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The report recommends what Wii must do in order to sustain its current market share of 45% with Sony and Microsoft catching up. Table of Contents Table of Contents 2 2 Introduction 3 Nintendo Wii: Marketing Analysis 3 Conclusion and Recommendations 7 References 7 Introduction Nintendo’s Wii was once the market leader in the gaming industry of the United States. Positioned as a sole gaming console for the whole family, Wii held a market share of massive 75% (Matthews 2011). Unlike its competitors Sony’s Play Station and Microsoft’s Xbox which were positioned as a game console for only hardcore gamers aged from 19 to 35 predominantly males; Nintendo went down in the mass markets of families and realized that there was no such thing as a casual gamer.
It brought the ex-gamers and casual gamers on the same platform of Wii with low prices and a tagline of “Wii like to play!” (O'Gorman, 2008; Anthony, 2008). In the short-run, Wii did experience a boost in its sales. So much that it outsold its competitors with huge margins. Especially during Christmas, where more importance was placed to family values, Wii managed to attract families and hence, won the 75% market share of the industry (Matthews, 2011). Nintendo Wii: Marketing Analysis In order to analyze the branding strategies of Wii, it is compulsory to understand the concept of the ‘Blue Ocean Strategy”.
This concept entails the brand to keep a pulse check on the market as to where in the market are the competitors positioned as. This concept rightly depicts that it is not advisable for a brand to be in direct and head on competition with other players but a better option would be to search for space and gaps in the market and position the brand in that space which is untargeted by the competitors (Anthony, 2008). Likewise, when all the players in the market (Xbox and Play Station including Wii) were focusing on the hardcore gamers’ market, Wii repositioned itself to the wider market of families.
With this move, Wii was able to build a sounder customer base as compared to its competitors as Xbox and Play Station were still stuck on the hardcore gamers’ market. Now, even those who did not give preference to game consoles as such, were buying Wii consoles either because at their own pleasure or as a gift for the family (O’Gorman, 2008). Provided that Nintendo kept Wii’s design user friendly and simpler to use, its unique make was found to be easily used and controlled by both beginners and expert and adept players (Nintendo, Inc. 2007). Other brands namely Sony Play Station and Xbox have complex controls with non-intuitive or illogical buttons that are shapes and require time for the players to get used to them.
Nintendo’s Wii on the other hand is uniquely designed to cater to the needs of non-gamers and soft-core players who find it more user-friendly (Nintendo, Inc. 2007). As far as the pricing is concerned, Wii was targeted to the wider household markets in the game console industry. This meant that Nintendo had to push the prices down in order to attract more consumers. Its advertising and promotional strategies helped Wii to become the most selling brand during Christmas time and especially amongst families who preferred to own only one of all
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