EA Sports Network - Marketing Planning and Promotion - Case Study Example

EXECUTIVE MBA-MARKETING PLANNING AND PROMOTION (MPP) By Name Course Instructor Institution Location Date Executive Summary This plan is presented for EA sport, a global giant for production of sports products such as NBA live, FIFA, NHL and NASCAR. EA sports network is a globally recognized, for the production of computer and video games. Lionel Messi a football star who plays for Barcelona Football club is an example of an elite EA sports products consumer. In a pre-promotion press interview, Messi once said that he uses some of his free time to play FIFA. To be noticed is the fact that his imitation is a major aspect in the game. What joy this brings to the Argentine attacker and probably world best footballer. EA sports’ FIFA 18 is designed with scalability in mind, so whether someone is a beginner or an experienced gamer, it is the ideal entertainment program. The incorporation of real life aspects of the players appeal to members of the public and aids in marketing endeavors as most competitors such as PESS and 2K Sports are lagging behind on this aspect. FIFA 18 is developed by two art studios, EA Canada an electronic art studio located in Burnaby and EA Tiburon in Maitland, Florida. EA sports have several studios so as to enhance the level of production and distribution. EA sports’ FIFA18 pricing structure is variable, tiered, and competitive. Discounts are offered for referrals, loyal gamers, students and for promotional purposes especially in African countries. Little money is spent on promotion, as its almost by default that EA sports logo appears at some section of the screen whenever there is a live sports broadcast. This could be a major undoing as other rivals are extensively engaging and spending on promotion. Social media and online marketing will play an important role in the overall publication of FIFA 18. Ultimately, the goal of EA sports to increase its number of users globally as in so doing they will have control of the sports product market. Table of Contents Executive Summary 1 1.0Introduction 1 2.0 Situation Analysis 2 2.1Market Analysis (SWOT) 2 2.1.1Strengths 2 2.1.2Weaknesses 2 2.1.3Opportunities 2 2.1.4Threats 3 2.2Launch Justification 3 2.3Competitor Analysis 4 3.0 Marketing Strategy 4 3.1 Segmentation 4 3.1.1AGE 4 3.1.2Gender 4 3.1.3Income 5 3.1.4 Occupation 5 3.2 Targeting 5 3.3 Positioning 6 3.4 Market Strategy Formulation 7 3.4.2 Market Development and differentiation strategy 7 3.4.3 Market Diversification and Entrant Strategy 8 3.5 Marketing Mix 8 3.5.1 Product 8 3.5.2 Promotion 9 EA Sports network sponsors the Barclays Premier League in England as well as the Spanish Laliga in Spain. This allows for the marketing and advertising of EA Sports products including FIFA 18 during game time especially during big games like the London derbies and the El Clasico as discussed by Situmeang et al, (2016, Pg.41). 9 3.5.3 Place 10 EA Sports network distribution channel is really big and since it’s a big organization with companies situated in different parts of the world, each company does its own thing and has its own way of interacting with wholesaler, retailer as well as the final consumers. 10 EA Sports network is located in 30 countries across the world; each of them has operations that despite being linked to the parent company do their own activities independently. Usually the distribution is done from the producer (EA), to the wholesaler, retailer and then to the buyer. Often, users are able to access EA Sports networks products wherever they are. 10 EA Sports networks also distribute products like FIFA to online shopping platforms such as Amazon Play station network and Google store. These efforts will ensure that FIFA 18 reaches as many numbers of gamers as possible. 10 3.5.4 Price 10 The introductory prices during demonstrations will be relatively low. This will enable more gamers to sample FIFA 18 and with the level of innovation that has been put behind the game graphics, it is expected that people who game especially first time non-traditional gamers will be attracted and retained permanently as suggested by Patil & Bach, (2017, Pg.66). The final price that will be charged for a copy of FIFA 18 will capture various aspects of the game. This will include game development, licensing in order to protect the intellectual work and the costs of distribution. 10 3.5.5 People 11 Apart from the fact that FIFA 18 has been developed with a state of the art technology in graphic design, the quality of the product will not be depended upon entirely to stimulate sale. FIFA 18 is mainly developed to target mobile phone users who are likely to relatively increase the customer base in the event they are convinced to use the product. FIFA 18 is also intended to attract the first time non-traditional gamers as well as retain them as discussed by Pakes, (2016, Pg.44). This is the reason why the game is developed with absolutely high quality graphics. The game has been made more realistic in a bid to reach a vast market. 11 3.6 Promotion Plan 11 3.6.1 Public Relations 11 3.6.2 Advertising 11 3.6.3 Sales promotion 12 The success of FIFA 18 in the market where there are so many competitors including the Pro Evolution Soccer with their football game brand PESS, depends on the effectiveness of the sales persons in convincing gamers to sample FIFA 18 as shown by Kim, (2017, Pg.77). They are therefore supposed to interact with clients one on one and demonstrate to them the special features of FIFA 18 in comparison to other games. This is particularly vital as it allows room for the collection of immediate feedback. 12 3.6.4 Sponsorship deals 12 4.0 Financial analysis 13 4.1 Expenditure 13 EA Sports network marketing expenditure for FIFA 18 is divided into the following sections; 13 Advertisement 13 Sales support 13 Public relations 13 Research 13 Personnel 13 Miscellaneous 13 Advertisement has been allocated the lions share in the year 2017 which further increases in 2018. The reason behind this is because FIFA 18 is intended to get the masses rallying behind EA Sports as the suitable company to win the tender of making simulation training programs for the army. This is in a bid to diversify its market and there is no better way to win the tender than to demonstrate success in the launch and consequent sales of FIFA 18. 13 4.2FIFA 18 Financial Projections 15 Following the sales success of FIFA 17 in the year 2016, it is projected that FIFA 18 will scale greater heights in terms of sales. As already discussed, FIFA 17 won the annual bestselling video game award when it recorded sales of over $600 billion. FIFA 18 is expected to surpass this figure in the first financial year. 15 15 4.3 Demand Forecast 16 Diagram: demand projection for FIFA 18 16 Dethroning FIFA 17 of the bestselling video game title seems to be an uphill task. This especially follows the fact that it’s the incumbent video game with worldwide recognition and admiration. Therefore the demand for FIFA 18 is projected to be 0.7 million copies shy that for FIFA 17 In the first year that is, 2017. 16 However, given the improved video graphics of FIFA 18 and the massive sales promotion activities that will be put in place to help market FIFA 18, it is expected that its demand will shoot to 2.5 million copies in the second financial year. This will be 0.8 million copies sold in excess those sold for FIFA 17. The demand for FIFA 18 is expected to maintain a steady rise in the year 2019 through to 2020. The increase in demand for the two games is expected to be inversely proportional. Increase in demand for FIFA 18 as from the second financial year 2018, through to financial year 2020 will be accompanied by decrease in demand for FIFA 17 within the same financial periods. 16 5.0 plan Control 17 The main goals for the launch of FIFA18 include; 17 To attract first time non-traditional gamers 17 To get mobile users gaming on their mobiles 17 To beat the record set by FIFA 17 for bestselling video game 2017 17 To win the tender for the development of a training simulation video game for the army 17 To increase the sales of FIFA 18 each financial year 17 The performance of the plan will be measured against the set objectives and the data available in the EA Sports sales data bases for their bestselling video games including FIFA 17 as discussed by Han et al, (2017, Pg.89). 17 The marketing department managers will thus be able to evaluate the performance of FIFA 18 through mathematical simulations using the actual data that will be collected on demand, supply and costs. Since this will be the data collected when actually transacting the results can be compared to what is stipulated in the plan. This will enable the managers to adjust their methods if need be and take corrective measures where objective were not met as demonstrated by Heinemann, (2016, Pg.53). 17 6.0 Contingency Considerations 17 There are very few setbacks foreseeable relative to the release of FIFA 18. The likely few include; 17 Technical hitches 17 Demand irregularities due to seasonal fluctuations on the same 17 Failure of sales to satisfy the production cost 18 Piracy 18 In case there will be any technical hitches that will make the gamers feel unsatisfied by the quality of the game, There will be facebook fun page where they will freely interact with EA Sports technical team. Grievances will thus be addressed promptly through the release of FIFA 18 updates. There may be fluctuations in demand since demand for video games is usually seasonal in nature. For this reason, EA Sports will diversify the market for FIFA 18. 18 In the event of failure of FIFA 18 meeting the set sales thresholds, operations that relates to it will be swiftly suspended and focus shifted on the already successful FIFA 17. Adjustment will thus be made based on the results obtained from performance measurement and evaluation before it can be re-launched. 18 Piracy has been a serious issue which has seen loses registered in regard to FIFA 17 sales activities. Therefore, EA Sports intends to work in conjunction with the governments and authorities of countries that form there market regarding regulation of FIFA 18 trade as shown by Grant, (2016, Pg.56). For examples Singapore is a country where regulations for EA Sports have in the past seen limited regulation. EA Sports can thus work with such government to help them enforce the rules and regulations regarding piracy. 18 7.0 Implementation Plan 18 7.1 Organization Structure 18 The flow of command will follow a well laid out frame work shown below. 18 Board of directors 19 Overall marketing manager 19 Branch marketing managers 19 Facility supervisors 19 Ground supervisors 19 Sales persons and sales outlets 19 The board of directors will either accept the proposed launch and marketing plan are recommend it for revision and thus issues it to the overall marketing manager for implementation. The overall marketing manager will hold a meeting with the branch managers to brief them on the proposed plan and how it should be executed. 19 The facility supervisors will direct the company in-house staff on how to execute the requirements of the plan while the ground supervisors will do the same on the field. The sales persons and sales outlets will simply do as they have been instructed and directed by the supervisors. 19 7.2 Human Resource Planning 19 The stuff tasked with any duties that relates to the plan must meet an established training criterion and must have achieved a certain level of learning. Sales persons must for instance be fluent speakers and be conversant with the languages used within the domains they are assigned to as discussed by Bell, (2016, Pg.33). The most preferred stuff for the execution of tasks related to this plan will be those available for consideration from FIFA 17 marketing team. 19 8.0 Conclusion 19 EA Sports still commands a vast market share in the production of video games. They have attained this despite the presence of rivals such as the Pro Evolution Soccer. For example FIFA 17 won the bestselling video game award for the year 2017. 19 This level of success is what justifies the launch of FIFA 18 since it is projected that it will hit the same sales high as FIFA 17. 20 The main objective for the launch of FIFA 18 is to sustain demand by targeting unexplored markets as suggested by Amstrong & Green, (2017, Pg.55). FIFA 18 seeks to target first time non-traditional gamers and users of android mobile phones as it seeks to make the game compatible with these phones. 20 To attain a favorable image in the eye of the consumer, FIFA 18 is designed with a cutting edge technology in the video graphics. Introductory prices will be lower so as to allow for more people to sample the game. The initial buyers will get some discount as part of the company’s promotional plan. 20 Intense competition in the video game production industry has made it mandatory for FIFA 18 to be marketed extensively. Advertising and the use of sales promotion are some of the methods put in place in order to achieve this. 20 Among the expenditure expected include advertisement, stuff and sales support. The sales of copies of FIFA 18 are expected to increase from the first financial year through to the year 2020 as the same is projected for the demand. However, the demand for FIFA 17 is expected to decline steadily after the launch of FIFA 18 as people will be expected to transition into a new era. 20 Few contingency issues will be expected such as piracy. This however will be dealt with through liaising with government and authorities of countries that form part of the market. The governments will be requested to come up with way to enforce EA Sports games regulations 20 21 Reference list 22 1.0Introduction EA Sports network is global giant in the production of video games and Pc games. Its success greatly depends on that of other gaming consoles such as Play station. This means that in case of sales wanes in such gaming consoles, the sales of its products such as FIFA will be affected adversely. There are numerous opportunities that EA Sports can exploit after it makes a statement launch of FIFA 18. It is important to note that this will follow a successful campaign with FIFA 17 which was named the best selling video game product of 2016. It made a record 1$ billion in one quarter of the same year thereby dethroning US best seller Call of Duty. With such figures it clear that EA Sports have the edge in this competitive industry hence has nothing to fear in its quest for launching FIFA 18. Diagram: EA Sports network product logos This documents details the segmentation, position and targeting strategies that should be employed by EA Sports should there be a successful launch of FIFA 18.Marketing mix principals such as pricing per segment is crucial for a successful launch and marketing efforts as will be later discussed in this text. For successful marketing, EA Sports will need a well laid out promotion framework and a financial projection for FIFA 18 all of which are provided in detail in this text. 2.0 Situation Analysis 2.1Market Analysis (SWOT) 2.1.1Strengths EA Sports network operate in over 35 countries hence FIFA 18 has an almost guaranteed ready market across the globe. The gaming industry giant has multiple segments including EA games and EA sports both of which can be used to release FIFA 18. With this, sales shortcoming of one segment may at times be offset by sales in the other. Sport games they make break sales records within weeks hence further drive to launch FIFA 18. 2.1.2Weaknesses The fact that software is dependent on the platform that is build by other companies restricts the level of performance and quality that can be attuned to sport products as suggested by Kim, (2017, Pg.52). The graphics and gaming capabilities also remain limited. Game release date has to be tied to certain release date such as Christmas sales or during major sport events like the Olympic. Failure to observe this norm usually affects the sales adversely. 2.1.3Opportunities FIFA 18 has well refined graphics hence can be used to further the company’s interest in making simulations games for armies. FIFA 18’s market success should be indicative for readiness to follow the simulation path. The release of FIFA 18 provides an opportunity of accompanying it with a package containing equipments for kids to practice and play sports. This ushers in an era of active and practical involvements in the game hence an improved experience. 2.1.4Threats Sales and profits depend up on the success of other gaming consoles such as the Play station. Challenges experienced in the operations of such consoles will mean that sales of EA Sports network product will slump. Software piracy is still a major challenge for example in countries like South Korea where laws protecting the products are not enforced. FIFA 18 just like other sport products can be pirated with minimal fear of consequences and this translates to low margins overall for EA Sports network. 2.2Launch Justification EA Sports network commands a vast market spread across 32 countries. FIFA 17 ahead of it was a success as it was announced the best selling console for the year 2016. It saw EA Sports mark a historical milestone as for the time in its history it managed to records sales of over $1 billion in operating cash flow in a quarter. This is according to a statement released by EA Sports chief financial officer Blake Jorgensen. This milestone saw FIFA dethrone US previous number one best seller Call of Duty. With these backgrounds and given FIFA 18 is an innovated version of FIFA 17 it highly likely that FIFA 17 will take the world by the same intensity of surprise as suggested by Pakes, (2016, Pg.86). It launch is therefore undeniably a viable venture. 2.3Competitor Analysis There are several big companies that act as players in the video game industries for example Ubisoft. Despite the presence of these big players in the sports products market, EA Sports has still been able to maintain a competitive edge above all as shown by Pakes, (2016, Pg.33). For example, reported total revenue for EA Sports in one quarter of 2017 increased by 16.74%. This values is triple the average of all its competitors combined that was at 5.2% in 2017. This means that despite the competition, EA Sports network still reign supreme all the more reasons to launch FIFA 18. 3.0 Marketing Strategy 3.1 Segmentation With regards to the launch and subsequent marketing of FIFA 18 the company will use geographical segmentation which has proven successful in all previous attempts. The product will thus be introduced variedly to each of the following geographical segments: 3.1.1AGE FIFA 18 will be targeted at people across all age brackets as it is a family kind of game that doesn’t need viewer discretion. This is simply football. This explains the success of various EA sports products including FIFA 17. 3.1.2Gender Just like in age parameter, FIFA 18 is not discriminative of gender and will be available for people of any gender female and male alike. This provided one has knowledge and access to the product or has access to someone through whom they can learn. 3.1.3Income The price will be bare segmental differentiation as suggested by Wheel and Hunger, (2017, Pg.90). For promotion and advertisement purposes the game will be available to users everywhere around the globe in the most market realistic prices while at the same time protecting the integrity of in the industries financial performance. 3.1.4 Occupation In order to maximize sales with minimum complains from the buyers, FIFA 18 will be available for sale to people whose occupation most relate to the products. Sportspersons such as footballers will be an easy segment for example. 3.2 Targeting As the market stand from the 2016 financial year EA Sports fairs well with a three times growth value that of all other competitors combined. This should however not send a wrong impression that marketing team of the company can be safe to put their feet of the gas as suggested by Roos et al, (2017, Pg.23). On the contrary the team should even be more vigilant in such efforts and targeting is just one way they that dominance can be sustained. EA Sports network’s FIFA 18 is to be made available to the current consumer base the company has. This mean s that the users of FIFA 17 will be able to easily access FIFA 18 simply via running an update to their old FIFA 17 or alternatively buy FIFA 18 from the retail licensed retail stores to fight piracy. FIFA 18 also targets mobile users by synchronizing and making FIFA 18 compatible with android devices so that mobile users whose gadgets have android version are able to download the game and play it from their smart phones. Finally FIFA 18 is intended to make non-traditional users join the world of gamers. This will be attained through variable advertisement effort and free test plays that will be available to android users in Google store’s Game loft. The technology behind FIFA 18 is of top class with the graphics, video qualities and players simulations made as close as possible to real player attributes in a bid to retain the non-traditional first time users. 3.3 Positioning FIFA 18 targets its current FIFA 17 users, mobile users and non-traditional users who may be loyal to other gaming consoles such as Activision. To do this FIFA 18 has been developed with a cutting edge innovative technology. The character support and simulation resemble as closely as possible to the players or characters real attributes. The graphics are better than of FIFA 18 which on its own was special as it scooped bestselling video game award of 2016. In order to create a strong and long lasting image to the users, the video quality as well as audio and commentary have been improved a notch. The latest trends in the football world such the offside track rule, goal line technology and video assistant refereeing have been captured in FIFA 18 in attempt to lure as many non-traditional users as possible while at the same time ensuring that demands of current users are met. Also a close track of competitor’s practices is kept in order to keep them at bay on image establishment as shown by Kim, (2017, Pg.76). The FIFA 18 users will be asked of the feedbacks concerning their experience in playing the game and how it compares to products of competitors. With this it will be possible to determine the strength of the impression that the game leaves at the minds of consumers hence improvements can be made where shortcomings have been identified. 3.4 Market Strategy Formulation Based on the discussed targeting, positioning and segmentation strategies and the consequent segments to be target, three strategies will be formed and developed as briefly highlighted below: 3.4.1 Market Penetration and Leadership strategy Given the nature of the sports product industry, FIFA 18 will be publicized wide and abroad. This will necessitate new advertisement efforts since competitors are vibrant as shown by Han et al, (2017, Pg.59). New users will be reached out to via free play trial in Google store’s Game loft. However the users will have to own android devices such as android smart phones whose operating systems are compatible with FIFA 18. These procedures are aimed at establishing one market strategy, Leadership. 3.4.2 Market Development and differentiation strategy FIFA 18 has attributes that appeal to various customers based on their needs as shown by Bell, (2016, Pg.88). This is in response to the recognition that given the nature and types of segments that the product targets, differentiation strategy will be of great values to sales efforts. As a result the game is developed to have different level of difficulty in play mode. The game has world class, legendary, regular, beginner and amateur difficulty level to suit the needs of the users. FIFA 18 also has various game modes including exhibition, league mode, tournaments modes among others. This thus caters for the needs of the diverse markets 3.4.3 Market Diversification and Entrant Strategy Competition in the video gaming industry is becoming more and more intense. As a result FIFA 18 will attempt to exhibit diversification. For the first time the initially unrecognized remote leagues such as the S-league of Singapore will be included in video game. This means that EA Sports are assuming the responsibility of the first entrants into such market venture as discussed by Wheel & Hunger, (2017, Pg.44). Still regarding diversification and consequent new entrant strategy, EA sports networks are intensifying campaigns to introduce FIFA 18 to mobile phone users as this might pave a way for other games by the company to follow suit. If it works the new entrant market strategy will add to the company’s revenue as it will mean more users. 3.5 Marketing Mix 3.5.1 Product EA Sports network products are usually the games they produce. This ranges from various FIFA editions, battle field to madden. For the purpose of this work the main focus is FIFA 18. This is simply an improvement from the current in-market FIFA 17. Important gaming aspects, features and controls are the same for these two products. FIFA 18 however has improved video graphics and player imitation has been made more realistic. This is in an attempt to meet some of the objectives of the company’s marketing campaigns that include among others attracting non-traditional gamers. FIFA 18 is a shopping product. This means that shopper will have to carefully compare the game products options in the markets before ultimately deciding on what product to purchase as shown by Van deb Bergh, (2016, Pg.99). For example many shoppers will prefer EA Sports products to Konami’s Pro Evolution. The simple reason behind this is that the quality of EA Sports networks products such as FIFA 18 is high. The graphics are of high quality and the game is made as realistic as possible. Diagram: FIFA 18 cover photo. 3.5.2 Promotion One effective method that has brought the company great success in terms of sales is the reductions of sales cost. This is especially important for new products that are being offered for demos. This practice will allow many gamers to try FIFA 18 and they can later buy it at a relatively higher price when they are convinced that the game is of high quality. EA Sports network sponsors the Barclays Premier League in England as well as the Spanish Laliga in Spain. This allows for the marketing and advertising of EA Sports products including FIFA 18 during game time especially during big games like the London derbies and the El Clasico as discussed by Situmeang et al, (2016, Pg.41). 3.5.3 Place EA Sports network distribution channel is really big and since it’s a big organization with companies situated in different parts of the world, each company does its own thing and has its own way of interacting with wholesaler, retailer as well as the final consumers. EA Sports network is located in 30 countries across the world; each of them has operations that despite being linked to the parent company do their own activities independently. Usually the distribution is done from the producer (EA), to the wholesaler, retailer and then to the buyer. Often, users are able to access EA Sports networks products wherever they are. EA Sports networks also distribute products like FIFA to online shopping platforms such as Amazon Play station network and Google store. These efforts will ensure that FIFA 18 reaches as many numbers of gamers as possible. 3.5.4 Price The introductory prices during demonstrations will be relatively low. This will enable more gamers to sample FIFA 18 and with the level of innovation that has been put behind the game graphics, it is expected that people who game especially first time non-traditional gamers will be attracted and retained permanently as suggested by Patil & Bach, (2017, Pg.66). The final price that will be charged for a copy of FIFA 18 will capture various aspects of the game. This will include game development, licensing in order to protect the intellectual work and the costs of distribution. 3.5.5 People Apart from the fact that FIFA 18 has been developed with a state of the art technology in graphic design, the quality of the product will not be depended upon entirely to stimulate sale. FIFA 18 is mainly developed to target mobile phone users who are likely to relatively increase the customer base in the event they are convinced to use the product. FIFA 18 is also intended to attract the first time non-traditional gamers as well as retain them as discussed by Pakes, (2016, Pg.44). This is the reason why the game is developed with absolutely high quality graphics. The game has been made more realistic in a bid to reach a vast market. 3.6 Promotion Plan 3.6.1 Public Relations Public relations officers will have to be trained and well equipped with the public relations knowledge for them to be effective. A well coined statement about for example the high quality graphics of FIFA 18 will make a strong and lasting impression on the minds of the consumers especially the first time non-traditional gamers. To enhance effective as well as measure success of this form of promotion EA Sports network will ensure that PR efforts are independent of other promotional efforts as shown by McDonald & Wilson, (2016, Pg.58). The social media influence that such figures command for instance in the social media platform will make it easy to access a vast number of users. Christiano Ronaldo for example has over 100 million followers on facebook. 3.6.2 Advertising The nature of the new product launch and release dates for EA Sports is usually dictated by sporting events and seasonal changes and so are the advertisements of such products. The advertisement for FIFA 18 will be intensified during the spring and summer months. During these months sporting activities increase. This will provide an ideal condition for the introduction of FIFA 18 to the world. A lot of people will for example attend football games and a well done advert can reach thousands of people within minutes. Old Trafford football field for example has a capacity of 75000 people at full booking. Sporting activities especially in Europe increase during the fall. FIFA 18 advertisement will therefore be intensified during the fall more than during any other season. For the purposes of attraction of first time non-traditional gamers as well as android mobile phone users whose phones are compatible with FIFA 18, advertisement budget will be increased with more attention paid to the social media platform. 3.6.3 Sales promotion The success of FIFA 18 in the market where there are so many competitors including the Pro Evolution Soccer with their football game brand PESS, depends on the effectiveness of the sales persons in convincing gamers to sample FIFA 18 as shown by Kim, (2017, Pg.77). They are therefore supposed to interact with clients one on one and demonstrate to them the special features of FIFA 18 in comparison to other games. This is particularly vital as it allows room for the collection of immediate feedback. 3.6.4 Sponsorship deals EA Sports network have for examples signed a new three-year sponsorship deal with the Premier League to allow them access to the league and its players. With the cooperation of multiple football clubs and players, EA Sports network will greatly raise exposure of the game across the social media 4.0 Financial analysis 4.1 Expenditure EA Sports network marketing expenditure for FIFA 18 is divided into the following sections; Advertisement Sales support Public relations Research Personnel Miscellaneous Advertisement has been allocated the lions share in the year 2017 which further increases in 2018. The reason behind this is because FIFA 18 is intended to get the masses rallying behind EA Sports as the suitable company to win the tender of making simulation training programs for the army. This is in a bid to diversify its market and there is no better way to win the tender than to demonstrate success in the launch and consequent sales of FIFA 18. Year Advertisement Sales support Public relations Research Personnel Miscellaneous Total 2017 1000 900 500 200 100 55 1755 2018 1100 1000 800 300 200 55 3455 Diagram: EA sports FIFA 18 marketing expenditure in million US dollars Sales support covers the means of making the game available to the customers conveniently. It entails all the reductions in the actual cost a practice commonly referred to as introductory pricing. This follows the company’s principal of low pricing for demonstrations. Public relations cover the costs of developing websites and web pages in the social media platform from where the company’s stuff can socialize with their clients. Research has been allocated a substantial amount of money since there is always room for improvement. In as much as FIFA 18 is expected to be the ultimate people’s game of choice due to its high quality graphics, it is important to have a team in place to always cater for customers demands. Some traditional gamers can still easily point out a gaming defect that can always be improved so as to retain them. The staff that executes the entire marketing process need be well compensated as suggested by House & Street, (2016, Pg.88).This will motivate them to give their best in their jobs. Transport allowance for those involves in long flights and hauls is just an example of items catered for in the salaries and allowances of EA Sports network personnel. 4.2FIFA 18 Financial Projections Following the sales success of FIFA 17 in the year 2016, it is projected that FIFA 18 will scale greater heights in terms of sales. As already discussed, FIFA 17 won the annual bestselling video game award when it recorded sales of over $600 billion. FIFA 18 is expected to surpass this figure in the first financial year. Diagram: FIFA 18 financial projection For the first financial year 2017 the sales are projected to be $4.5 trillion. This is slightly lower than the projected sales values of 2018, 2019 and 2020 which are projected to be $8 trillion, $12 trillion and $16 trillion respectively. The reason is that the company will not want to over investing on FIFA 18 during its initial stages following its launch because most of its economic processes will be experimental. However, from the figure above it is clear that the company has high expectation that FIFA 18 performance in terms of sales will be able to cater for all the production expenditures even as the sales figure increase exponentially each year. 4.3 Demand Forecast Just like FIFA 17 before it, it is projected that the demand for FIFA 18 will hit a high as quickly as possible. The demand is projected to increase steadily with a gradual decrease in demand of FIFA 17 Diagram: demand projection for FIFA 18 Dethroning FIFA 17 of the bestselling video game title seems to be an uphill task. This especially follows the fact that it’s the incumbent video game with worldwide recognition and admiration. Therefore the demand for FIFA 18 is projected to be 0.7 million copies shy that for FIFA 17 In the first year that is, 2017. However, given the improved video graphics of FIFA 18 and the massive sales promotion activities that will be put in place to help market FIFA 18, it is expected that its demand will shoot to 2.5 million copies in the second financial year. This will be 0.8 million copies sold in excess those sold for FIFA 17. The demand for FIFA 18 is expected to maintain a steady rise in the year 2019 through to 2020. The increase in demand for the two games is expected to be inversely proportional. Increase in demand for FIFA 18 as from the second financial year 2018, through to financial year 2020 will be accompanied by decrease in demand for FIFA 17 within the same financial periods. 5.0 plan Control The main goals for the launch of FIFA18 include; To attract first time non-traditional gamers To get mobile users gaming on their mobiles To beat the record set by FIFA 17 for bestselling video game 2017 To win the tender for the development of a training simulation video game for the army To increase the sales of FIFA 18 each financial year The performance of the plan will be measured against the set objectives and the data available in the EA Sports sales data bases for their bestselling video games including FIFA 17 as discussed by Han et al, (2017, Pg.89). The marketing department managers will thus be able to evaluate the performance of FIFA 18 through mathematical simulations using the actual data that will be collected on demand, supply and costs. Since this will be the data collected when actually transacting the results can be compared to what is stipulated in the plan. This will enable the managers to adjust their methods if need be and take corrective measures where objective were not met as demonstrated by Heinemann, (2016, Pg.53). 6.0 Contingency Considerations There are very few setbacks foreseeable relative to the release of FIFA 18. The likely few include; Technical hitches Demand irregularities due to seasonal fluctuations on the same Failure of sales to satisfy the production cost Piracy In case there will be any technical hitches that will make the gamers feel unsatisfied by the quality of the game, There will be facebook fun page where they will freely interact with EA Sports technical team. Grievances will thus be addressed promptly through the release of FIFA 18 updates. There may be fluctuations in demand since demand for video games is usually seasonal in nature. For this reason, EA Sports will diversify the market for FIFA 18. In the event of failure of FIFA 18 meeting the set sales thresholds, operations that relates to it will be swiftly suspended and focus shifted on the already successful FIFA 17. Adjustment will thus be made based on the results obtained from performance measurement and evaluation before it can be re-launched. Piracy has been a serious issue which has seen loses registered in regard to FIFA 17 sales activities. Therefore, EA Sports intends to work in conjunction with the governments and authorities of countries that form there market regarding regulation of FIFA 18 trade as shown by Grant, (2016, Pg.56). For examples Singapore is a country where regulations for EA Sports have in the past seen limited regulation. EA Sports can thus work with such government to help them enforce the rules and regulations regarding piracy. 7.0 Implementation Plan 7.1 Organization Structure The flow of command will follow a well laid out frame work shown below. Board of directors Overall marketing manager Branch marketing managers Facility supervisors Ground supervisors Sales persons and sales outlets The board of directors will either accept the proposed launch and marketing plan are recommend it for revision and thus issues it to the overall marketing manager for implementation. The overall marketing manager will hold a meeting with the branch managers to brief them on the proposed plan and how it should be executed. The facility supervisors will direct the company in-house staff on how to execute the requirements of the plan while the ground supervisors will do the same on the field. The sales persons and sales outlets will simply do as they have been instructed and directed by the supervisors. 7.2 Human Resource Planning The stuff tasked with any duties that relates to the plan must meet an established training criterion and must have achieved a certain level of learning. Sales persons must for instance be fluent speakers and be conversant with the languages used within the domains they are assigned to as discussed by Bell, (2016, Pg.33). The most preferred stuff for the execution of tasks related to this plan will be those available for consideration from FIFA 17 marketing team. 8.0 Conclusion EA Sports still commands a vast market share in the production of video games. They have attained this despite the presence of rivals such as the Pro Evolution Soccer. For example FIFA 17 won the bestselling video game award for the year 2017. This level of success is what justifies the launch of FIFA 18 since it is projected that it will hit the same sales high as FIFA 17. The main objective for the launch of FIFA 18 is to sustain demand by targeting unexplored markets as suggested by Amstrong & Green, (2017, Pg.55). FIFA 18 seeks to target first time non-traditional gamers and users of android mobile phones as it seeks to make the game compatible with these phones. To attain a favorable image in the eye of the consumer, FIFA 18 is designed with a cutting edge technology in the video graphics. Introductory prices will be lower so as to allow for more people to sample the game. The initial buyers will get some discount as part of the company’s promotional plan. Intense competition in the video game production industry has made it mandatory for FIFA 18 to be marketed extensively. Advertising and the use of sales promotion are some of the methods put in place in order to achieve this. Among the expenditure expected include advertisement, stuff and sales support. The sales of copies of FIFA 18 are expected to increase from the first financial year through to the year 2020 as the same is projected for the demand. However, the demand for FIFA 17 is expected to decline steadily after the launch of FIFA 18 as people will be expected to transition into a new era. Few contingency issues will be expected such as piracy. This however will be dealt with through liaising with government and authorities of countries that form part of the market. The governments will be requested to come up with way to enforce EA Sports games regulations Reference list Armstrong, J.S. and Green, K.C., 2017. Demand Forecasting II: Evidence-Based Methods and Checklists. Bell, T.R., 2016. Book review: ESPN: The Making of a Sports Media Empire. Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Han, H., Yao, C., Peng, M. and Yu, Y., 2017. 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