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

    • SEGMENTATION, TARGETING AND POSITIONING IN THE VIDEO GAME INDUSTRY Prof. Sameer Mathur, Ph.D.
    • Agenda Historical Context Introducing the Competitors Segmentation/Positioning Analysis Perceptual Map/Trends Suggestions for Repositioning the Wii
    • Sameer Mathur BuddingMarkets.com Marketing Professor 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009 Marketing Professor 2013 – Indian Institute of Management, Lucknow
    • Seven generations of home video game consoles since 1972 Historical Context
    • Sixth Generation (1998 – 2004)
    • Seventh Generation (2005 – Now)
    • 0 5 10 15 20 25 30 2005 2006 2007 2008 2009 Wii Xbox 360 PS3 Comparison of Sales Year by Year
    • Gaming Market Trends (US)
    •  Demonstration Video Microsoft‟s Response
    • • 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 Kinect Details
    • Price: $199 bundle 1st Competitor - Nintendo
    • • 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 2nd Competitor – PS Move
    • “What are the consumer segments targeted by these three brands?” – Wii, Kinect, Move Segmentation
    • • Geographic • Demographic • Psychographic • Behavioural Market Segmentation
    • • Head-to-head Positioning • Differentiation Positioning Approaches to Positioning
    • Released: 2006 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 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 Segmentation & Targeting: Wii
    • • 2006: Nintendo chose differentiation positioning – Expansionary strategy – Target: Casual/Non-Gamers • Segmentation: –Behavioural –Demographic –Psychographic Targeting: Wii
    • • Benefits Sought • Usage rate • User status Wii Targeting – Behavioural
    • • Gender • Age • Family Status Wii Targeting – Demographic
    • • Lifestyle • Personality Wii Targeting – Psychographic
    • 2006: “Wii would like to play” Positioning: Wii
    • Top 10 Games for Xbox 360 (2010)
    • Top 10 Games for PlayStation 3 (2010)
    • Top 10 Games for Wii (2010)
    • • 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 Wii Positioning Results
    • "This didn't happen by accident .. It's the result of a deliberate attempt to expand the market“ – President, Nintendo US Wii PS3 Xbox 360 Choice of Female “Primary Players” (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
    • • Kinect looks positioned to go head-to-head with Wii • Segmentation: –Behavioural –Demographic –Psychographic Segmentation & Targeting: Kinect
    • • Benefits sought • Usage rate • User status Kinect Targeting: Behavioural
    • • Gender • Age • Family Status Kinect Targeting: Demographic
    • • Lifestyle • Personality Kinect Targeting: Psychographic
    • 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
    • • 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 Segmentation & Targeting: Move
    • • Lifestyle • Personality • “Move into the Action” Move Targeting: Psychographic
    • • Benefits sought • Usage rate • User status Move Targeting: Behavioural
    • • Family Status Move Targeting: Demographic
    • • Wii and Kinect: head- to-head competition targeting casual gamers • Move: differentiation strategy with focus on flexibility – Targeting casual & hardcore gamers Summary
    • What is the positioning for each brand on a perceptual map? Are there any trends that favour one brand over the other? Positioning
    • Inexpensive Expensive Casual / Family Game Oriented Hardcore Game Oriented Perceptual Map
    • • 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) Primary Trends Affecting Brands
    • • No repositioning • Change marketing only slightly in response to Kinect Repositioning the Wii
    • • Emphasize that four players can play at once. – Vs. Kinect: Only two at once. Emphasize Social Aspects
    • • Emphasise simple, quick, uncomplicated fun – No complicated graphics, gestures, controls – Just “make your Mii” and play Emphasize Simplicity
    • • Most important: Emphasise the price of the Wii – $199 vs. $299/$399 • 2012 Price: $129! Emphasize Value
    • • Emphasise simplicity, social aspects, and especially value – Attributes important when going head-to-head • Maintain brand loyalty among core target audiences Repositioning the Wii - Conclusion
    • Summary Historical Context Introducing the Competitors Segmentation/Positioning Analysis Perceptual Map/Trends Suggestions for Repositioning the Wii
    • Over 600,000 views from more than 100 countries http://www.BuddingMarkets.com/ Sameer Mathur BuddingMarkets .com http://www.facebook.com/BuddingMarkets/
    • Read this book “This book is the bible of Marketing” Prof. Sameer Mathur