An Analysis of Razer's International Marketing Strategies in the US

This report provides an in-depth analysis of Razer's international marketing strategies, specifically focusing on their approach to entering the US market. It begins with an executive summary outlining the report's objectives, which include examining Razer's external and internal environments, and evaluating their marketing strategies. The report delves into the political, economic, social, technological, environmental, and legal factors influencing Razer's operations in the US. It also identifies Razer's strengths and weaknesses, along with opportunities and threats. The core of the report covers Razer's marketing strategies, including objectives, market segmentation (demographic and geographic), targeting (cost leadership, differentiation, and focus strategies), and positioning (premium products for hardcore gamers). A detailed analysis of the marketing mix (product, price, place, and promotion) is also included. The report concludes with a discussion of market entry and control strategies, offering a comprehensive overview of Razer's approach to international marketing in the competitive gaming hardware industry.

Running head: INTERNATIONAL MARKETING
International marketing
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the marketing strategies of Razer in entering in new
regions. In doing so, this report discussed about the external and internal environment of the
organization, which will have impact on their operations. This report concludes that Razer is
having a diverse product portfolio, which is helping them to meet the different customer
requirements. Effective targeting, segmentation, and positioning strategies are being discussed in
this report in order to enable them to have desired market performance. Market entry and control
strategies are also been discussed to help them in effectively entering in new country.

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Table of Contents
Introduction......................................................................................................................................3
Analysis of the external environment..............................................................................................4
Analysis of the internal environment...............................................................................................7
Analysis of the marketing strategies................................................................................................8
Objectives of the marketing strategy...........................................................................................8
Market segmentation strategies...................................................................................................9
Market targeting strategies........................................................................................................10
Market positioning strategies.........................................................................................................12
Analysis of marketing mix.............................................................................................................13
Product.......................................................................................................................................13
Price...........................................................................................................................................14
Place...........................................................................................................................................15
Promotion..................................................................................................................................15
Market entry strategies..................................................................................................................16
Control strategy.............................................................................................................................16
Conclusion.....................................................................................................................................17
Reference.......................................................................................................................................19

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Introduction
Computer technology is one of the most potential and growing industries in the world.
This is due to the reason that, development in technology is most prominent and rapid in the
computing sector. With the development in the technology, more alternatives are coming out
from the basic computing activities. One of the key alternatives being emerged is the gaming
portals and consoles and associated hardware (Kos’Myna & Tarpin-Bernard, 2013). According
to various report, it is being projected that computer gaming market is having huge potential in
the market. Thus, the increase in the market of computer gaming is also enhancing the
potentiality of the gaming hardware in the market. According to (Boxer, 2017), it is being
expected that the gaming hardware market will touch the $30 billion market by 2018. Moreover,
it is also been projected that with the slump in the sales of the personal computers, gaming
hardware is being projected as one of the potential market.
Razer started their operation in 1998 to manufacture high end gaming mouse and are
based in Singapore. Their vision is to achieve the status of market leader in the global gaming
hardware market (About Razer, 2017). In the following years they have came up with various
game oriented products such as gaming portals, keyboards, accessories and gaming gears.
Currently they have their dual headquarters in Singapore and San Francisco. They have also
introduced their own software platform known as Razer Synapse. They have already over 35
million of active users in their portals. Thus, they can be considered as one of the leading and
prominent gaming companies in the world.
This report will discuss about the external environment of the organization in the regions
in the United States they have targeted. Moreover, organizational strengths and weaknesses are

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also being indentified in order to design their marketing strategy accordingly. All the elements of
the marketing activities will be discussed and evaluated along with initiation of the effective
market entry strategies in the targeted regions.
Analysis of the external environment in United States
Political  The political environment of Razer in United States will be
challenging due to the reason that different regions or states will
have different set of political scenario.
 Overall political scenario is favorable due to strong political
setup in the country.
 However, they face the threat of terrorism and thus it will be a
challenge for the business organizations.
 More will be the associated risks, the more will be the risk
elements for them due to the reason that, change in the political
scenario will change the regulations in the country (Aisen &
Veiga, 2013).
Economical  Economical environment for Razer is favorable due to the
increase in the trend of per capita income of the customers in the
market of United States.
 Developed regions in the United States, are having more market
opportunities due to the customer awareness about the computer
games and enhanced affordability (Trepte, Reinecke &
Juechems, 2012).
 However, rate of unemployment in the United States is

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increasing, which will have negative implications on the
business.
 Moreover, due to the reason that, gaming hardware is luxury
items, the preference for these types of products will be lower for
the customers.
 As discussed earlier, the market of gaming hardware is rapidly
increasing and thus, the economical environment for Razer is
favorable.
Social  The gaming community in the market of the United States is
rapidly increasing, which denotes the favorable social scenario
for Razer.
 However, the average population in the United States is aging,
which will reduce the market for Razer.
 Thus, Razer will face social challenges in targeting these
populations.
 Moreover, there are various instances of ill impacts of gaming
are being flourished in the recent times. Thus, it is having de-
motivating impact on the social scenario in the market (Wouters
et al., 2013).
Technological  Technology is the key element for the gaming hardware
organization such as Razer.
 They are known for the use of cutting edge technologies in their
products, which helps them to stay ahead in the competition.

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 However, the rapid change in the technology in this sector will
pose challenge for them to adhere with.
 The targeted regions of Razer are ranging from developed
market to developing market. Thus, the use of technologies will
be different in different regions.
 Developing markets will have less affordability for the updated
technologies and developed market will require frequent up
gradation of existing technologies. Thus, it will be a challenge
for Razer to meet the diversified requirements.
Environmental  Gaming sector is not having any direct implications on the
environment.
 However, the resource required for purpose of gaming may have
negative implications on the environment.
 In the recent time, generation of the e-waste is one of the key
sources of pollution. Thus, organizations such as Razer should
concentrate on reducing the impact of wastage of their products
(Grant et al., 2013).
 Moreover, use of recycled materials in the packaging of the
products will also be beneficial.
Legal  With the increase in the obesity among the young generation,
increase in the trend of gaming is being identified as one of the
key reasons.
 Accordingly, government is trying to initiate various legislations

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in order to curb trend of computer gaming.
 Initiation of the stringent legislations will have negative impact
on the business performance of Razer.
Analysis of the internal environment
Strengths  Initiation of latest and cutting edge software in the market.
 Positive reputation and goodwill and having loyal customer base.
 Having diversified product portfolio to meet different customer
requirement.
Weaknesses  Having less brand value compared to other established player in
the market.
 Having no brand identity outside the gaming community (Hsiao
& Chiou, 2012).
 Premium price of the products and catering only the niche
market.
 Lack of economies of scale.
Opportunities  They can enter the market of other electronic appliances, which
will enhance their market share and presence.
 Positive trend in gaming hardware market.
 Retailing the products through famous retail chains.
 Huge number of active users globally.
Threats  Various companies having more brand value are rapidly

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introducing technologically advanced products.
 Customers awareness about the ill impact of the computer
gaming is increasing (Ferguson & Olson, 2014).
 Rapid change in the taste and preference pattern of the
customers.
Analysis of the marketing strategies
Objectives of the marketing strategy
 To identify the ideal market entry strategies.
 To identify the target market and position the products.
 To effectively cater to the target market.
 To design the marketing mix effectively.
 To identify the competitive advantages in the market.
Market segmentation strategies
Figure: 1

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STP model
In order to identify the target market along with segmentation and positioning strategies,
STP model will be used. According to this model, the first aspect is the segmentation of the
market. This process refers to the division of the market in terms of the demography and
geography segmentation (Wedel & Kamakura, 2012). In terms of the demographic segmentation,
the targeted age group will be 18 to 30. This age group will be targeted due to the reason that, it
will cover the teenage group who are more enthusiastic about the computer gaming. Moreover,
above the targeted age group, there will be more professionals who may not have the time and
interest for the computer gaming.
Figure: 2
Gender statistics of gamers
Source: (Frevele, 2017)
Both the male and female will be targeted due to the reason that, in the recent times,
computer gaming is becoming popular among the female teenagers. As seen in the above picture,

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42 percent of the gamers are female. Thus, there is huge market potentiality of computer gaming
in the female population. In terms of the geographic segmentation, different regions in the United
States will be targeted. Thus, the entire market of the United States will be targeted. However,
the entry and operation strategies will be different in different regions.
Market targeting strategies
The next step of STP model is targeting. In this step, Razer will initiate various activities
in order to target the segmented customers. Porter generic strategy will be helpful in initiating
various targeting activities.
Figure: 3
Porter generic strategies.
The first targeting activities will be the cost leadership. Razer will not initiate the cost
leadership due to their premium offerings. However, they will concentrate on enhancing their
economies of scale in order to reduce the cost of production. This will increase their profitability
in the market (Kapferer, 2012). The next targeting strategy will be the differentiation. This