1ANALYSING MARKETING MIX Executive summary Marketing mix and its strategies is a key factor for any business. It is important that before launching any of the products all the aspects must be kept in mind. The main of this report is to make a comparative analysis of the marketing mix of both the companies and the observation done here is based on the secondary data that is already gathered. This report tells about the two different strategies of marketing mix used by the companies and based on these analysis has been done. Also the STP analysis of both the companies is done and based on this a conclusion is drawn which states that Play station has a better competitive advantage than that of Nintendo.
2ANALYSING MARKETING MIX Table of Contents Introduction................................................................................................................................3 TARGET MARKET..................................................................................................................3 Target market for Play Station:..............................................................................................4 Target market for Nintendo Switch console:.........................................................................4 MARKETING MIX...................................................................................................................4 Marketing mix for Play station..............................................................................................4 Marketing mix for Nintendo Switch......................................................................................6 CONCLUSION..........................................................................................................................8 REFERENCES...........................................................................................................................9
3ANALYSING MARKETING MIX Introduction The brand Play Station also known as PS series was first introduced in the year 1994 in Japan and then it was released world-wide the following year. Play station was produced by Sony Interactive Entertainment. When PS-4 was released the whole market was covered rather belonged to Sony and the sales reached up to 14.59million units. It saw great success both in the physical as well as the online segment. Play station 4 also known as PS-4 was released in the year 2013 and was developed by Sony Interactive Entertainment which was based on the type home video type console. NintendoSwitchconsolewasdevelopedbyNintendoPlatformTechnology Development and was manufactured by Foxconn, Hosiden in the year 2017. This was based on the Hybrid video game console and is also known as NX-HAC. This game can be used as both stationary console and like a portable device too which also means the player can use it at home or even outside based on the way they want. This report discusses about the target market, brand, and the marketing mix which includes the 4Ps f both the companies and their effectiveness. TARGET MARKET It is very important that a company has a target market only then it will be able to cater the need of the certain people who can be their loyal customers in future (Haider et al. 2017). This helps an organization to reach out to more number of people and then increase its sales by satisfying them (Burns, Bush and Sinha 2014). Target market for Play Station: The target audience or the gender that s attracted more towards PS 4 is men and includes the age-group of people who are 18 years and above and less than 40 years of age.
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4ANALYSING MARKETING MIX This game is fun for people who have a strong addiction of games, are the problem solvers, t may also include gamers who are competitive and are casual too. The social class served by this particular game is the higher and the upper middle class of the society. Target market for Nintendo Switch console: Most of the people who are keener towards gaming or are interested in gaming are the people more focused by this brand. Earlier the brand targeted those who really wanted to buy the products but now it has become straight forward and the people who come within an age group of 15 to 30 is now usually targeted. It may consist of men, women, kids who have an interest towards gaming (Inoue and Tsujimoto 2018). MARKETING MIX Marketing mix consists of 4Ps which are equally essential for branding and promoting any product or service. The 4Ps is the combination of Product, Price, Place, and Promotion (Huang and Sarigöllü 2014). Let us understand the strategy of marketing mix of both the console games that is Play station 4 and Nintendo switch. Marketing mix for Play station PRODUCT: Play station have been manufacturing home consoles basically and primarily for video games. When Play station 4 came, it came out to be the one which is slimmer than other variants by about 30 percent and was 16 percent lighter than the variants which came previously. It also had a visual that was excellent and the capacity of the storage was 1TB. This changed the aura of all the video games already present in the market. Hence, it provided an experience that was great and people enjoyed using this as it had graphics of 4K level. This was one thing which not every gaming console provided plus it proved out to be a very handy one.
5ANALYSING MARKETING MIX PRICE: After knowing about the product the main thing that comes in mind is the price and the real worth of the price paid for that very product. The price offered by PS4 was a premium one and it also dependent on how the competitors were putting on their price. The final price of the console was dependent on the cost of the processor, graphics controls and many more and after combining all these the price was set accordingly. Although the price of the games kept changing and it varied time to time, yet using the differential pricing strategy PS4 was able to be in profits by making the customers pay according to the products (Nagle and Müller 2017). PLACE: PS4 was made available across the globe as it was a SONY product. It was sold mostly in the stores which had a franchise of SONY and was also available online. Play station collaborated with many e-commerce platforms which includes amazon, flipkart and others. However, the rate of discount didn’t vary much and most of the people were interested in buying the products from the stores only. PS had a strong distributing channel which helped them to be in profits always. PROMOTION: A huge amount of revenue generated by play station is spent on the promotion and advertising of the product. It has come up with many campaigns that helped the promoting their products on a greater extent. The strategy used by Play station is an aggressive one which includes entering the market comparatively new and then involving in active programs that help to stimulate new opportunities for the brand (Knight and Thomas 2014). The primary segment for this company is the hardcore gamers which include men who do not mind spending money and has played Play station in the past. The other segment
6ANALYSING MARKETING MIX deals with the set of casual gamer which include women and play these games as hobbies during the spare time they have (Ciesla 2019). The target audience is mostly men who are involved in hardcore gaming and who enjoy playing games anytime. Mostly suited for the upper middle and rich class of the society. Play station is known best for the graphics and controls it provides and also for the exclusive-console content. It is for those who want a live experience virtually and also want the highest quality console (Ali 2017). Marketing mix for Nintendo Switch PRODUCT: Earlier, Nintendo was a manufacturer of playing cards and then it decided to make a shift to the video and interactive games. Donkey Kong was a great success under this segment and this gave the company that spark to manufacture more of these. DS (Dual Screen) handled system was developed by Nintendo and many other games like role playing, virtualrealityandalsoaugmentedgameswerealsodevelopedbythecompany. Advancements were made in the graphic card, hardware of the game and others. Nintendo did a partnership with Niantic who was the developer of Pokemon Go, this has helped the company to increase about 33 percent of the profit together. PRICE: Being in the technological market it is must be kept in mind that customer loyalty cannot be taken into consideration as the requirement of them depends on the trends in the markets. The strategy of pricing is light different in case of this company as they keep different price for a particular product throughout its life cycle (Nagle and Müller 2017).
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7ANALYSING MARKETING MIX PLACE: A very strong networking is observed in case of this company and it believes in making their product available to everyone as per the convenience of the customers. Physical and online distribution both is available under different chains of gaming stores. It has a mature distribution strategy overall and make the products available accordingly (Acir 2019). PROMOTION: Nintendo is known best for the type of advertising and the promotion tools it uses to make the customers aware of the product, its features and attributes. The launch campaign that Nintendo makes is usually huge and attractive. They have dedicated and special days for lunching of any of the products for the company. Free goodies are distributed along with T- shirts are given to the crowd and are invited to come and experience the products that have been launched. They believe in the strategy of brand awareness (Ciesla 2019). The main strategy for segmentation used by the is the demographic one as it segregates people of age group 15-35 and the behavioral segmentation is done on the basis of who likes to play games but are not intense gamers. This company targets people who are really interested in playing games in their spare time and is more concerned with the generation Y that includes men, women, and kids also older folks are included. UnlikeSONYwhichmakeconsolesforhardcoregamers,Nintendoismostly positioned and known for the designs made for casual and non-casual gamers. They believe that game consoles are made for fun are people do not play it for competing (Clow 2016).
8ANALYSING MARKETING MIX CONCLUSION Play station has applied the marketing mix well and helps users to play games that is beyond the imagination of anyone making it people’s favorite. Also the graphics used is very well and the power of processing these graphics is incredible. Thus, from the above discussion it can be concluded that the strategy of marketing mix of Play station is better and convenient than Nintendo and they are able to put thing correctly after analyzing the situation and current trend of the market. However, Nintendo must look at ways for developing strategies that would help them getting stabilized n near future. The more focus should be on delivering the quality and the problem of overheating should be mitigated. The distribution channel must be made a more networking one and the convenience of the customers must always be considered.
9ANALYSING MARKETING MIX REFERENCES Acir,E.,2019,July.VIDEOGAMES,VIRTUALREALITYANDAUGMENTED REALITY APPLICATIONS IN TOURISM PROMOTION AND MARKETING. In9th ADVANCES IN HOSPITALITY AND TOURISM MARKETING AND MANAGEMENT CONFERENCE PROCEEDINGS(p. 171). Ali, W., 2017. Evolution of the Video Game Market.Journal of Game, Game Art, and Gamification (JGGAG),1(1), p.34. Burns, A.C., Bush, R.F. and Sinha, N., 2014.Marketing research(Vol. 7). Harlow: Pearson. Ciesla, R., 2019. Promotional Strategies. InGame Development with Ren'Py(pp. 325-337). Apress, Berkeley, CA. Clow,K.E.,2016.Integratedadvertising,promotion,andmarketingcommunications. Pearson Education India. Haider, A.A., Zafar, A., Khalid, A., Majid, A., Abdullah, M.A. and Sarwar, M.B., 2017. Marketing Management.Head, B, p.22. Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand equity, and the marketing mix. InFashion Branding and Consumer Behaviors(pp. 113-132). Springer, New York, NY. Inoue, Y. and Tsujimoto, M., 2018. New market development of platform ecosystems: A case study of the Nintendo Wii.Technological Forecasting and Social Change,136, pp.235-253. Knight,J.andThomas,P.,2014.Reachingaudiences:Distributionandpromotionof alternative moving image. Intellect Books.
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