2. BACKGROUND INFORMATION
Wii Background
Released Nov. 19th, 2006
Why “Wii”?
Wii is Nintendo’s 5th game console and the successor of
GameCube
Nintendo Background
Located in Kyoto, Japan
Founded by Fusajiro Yamauchi on September
23rd, 1889
Sold playing cards at first
Developed into most influential video game company
Third most valuable corporation in Japan ($85 billion)
Releases include GameBoy, GameCube, Nintendo DS
and NES (Nintendo Entertainment System)
3. CURRENT MARKETING SITUATION
Major Competitors and Products
Microsoft’s Xbox 360
Sony’s PS3
Competitive Position
Market leader
Estimated Growth Rate
Game and game hardware sales are all down
Retailer GameStop has seen January 2012 sales fall 34% and February
2012 sales fall 20%
Trends and Changes in the Market
iPad’s emergence is a threat
Playstation Vita and Wii U
5. SWOT ANALYSIS
Strengths
Motion Control
Price
Variety of game titles
Wii Channels
Netflix, Hulu Plus, News, Forecast,
and Photo
Accessories
Nintendo brand
Simplified and social gameplay
Weaknesses
Poor online gaming
Lacks some major titles such as Call of
Duty and Halo
Graphics
Menu navigation can be frustrating
6. SWOT ANALYSIS
Opportunities
Customers are expecting more capabilities with their devices because of
iPhones and iPads
Room for better relationships with third party game producers
Getting games from outside the company
Health-conscious consumers
Threats
Motion controllers are available to anyone
Competition forces Nintendo to lower prices
Poor economy
7. SEGMENTATION STRATEGY
Developed countries
Affluent population of developing
countries as well
Upper/Middle Class Families
Lower Class Families
Soccer Moms
Younger Boys
Younger Girls
Generation Y
Health-conscious Working
Individuals
Grandparents
Childless Couples
Nintendo enthusiasts
Smartphone enthusiasts
Netflix and Hulu Plus Account
Holders
8. TARGETING STRATEGY
Differentiated
Approach:
Upper and Middle Class
Families
Soccer Moms
Generation Y
Grandparents
Smartphone enthusiasts
Childless Couples
9. POSITIONING STRATEGY
Step 1: Identify possible competitive advantages
Price
Exclusive Features
Gaming Style
Social Attributes
Step 2: Select the right competitive advantage… FAMILY
Relate all possible competitive advantages to the family
Emphasize the Wii as a family product that is inexpensive, has more family-
oriented games and is easy for anyone to use
Step 3: Communicate and deliver chosen position:
New slogan…
11. PRODUCT STRATEGY
Shopping Product
Purchases for hardware, games and accessories are bought on a casual yet
infrequent basis
Product Life Cycle
Maturity Stage
A New Direction:
Have more apps available on the Wii
Build co-branding relationship with…
Facebook, Twitter, YouTube, Tumblr, Flickr, Skype, Pandora, etc.
Use social media capabilities to market games
Re-Design
Update product design
Include stickers of app logos
13. PRICING STRATEGY
Competition-Based Pricing
Price lower than Xbox 360 and PS3
Keep it affordable for families
Their variety of tastes will encourage the purchases of the many accessories
Wii offers
Bundle Product Pricing
Family Bundle
Includes hardware, 4 controllers, the latest Mario Party game and Wii Sports
Fitness Bundle
Includes hardware, 2 controllers, Wii Fit, Wii Fit Balance Board and Wii
Sports
Party Pack
Includes hardware, 2 controllers, Mario Kart, Mario Party and Dance Dance
Revolution
14. DISTRIBUTION STRATEGY
The Distribution Process
Parts are bought from various suppliers and constructed at the Nintendo factories in
Japan
The product is distributed to branches in the United States and Europe
Inspected and correct packaging applied
Distributed to retailers
Channel Intensity and Levels
Three Channel Levels
Manufacturer Wholesaler Retailer Consumer
Wholesalers:
Mega Goods, Super UFO, Ingram Entertainment, Light in the Box and BRE
Software
Retailers:
Wal-Mart, Target, Best Buy, Game Stop, Toys-R-Us
15. DISTRIBUTION STRATEGY
Type of Marketing
System
Conventional
Parts received from
outside
Intermediaries will either
operate independently
or within an
arrangement
Horizontal
Will be sold in stores as
well as online
16. PROMOTION STRATEGY
P U S H S T R AT E G Y
Prominent store displays
Demo kiosks
P U L L S T R AT E G Y
Massive Advertising and
Sales Promotion
Campaign
18. PROMOTION STRATEGY
Sales Promotions
Competitions and Prize Drawings
Public Relations
Media Relations
Special Events
Direct Marketing
Kiosks
Wii-Mobile
Internet Marketing
Why Not Personal Selling?