PS4 Gaming Console: Marketing Plan for American and Canadian Markets

This report presents a comprehensive marketing plan for the PS4 gaming console, focusing on its introduction into the American and Canadian markets. It begins with an executive summary and table of contents, followed by an introduction that highlights the console's features and its competitors, Xbox One and Nintendo Switch. The core of the report includes a detailed SWOT analysis, identifying strengths like easy-to-use software and strong distribution, weaknesses such as delay in launch and less innovation, opportunities like exciting games and cloud-based services, and threats like intense competition and changing demographics. The report then identifies the target market segmentation, focusing on hard-core, mainstream, and digitally savvy gamers, and outlines marketing objectives and positioning strategies. A detailed marketing mix is presented, covering product, price, distribution, and communication strategies. An implementation plan, including schedules, measurement, tactics, and contingency plans, is also included. The report concludes with financial projections, including pro-forma income statements and break-even analysis, and overall recommendations based on the marketing plan and SWOT analysis.

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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.

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B. Five most important SWOT factors
The above evaluation of the strengths, weakness, opportunities, and threats provides
an overall analysis of the potency as well as limitations of the PS4 gaming console. Among
the above points, the five most important SWOT factors include innovation, trending use of
cloud-based service, competition from existing market players, changing demographics, and
expensiveness. It is significant for the organization to take into consideration and give more
stress on these five factors before the introduction of the gaming console in the American and
Canadian market.
Innovation has remained one of the crucial aspects of technology-based services. Less
innovative features hardly attract customers, whether it is a new game or an update of the
existing version. On the other hand, Babuand Krishna (2016) contends that the cloud-based
features that have been introduced in most of the games provides an opportunity for the
players to save their games and their levels to play from the same point where they left, rather
than beginning from level 1 once again. The rising competition from xBox 1 and Nintendo
Switch might become an obstacle for PS4 in the new market because both the gaming
consoles have introduced exciting new games and have become the ultimate entertainment
console with Ultra HD Blu-ray playback. Thus, the intense market competition becomes a
significant factor for the organization.
As the PS4 gaming console has been introduced in the market with the use of latest
technology, it is far more expensive than other consoles; therefore, the rise in the cost of
purchase of the gaming console will make it unreasonable for the potential customers to
prefer PS4 over other gaming consoles in the market providing similar features. On the other
hand, changes in the demographics of the new target market will cause a decrease in the

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demand for PS4. Thus, the above 5 SWOT factors are important to understanding from a
marketing perspective.
Target Market Segmentation
Target Market Segmentation involves breaking down a market into different segments as well
as concentrating the marketing efforts over those key segments that most closely matches the
products and service offerings (McAlexander et al, 2016). In addition to this, it becomes
essential to breakdown a huge mass population of targets into different segments because it
makes it easier to approach them with the use of most appropriate marketing strategies. As
Sony PS4 is highly focused on gaming, the target market would be the gamers from
American and Canadian landscape who spends most of their time in search of new games.
Who:
The target market will be both male and female hard-core gamers as well as mainstream
gamers.
What:
Sony PS4 aims for market expansion in the American and Canadian landscape; therefore,
first target would be people from Central America and central Canada. Both these places
have the highest population than compared to other specified areas on the territories.
Thereafter, the next focus would be towards northern areas of America and south Canada so
as to gain competitive edge in the market.
Other Specifics:

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People from the American and Canadian landscape within the age bracket of 10 years to 34
are the most suitable targets for the product as they spend most of their time in gaming
activities and spends over 10 hours per week in playing games on their devices.
Children above the age of 10 years to 15 years desire to play both arcade and action games,
and thus, opportunity will be provided to them to enjoy playing games at both themes. The
mid-20’s age group, whether male or female, prefer playing theme based and action games
such as FIFA, cricket and such and aims to generate highest scores within their friends circle.
Therefore, this group will become the primary targets as they are the hard-core gamers.
A. Segmentation Approach
Segmentation begins by recognizing and classifying all the potential buyers for the product as
well as services that are offered that appropriately match their need as well as their means to
buy. McAlexander et al (2016) contend that in most of the cases, target market corresponds to a
large mass people or organizations with similarity and some differences. The segmentation
process helps to narrow down focus over the most promising groups. There are a number of
segmentation approaches subject to the marketing and business objectives. These include
geographic segmentation which is based on regional and area of the target markets,
demographic segmentation is based on the age, gender, family size, income, religion,
occupation, education nationality as well as ethnicity. On the other hand, psychographic
segmentation involves lifestyle, personality, social class, and attitude, whereas, behavioural
segmentation involves classifying the customers based on their readiness to purchase, loyalty,
status, and purchase occasion.
Amongst the above different types of segmentation approach demographic segmentation
would be appropriate as the product that is being offered are subject to age, gender and
income of the potential customers. The demographic segmentation will divide the market of

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the PS4 into two major segments, i.e. male and female, with young and old gamers or players
that would help in expanding the business to a wider mainstream of entertainment.
B. Profile of Target Market
While Microsoft advertises the Xbox One as a mass-market device indispensable for any
living room, Sony with its PS4 is more narrowly focused on hard-core gamers as well as
mainstream gamers (Ad Age India, 2013). The target market of PS4 gaming console would
be people within the age bracket of 10 years to 34 years of gamers.
Hard-core Gamers- the Mid to Late '20s
This group will generally involve those people between the age group of the mid to late
twenties and is mostly single. Though both male and females prefer gaming zone at their
comfort levels, however, predominantly the male groups spend more time playing games, for
the reason that gaming is their primary leisure activity. It has been studied that the male
population spends more than 10 hours per week in gaming activities.
Mainstream Gamers- Beyond '20s
This group will involve considerably older as well as less male-biased population. It will
include those who are already married have children or are planning for the same and are
quite cautious while spending money. This group will also include regular gamers,
predominantly playing the blockbuster titles, for instance, Call of Duty, FIFA, along with The
Grand Theft Auto (The Sun, 2017).
Digitally Savvy Gamers- Undefined Age Group
Due to globalization and technological advancement, people strive to become digitally savvy
in the digitally revolutionized world. From ICT to the gaming zone, people are becoming
more tech-friendly and ready to implement any new changes that ascend in the market. This
group will involve those people who belong to both hard-core and mainstream group but with
a more enthusiastic approach towards selecting digitally advanced games, no matter the cost