Convirtio No1

Brand Creation Practicum The Birth a of a New Brand – Part 1 Melanie Zandona & Andri Hinnen October 20th 2009 1

Obtaining Information I. Product and Company II. Competition III. Key Users IV. The Brand 2

1Product & Company 3

What is the product? A new Video Game Console! http://www.economist.com/sciencetechnology/tq/displaystory.cfm?story_id=14299602 4

What is the product? A new Video Game Console! Virtual Reality Augmented Reality http://www.economist.com/sciencetechnology/tq/displaystory.cfm?story_id=14299602 4

What is the product? A new Video Game Console! Social Interaction http://www.economist.com/sciencetechnology/tq/displaystory.cfm?story_id=14299602 4

What is the product? A new Video Game Console! http://www.economist.com/sciencetechnology/tq/displaystory.cfm?story_id=14299602 4

What is the product? A new Video Game Console! Deﬁnition “It is a highly technologically advanced video game console that allows both full virtual reality and augmented reality gaming in a social environment“ It brings Nintendo‘s “Virtua Boy“ back to the future. . 5

What is the product? A new Video Game Console! Deﬁnition “It is a highly technologically advanced video game console that allows both full virtual reality and augmented reality gaming in a social environment“ It brings Nintendo‘s “Virtua Boy“ back to the future. . ...and that is what the brand is for! 5

This is not an Entrepreneurship Course – But... - technologically feasable - launch the product in an independent start-up company - focus on alliances with software developers such as Rare, Atari, Sega, Crytek - collaborations with educational institutions and high tech companies - establish the company in video game clusters of Poland (Cracow) or Germany (Frankfurt)*… - …and sell globally! * http://www.warsawvoice.pl/view/18848 6

This is not an Entrepreneurship Course – But... Some Market and Industry Statistics 2008 - Revenue Growth 12.2 % - Industry Revenue 39,314.9 US$Mil - Industry Gross Product 13,209.7 - Sixty-eight percent of American households play computer or video games - The number of households playing games increased three percent over 2008, illustrating the expanding use of entertainment software across all demographics - 42% of American homes have a video game console - Adult gamers have been playing for 12 years on average, a decrease from 2008, an indication that more Americans are picking up video game controllers for the ﬁrst time - The average game player is 35 years old http://www.ibisworld.com/industry/retail.aspx?indid=2003&chid=1 http://www.thefreelibrary.com/Sixty-Eight+Percent+of+U.S.+Households+Play+Computer+or+Video+Games.-a0201028852 http://www.ibisworld.com/industry/retail.aspx?indid=2003&chid= http://www.thefreelibrary.com/Sixty-Eight+Percent+of+U.S.+Households+Play+Computer+or+Video+Games.-a0201028852 7

Objectives and Subsequent Activities 8

Short Term Objectives and Subsequent Activities - establish an intriguing brand - attract a lot of publicity - position as a high quality product (skimming) - get a foothold in crucial segments - attract key software complementors 8

Short Term Objectives and Subsequent Activities - establish an intriguing brand - attract a lot of publicity - position as a high quality product (skimming) - get a foothold in crucial segments - attract key software complementors Long Term - gain Market Share (~20%)... - ...and increase the size of the “cake“: attract new users - be recognised as the most innovative player in the market - extend product to new application forms 8

Short Term Objectives and Subsequent Activities Activities - create a technologically advanced and entertaining product - create a buzz of up-coming launch - employ key celebrities to create publicity and establish initial image of console Long Term - establish reliable alliances with key suppliers - secure distribution channels 9

2 Competition 10

Competition Direct Competitors: Overview Slogan Identity and Brand System Personal Associations *http://www.brandchannel.com/features_proﬁle.asp?pr_id=327 **http://www.allbusiness.com/marketing-advertising/branding-brand-development/617791-1.html ***http://en.wikipedia.org/wiki/PlayStation_3 11

Competition Direct Competitors: Overview Slogan Identity and Brand System Personal Associations “It's friendly. It's tech- happy, fun, simple, “Wii Move You“ forward. It's cute. It's very innovative, Japanese, Japanese. And, oh yes, it's frugal, social, original, fun.“* future *http://www.brandchannel.com/features_proﬁle.asp?pr_id=327 **http://www.allbusiness.com/marketing-advertising/branding-brand-development/617791-1.html ***http://en.wikipedia.org/wiki/PlayStation_3 11

Competition Direct Competitors: Overview Slogan Identity and Brand System Personal Associations “It's friendly. It's tech- happy, fun, simple, “Wii Move You“ forward. It's cute. It's very innovative, Japanese, Japanese. And, oh yes, it's frugal, social, original, fun.“* future "We're evolving from our high tech, future, online „It‘s good to initial focus on graphics, gaming, complicated, play together“ power an great games that colourful, endless appeal to hardcore possibilities, graphics, gamers“** cool *http://www.brandchannel.com/features_proﬁle.asp?pr_id=327 **http://www.allbusiness.com/marketing-advertising/branding-brand-development/617791-1.html ***http://en.wikipedia.org/wiki/PlayStation_3 11

Competition Direct Competitors: Overview Slogan Identity and Brand System Personal Associations “It's friendly. It's tech- happy, fun, simple, “Wii Move You“ forward. It's cute. It's very innovative, Japanese, Japanese. And, oh yes, it's frugal, social, original, fun.“* future "We're evolving from our high tech, future, online „It‘s good to initial focus on graphics, gaming, complicated, play together“ power an great games that colourful, endless appeal to hardcore possibilities, graphics, gamers“** cool ”This is living“ corporate evil, "Late, Expensive, and ”It only does expensive, dark, Incompatible"*** everything“ complex, high end *http://www.brandchannel.com/features_proﬁle.asp?pr_id=327 **http://www.allbusiness.com/marketing-advertising/branding-brand-development/617791-1.html ***http://en.wikipedia.org/wiki/PlayStation_3 11

Competition Direct Competitors: Positioning Technology Social Interaction 12

Competition Direct Competitors: Positioning Technology PC Social Interaction 12

Competition Competitors: Branding innovative complex simple traditional 13

Competition Competitors: Branding Consoles innovative & Handhelds complex simple traditional 13

Competition Competitors: Branding innovative Game Developers complex simple traditional 13

3 Key Users 14

Key Users Sinus Milieus Upper Income Class Middle Income Class Lower Income Class Traditional Values Modernisation New Orientation http://www.sociovision.de/ 15

Key Users Sinus Milieus Upper Income The Long-established Mode r n Per Class form er s Middle Status Oriented tali sts Income E xperimen Traditional Middle Class C lass Class lM iddle Civi Lower n alist s sca pists ra ditio io n oriente d E Income Fr u gal T C onsumpt r s Class wor ke Traditional Values Modernisation New Orientation http://www.sociovision.de/ 15

Key Users In other words... 16

Key Users KEY USERS en ter bu pla tai y ys r s6 nm r yea e 1- gam ea /yea en ga eek es/ 5h r ly me te r s/w gam e“ nth r s/ ad s cor we op us 0h 18 r ter ias ek rd ys 2 t s „ha buy pla + In other words... First the Geeks and the Hipsters THE GEEKS AGAINST THE HIPSTERS 16

Key Users KEY USERS en ter bu pla tai y ys r s6 nm r yea e 1- gam ea /yea en ga eek es/ 5h r ly me te r s/w gam e“ nth r s/ ad s cor we op us 0h 18 r ter ias ek rd ys 2 t s „ha buy pla + In other words... First the Geeks and the Hipsters THE GEEKSand then everybody else – AGAINST THE HIPSTERS 16

Key Users Main Needs Self- Actualisation Esteem Love and Belongingness Safety Physiological http://www.cbc.ca/technology/story/2006/12/27/tech-videogamesaddictive-061227.html A.H. Maslow, A Theory of Human Motivation, Psychological Review 50 (1943):370-96. 17

Key Users Main Needs Experience New Worlds Play Fun Curiosity Discover Yourself Satisfaction Inspiration Self- Actualisation Become a Hero Be Someone Else Esteem Participation Love and Belongingness Safety Physiological http://www.cbc.ca/technology/story/2006/12/27/tech-videogamesaddictive-061227.html A.H. Maslow, A Theory of Human Motivation, Psychological Review 50 (1943):370-96. 17

Key Users Main Needs Experience New Worlds Play Fun Curiosity Discover Yourself Satisfaction Inspiration Self- Actualisation Become a Hero Be Someone Else Esteem Achievement Participation Love and Belongingness Social Connectedness Safety Power Freedom Physiological http://www.cbc.ca/technology/story/2006/12/27/tech-videogamesaddictive-061227.html A.H. Maslow, A Theory of Human Motivation, Psychological Review 50 (1943):370-96. 17

4 The Brand 18

What is the brand? And what not? it is... but it is not... - a video game console… - just another video game console - …and the associated software - a computer - a window for new worlds - a fad - a new way of experiencing stories - a geek instrument - a social decision - a child‘s toy - a life style - something freaky - something you connect to the TV 19

The Main Elements to Communicate It is… new, fresh, innovative smart and simple a window to new worlds a guide to a new reality a storyteller a liberator a social connector fun sexy 20

The Brand‘s Character It is… new, fresh, innovative smart and simple a window to new worlds a guide to a new reality Who is all this? a storyteller a liberator a social connector fun sexy 21

The Brand‘s Character It is… new, fresh, innovative smart and simple a window to new worlds a guide to a new reality a storyteller a liberator a social connector fun sexy 22

The Brand‘s Character It is… new, fresh, innovative as a smart and simple a window to new worlds person… a guide to a new reality a storyteller a liberator a social connector fun sexy as an element… 26

Primary Elements Fun Play Story Simplicity Innovation Technology Easy to Use Participative Virtual Reality Full of Potential New Experience Augmented Reality (back to the) Future 27

Primary Elements Secondary Elements Fun Play Story Sense of Freedom and Power Simplicity Inspiring AND Fulﬁlling Innovation Intensely Engaging Technology Usage Mindblowing Easy to Use Virtual Drug Participative Community Virtual Reality Enthralling Full of Potential Thrill New Experience Augmented Reality (back to the) Future 28

In One “Word“... 29

In One “Word“... Experience the impossible! 29

Analysing Information The Brand ctd. 30

Image Process Objective Technology PC Social 31

Image Process Objective Technology To be seen as: - the most innovative player PC in the market - we shake up the industry - a fun, hip and sexy product - the only product that enables full virtual reality - a window opener to new worlds Social 31

Communication Attributes To be seen as: - the most innovative player on the market - we shake up the industry - a fun, hip and sexy product - the only product that enables full virtual reality - a window opener to new worlds 32

Communication Attributes To be seen as: - the most innovative player on the market - we shake up the industry - a fun, hip and sexy product - the only product that enables full virtual reality - a window opener to new worlds Values that differentiate We never give up innovating! Be both fun and technologically advanced Guide the customer into new worlds 32

Communication Attributes To be seen as: - the most innovative player on the market - we shake up the industry - a fun, hip and sexy product - the only product that enables full virtual reality - a window opener to new worlds Values that differentiate We never give up innovating! Be both fun and technologically Direct beneﬁts to pass on advanced Guide the customer into new worlds Full Virtual Reality Be part of the community Experience the impossible 32

Communication Attributes To be seen as: - the most innovative player on the market - we shake up the industry - a fun, hip and sexy product - the only product that enables full virtual reality - a window opener to new worlds Values that differentiate Elements to satisfy consumer needs We never give up innovating! Empowerment Be both fun and technologically Direct beneﬁts to pass on Play advanced Freedom Guide the customer into new worlds Full Virtual Reality Inspiration Be part of the community Experience new worlds Experience the impossible 32

Communication Attributes 33

Communication Attributes Maintain High technology Good software Fun Innovative Easy to use Broad customer base Social connectivity (one way or the other) Good hardware quality 33

Communication Attributes Maintain Avoid High technology High complexity Good software Low technical (graphical) capabilities Fun Focus on narrow Innovative segment Easy to use Long loading (or Broad customer base waiting) times Social connectivity (one Low compatibility way or the other) with older formats Good hardware quality Negative correlation betw. high technology and social interaction 33

Communication Attributes Maintain Avoid Include High technology High complexity True virtual reality Good software Low technical Full freedom and (graphical) capabilities empowerment Fun Focus on narrow Independency (no other Innovative segment technical equipment Easy to use needed) Long loading (or Broad customer base waiting) times Social interaction on high technological level Social connectivity (one Low compatibility way or the other) with older formats Both satisfaction and inspiration Good hardware quality Negative correlation betw. high technology Complete and highly- involving participative and social interaction experience 33

Communication Platform 34

Communication Platform Virtual and Augmented Reality Freedom and Social Empowerment Interaction Unique High End Technology 34

Communication Platform Virtual and Augmented Reality Enhance your reality or Experience new escape into new worlds worlds together Freedom and Social Empowerment Interaction experience full mobility Employing without giving up high technology to technological standards enhance social interaction Unique High End Technology 34

Communication Platform Virtual and Augmented Reality Enhance your reality or Experience new escape into new worlds worlds together Discover full physical and creative Freedom and Social freedom and meet Empowerment Interaction your friends in new worlds experience full mobility Employing without giving up high technology to technological standards enhance social interaction Unique High End Technology 34

Positioning Statement It is our goal to provide gaming and technology enthusiasts – and later on a broader segment – with a temporary yet highly intense and uninhibited escape to new realities. Our product is using leading software, virtual and wireless technologies and enables gamers to explore alternate worlds in the company of their friends and in whichever location they desire, fulﬁlling their need for social interaction and connectedness. By doing so, it will satisfy their sense of curiosity and pursuit of total freedom beyond the conﬁnes of a television screen. 35

Positioning Statement It is our goal to provide gaming and technology enthusiasts – and later on a Goal market broader segment – with a temporary yet highly intense and uninhibited escape to new realities. Our product is using leading Main proposal or promise software, virtual and wireless technologies and enables gamers to explore alternate worlds in the company of their friends and in whichever Character (rational) location they desire, fulﬁlling their need for social interaction and connectedness. By doing so, it will satisfy their sense of curiosity and Personality (emotional) pursuit of total freedom beyond the conﬁnes of a television screen. 36

Name Selection Criteria To Use - Global relevance – meaning and pronunciation - Phonetically simplistic - Air of sophistication and (technological) advancement - Lively/vivacious - Sense of adventure, liberation and empowerment - Association with un-“real” situations - Sense of community/interaction – particles that communicate joint, togetherness, sharing To Avoid - Any common sounds, syllables or alphanumeric symbols with key competitors – eg. “X”, “station”, “- ony”, “3” - Complicated - Typical and commonly used “hi-tech” terminology 37

Any Questions?

Sources http://www.ibisworld.com/industry/retail.aspx?indid=2003&chid=1 http://www.thefreelibrary.com/Sixty-Eight+Percent+of+U.S.+Households+Play+Computer+or+Video+Games.-a0201028852 http://www.ibisworld.com/industry/retail.aspx?indid=2003&chid= http://www.thefreelibrary.com/Sixty-Eight+Percent+of+U.S.+Households+Play+Computer+or+Video+Games.-a0201028852 http://www.warsawvoice.pl/view/18848 http://www.economist.com/sciencetechnology/tq/displaystory.cfm?story_id=14299602 http://www.cbc.ca/technology/story/2006/12/27/tech-videogamesaddictive-061227.html A.H. Maslow, A Theory of Human Motivation, Psychological Review 50 (1943):370-96. http://www.sociovision.de/ http://www.brandchannel.com/features_proﬁle.asp?pr_id=327 http://www.allbusiness.com/marketing-advertising/branding-brand-development/617791-1.html http://en.wikipedia.org/wiki/PlayStation_3 39

Convirtio No1

by Andri Hinnen on Aug 26, 2010

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