MARKETING MANAGEMENT IN NEW-PRODUCT DEVELOPMENT IN FINNISH ONLINE GAME INDUSTRY Pyry Lehdonvirta Casual Continent Ltd

Presentation overview INTRODUCTION STUDY RESULTS Background Problem Goal of the study Structure of the study Literature review Case studies Resulting model Conclusions Further studies

INTRODUCTION

STUDY

RESULTS

Background

Problem

Goal of the study

Structure of the study

Literature review

Case studies

Resulting model

Conclusions

Further studies

Background Finnish game industry turnover 87 million euros (2008), 87% from export TEKES subvents the game industry by 6 million euros per year Goal to make games a significant export industry Online games account for the majority of the game industry revenue Finnish online game industry 4 medium sized companies (Sulake, Apaja Online Entertainment, Frosmo, Sanoma Entertainment) Number of under 15 person companies Companies with core in non-online gaming

Finnish game industry turnover 87 million euros (2008), 87% from export

TEKES subvents the game industry by 6 million euros per year

Goal to make games a significant export industry

Online games account for the majority of the game industry revenue

Finnish online game industry

4 medium sized companies (Sulake, Apaja Online Entertainment, Frosmo, Sanoma Entertainment)

Number of under 15 person companies

Companies with core in non-online gaming

Problem New-product development evaluation process seems to be vague and even emotional Success of a game difficult to pre-evaluate Enthusiastic game consumers also end up in the industry -> Decision-making shifts toward personal intuition and away from systematical analytic evaluation?

New-product development evaluation process seems to be vague and even emotional

Success of a game difficult to pre-evaluate

Enthusiastic game consumers also end up in the industry

-> Decision-making shifts toward personal intuition and away from systematical analytic evaluation?

Goal of the study This study seeks to provide a market-driven approach for the planning of new-product development in Finnish online game industry

This study seeks to provide a market-driven approach for the planning of new-product development in Finnish online game industry

Structure of the study Background Literature review -> synthesis Case studies (interviews) -> elaborated synthesis Conclusions

Background

Literature review -> synthesis

Case studies (interviews) -> elaborated synthesis

Conclusions

Literature review Studies on game industry to define the the market specific constraints Limited material found General marketing management literature studied for suitable models Kotler & Keller as basis Synthesis summarises identified relevant points in an adapted version of Porter's Five Forces

Studies on game industry to define the the market specific constraints

Limited material found

General marketing management literature studied for suitable models

Kotler & Keller as basis

Synthesis summarises identified relevant points in an adapted version of Porter's Five Forces

Case studies Sanoma Entertainment : Pelikone Fernando Herrera (Director of Gaming and Online) Frosmo : Frosmo Mikael Gummerus (CEO) Apaja Online Entertainment : Playray (Aapeli) Asmo Halinen (Founder, ex-CEO)

Sanoma Entertainment : Pelikone

Fernando Herrera (Director of Gaming and Online)

Frosmo : Frosmo

Mikael Gummerus (CEO)

Apaja Online Entertainment : Playray (Aapeli)

Asmo Halinen (Founder, ex-CEO)

Resulting model The Five Forces of Finnish online game industry

Results

Conclusions Case studies show marketing managemen t had been neglected Later on all had introduced marketing management Marketing management one of the key factors in all of the successes Resulting model close to Dave Chaffey's Five Forces adaptation for the internet era (2007) The study reached its goal by providing a model The model remains to be evaluated

Case studies show marketing managemen t had been neglected

Later on all had introduced marketing management

Marketing management one of the key factors in all of the successes

Resulting model close to Dave Chaffey's Five Forces adaptation for the internet era (2007)

The study reached its goal by providing a model

The model remains to be evaluated

Further studies Expanding to the whole Finnish game industry Expanding scope geographically, Western online game industry? Marketing management in game developer start-ups Marketing management throughout a game's life-cycle Benefits of marketing management in online game development industry

Expanding to the whole Finnish game industry

Expanding scope geographically, Western online game industry?

Marketing management in game developer start-ups

Marketing management throughout a game's life-cycle

Benefits of marketing management in online game development industry

Questions?