MCD 2050 Major Assignment: Environment & STP Analysis

Running head: MARKETING ASSIGNMENT
Marketing of video game offer 3DS XL
Name of the student:
Name of the university:
Author note:

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MARKETING ASSIGNMENT
Table of contents
Introduction......................................................................................................................................2
Company profile..............................................................................................................................2
Environmental analysis....................................................................................................................3
Microenvironment.......................................................................................................................3
Competitors..................................................................................................................................3
Customers....................................................................................................................................3
Macro-environment.....................................................................................................................3
Economic.....................................................................................................................................3
Technological..............................................................................................................................4
Identification of target market.........................................................................................................4
Description of the target market..................................................................................................4
Positioning...................................................................................................................................5
Conclusion.......................................................................................................................................8
References and Bibliography...........................................................................................................9

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MARKETING ASSIGNMENT
Introduction
Marketing is a vast concept. Application of rational thinking in the execution of the
marketing activities helps the personnel to expand the scope and arena of the business. As a
matter of specification, the assignment looks into the marketing environment of company and
organizations like Nintendo (Hollensen, 2015). The focus of the assignment is on the marketing
of video game console offer for 3DS XL. Brief insight into the micro and macro environment
enhances the clarity of the readers in terms of the business operations of such video game
companies. Along with this, insight into competitors reflects the attempt of the personnel
regarding the achievement of large number of customers (Kotler & Armstrong, 2010).
Company profile
With its headquarters in Kyoto, Nintendo has achieved accolades and glory by serving
quality electronics to the customers. This has been possible due to the presence of 5166 skilled
and efficient employees. Among these, the major attraction is the video games for the children.
The company is public, traded as TYO: 7974. The company operates under video game
industry and consumer electronics (Nintendo.com, 2017). As per the annual report of 2017, the
annual revenue is 489.095 billion yen. The operating income recorded is 29.362 billon yen. The
profit generation through the sale of the electronic goods and video games is 102.574 billion yen.
The total assets and liabilities of Nintendo is 1.469 trillion yen and 1.251 billion yen
respectively. The subsidiaries of Nintendo are 1 UP Studio, Monolith Soft, Nd cube, Retro
Studios and iQue.

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MARKETING ASSIGNMENT
Environmental analysis
Microenvironment
Competitors
Microsoft x-box is one of the efficient competitors of Nintendo. Manufacturing wide
range of home video games intensifies the competition with Nintendo in terms of luring the child
customers with wide-ranging video games. Along with this, Sony is also one of the potential
competitors of Nintendo (Perreault, Cannon & McCarthy, 2013). Play stations of Sony acts as a
threat of substitutes for Nintendo in terms of attracting the customers with modern accessories
along the games.
Customers
Nintendo caters to the needs, demands and requirements of customers from all age
groups. For this, the personnel abide by the psychological and behavioral segmentation. This is
in terms of serving quality and branded products according to the purchasing power of the
stakeholders. 3DS XL would cater to the customers, who are very passionate towards adventure
(Babin & Zikmund, 2015).
Macro-environment
Economic
Factors like income of the customers, fluctuation in prices of the spare parts and inflation
pose as an obstacle for Nintendo personnel in terms of setting prices for the customers. Even if
the prices of the video games are set, it is very difficult for the middle class customers to
purchase the video games and the electronic goods. Along with this, the harsh and orthodox tax
regulations stall the import and export activities, which deprive the foreign customers from

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MARKETING ASSIGNMENT
possessing their branded goods and video games (Armstrong et al., 2015). Prior to the release of
the 3DS XL, the personnel need to indulge in meetings with the trade union members for
stabilizing the financial parameter.
Technological
Adherence to the legislations like Data Protection Act (1998) would help the personnel of
Nintendo to protect the customers from falling prey to cyber crimes. Along with this, compliance
with the standards of the computer Misuse Act would help the personnel to keep a track of the
utilization of the systems by the stakeholders. Herein lays the importance of privacy policies and
cookies, which informs the stakeholders about the steps undertaken for ensuring their wellbeing.
For 3DS XL, privacy policies and cookies would be crucial in terms of protecting the children
from the adult contents (Nintendo.com, 2017).
Identification of target market
As per the dynamic features of 3DS XL, the target market for this will be the wealthy
urban families, especially the children.
Description of the target market
In order to describe the wealthy urban families, there are certain specifications, which
needs to be elaborated. These includes- geographic, demographic, psychographic and benefit. As
a matter of specification, the game would provide a thrilling experience to the customers
belonging to the age group of 28-40 years of age. Children would like the features, although they
would not understand the ways and means to control the keys and play the game. Countering
this, the children would also like the built up of the video game (Nintendo.com, 2017).

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MARKETING ASSIGNMENT
The price of the product is $199, which aligns with the income of the middle class
customers, working as lawyers, accountants and others. The customers living in the urban areas
would find the video game within their budget, which provides them with enhanced
opportunities to exercise their purchasing power in an efficient and effective manner. According
to the surveys conducted by Nintendo personnel, the percentile of video games lovers in
Australia is more than 65%. This is because most of the people suffer from stress and need
entertainment to re-energize themselves (Nintendo.com, 2017). Nintendo abides by the privacy
policies and the cookies, which reflect their placement of targets on the families, which possesses
the basic values, are socially aware, and hold conventional traditions. Apart from this, the
attributes of status, prestige, reliable would add value to the offer identified by Nintendo
personnel for marketing.
Positioning
Before launching an offer in the market, the personnel need to think of the Unique Selling
Proposition (USP). Under this, there are several factors, which the personnel need to consider-
features of the product, quality, brand recognition and prestige. This is applicable for all of the
companies and organizations like Nintendo (Nintendo.com, 2017). As a matter of specification,
Nintendo creates strategies for progressing with the marketing of 3DS XL. One of these
strategies is advertising, which would offer the brand a better placement in the market. Within
this, clear description of the inbuilt features informs the customers about the specific details of
the video game.
Controlling feature through the c-stick helps the customers to regulate the pictures, which
can be taken along with playing with the game. The additional buttons expose the children and
the adults to more features of the video game. This aspect increases the quality of the product,

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MARKETING ASSIGNMENT
3DS XL. Along with this, looking into the ease of the customers through the installation of the
adjustment features makes the brand a popular one within the customers, enhancing its reputation
(Nintendo.com, 2017). However, amiibo creatures would be a favorite among the children. The
speed of the battery is also one of the essential factors, which would determine the quality of the
video game, 3DS XL. Power booster would be one of the important factors, which would
determine the durability of 3DS XL.
In terms of advertising, the Nintendo personnel need to take special care of the individual
sentiments of the customers. Effective utilization of the privacy cookies and policies would help
the personnel to avert the illegal and courtly interventions. As the product has the feature of data
sharing, parental supervision would be a crucial factors in terms of safeguarding the children
from falling prey into the instances of cyber crimes (Menon et al., 2015). The investigation
policies upon encountering the unwanted instances reflect the conscious attitude of the personnel
towards ensuring the wellbeing of the customers, especially the children as they lack the
understanding of the specifications.

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More fun
factor
More easy to
use
Less fun
factor
Less easy to use
Sony PSP
Microsoft Xbox
Nintendo 3DS XL
MARKETING ASSIGNMENT
Figure: Position map of video game brands
(Soure: Atwal & Williams, 2017)
The main aim of these brands is to achieve large-scale customer satisfaction. However,
the threat of substitutes deprives the customers from possessing quality and branded products
like the video games. As a matter of specification, the play stations of Sony have modern and
innovative features, which is also available in the Xbox of Microsoft. This reflects internal

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MARKETING ASSIGNMENT
competitions between the brands, compromising the needs, demands of the customers (Lusch &
Vargo, 2014). In the above positioning map, it can be detected that Microsoft Xbox games are
easier to use and have high fun factor. This connotation poses as an obstacle for Nintendo to lure
the customers. In comparison to Microsoft Xbox, play stations of Sony possess less fun factor
and are less easy to use. This provides Nintendo with the opportunity to lure the target market
with the manufacture of high quality video games. This can be explained better with the help of a
position map. As per the figure, Nintendo is placed above the axis, which is flexible enough for
penetrating into foreign markets. However, the personnel need to execute evaluation for
upgrading the standard and quality of the current performance. Consistency needs to be
maintained in the execution of evaluation, which would make the personnel aware of the
drawbacks in their performance (Kotler & Armstrong, 2010).
Conclusion
This assignment emerges successful in providing an insight into the efficient and
effective means of marketing. Insight into microenvironment enhances the clarity of the
businesspersons regarding the ways and means of developing the infrastructure. This insight acts
as an agent for penetrating into the external environment. However, for this, the companies and
organizations need to bear in mind the factors, which obstruct the process of positioning the
products in the market. In terms of 3DS XL offer, privacy cookies and policies seem effective in
terms of ensuring the safety and wellbeing of the customers especially the children. All these
facts possess flexibility to bestow better placement on the company and enhance its reputation
even in the thresholds of foreign markets.

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MARKETING ASSIGNMENT
References and Bibliography
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction.
Pearson Education.
Atwal, G., & Williams, A. (2017). Luxury brand marketing–the experience is everything!.
In Advances in Luxury Brand Management (pp. 43-57). Palgrave Macmillan, Cham.
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
De Mooij, M. (2013). Global marketing and advertising: Understanding cultural paradoxes.
Sage Publications.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.
Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate,
and directions. Routledge.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from
them. John Wiley & Sons.
Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing
Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy
of Marketing Science (AMS) Annual Conference (pp. 224-224). Springer, Cham.
microsoft.com (2017), About us, Retrieved 22nd November 2017 from
https://www.microsoft.com/en-in

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MARKETING ASSIGNMENT
Nintendo.com (2017), About us, Retrieved 22nd November 2017 from
https://www.nintendo.com/
Perreault Jr, W., Cannon, J., & McCarthy, E. J. (2013). Basic marketing. McGraw-Hill Higher
Education.
Scott, D. M. (2015). The new rules of marketing and PR: How to use social media, online video,
mobile applications, blogs, news releases, and viral marketing to reach buyers directly.
John Wiley & Sons.
Sonymobile.com (2017), About us, Retrieved 22nd November 2017 from
https://www.sonymobile.com/in/?utm_version=dfl
Strauss, J. (2016). E-marketing. Routledge.