The Wii: Nintendo’s Video Game Revolution

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The WII: Nintendo’s Video Game Revolution
Marketing Plan

July 9, 2012
Presented by:

Table of Contents

Executive Summary……………………………………………………………………………………………………3

Problem Statements………………..…………………………………………………………………………………..4

Company Objectives……………………………………………………………………………………………….….4

Company Background……………………… ………………………………………………………………………...4

Situation Analysis…….…………………………………………………………………………………………….….5

Market Analysis………………………………………………………………………………………………………..7

Market Segmentation……………………………...…………………………………………………………………...7

Competitive Analysis…………………………...…………………………………………………………………….10

Key Factors……….…………………………………………………………………………………………………..12

Alternatives……………….…………………………………………………………………………………………..13

Recommendations………….………………………………………………………………………………………....17

Action Plan………………………………………………………………………………………………..…………..18

Contingency…………………………………………………………………………………………………………..19

Appendices………………………..…………………………………………………………………………………..20

Executive Summary

As a widely recognized company in the videogame industry, Nintendo has remained a strong competitor in the industry. When Nintendo introduced Wii to the market it differentiated itself and opened up a new market segment of non-video gamers to the video game industry. The Wii game console was considered a success as it attracted a wide range of people from children to seniors in playing a wide variety of “physical” games through its unique game controller. As a result, due to overwhelming demand, Nintendo has been facing product shortages. It is important for Nintendo to solve the Wii production shortage issue as soon as possible because competitors such as Microsoft and Sony are just waiting to steal the businesses of unsatisfied Nintendo consumers. To deal with the current problem, Nintendo is planning a marketing strategy in order to satisfy customer’s demands and retailer’s needs. There are four alternatives being considered: Direct selling through e-commerce

Provide direct global access to consumers. Access would allow consumers to purchase product at a time convenient for them and have the product shipped directly to location of choice. Pre-order incentive programs

An incentive program where the consumers can pre-order the product, for which they receive discounts, and have the peace of mind that their Wii will arrive on time. Increased production and Stock up

Increased Wii production and quantity purchase discounts offered to retailers as a trade-off for storing larger quantities of inventory.

Status Quo
Make no changes the production schedule, and hope that customer demand matches production. After considering several factors including competitors, consumer demands, the company’s capacity, as well as upcoming videogame technology, it is recommended that Nintendo should act immediately to take advantage of the current sales opportunity by increasing production in order to meet high market demand. In addition to this, they should adjust the retail price of the Wii to compete with the Xbox 360 and the PlayStation 3 which are the main competitors with Nintendo’s Wii. A detailed action plan, covering the next 9 months, is outlined in this report which allows Nintendo to solve the product shortage issue in time for the upcoming 2007 holiday season. Furthermore, a contingency plan has been developed and documented to assist Nintendo in the event the action plan does not proceed as planned. Problem Statements

George Harrison, the senior vice president of marketing for Nintendo of America, is facing a challenging situation while planning the production levels for the latest home video game console, known as Wii, for the 2007 holiday season. Issues that George has to consider are: •Potential shortages of the Wii home video consoles for the upcoming holiday season might irritate retailers and fail to meet consumers’ demands. •The public might view product...
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