Premium Essay

Nintendo Wii

In: Business and Management

Submitted By fsconi
Words 355
Pages 2
Why do you think demand for Wii Fit exceeded sales expectations by so much?

The key success factor for the Wii Fit was Nintendo had adopted an excellent marketing plan including the Marketing Mix, Growth Strategies and Product Life Cycle Strategies which delivered the Marketing Concept, i.e. meeting customer’s needs and wants, exceeding customer’s expectation and achieving profitable growth for the company.

1. Marketing Mix

Product - The new Wii Fit game and Balance Board with a virtual trainer

Presence - Through large retailers for better penetration

Price - Affordable bundle pricing which was cheaper than the other console games, e.g. Sony’s PlayStation 3 and Microsoft Xbox 360

Promotion - Demo kiosks and social media online network

2. Ansoff Matrix - Growth Strategies

Present Products - Wii console game
New Products - Wii Fit & Balance Board
Present Market – gamers and teenagers
New Market – non gamer, women, seniors, health-conscious peple including who used to have outdoor sport activities

Product Development - Modified the present console game with the new Wii Fit game and Balance Board to making more sales to the present customers who have already had the Console.

Market Development - Identified and developed new markets with the new Wii Fit game and Balance Board, who have already had the Wii console games for the teenagers (Present Market) in the family.

Diversification - Penetrate the new Wii Fit game and Balance Board to the new market who do not have any console games in the past. It also changed the outdoor sport activities to indoor.

3. Product Life Cycle Strategies

- Prior to the launch of Wii Fit, the Wii console game was in the period as Maturity of the Product Life Cycle, that means the sales growth was slowdown and the profit level was declined.…...

Similar Documents

Premium Essay

Nintendo Wii

...COMPANY NAME: Nintendo Co.,Ltd WEBSITE: www.nintendo.com INDUSTRY: Video game industry BACKGROUND/HISTORY/TIMELINE: “Nintendo Company Ltd .was founded in 1889 as a producer of Japanese playing cards, but by the 1980’s the corporation had turned its attention towards the production of video game hardware and software”. “Since then, Nintendo has gone on to become the third most valuable company in Japan selling more than 470 million home game consoles and handhelds as of 2009”. Nintendo was founded by Fusejiro Yamauchi the great grandfather of the current president of Nintendo.” Nintendo's products arose in the mid-1980s from the relative obscurity of the amusement arcade to change the concept of home entertainment in both Japan and the United States”. SWOT ANALYSIS: Strengths: Nintendo “strongly established brands”, “robust revenue growth”, “strong cash flow from operations, and “Nintendo derived most of its revenue from the video game business, Nintendo was in the lead in video console” (pg.C269). Weakness: Nintendo weakness is “Inventory shortages”.”Nintendo was unable to meet demand during 2007 and also struggled throughout 2008”.”In an interview on the website Game Theory, Perrin Kaplin, Nintendo vice president of marketing and corporate affairs, suggested that shortages were expected some time”. “We are at absolute maximum production and doing everything we can…but demand continues to be really high” (pg.C273). Also Opportunities: “Rising demand for......

Words: 1124 - Pages: 5

Premium Essay

Nintendo Wii Marketing Plan Nintendo Wii's Marketing Plan

...Nintendo Wii Marketing plan Table of Content 1. Situation analysis 1.1 Macro analysis 1.2 Micro analysis 1.3 SWOT analysis 1.4 Bowman’s strategy clock 1.5 The Product Life Cycle 2. Target Market 2.1 Positioning 2.2 Segmentation 3. Marketing Mix 3.1 Product 3.2 Price 3.3 Promotion 3.4 Place 3.5 People 3.6 Physical 3.7 Process 1. Situation analysis 1.1. Macro environment The PESTEL analysis describes a framework of macro-environmental factors. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. 1.2.1. Political The video game industry is influenced by factors such as taxation policies, foreign trade regulations and social welfare policies (some games have sexual/violent content). Video games tend to play with the emotions of people. Governments have the authority to control the content of the video game frames. 1.2.2. Economic The income of the consumers in the video game industry have an effect on their buying behaviour. If people fall under a low-income range, they might not be able to buy a video game because they are relatively expensive. 1.2.3. Social Factors that can influence the video game industry are: income distribution, lifestyle changes, level of education, population demographics, attributes to work, consumerism, etc. Nintendo’s action to open World of...

Words: 1899 - Pages: 8

Premium Essay

Advertising Nintendo Wii U

...Nintendo Wii U | MK 3251 Advertising Name:Panagiotis pavlou ID:117078Instructor:Galanis Chris | Company’s history Nortec Multimedia S.A is the distributor for Greek market since 1997 according to the official page of Nintendo. In addition to the Greek market Nortec is also supplying Albania, Bulgaria and Former Yogoslav Republic of Macedonia since 2002. Except the Nintendo product line Nortec is also distributing game titles of Nordic and other software in all the above countries. Nortec Multimedia is ready to serve its customers in a very effective and efficient way. According to the official site of Nortec Multimedia<<www.nortec.gr>> the company has an established network of around 800 points of retail shops, many partners in all countries that is operating and of course the big electronic chains such as Kotsovolos or Media Markt. 1.Situation analysis 1.1 The product characteristics and the label issue In all technological products sucs as the Nintendo Wii U there is a moment that a model has to be removed from the market and replaced with a new one that is matching today’s limits in technology. This action has to take place very carefully and according to my personal opinion just when the product life cycle is ready to expire. Moreover the new console Nintendo Wii U was introduced in Europe on November 30,2012 in order to replace as I said above the predecessor which was the Nintendo Wii. This move can be translated very easily and it is done......

Words: 2643 - Pages: 11

Premium Essay

Nintendo Wii Marketing Plan

...Marketing Mini Business Marketing Plan - Nintendo Wii® Abstract This final assignment for Marketing Management looks at all of the various marketing strategies and best practices for two companies that I have been studying over the past several weeks. Of the two companies and products that I have studied, Sony’s Playstation 3 and Nintendo’s Wii, I have chosen to complete my final paper in regards to the Wii game console. This paper will focus on one-to-one marketing strategies, customer information file development, information-intensive strategies, and customer personalization based on their best practices. Business Marketing Plan - Nintendo Wii® After completing several marketing assignments involving game system consoles from Sony and Nintendo, I have chosen to focus on the Nintendo Wii game console for the final project in this class. I have chosen Nintendo’s Wii because it is a game console that has gone beyond the traditional gaming platforms and segments. Nintendo has created a product that can be marketed to more than just the typical segment of male gamers between the ages of 13 and 35. Along with attracting families with games that the whole family can enjoy together, the Wii has moved into the health and fitness market with the Wii Fit. Nintendo has received awards for its Wii marketing strategy including the Grand Effie Award in 2008. Successful marketing plans need more than just widely available demographic population data and a hunch that a......

Words: 1200 - Pages: 5

Premium Essay

Nintendo

...Nintendo is a multinational video game company located in Kyoto, Japan. Founded on September 23, 1889, it began as a playing card manufacturer, followed by a trial and error phase in which the corporation experimented with several niche businesses such as a cab company and a hotel, before settling into video games in 1974. Today, Nintendo is synonymous with innovation and a family friendly gaming atmosphere. [Nintendo Logo] Released in 2006, Nintendo’s “premiere product,” per se, is the motion-sensing video game console Wii. [Wii Image] Using a remote and camera combination to detect player arm movement, the Wii has a large game library ranging from the traditional Mario games to Sports games such as golf, baseball, tennis, and bowling that have the player using realistic motions (swinging, throwing) to control the game. [Wii-Mote] [Wii-Camera] The Wii was originally released at the US $299.99 price point, which was a calculated decision considering Nintendo’s competition, the Microsoft Xbox 360 and Sony Playstation 3, were at least $100 more expensive at the time. Today, The Wii is priced at $199.99 US and comes with one Wii-mote/Motion camera set. [Xbox 360] Wii Xbox 360 Playstation 3 Release Price $299.99 $399.99 $499.99 Current Price: $199.99 $199.99 $299.99 [Playstation 3] Known for colorful, fairly simple, easy to understand games, the Wii quickly emerged as the leader in the current generation of gaming consoles with its family friendly appeal and......

Words: 1665 - Pages: 7

Premium Essay

Mini Business Marketing Plan - Nintendo Wii®

...arketing Mini Business Marketing Plan - Nintendo Wii® Abstract This final assignment for Marketing Management looks at all of the various marketing strategies and best practices for two companies that I have been studying over the past several weeks. Of the two companies and products that I have studied, Sony’s Playstation 3 and Nintendo’s Wii, I have chosen to complete my final paper in regards to the Wii game console. This paper will focus on one-to-one marketing strategies, customer information file development, information-intensive strategies, and customer personalization based on their best practices. Business Marketing Plan - Nintendo Wii® After completing several marketing assignments involving game system consoles from Sony and Nintendo, I have chosen to focus on the Nintendo Wii game console for the final project in this class. I have chosen Nintendo’s Wii because it is a game console that has gone beyond the traditional gaming platforms and segments. Nintendo has created a product that can be marketed to more than just the typical segment of male gamers between the ages of 13 and 35. Along with attracting families with games that the whole family can enjoy together, the Wii has moved into the health and fitness market with the Wii Fit. Nintendo has received awards for its Wii marketing strategy including the Grand Effie Award in 2008. Successful marketing plans need more than just widely available demographic population data and a hunch that...

Words: 325 - Pages: 2

Premium Essay

Nintendo

...of any given company. That includes PESTEL, Michael Porter's five forces model and SWOT analysis. We also evaluated the internal factors of Nintendo taking into account its financial statements through the past four years. In addition to some financial ratios such as net profit margin, current ratio, debt ratio, inventory turnover and assets turnover. Finally, recommendations have been placed based on the internal/external analysis from our perspective as a Chief Operating Officer of Nintendo.  Introduction: Nintendo is a multinational consumer electronics company located in Kyoto, Japan. It is considered as the world's largest video game company by the value of its revenue. Fusajiro Yamauchi founded it on1889; where it originally produced handmade playing cards. In 1963, the company was trying several small niche businesses, including cab services and love hotels. The company relinquished the previous ventures in favor of toys in the 1960s, Nintendo. In the 1970s, it developed into a video game company, substantially becoming one of the most effective in the industry and Japan's third most-valuable listed company with high market value. Nintendo of America is also the plurality owner of Seattle's Baseball team, Mariners. The translation of the name Nintendo from Japanese to English is "leave luck to heaven." In March 2014, Nintendo reported historically cumulative sales of over 670.43 million hardware units and 4.23 billion software units. (Wikipedia) External......

Words: 2775 - Pages: 12

Free Essay

Improve Nintendo Wii

...1 . Let Me Own My Purchased Downloadable Games Ever buy a game for your Wii, download it and then have your Wii break down? If you have to replace it with a new one, that game is gone. All your WiiWare and Virtual Console games are gone, because Nintendo stupidly ties your purchases to your console rather than to you. If I buy a game, Nintendo, give me an account and let me re-download it when I get a new machine. Ads 18+ Game topfreebrowsergames.com once you're inside the game, your friend won't see much of you! Nenas Inocentes wap.tribik.com Ellas Te Esperan Encuéntralas Aquí! 2 . Play DVDs and MP3s Nintendo has said that, as with the Wii, the Wii U will not play DVDs. They apparently don’t want to pay the necessary licensing fees. Nintendo’s president says most people already have DVD players. It’s true, I do have a DVD player; It’s called the Xbox 360. The fact is, DVD players are becoming an expected part of a game console, and leaving out that capability is the equivalent of Apple putting out their iPhone without MP3 capabilities and saying, “everyone already owns an MP3 player anyway.” Don’t be penny wise and pound foolish guys; pay the license fees and give me a console that does what every other console does. 3 . Get Rid of the Constant Music at the Main Menu You know one thing I like about having a homebrewed Wii? I can turn off that tingly little music that plays incessantly while the main menu is up. On the Xbox 360 and PS3 you get a little music...

Words: 1005 - Pages: 5

Premium Essay

Nintendo

...Nintendo, Co Ltd. (NTDOY) By: Sarah Thompson For Dr. Eberle Principles of Finance Research Paper November 22, 2014 Table Contents Pages Title Page…………………………………………………………………………………...1 Table of Contents……………………………………………………………………...……2 Brief Introduction & Organizational Structure…………………………………………. …3 Brief Discussion of Products, Services and Markets ……………………………...…….4 Financial Statement Summary………………………………………………………...…....5 Ratio Analysis /Interpretation / Capital Structure ………….………………………..……..6-8 Stock Valuation……………………………………………………………………….….....9 Growth Strategy & Tactics…………………………………………………………………10 Risk Exposures……………………………………………………………………………..11-12 Analyst Opinions and Professional Assessments………………………………………..13 Current Event……………………………………………………………………………….14 Conclusion………………………………………………………………………………….15 References………………………………………………………………………………….16 Brief Introduction & Organizational Structure Nintendo, Co Ltd. is a Japanese multinational consumer Electronics Company with its headquarters located in Kyoto, Japan. Nintendo is the world's largest video game company by revenue. Nintendo’s American headquarters is located in Redmond, Washington. The mission statement is “At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of......

Words: 3200 - Pages: 13

Premium Essay

Nintendo

...industry is ready for disruption. Not just from Nintendo, but from all game developers. It is what we all need to expand our audience. It is what we all need to expand our imaginations. - Satoru Iwata, president of Nintendo Co. Ltd1 In the 2008 BusinessWeek–Boston Consulting Group ranking of the world’s most innovative companies, Nintendo Co. Ltd (“Nintendo”) was ranked seventh, up from 39th the previous year. 2 This recognised Nintendo’s significant transformation into an innovative design powerhouse that had challenged the prevailing business model of the video game industry. In 2000, when Sony, Microsoft and Nintendo (the “big three” of the video game console manufacturers) released their latest products, Sony's PlayStation 2 (“PS2”) emerged as the clear winner, outselling Microsoft’s Xbox and Nintendo’s GameCube. In 2006, a new generation of video game consoles was introduced by these players, precipitating a new competitive battle in the industry. Microsoft and Sony continued with their previous strategies of increasing the computing power of their newest products and adding more impressive graphical interfaces. However, Satoru Iwata, president of Nintendo, believed that the video game industry had been focusing far too much on existing gamers and completely neglecting non-gamers. Armed with this insight, the company repositioned itself by developing a radically different console, the Wii (pronounced “we”). The Wii was a nifty machine that used a......

Words: 10466 - Pages: 42

Premium Essay

Nintendo Wii

...entertainment industry in the late 1970’s, over the years Nintendo worked hard to achieved brand familiarity. Over the years Nintendo’s products have made their way through the product life cycle. From the initial market introduction and sales growth in the 1980’s, the Nintendo Entertainment System (NES) as well as their first big game “Donkey Kong”, dominated the market. In the 1990’s, when true competition entered the market, Nintendo’s products had reached market maturity and sales started to decline. By 2003 Nintendo’s market share had shrunk so much that the future of the company became worrisome. The product life cycle has started again with the recent introduction and phenomenal success of the Nintendo Wii. As of the end of the 2010 first quarter Nintendo Wii had lifetime sales of $68 million, holding 49.1% of the market share. Unfortunately production supply has become significantly depleted and current capacity demands are not being met. With the holiday season drawing nearer, George Harrison, Senior Vice President of Marketing for Nintendo must analyze the market to determine a cost effective solution that will allow Nintendo to maintain adequate inventory levels to avoid a supply shortage. Details of George’s decisions include: distribution levels; to whom; at what price; and how (online vs. in-store). Nintendo objective is not to compete directly with Sony PS3 or Microsoft’s Xbox 360, instead Nintendo believes that it can target the broader audience......

Words: 6287 - Pages: 26

Premium Essay

Nintendo

...Case Position Paper- Nintendo Video Console Rivalry Patricia A Biever Lubbock Christian University Situation Nintendo Co., Ltd. is a multi-national corporation located in Kyoto, Japan. Founded on September 23, 1889 by Fusajiro Yamauchi, it produced handmade hanafuda cards or playing cards of Japanese origin. Nintendo developed into a video game company, becoming what is arguably the most influential in the industry, and Japan's third most valuable listed company, with a market value of over US$85 billion. According to Gruden (2009), “The Nintendo has evolved over the years from the Nintendo Entertainment System, the Nintendo 64, all the way to the Nintendo Wii”. Nintendo of Europe (2010) points out, “Since 1983, Nintendo has sold nearly 2.4 billion video games and more than 420 million hardware units globally, and has created industry icons like Mario™, Donkey Kong®, Metroid®, Zelda™ and Pokémon®”. Nintendo Co. Ltd. headquarters is located in Kyoto Japan. It also has a US base in Redmond, Washington as well as regional offices in a number of other countries throughout the world. Complication According to Townes (2011),”The biggest problem with Nintendo is the (relatively) strong yen against the weak dollar and a euro which just broke the Y100 level. Foreign exchange weighs far heavier than any concerns ahead of the Wii U launch, previously over slow post-launch 3DS sales and the price cut to the 3DS, or a lack of games. The average Y/US$ exchange rate in Nintendo's......

Words: 1389 - Pages: 6

Free Essay

Nintendo

...I. Introduction a. Company History And Background Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game called Hanafuda. In 1956, Hiroshi Yamauchi visited the US, and this is when he realized the limitations of the card business and hence moved on to different arenas of the gaming world. In 1963, Yamauchi renamed Nintendo Playing Card Company Limited to Nintendo Company, Limited. During 1963 and 1968, Nintendo set up a taxi company, a "love hotel" chain, a TV network, a food company and several other things. All these attempts at expanding and diversifying the business failed, except toy making, where they had relatively prior experience with from selling playing cards. In enormous debt, Nintendo was trying to withstand the Japanese toy industry; it was still small at this point. Due to the short product life cycle of toys, innovation and constantly new product development was vital. This was the beginning of a major new era for Nintendo. In 1970, Hiroshi Yamauchi discovered the hidden talents of Gunpei Yoki, a maintanace engineer at the factory, who built what was later called The Ultra Hand which soon turned into a huge success, selling approximately 1.2 million units. Yokoi was soon moved from maintenance to product development. Nintendo’s first step into the video games industry was in 1975. At the time, home video game consoles......

Words: 3828 - Pages: 16

Premium Essay

Nintendo

...paying careful attention to their customers and continuous improvement with their product lines. At Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Vision Statement Nintendo we are proud to be working for the leading company in our industry. We are strongly committed to producing and marketing the best products and support services available. We believe it is essential not only to provide products of the highest quality, but to treat every customer with attention, consideration and respect. By listening closely to our customers, we constantly improve our products and services. Nintendo Corporation feels an equal commitment toward our employees. The Company wants to maintain an atmosphere in which talented individuals can work together as a team. Commitment and enthusiasm are crucial to the high quality of our products and support services. We believe in treating our employees with the same consideration and respect that we, as a company, show our customers. History Nintendo started as a small Japanese business by Fusajiro Yamauchi near the end of 1889 as Nintendo Koppai. Based in Kyoto, Japan, the business produced and marketed a playing card game......

Words: 5491 - Pages: 22

Premium Essay

Nintendo Wii Sustaining Competitive Advantage

...Summary Nintendo entered the video game market in 1979 and has been a top competitor ever since. In 2006, with the release of the Nintendo Wii, they secured their competitive advantage in the video game industry. The Wii was created to establish a new standard in game control, using innovative and unprecedented interface with the Wii remote. The remote’s motion sensor capabilities allowed the user to interact and manipulate objects on the screen by moving and pointing the remote in various directions. It really changed the way games were played. In 2010, they were the market leader of that generation of video console sales growth, ahead of Microsoft and Sony. By the fall of 2010, Sony and Microsoft were starting to gain on Nintendo’s competitive advantage when they came out with their own gaming systems that had innovative controllers along with much better graphics. If Nintendo wants to keep their competitive advantage, they will need to reevaluate their strategies. External Environment If a company does not keep up with changes in the external environment, it becomes difficult to sustain competitive advantages. There are two components to the external environment to analyze. The general environment, which consists of demographic, sociocultural, political/legal, technological, economic and global conditions; and the competitive environment, which includes rivals, suppliers, customers and other factors that may directly affect a company’s success. Nintendo......

Words: 1196 - Pages: 5

D Rings Screws Picture Frame Hanging Nickel 2, 10, 20, 50, 100, 500 Framing | Impermeable De Pintura Permanente Rotulador Neumático Coche Neumáticos Caucho | Tập 12 Sekai no Yami Zukan