Marketing Planning for PS4 Gaming Consoles Assignment

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Marketing Planning for PS4 gaming consoles
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Executive Summary
Entering into a new market requires proper market analysis. Factors such as marketing,
promotion, sales strategy, positioning is considered vital components while making a market
analysis. The key marketing decision needs to be taken in selecting the appropriate marketing
channel namely advertisements through digital media. Introducing PS4 into American and
Canadian market is no less than a challenging task for Sony. The issues have arisen while
marketing the product is high competition in the target market. The target customers of PS4
would be the hard-core and mainstream gamers in the target market because as per the market
reports, they spend most of their time in playing new games such as FIFA, The Grand Theft,
Call of Duty and many others. The marketers will use the price-quality positioning strategy as
it provides an opportunity to enter the new markets. It is recommended that to overcome the
weakness in marketing companies can follow new value chain strategy where it has been
modified the processor of a gaming console.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................5
Current Situation........................................................................................................................5
A. SWOT analysis..................................................................................................................5
Strengths.............................................................................................................................6
Weakness............................................................................................................................6
Opportunities......................................................................................................................7
Threats................................................................................................................................7
B. Five most important SWOT factors..................................................................................8
Target Market Segmentation......................................................................................................9
Who:.......................................................................................................................................9
What:......................................................................................................................................9
Other Specifics:......................................................................................................................9
A. Segmentation Approach..................................................................................................10
B. Profile of Target Market.................................................................................................11
Hard-core Gamers- the Mid to Late '20s..........................................................................11
Mainstream Gamers- Beyond '20s...................................................................................11
Digitally Savvy Gamers- Undefined Age Group.............................................................11
C. Primary Targets...............................................................................................................12
Marketing Objectives...............................................................................................................12

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Product Positioning..................................................................................................................13
A. Positioning Strategy......................................................................................................13
B. Positioning Map...............................................................................................................14
C. Appropriateness of Positioning Strategy.......................................................................15
Marketing Mix.........................................................................................................................17
A. Product:...........................................................................................................................17
B. Price.................................................................................................................................18
C. Distribution......................................................................................................................18
D. Communication...............................................................................................................19
Implementation Plan................................................................................................................21
A. Implementation Schedule:...............................................................................................21
B. Measurement and Evaluation:.........................................................................................24
C. Implementation Tactics:..................................................................................................25
D. Contingency Plan:...........................................................................................................26
E. Research Plan:.................................................................................................................27
Financial Projections and Implications....................................................................................27
A. The projected pro-forma income statement for two years..............................................27
B. The projected pro-forma break-even analysis for two years:..........................................29
C. Discussion on Financial implications..............................................................................30
Overall Recommendation.........................................................................................................32
A. Recommendation as per marketing plan.........................................................................32

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B. Recommendation as per SWOT analysis........................................................................32
C. Recommendation as per marketing concepts and terms or the information...................33
Conclusion................................................................................................................................33
References................................................................................................................................34
Appendices...............................................................................................................................37
Appendix 1...........................................................................................................................37
Appendix 2...........................................................................................................................37

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Introduction
The video game console is considered as the interactive entertainment computer or the
electronic device which manipulates the video display signal through a display device, like
television or monitor etc. The video game console thus traditionally refers to have a raster
display device which is used as the popular use for the term as a video game which implies
all the display types as well as the formats. The term console thus refers to the use of user
manuals for several video game systems. There are many specific parts of this console system
which actually controls the entire game.
This Study focusses on the marketing plan of PS4 gaming console in America and Canadian
market in respect to two direct competitors, Xbox one and Nintendo Switch.
Current Situation
A. SWOT analysis
The SWOT analysis is one of the most preferred methods of analysing the overall strategic
position of a business as well as its environment. According to the point of view of the
scholars Phadermrod et al (2019), the key purpose of SWOT analysis is to recognize the
strategies to create a firm-specific business model that would help in aligning and allocating
the resources and capabilities in the best possible ways.
Table 1: SWOT Analysis
Strengths
 Easy-to-use software.
 Strong distribution channels
 Strong market position
 Strong multimedia support
Weakness
 Delay in launch
 Less innovation
 Less exclusiveness
 Expensive

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 High-quality function
Opportunities
 Introduction of exciting games
 Trending use of cloud-based service
 Grow through acquisitions of new
games
 3D capability
 Expansion of business in new markets
Threats
 Intense competition from successful
operating systems
 Changes in technology
 Changing demographics
 Recession
The above table 1 represents the SWOT analysis of PS4 gaming console. The strengths,
weakness, opportunities, and threats have been presented in a brief form which highlights the
resources and capabilities as well.
Strengths
The major strength of PS4 is its easy-to-use software which makes it the most powerful next-
gen console (Forbes, 2013). In addition to this, due to its demand in the market with all types
of players, the gaming console has gained a strong market position as well (Forbes, 2013).
Moreover, the gaming console has high-quality function along with strong multimedia
support thereby making it one of the most renowned brands in the industry. The organization
has strong distribution channels as well which helps in providing the best network for the
potential users to avail the gaming console.
Weakness
The PS4 gaming console was introduced in the market so as to overcome the weakness of
PS2 and PS3. Though it was able to cover up the challenges and issues of PS2 and PS3,
however, there was a delay in the launch of PS4 due to technical errors thereby making it
difficult for the organization as well as the customers to make the best use the product.
Moreover, as the latest technology and software updates have been used in the PS4 gaming
console, it is far more expensive than compared to any other games (Star Tribune, 2013). As

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it is an update of PS2 and PS3, there is less innovation and exclusiveness in the gaming zone.
Customers sometime may find no difference in all the three versions of the gaming console,
apart from the games and technology.
Opportunities
The strengths of the PS4 gaming console provide it with good opportunities in the
market expansion (Forbes, 2013). As it uses the latest technologies to provide the customers
with the trending games, there is a good opportunity to introduce exciting games which
would attract the players largely towards the new games, thereby reducing their boredom. In
addition to this, there is also a good opportunity to expand in new markets such as America
and Canada due to the presence of new generation customers' who are tech-friendly and
demands innovativeness at all levels. Therefore, the 3D capability of PS4 will provide it with
good scope to expand in both existing as well as new markets (The Verge, 2014). In addition
to this, the cloud-based service is another key opportunity, which would enable it to gain
more momentum in the market.
Threats
The major threats include intense competition from the rival gaming console
organizations such as xBox one and Nintendo Switch (Game Revolution, 2018). These
companies have already gained immense popularity all over the world market due to the ease
of use technology as well as latest developments made so far that have provided the players
with an opportunity to avail exciting new games at a reasonable price. The pricing factor
remains a major drawback for PS4due to its 3D gain experience (Star Tribune, 2014). In
addition to this, change in demographics will cause a market reduction for PS4 because the
customers of such games are limited. Moreover, changes in technology have always remained
one of the crucial factors which become reasons for the failure of most of the gaming
consoles.