the price of the Wii – $199 vs. $299/$399 • 2012 Price: $129!
  • 51. 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
  • 52. Summary Historical Context Introducing the Competitors Segmentation/Positioning Analysis Perceptual Map/Trends Suggestions for Repositioning the Wii
  • 53. Read this book “This book is the bible of Marketing” Prof. Sameer Mathur
  • 54. Over 1 Million views from more than 100 countries Prof. Sameer Mathur Top 1% most viewed Over 250 presentations on Marketing www.BuddingMarkets.com

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