Target Consumer Groups and Unique Sellin Proposition
Abstract
The paper gives some information about positioning that one of the main elements of Marketing Mix and SWOT analysis of Nintendo Wii and it’s main competitors Sony’ Play Station 3 and Macintosh’s Xbox 360. The paper describes Nintendo Wii’s three main personas, represents them on a positioning map and adds competitors on it. The paper discusses how being the first to launch a radically different console gave the company its competitive advantage which it then translated into its promotional strategy.
The paper concludes with a recommendation for next launch for Nintendo. Positioning Harrison, T. states that the positioning of a product is, ‘‘the sum of those attributes normally ascribed ti it by the consumers – its standing, its quality, the type of people who use it, its strenghts, its weaknesses, any other unusual or memorable characteristics it may possess, its price and the value it represents. ’’ …(T. Harrison,1987) Positioning starts with a product – a piece of merchandise, a service, a company, an institution or even a person.
Positioning is not what is done to the product – it is what is created in the minds of the target customers; the product is positioned in the minds of these customers and is given an image. (A Ries and J. Trout,1996). The product must be perceived by the selected target customers to have a distinct image and position vis-a-vis its competitors. Product differentiation is widely viewed as the key to successful marketing; the product must stand out and have a clearly defined positioning. Positionings are described by variables and within parameters that are mportant to the customers and are essentially selected by them.
An example to a useful positioning map Nintendo’s Target Consumer Groups Nintendo has managed to attract a wider target of consumers as being in a different positioning from the others. Nintendo created the three new target consumer groups of non-gamers, family members and the health and fitness industry with the development of the Wii. Nintendo opined that existing games (Sony and Macintosh’s games) were not only difficult to understand and play, but also found the consoles complex to operate.
So the new generation game console that published by them should be not complicated and user-friendly at first. The Sony’s and Macintosh’s games were built more on fantasy and they were targeted towards over 18 year old male population. Until now, video games were aimed at teenagers and young men. The Nintendo DS and Wii have attracted more women and adults to video games, especially to video games software relating to culture or brain training. For example, in 2007 the average age of video games users was 29 years old, which shows that video games are gradually shifting to include a consumer group larger than just children and teenagers.
Nintendo’s marketing strategy was devised with a wider target of customer groups and devised involving all age and gender groups. Nintendo made a conscious attempt to bring the non gamers into the spot light and create a new consumer segment. They decided to concentrate on simplicity and real life game scenarios. Nintendo designed and marketed “Wii” as family entertainments devise involving all age and gender groups including those who enjoy watching others play.
This encouraged not only young members of the family asking parents to buy gaming devises, but the elders started showing interest and started buying Wii. Wii consoles is an interactive remote console that allows people to interact with each other in a social way utilizing a device that is often used for gaming. Typically Wii consoles are associated with gaming devises including those used for Nintendo gaming stations. However, Wii can also help people engage their friends or family members in conversation, and help them tune into each other even when they are far away from each other.
In 2007 and 2008 Nintendo showed the world, that – while this target group certainly is not without potential – the high growth markets are elsewhere: within the female population, with younger kids and people well above an age of 30. This is where the Wii and the DS handheld are finding most of their buyers. In these markets you need a different kind of content. You can’t attract a lot of women (especially in the generation above 35) with ego shooters, war simulations, car races, group sports etc. Wii also found a competitive edge by getting females and other adult population who has not been very keen in playing earlier.
Wii Fit (Fitness game for Nintendo Wii) developed especially for the female members of the family. So the whole family members are a target consumer segment. Wii was able to remove the traditional negative barrier between “the child” and “the parent”.
SWOT Analysis for Nintendo Wii Strengths:
- Unique, no similar product
- Develop of motion sensing controls
- Ease of use (Wii menu a lot like TV channels)
- Most interactive console
- Appeals to all ages
- Prestige of nintendo (brand loyality)
- Lowest price compared to other consoles
- Worldwide availability Many people can play at once.
Weaknesses:
- Joystick liability
- Limited selection of software
- Trailing in online war
- Xbox has Xbox live (but you have to pay) , PS3 Online
- Graphics – weakest graphic card of the entire group
- No HardDisc (Xbox and PS3 both have HD)
Opportunities:
- Better online system
Threats:
- Price drops from competition
- Microsoft/Sony develops ‘Wii Remotes’ too
- Wii’s Appeal fads.
SWOT Analysis for Play Station 3 Strengths:
- Integration of next generation DVD players ,
- Backward compatibility with previous PS2 Mostly Free Online product
- Recent decline in profits
Weaknesses:
- Expensive hardware and games
Opportunities:
- Great product lunch covering global spectrum.
- Penetration of new markets in ME
- Penetration of untouched markets by means of bundling
- Partnership with Hollywood studios
Threats:
- Lower cost competitor i. e. Nintendo
- Constant strategy change
SWOT Analysis for Xbox 360 Strengths:
- Integration of next generation DVD players i. e. HD technology
- Backward compatibility with previous Xbox games
- Online product – the first of its kind Lower price than most comparable competitor PS3
Weaknesses:
- Expensive hardware and games
- Production flows
- Direct competition with Nintendo because of equally large customer base
Opportunities:
- Penetration of untouched markets by means of bundling
Threats:
- Lower cost competitor i. e. Nintendo
- Hardware complication
Personas Persona №1
Name: Seda
Age: 38 Seda lives in Turkey/Istanbul and she is a housewife.
She is interested with fitness because of being over-weight and obesity. Seda has always enjoyed listening music and interested with playing PC games with her son.
Her favorite games are car races and groups sports. She rarely bought sports game CDs and after uploading them her PC, played at home alone or with her son.
Persona #2
Name: Arda
Age: 14 Arda is Seda’s son and lives in Turkey/Istanbul as well.
He is a middle school student and he enjoys playing puzzle games , listening music(especially techno) and playing PC games with his friends. At nights he usually does homeworks, watches TV, plays with his gameboy and sometimes uploads racing games to his PC from internet, and generally plays racing ames and war simulations games with friends. He had experienced a few times playing with game console that one of her friend’s PS3.
Persona #3
Name: Mehmet
Age: 41 Mehmet is Seda’s husband and Arda’s father and lives in Turkey/Istanbul with them.
He is an chemist and works for a pharmaceutical company as a Clinical Research Associate(CRA) for almost five years. He is so busy in working hours and comes home so tired. After dinner generally watchs TV one or two hours before sleep. He is a non gamer because he played videogames before and have lost interest years ago.
He uses PC and numbers of PC programmes about his job at work during day and sometimes he likes internet surfing. Positioning Map for Nintendo Wii Establish a unique selling proposition How to Differentiate Unique Selling Proposition, is what the company promises to differentiate with it’s product. It will help the the positioning and marketability of the product by accomplishing 3 things:
- Unique – That clearly sets the product apart from the competitors.
- Selling – It persuades another to exchange money for the product or service.
- Proposition – It is a offer suggested for acceptance. Unique Selling Proposition starts with a consistent catchword.
For instance; Nike’s catchword that “Just Do It” promises to provide the people with the athletic shoes, clothing, equipment they need to “just do” anything. It hits the people on an emotional level, motivating you with a subtle promise of success and therefore, satisfaction. Best of all, it’s short and sweet. The Unique Selling Proposition can be the product’s tagline, or just a message that the company use internally to make sure it is delivering on their product’s promise.
For instance; Wii’s catchword ‘‘Playing-Believing’’ offers the people playing and also with to be a part of the game at the same time supports to live in the game.
Benefits of Wii
- Price of this system is lower than the Xbox 360 and PS3
- One of the biggest advantages is that it has backwards compatibility with Game Cube games.
- The motion sensitive controller.
- Some extra facilities like Internet access, E-mail, Photo editing are available.
- Power usage is lower than of other game consoles.
- It supports commonly available SD cards which are cheaper than proprietary cards.
Console comes with the free Wii Sports game. It’s a very popular game Nintendo Wii’s unique selling proposition was the motion-sensitive controller. Motion-sensitive controller that’s waved like a wand as players participate in video swordfights, tennis, golf or bowling. Nintendo’s advertising consists of smiling, racially diverse groups waving around the Wiimote (wireless remote), Sony and Microsoft rely on less traditional means. Nintendo has shifted its focus to introducing new gamers to the home console market and integrating those consumers with its portable gaming division.
Nintendo essentially sidesteps the problem of switching costs by currying favor with new gamers, which it does so with an innovative user interface and family-style games in the form of the Wii console. As a result, Nintendo is seemed as a more wholesome, family-oriented company exclusively specializing in user-friendly gaming consoles and peripherals. They did so many advertising activity and campaigns all over the world. They shifted Nintendo Wii’s TV advertising to talk to people ages 25 to 49. After then, for instance, they formed a relationship with Norwegian Cruise Lines. They asked to donate Wii systems for their ships.
It gave them great PR with people over 50. With using the smiling faces, racially diverse groups in advertisements, created more friendly, amiable and trustable image on people so this radically different console gave the company its competitive advantage which it then translated into its promotional strategy. Nintendo’s Promotion Strategy “The final element of the marketing mix is Promotion. Promotion can involve anything from where products are displayed to the target market to which the product is aimed. Many consider Nintendo as having the most family friendly console. This is because “..
Nintendo’s general console strategy, which has been to emphasize its relative low cost and family-friendly games”. Nintendo seems balanced to continue their marketing strategy of being family-friendly through their announcement of their new gaming system’s name “Wii. That is Wii, pronounced “we. ” Wii symbolizes Nintendo’s goal of creating games for everyone, and bringing people together. The “ii” not only stands for two people, but for the console’s two unique controllers. ” Wii was the different game console gave the company its competitive advantage which it then translated into its promotional strategy.
Nintendo’s strategy of attracting the non-gamers was changing the rules on which the competitive rivalry was based. What’s widely known is how this move drove top-line growth, attracting new audiences to game playing, and thus moving more units. Nintendo’s experience showed that the games must more understandable and not be too complex which would alienate certain segments of the market. These considerations led to the launching of the Wii which facilitated the implementation of a disruptive strategy in catering to non-traditional customers.
There were three main segments: “non-gamers, family members and the health and fitness industry. ” Nintendo has implemented a strategy, which encourages people around the world to play video games regardless of their age, gender of cultural background. A new marketing effort takes the Nintendo Wii out of the living room and bring it to live sporting events. Nintendo is aggressively courting non-traditional gaming groups outside this traditional profile in an attempt to increase the size of the console market. In contrast, Sony and Microsoft court the “hardcore” gamer and expect console sales to trickle down to more casual gamers.
These companies focus on serving their existing customer base, a group that views gaming as their primary source of entertainment. This “hardcore” group, which represents 11 percents of the market, is more likely to play competitively and tend to buy more games and spend more time playing games than casual gamers. Which product should Nintendo launch next? Two player games on the Wii have an important role and there are two player games now. The Wii is supposed to be the console that is in the living room and that every member of the family uses, both the young ones and the old ones.
They should develop four player games on the Wii that have online possibilities. And the other fun possibility of multiplayer is that two or three friends that live in another city or maybe a different country should play together online with this new product. And my suggestion that the name of this new generation of Wii can be Wii-R(We are).
References
- T. Harrison, A Handbook of Advertising Techniques(London:Kogan Page, 1987), p. 7
- Graham Hooley and John Saunders, Competitive Positioning(London:Prentice-Hall,1993)
- Dibb,Simkin,Pride,Ferrell, Marketing Concepts and Strategies, 4th Edition, 2001
- H. Assael, Marketing Principles;Strategies, 1990
- A Ries and J. Trout, Positioning: The battle for your mind (New York:McGraw-Hill,1981);
- Jack Trout with Steve Rivkin, The New Positioning: The Latest on the World’s Number:1 Business Strategy (New York:McGraw-Hill,1996).
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