Nintendo Wii - PDF

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					Nintendo Wii




  Erin Pilcher
  Dan Henrich
   Jon Stover
  Katie Weisert
     Business Definition
              Nintendo Wii is a gaming console in the business of providing versatile family entertainment.
     Other products that provide family entertainment are Playstation, Xbox, yard games, board games,
     handheld games, television, and movies as well as other sources. These sources of entertainment attempt
     to satisfy a consumers‟ need to eliminate boredom, waste time, enjoy family bonding, and to make
     consumers feel they are part of the Wii identity. When consumers think of Nintendo Wii they think of a
     family-oriented game that actually encourages people to interact and be active.

     Mission Statement
             Nintendo Wii is a gaming company that strives to promote active lifestyles. They use their unique
     technology to fulfill people‟s needs and desires for universal family entertainment. Wii is and always will
     be committed to providing the opportunity for people of all ages to bond with friends and family. They
     are working hard to change the face of gaming by combining fun and physical activity. Someday Wii may
     even expand its product beyond the world of gaming, but they will never go back to an ordinary gaming
     style.

     Objectives
             Wii hopes to maximize profits by becoming the top gaming console in North America by the end
             of 2008.
             Within the next five years Wii hopes to increase sales in Asia by 10-15%.
             By 2015 Wii plans to increase the use of their unique technology in the medical field and exercise
             science by 10%. (NewsWise)
             Nintendo hopes to have its Wii system in 30% of U.S. homes by 2011 (Punch Jump)


     Competitor Analysis/Matrix
                            Xbox 360                                Playstation 3             Wii
Price                       $300 (Xbox.com)                         $400 (PlayStation.com)    $250 (wii.ign.com)
Market Share                17% (Got Schwartz?)                     20% (Got Schwartz?)       63% (Got Schwartz?)
Characteristics             Technology lovers, non-active, well     Technology lovers,        Sociable, active,
                            off                                     non-active, well off      average
Benefits Sought             Good Quality with little multimedia     High price High           Guilt free fun, active
                            features for a low price                multimedia features       gaming, with decent
                                                                    High Quality              multimedia
Consumption of Play         High                                    High                      Average
Time
Target Market               Hardcore gamers                         Hardcore gamers,          Expanded audience,
                                                                    casual gamers             kids, casual gamers
Demographics                Single, Teenaged, middle class,         Single, Teenaged,         Married, Middle
                            white male                              middle class, white       aged/class women
                                                                    male
Geographic                  America                                 America                   America
Segmentation
      Perceptual Map




                                     High Cost
                    Sony
                    PS3    Xbox
                           360




Individual                                                     Family-oriented




                                                               Nintendo
                                                                 Wii

             Sony
             PSP

             Nin.                                               Game Cube
             DS            GameBoy

                                                                 Sega
                                     Low Cost
                                                         N64
                                                 Atari
SWOT
                     Strengths                                         Weaknesses
        Uniqueness of hardware                                Controller liability
        Low price                                             Graphics
        Brand Image                                           Limited online game play
        Unique marketing strategy                             Do not own motion sensing
        Most interactive                                      Technology
        Globalization
        Product Innovation
                  Opportunities                                           Threats
        People‟s interest in fitness                          Loss of potential customer due to lack
        Video game industry is soaring and has                of software selection and
        a lot of potential                                    sophistication of games
        American teens spend income on                        New competitors
        entertainment                                         Recession = less money spent by
        Socialization with friends and family                 consumers on entertainment
        Buyers willing to buy more than one                   Expectations of serious gamers
        system                                                Technical Problems=Bad Reputation
        Wide range of consumers
        Cheap compared to competition


        Strengths
         Brand Image
         One of the many strengths of Nintendo as a company is that they have an extremely strong brand
image. Nintendo has been around for over a century giving this company plenty of time to establish its
brand name. Nintendo was such a big success because of their ability to recreate arcade games in the form
of household games. This also gave Nintendo a new marketing advantage.
         Unique Sense of Marketing
         Wii uses a different angle than most at marketing. Nintendo uses a marketing strategy to make
consumers want what they cannot have. This is seen currently because Nintendo Wii is not producing
enough of the product to meet the demand from customers. Last holiday season Wii‟s were hard to find.
NY Times reported that in San Francisco, New York, Boston and Austin, TX, stores turned up several
with PlayStation 3‟s in stock, while the Wii was sold out (New York Times). John Weeks, a worker at a
Target Store in Boston, said “The last time they were here, we had 40 and they sold out in 15 minutes”
(New York Times). That was last holiday season, this holiday season is difficult to predict; the economy
is bad, but projections show that the gaming industry is still growing.
         Interactivity
         Another strength that Nintendo has is their unique player interaction. The Wii introduced motion
sensing gaming in 2005. It was the first video game to use the new technology and get people up and
moving. This makes them truly ahead of the game in family entertainment.
        Product Innovation
        The success of the original Nintendo games was transferred very well to the Wii. Mario cart, for
example, is one of the most popular Wii games (XORSYST). The game that gave Nintendo its start was
innovated and updated to become, again, one of the most popular games played. This shows the
longevity of the company and the constancy of the brand.

        Weaknesses
        The Nintendo Wii is a strong competitor in the gaming market, but it does have some
weaknesses. A few of the Nintendo Wii‟s biggest weaknesses are; the fact that they do not own the
motion sensing technology, graphics, and limited online game play. These weaknesses are determined
mostly by comparisons with the capabilities of Xbox 360 and PS3.
        Do not own motion sensing technology
        A large weakness of the Nintendo Wii is that it does not own its motion sensing technology
(Zimbio). They were the first to use this unique idea, but since they do not own the technology, problems
are probable. There is room for competitors to use the same technology and take away one of Wii‟s
strengths; their uniqueness.
        Graphics
        Compared to the Xbox 360 and PS3 the Wii does not have the graphic quality that the others do.
This may be viewed as a weakness to some of the more extreme gamers, yet some of the novice gamers
may not mind as much. Many blogs and interviews say that younger people are disappointed with the
graphics such as the article Head of Factor 5 Calls Early Wii Graphics “Disappointing” by Box News
Channel stated. The fact that the Wii does not have the graphics that the Xbox and the PS3 have makes it
cheaper, but many hardcore gamers will be turned off by this fact; making it a weakness.
        Limited Online game play
        The Wii also does not compare to the Xbox 360 or PS3 in its level of online game play. Xbox has
Xbox Live that allows for online multiplayer gaming as well as communication with opponents through a
wireless headset. PS3 also has a way for players to connect through the internet and compete in
tournaments in various games. Unlike the Xbox and PS3 the Wii does not have a consistent online
network, and there is no verbal communication between online opponents.

        Opportunities
        The external environment provides the Nintendo Wii with opportunities they can take advantage
of. Key environmental opportunities are the willingness of consumers to have multiple gaming systems,
the wide range of customers they can target, teen spending, and the interest of consumers to be fit.
        Willingness of consumers to have multiple gaming systems
        In the past, people would chose one gaming system and use it solely. Recently, however,
consumers are becoming willing to have multiple gaming systems for different purposes. This is because
the video game industry is becoming more diverse. According to the report of the Games Segmentation
2008 from sales tracking and research firm, The NPD Group, Playstation3 gamers are especially likely to
see Wii as their next gaming interest (shacknews.com).Therefore, Wii doesn‟t necessarily have to replace
other systems to be successful.
        Wide range of customers
        The wide range of people likely to play Wii can help with sales. Young children influence their
parents, while the games are made so that parents and grandparents can enjoy playing as well. People
already into gaming may see the Wii as unique, while those who are not big gamers see that the Wii is so
easy, they would like to start. The Wii is expanding globally, taking advantage of the opportunity to
target people around the world who have or have not experienced gaming. Hard-core gamers also can use
Wii. As gamers, they are curious about the variety of games on the market and are interested in the new
technology. “At the end of the day, Wii is a terrific secondary system for hard-core gamers,” Mr.
Gerstmann of Game- Spot said (New York Times).
         Teen Purchasing Power
         Teens are earning more money now than ever before. They spend most of their earnings on
entertainment and technology, so that means Wii has an opportunity to be part of what they spend their
money on.
         Fitness
         Also, society‟s interest in fitness is an opportunity. There are many TV commercials and ads
about losing weight. Most of them claim to help consumers lose weight easily and many times without
the use of a gym. By giving people what they want; more fitness, the Wii can take full advantage of this
opportunity. Wii‟s active games are already fulfilling this need in society. Now, an article in “Women‟s
Health” explains it well; “After a 2008 study by the American Council on Exercise and the University of
Wisconsin, La Crosse, found that playing Nintendo Wii games increases heart rate and oxygen intake”
(Women‟s Health). The games they thought were most fit-worthy were Golf, Topspin 3, MLB Power
Pros, Shaun White Snowboarding, and All Star Cheer Squad. There is defiantly more activity going on
playing Wii than traditional video games and even if the results are not as drastic as traditional exercise,
people who want a relaxed fitness opportunity would like the Wii. Also, parents who want active, healthy
children are more likely to buy the Wii than other video game consoles.

        Threats
         Outside factors can threaten any product. The Wii is threatened by the current economic
problems, new competitors, as well as technical problems resulting in a bad reputation.
         Economic Problems
         Our economy is going through a rough time right now. A recession is a threat to Wii because
people are not going to be spending as much money on luxury, shopping, and/or entertainment items.
This recession could very well lower sales not only for the Wii but for the entire gaming industry.
According to GfK Roper Consulting‟s Holiday Shopping study, consumers will be cutting back and
looking for practical gifts this Christmas (giftsanddec.com). Video games were ranked 8th last year on
the gift spending list, but this year they are not even in the top ten (giftsanddec.com). The video game
market has not had as high of increase in sales that they usually experience during this season. This
shows that the recession is truly threatening the success of the Wii.
         New Competitors
         At this point in time the Wii does not compete with any other product providing the same type of
system. It is very possible that companies such as Sony, Xbox, or other competitors could attempt to
create a gaming station similar to the Wii, but they might have better graphics and more capabilities using
the motion sensing technology. The possibility of new competition could also be a threat for the Wii.
         Technical Problems=Bad Reputation
         The Nintendo Wii products had a few problems when first released. They are not known for
durability, and have had problems as users played them a lot (BaBoom). The controllers, for example,
could have had a better design. Although the cases are few in numbers, many people heard about the
problems of the controllers flying into the TV, for example. This can lead to recalls and lawsuits
(BaBoom). Although these problems are mostly from the early stages of Wii, people will always
remember. Therefore, technical problems can lead to a bad reputation which threatens sales.

Target Market
         The target market for video game companies has typically stayed the same throughout the years.
They have typically marketed to males ages 18 to 35 who are interested in individual game play (Lynch).
More recently the target markets have shifted to being focused on people who want games that can be
played by multiple people at the same time, by either playing online or face-to-face. Nintendo has been
able to expand their target market by targeting people of all ages.
         Nintendo has a concentrated marketing strategy, but is still able to appeal to people of all ages
through their marketing mix. They cornered a wide audience, switching over from the mainly young male
target group (Lynch). Their market is segmented demographically, because the Wii can be enjoyed by all
people depending on their age, gender, or family life cycle. The Wii can be targeted to kids because it is
easy to use and offers a broad selection of family games. For this same reason, the Wii appeals to
mothers. Mothers are able to see the family friendly aspects of the Wii and that it is a suitable gaming
system for their children as well as their entire family. The Wii is also able to appeal to the traditional
market of the males who are looking for more advanced games with the multi-player option. The new
motion sensing technology allows for the development of new ways for gamers to interact with their
gaming system and has excited gamers as well as non-gamers (Lynch).
Product and Feature Benefit
        Nintendo Wii is a consumer shopping product offering versatile family entertainment. Wii is a
consumer shopping product because it satisfies the wants of individuals, it is fairly expensive, involves a
higher level of involvement, and there are substitutes available. The only services Wii offers are those that
help customers when they have problems with the console that are caused by something Nintendo has
done wrong.
        Wii Product Mix
        Wii‟s product mix is concentrated because all of Wii‟s products are marketed the same way to the
same people. Wii appeals to everyone from mothers to children through its concentrated marketing
strategy by sending the message that Wii can be played by anyone at anytime.



                                           Accessories                                 Games
          Examples         Nun chucks, fit board, steering wheel          Wii sports (baseball, bowling,
                                                                          boxing, ping pong), Mario,
                                                                          Guitar Hero, and other music
                                                                          games
          Benefits & Allow for different types of interaction,            The variety of games appeals to
          Capabilities different accessories fit different games          all ages; it allows for family
                           (ex. Steering wheel used with a racing         game play or individual game
                           game, nun chucks used for boxing, etc.)        play and incorporates different
                                                                          gaming skills and talents. The
                                                                          games allow for a great deal of
                                                                          versatility.
        Feature/Benefit Analysis
               Feature                    Benefit                                 Competitors
          Wii remotes        Fits nicely in hands, wireless              Many consoles have wireless,
                                                                         but do not have the same grip
          Sensor Bar               Senses motion, allows for             No other competitors have one
                                   active game play
          Compatibility            Play games from earlier               Many other game systems have
                                   systems such as Gamecube              the same capabilities
          Fit Board                Helps with motor skills               No other console has a fit board
                                   (balance), allows more activity

        Product Lifecycle
         Diffusion of Innovation/ Rate of Adoption
         The Nintendo Wii is a product that was focused towards the innovators, but has since been very
well accepted into society. It is a product that is unique and uses advanced technology. It is the first video
game console of its type and would take a venturesome person to be one of the first to try it. The adopters
in the diffusion process have caught on very quickly which could lead one to believe that the Wii is now
in, or entering, the late majority stage of the adoption process. Today many people know what Wii is, how
it works, and most people have probably played it at least once. Since the Wii has a fairly low price it
appeal to lower income families and, with its versatility in games and technology, it appeals to a large
audience. People have experienced Wii through and with friends and family and the enjoyment of these
experiences is probably the reason why many people purchase a Wii of their own.
         The Wii is not very complex. It is easy to use and is fun for everyone. The Wii takes the idea of
gaming beyond sitting on the couch and working the thumbs, to getting on your feet and moving a little. It
is consistent with peoples‟ existing product values and product knowledge, but people just have to get
used to being more active while gaming. The Nintendo Wii has a relative advantage in the fact that it
introduces a unique way of gaming and uses advanced technology. The Wii is effortlessly observable and
can be played by anyone because it is easy to use.
         Stage
         Wii is beginning to enter into the maturity stage of its lifecycle. It has many competitors such as
Xbox 360 and PS3 that are trying to come up with similar ideas. Profits are not rising as rapidly as they
once were, but after Christmas sales are expected to slowly increase. It has also been said that Nintendo
Wii is expected to set a new record in gaming and has already reached a sales pace unheard of in the
industry (Wired Blog Network). Many games have their time in the spot light for a maximum of five
years, but Wii is expected to far outlive those five years.

        Branding Strategy
         The Nintendo Wii has more than one branding strategy. These strategies include individual
branding and co-branding.
         Individual branding
         Wii could be considered an individual brand because Nintendo has many different products, but
when we think of Wii we do not automatically think “Oh that‟s a Nintendo product.” For many people,
especially non-gamers, Wii is simply “Wii” and nothing more. This branding strategy comes with
significant focus from Nintendo on the name “Wii” and what it means to consumers.
         Co-branding
         Wii uses the Nintendo brand of course, but has also teamed with ATI which makes chipsets and
video cards for desktop, laptop, digital set-top boxes, TV‟s, and the Wii. By using its technology they are
able to put the ATI brand on packages as well.

        Packaging Considerations
        The Wii uses packaging very well. The box that the Wii comes in has a different feel than other
gaming systems. It is the only system that has a completely white, sleek box which can be attractive to
both gamers and non-gamers. The sleekness and use of white is much less intimidating than black
because it seems much more calm and friendly. The box shows the Wii on the front, with a light shadow.
This image is intended to promote the product and make consumers want to buy it. As the box is opened,
the packaging inside has no loose pieces or unnecessary pieces of cardboard. The inside is baby blue,
keeping the clean fresh feel from the outside of the box. The Wii is easily put back inside for
transportation. The idea of fewer unnecessary pieces inside the box shows the ease of access and that
Nintendo is also trying to reduce environmental damage.

        Customer Service Approach
         The Nintendo Wii has a customer service approach to provide the customers with satisfaction and
comfort toward their product. Their website has a helpful customer service link that allows customers to
easily find what they need. If customers still need help they can call the company. Some important
points to Wii‟s customer service is the ability for parents to set certain content regulations on their
children‟s gaming and instructions are available for everything from set up, to online play, to
troubleshooting and repairs.

Distribution
        Although Nintendo Wii holds its channel power, it has a retail distribution channel because the
consumers of the product are getting it from stores such as Wal-Mart, Best Buy, Circuit City, Gamestop,
and other similar providers who get the product from the manufacturer. The Wii is a fairly standardized
product, with a selective intensity level. It is imperishable, is marketed to all ages, and requires no special
funding for purchase. People can get this product at anytime, but it is common for sales to soar during the
holiday season. With higher demand during the holiday season there is the possibility for discrepancies in
the manufacturing. To meet the demand manufactures could produce too much, but during the rest of the
year stores have a hard time keeping the Wii on their shelves, so leftover products should sell with no
problem.

        6 P’s of the Marketing Mix
        Product
        The product is described through width and depth. The Wii has a wide variety of games and
accessories. The width is large because the Wii offers the console, the fit board, the remote and may
other accessories but because there is only one brand, there is little depth.
        Place
        The place the Wii can be found is important. The Wii can be found from super stores like Wal-
Mart to more specialty stores like Best Buy. This should make it accessible in a variety of places.
However, one frustration gamers have with the distribution of the Wii is that it is difficult to get; retailers
   sell out quickly (UTalkMarketing). At first glance, this could be seen as a downfall for Wii, yet it is
   theorized that it is actually a strategy for Wii. By making Wii fairly inaccessible, the company is
   attempting to create a buying frenzy (UTalkMarketing). People desire the product more because it is hard
   to get, and when it is available consumers make the purchase because they know the chance may not
   come easily again.
            Promotion
            The Wii uses advertising along with public relations and publicity. Nintendo has displays in
   stores that carry their products where potential customers can play. The Wii‟s main focus for
   campaigning is letting people have hands on experience (Edge). This creates a buzz about the product.
   Advertising is also done through television commercials. The ads are aimed at all ages, trying to bring
   the Japanese technology to families as well as teens.
            Price
            The Price of the Wii console is $250.00 (BestBuy). This is significantly lower than the
   competitors. Although higher price indicates a higher level of quality, the Wii strives to have good
   quality as well as a lower price.
            Presentation
            The presentations of the Wii in stores are consistent with the box and console itself. They use
   bubble-like fonts to create a sense of fun. They also use a lot of white, contrasting to competitors black.
   This creates a sleek look and a pure clean feeling.
            Personnel
            Wii doesn‟t have control of the personnel in the stores. At the more electronic specialty stores
   like Best Buy, the personnel are more knowledgeable and interested in helping customers. Wal-Mart, on
   the other hand is more general, and the personnel may be trained to be friendly and probably do not know
   very much about the Wii technology.




           Distribution Channel
                                                                                           Wal-mart

Mfg.         Pack           Ship           Ware-                         Retailer
                                                          Ship                                               Consumer
                                           house
                                                                                           Best Buy
                                             Ship




                                        Consumer
Pricing
        Strategy
         Nintendo Wii has a cost-based pricing strategy because from day one they have had a set price
that really did not have much to do with demand for the product. By keeping their product inferior in the
technology field, Wii is able to be produced much cheaper than Microsoft or Sony products and that
widens the gaming market by attracting non-gamers. Instead of trying to beat competitors with their
technology, Wii actually benefits from limiting technology because it‟s cheaper and consumers will
usually look at the cheaper product first (The Distribution Group).
         Wii did not take place in price skimming at its release; instead it took more of a penetration
approach. Wii was introduced around the same time Playstation 3 and Xbox were, but the difference
between the Nintendo product and the other two products is about $100-$200. As mentioned before Wii
decided they would not stand a chance in technology competition so they did not even try (The
Distribution Group). Wii focuses on keeping low production costs, user friendly technology, and low
prices to attract a large market. This large market allows Wii to keep its low price to this day. There is
such a high demand for the product that Nintendo has no problem breaking even, and their low price is a
huge benefit to them and to the consumer.
        Considerations
          Competition and Price-Quality Relationship
          Although popularity has increased for the Wii, the console itself has stayed the same price since
its launch (nintendodomain). The 250 dollar price tag is noticeably lower than that of its competitors.
The Xbox 360 sells for $300, while the Playstation 3 sells for $400. The lower price is one that draws the
interest of consumers. Yet, it is not so low that consumers automatically think it is poor quality and think
it will fall apart.
          Nature of the Product
          Since the Wii is a fun, unnecessary product it has to have a price that is reasonable, especially in
the failing economy. The lower price makes more people willing and happy to buy a Wii. This is
especially true to parents that are afraid the gifts they buy their children will be left unused after a few
months.
          Promotion
          The Promotional strategy can be described as a pull strategy (Reimer). The article „You pull, Wii
Push‟ describes the strategy well. The Wii puts up big displays and advertising at the store, to pull you
into buying. This is contrasted to the Xbox 360 which did big promotions before the product reached the
store to make the consumers push the demand up. Yet, as time has gone on it is understood that Wii is
hard to get. The console itself sells out of stores instantly and it cannot be ordered online from Nintendo
directly. Now, it seems that by keeping supply down Nintendo is leaning to a more push strategy. It has
been suggested that the lack of availability was planned by Nintendo in order to create a buying frenzy
(UTalkMarketing).
          Demand and Distribution Strategy
          This buying frenzy could be an effective strategy because demand has gone up, yet one wonders
if a company would seriously force any potential loss of revenue on purpose. One thing that has helped
balance the lack of potential sales in store is the price of bundles. Bundles with extras like controllers,
platforms and games can sell as high as $600. Also, with the holiday season here the Wii could raise
prices and sell about the same because the supply is so low and Wiis are already selling for raised prices
on eBay and other online retailers. This is unlikely to happen, as described by Professor Joel West,
because it is difficult for the manufactures to suddenly make many more. The lack of supply for the
consoles themselves will likely continue, while the price will remain steady. To get a Wii easily
consumers will end up spending more, however, because they may be forced to buy online from personal
sellers, or buy packages.

        Tactics
         Various pricing tactics, such as discounting, promotional pricing, premium pricing, and economic
pricing are used by companies to attract more customers and maximize profits. Because of inherent
tradeoffs between marketing mix elements, pricing will depend on other products, distribution, and
promotion decisions as well. Discounting is a tactic used where a specially-reduced price is offered to
entice customers to buy their product. This discount could be a clearance, a discount for making multiple
purchases of the same or similar products, or it could be for buying a large order of the product. There are
disadvantages to this option though, because if the company were to discount too much customers may
begin to question their full-rate price or begin to see your product as the cheap option. This may make it
difficult to charge the full-rate price for the product in the future.
         Promotional pricing is also an option. This strategy is very common. Many products are promoted
by including Buy One Get One Free on the package. This helps encourage customers to try the product
because they get two for the price of one.
         Another common pricing technique is called premium pricing. This option is used most often
when a substantial competitive advantage exists over the competitors. The product or service is given a
high price because it is unique. This tactic is used commonly for luxuries. The opposite of this tactic is
called economic pricing where the product or service is given a low price. This can be done because the
cost of marketing and manufacturing are kept to a minimum.

        Legal/Ethical Issues
         Now days companies like Nintendo are having trouble with the legality and ethics of price
strategy. There are laws out there that protect wholesalers and retailers from selling below the cost. This
is called the Unfair Trade Practice Act. But Nintendo has some other issues to deal with. In 2003, before
the release of the Nintendo Wii, a lawsuit in Europe Commission sued Nintendo for price fixing.
Allegedly, Nintendo colluded with seven different distributors to exclude from buying from places that
sell Nintendo products at a high price and to only buy the Nintendo products from the countries that have
the lower prices. Even though this case was not for the Nintendo Wii these kinds of unethical actions
happen all the time.

Promotion
         The Wii‟s target market is fairly broad. The company must reach a large variety of people if they
are to be successful. To do this the company combines advertising, public relations and sales promotion.
These combined make the Wii‟s marketing mix. However, the main ways that the target market is
reached are advertising and word of mouth. The advertising for Wii is commercials and displays. The
commercials are aimed at all age groups, from young players to teen gamers to elderly. Since the product
uses new technology and is exciting for some, many people talk about it. There are news articles about
the Wii which also help public relations. People talking about what they see and know. If someone gets a
Wii they will probably invite family and friends to play, or at least talk about it. This increases
conversations about the Wii, which also helps the target market find out about the Wii.
          When the Nintendo Wii and the Xbox 360 first came out, there was major controversy of the
prices on both units not only with the storeowners but with the customer. The situation was that Xbox
sold their gaming console to retailers for $292.00 then in turn the gaming console sold in soles for 299
making approximately 7 dollars. While Wii had their gaming console listed at 249 to customers selling to
retailers for 237.50 giving the retailer about 12 dollars profit. This strategy that Wii has applied to this
situation is known to marketers as the push strategy. This strategy gives retailers the incentive to sell more
of their productive, because it gives them more profit. Wii is trying this strategy because they feel that the
retailer will be encouraged to promote their product more than the Xbox 360.
          Nintendo Wii‟s goal of promotion strategy is mostly informative. Although Wii has existed for a
few years now, it is still in a fairly “new” stage. Wii is still adding new features and finding new uses for
the product, such as using Wii in medicine and sports, as one of our objectives states. With these new
ideas, it is important to keep consumers informed so they stay interested and loyal. The way Wii informs
its target market of its product is through many commercials and other promotional events or campaigns.

        Advertising
        Today, people are overwhelmed with so many ads and tend to ignore them. Conventional
advertising is not going to work for companies anymore if they want customers to notice their product.
Companies need to find a new means of getting their product in-front of the people. For this reason,
Nintendo has emphasized advertising the Wii on the internet. They are not neglecting their television
campaigns, but they are emphasizing their website more. Their website is a clear, organized way to see
the message of the Wii campaign.

         Public Relations
         It is difficult for companies to execute a good public relations campaign. There is a lot of research
that needs to be done in order to have it be a success. First, it is a good idea for companies to start getting
their name out into the public early. Nintendo was able to create excitement about the Wii in specific
areas before it was launched. By creating excitement about their product in a different way, they were
able to stand out amongst their competitors.
         Nintendo was able to get people interested in the Wii because of its unique name. They were able
to get the people talking about the spelling of “Wii” with two lower-case "i" characters. This is meant to
resemble two people standing side by side and gathering together, as well as to represent the Wii Remote
and Nunchuk. They also gave many reasons for their choice of name. Wii sounds like 'we', which is
meant to emphasize that the console is for everyone, and it is an easily remembered name that can be
easily translated to different languages. It was these areas about the Wii that were released in order to get
people excited about the Wii. This helped to send a positive message to its potential customers.
         Their message was clearly about gameplay and that the Wii can be played by anyone because it is
easy to play. The Wii had a successful launch because people had been talking about it for awhile and
knew a lot about it already. The customers were able to see that it would be fun for the entire family, and
that it was cheaper than the other gaming systems. Because of Nintendo‟s great public relations campaign
they were able to launch the Wii successfully and convince people that they were still a competitor in the
gaming market.
         Sales Promotion
         Sales promotions are an important part of the marketing mix. Research has shown that promoting
a product yields faster sales response. Sales promotions are typically used to stimulate and immediate
increase in demand. Nintendo has taken part in different sales promotion techniques in order to boost
sales and get ahead of the competition. One thing that Nintendo does to boost sales of the Wii is have it
available to “sample” in the retailing stores. This allows the customers to try the Wii and get more
information about the product before they make the decision to purchase one or not. Also at the retailing
stores that the Wii is sold at, there are big display cases of the Wii with its games and accessories for the
customers to view. These big display cases attract customers to Wii rather than to their competitor‟s
product.

        Personal Selling
        Nintendo has a salesperson from the retailing store that helps customers with purchasing the Wii.
The salesperson helps answer any general questions that the customers may have about the Wii as well as
gives them advice about which accessories and games to buy. The salesperson at the retailing store is
going to be the most knowledgeable person that customers will come in contact with before they buy the
product. They will know whether or not the store is selling a lot of them as well as what accessories and
games are the most popular. The salesperson at the retailing store would also be able to find out the
answers to any other questions the customer may have.


Recommendations
        Work on increasing availability
        Improve on-line game play to appeal to more hard core gamers

				
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