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nintendo wii

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									                         M.B.A Marketing Trimester 3
                                  Group 4
                          Presentation based upon
                          Case Study Methodology



Disclaimer:- The information, logos, trademarks, images and any proprietary content included in the presentation are freely available on the
wrold wide web, but are legal properties of their respective organizations. Usage here is strictly with an educational motive. With my due respect
to the technology companies , I hold no responsibility if the ppt is duplicated and used for any kind of commercial gains.
    An interactive entertainment electronic device that
  produces a video signal which can be used with a display
    device (a T.V, Monitor etc.) to display a Video game.

Magnavox




                                             6th      7th
                           4th       5th
           2nd     3rd
  1st
• Established on 23rd September,1889 in Kyoto Japan.
•Founder:- Fusajiro Yamauchi
•Key People for this case:-


                                                Shigeru Miyamoto,
                                                Game Designer


   Satoru Iwata,
   President & CEO

•Industry:- Playing Cards (Previously), Video games (Presently)
Market cap ¥ - 4.7813 trillion (2008), Revenue - ¥1.672 trillion,
Operating income - ¥487.22 billion, Net income - ¥257.342 billion
Total assets ¥1.8 trillion Employees 3,768 (2008)
                                                     Nintendo
Playing Cards    Game Boy           Color T.V Game   Entertainment
                                                     System (NES)




Super Nintendo   Nintendo Virtual
Entertainment    Boy                  Nintendo 64    Nintendo Game
System (SNES)                                        Cube



                                                       Nintendo DS

 Products
•Code Name : - Revolution
•Launched on 19th September 2006 with 33 game titles available.
• Wii is pronunciated as ‘We’ which emphasizes ‘This console is for
everyone’
•The two l’s stand for players competing each other.
• “It’s not Nintendo Wii but Simply ‘Wii’.” – Nintendo Style Guide.
• Thus the first game console by Nintendo to be marketed without
their Comapany logo.
• Super Mario, Harry Potter &
   Legend of Zelda are top ranking
   Wii game titles.
Wii Mote   Nanchuk   Console
 Accelerometers          Wii Connect 24 & WiFi

        Motion Sensing         Easy updates even in
        Games                  Standby mode



Lightest Game Console     Backward Compatibility

       1.2 kg                     Playing Game Cube
                                  titles
Wii Sports bundle

     • 3 Sports Titles free
     • 4 Wii remotes




                              Wii Fit bundle
                              • Balance Board
                              • Yoga + Aerobics
                              interactive Tutorial
1.                   Need Identification
        Competitor’s consoles high on graphics but low on
                           creativity

                Need for creating a creative console


2.      Attribute & Morphological Analysis
     Features            Attributes          Ideas
     Casing              Plastic             Aluminum
     Switch              Power Switch        Disk Load/Unload
     Weight              Medium              Light
     Joystick            Wireless            Remote & Nanchuk
       The Idea Committee’s 3 Q’s
1.   Is it technically feasible?
     Motion sensing games are possible
     due to low cost of accelerometers

2. Will the Target audience benefit?
        This will be the first Gaming
    Console that would have high user
                involvement

3. What are the Market trends?
        Conventional consoles on
    saturation point. Something new
                required.
1.      Concept
     How the Wii will be?
 Dimensions, Processing Power
              etc

2. Conjoint Analysis

  Determine how people value
 different features that make up
 the Wii. Eg:- Will Gesture based
     gaming make an impact.
1.                Target Market Selection

Primary Target             Gaming Audience

Secondary Target         Health Conscience People

2.          Consumer Defense Mechanism Aid

     Backward Compatibility,
        Updates, New Game
      titles etc to prove their
      decision was right w.r.t
             buying Wii.
1.      Selling Price Based on Competitors
                                Figures during Launch

     X Box 360,             U.S $ 450


       PS 3                 U.S $ 869

       Wii          U.S $ 249


        Sales Volume,
2.          BEP &
         Profitability
1.          Prototype
  A pre production model .
 Get an idea how the final Wii
           would be

2.     Consumer Preference
     Comparisons & Scale Based
             Ratings
1. Simulated Test Marketing

     Beta Versions in Stores

   Development Community

            Free trials

 Distributed as a part of offer or
              prizes

            Feedback
1.    Product Launch
     Advertisements

      Promotions

2.      Distribution

         Fill the
      Distribution
      pipeline with
       the product
1.                  Core Market Growth
  Making improvements to products and services that
 already exist in order to help customers get a job done
                     more efficiently.

2.         Adjacent or Related Market Growth
        Improving existing products and services to help
        customers get related or ancillary jobs done (for
     example, by adding a tongue cleaner to a tooth brush)

3.                 New Market Creation
 Creating a new product or service for customers who are
 trying to get a job done but cannot because no solutions
                or only ad hoc solutions exist
4.                         Disruption
     The creation of a technology that enables a new set of
     customers to perform a job that only specialists could
                       previously perform


      A well balanced new product development strategy
              often allocates resources as follows:
              •65% core market growth
              •15% adjacent or related market growth
              •15% new market creation
              •5% disruption
Core Product
                       Disruption
Development

                    First Game console
Creative gaming
                  with integrated motion
                           sensors
1. Segmentation
  Geographical        Location Based Services like language packs

     Generation       Young Audience       Primarily for Gaming

2.       Targeting        Elderly Aud.      Health Conscience

       Product           A single product Wii
     Specialization     caters both segments

3.      Positioning      User Positioning:- Wii is best for Video
                          gamers who get involved in gaming.

4. Differentiation        Features     3D Motion Gaming

                           Price         $249 only compared to
                                              Competitors
 Product    •Unique Gaming interface
            • Easy to use
            • High Player involvement

  Price     • Psychological Pricing, $ 249
            • Reduction in Hardware
              costs.

  Place     •Huge Distribution network
            throughout the world

            •Technology Expos like E3
Promotion
            • Internet
            •Technology Magazines
            •Nintendo World (Stores)
    Introduction   Growth              Decline


S
                                   S
A                              M   a
L                              a   t
E                              t   u
                               u   r
S
                               r   a
                               i   t
                               t   i
                               y   o
                                   n


                        TIME
                        PS 3                   X Box                   Wii
Strengths     High Definition Display,   HD Display, DVD       High User
              Blue Ray Disk Reader,      Player, XBOX LIVE &   Involvement,
              Best Sound Quality,        online gaming,        Low Price,
              Inbuilt Memory, 3.2ghz     External Hard Drive   Large game titles.
              CPU                        Support. 3.2ghz CPU
Weaknesses    High Price, Paid online    Quality Issues        Low graphics,
              Gaming.                                          Sensor failures.
Opportuniti   3D Display Gaming          3D Display Gaming     3D Display Gaming
es

Threats       Microsoft X Box 360        Wii                   Me too products
                                                               from China & Korea.
PlayStation 3   X Box 360
           Sales in January 2009     The top 10 gadgets that make
                                     people happy:- By Gadget
    2,03,200                         Line
                                     1. Nintendo’s Wii
                          6,79,200   2. iPod
                                     3. iPhone 3G
                                     4. Xbox 360
                                     5. Blackberry
5,10,800
                                     6. Sky+
                                     7. Mac Book
                                     8. Nintendo DS
           Wii    X Box    PS 3
                                     9. Tom Tom 930 Satellite
                                     Navigation System
                                     10. Sony PRS-505 Reader.
                                     (ANI)
Microsoft’s Two fold strategy.         1. Pricing (X box 360)

        $ 630

                $ 450     $ 499
  P
  R       E                       $ 399      $ 399
  I       L                 E                        $ 299
  C       I                 L                  E             $ 199
  E              P
          T                 I      P           L              A
                 R                                    P
          E                 T      R           I              R
                 O                                    R       C
                            E      O           T
                                                      O       A
                                               E              D
                                                              E

                            TIME
       Attack the competitor with a ‘Me too product’ having
2.
                    something more advanced




                                     MS Windows 1.0 GUI
         Apple’s Lisa GUI




     Apple’s Mac OSX Leopard           Windows Vista
  Apple’s iPod   Microsoft Zune Player




Apple’s iPhone     Windows Mobile 7
     Sony PS 3    Microsoft X Box



                 What Next By
                  Microsoft?




Nintendo’s Wii
 Sony PS 3        Microsoft X Box




Premium Competition
        Console By Nintendo

								
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