Razer Inc. Marketing Plan for Razer Phone 2: 2020-2022, Asia

This report provides a comprehensive marketing plan for Razer Inc., spanning from 2020 to 2022, with a specific focus on expanding its presence in the Asian markets and effectively marketing the Razer Phone 2. The report begins with an executive summary and table of contents, followed by an in-depth situation analysis that examines both the external environment, including market-economic and technological factors, and internal factors, such as Razer's strengths and weaknesses, culminating in a SWOT analysis. The report outlines specific objectives and strategies, including segmentation, targeting, and positioning, along with a detailed marketing mix (product, pricing, place, and promotion). Implementation issues, including timelines and resource allocation, are also addressed, along with control mechanisms to ensure the plan's success. The report concludes with a summary of key findings and recommendations for Razer's strategic initiatives in the Asian market.

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Company (Razer)
3 years Marketing Plan: Year 2020 to 2022
Submitted by: YYYY

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Executive Summary
The report highlights the case of Razer Inc. that operates as a lifestyle gaming company based in
San Francisco in United States. The report reflects on a marketing plan for a three year period
ranging from 2020-2022 that is required to be implemented by the company for developing an
effective business presence and also for marketing of the Razer Phone 2 in the Asian economies
in an effective fashion.

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Table of Contents
1. Introduction..................................................................................................................................5
1.1 Company Background...........................................................................................................5
1.2 Purpose of the Report............................................................................................................5
2. Situation Analysis........................................................................................................................6
2.1 External Analysis...................................................................................................................6
2.1.1 Opportunities..................................................................................................................6
2.1.2 Threats..........................................................................................................................10
2.2 Internal Analysis..................................................................................................................11
2.2.1 Strengths.......................................................................................................................11
2.2.2 Weaknesses...................................................................................................................16
2.3 SWOT Analysis...................................................................................................................16
3. Objectives..................................................................................................................................17
4. Strategy......................................................................................................................................20
4.1 Segmentation, Targeting and Positioning............................................................................22
4.1.1 Segmentation................................................................................................................22
4.1.2 Targeting.......................................................................................................................23
4.1.3 Positioning....................................................................................................................25
4.2 Tactics—The Marketing Mix..............................................................................................26
4.2.1 Product strategies..........................................................................................................26

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4.2.2. Pricing strategies..........................................................................................................26
4.2.3 Place strategies..............................................................................................................27
4.2.4 Promotional strategies..................................................................................................27
5.0 Implementation Issues and Control.........................................................................................28
5.1 Timeline and Resources.......................................................................................................28
5.2 Control.................................................................................................................................30
6.0 Conclusion...............................................................................................................................31
References......................................................................................................................................33

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1. Introduction
1.1 Company Background
Razer based in United States operates as a lifestyle brand in the esports sector along the global
marketplace. The gaming brand is mostly recognised owing to the employment of the trademark
reflecting triple-headed snake. It gains considerable popularity along the global gaming and
esports sector with also encompassing large number of gamers spreading across geographical
boundaries. Razer Inc. tends to operate based on an integrated ecosystem of hardware, software
and also service aspects that help the firm in generating an avid gaming experience for the users
(Razer Inc. , 2017). In terms of hardware, Razer generates personal computers, laptops,
Smartphones and Tablets that would help in meeting the gaming needs of customers. The
software like Razer Chroma, Razer Synapse and also Razer Cortex are ideally designed to suit
the launches and operations of different types of games. In terms of services, Razer zGold is
developed for generating credit services to customers while Razer Pay acts as an effective e-
wallet that serves the need of the millennial and youth customers (Razer Inc. , 2017).
The company was founded during 2005 and is headquartered at San Francisco and also in
Singapore. It also operates based on an integrated network of 18 offices around the globe and is
considered as one of the most effective gaming brands across diverse international markets based
in European and Asian countries and also in United States (Razer Inc. , 2018).
1.2 Purpose of the Report

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The purpose of the report is to understand and evaluate the effectiveness of Razer Inc. in
expanding over to the Asian markets for marketing of its hardware, software and service
elements. It would thus focus on carrying out a situational analysis of the Asian gaming or
esports market and thereby in underling the objectives that are needed to be met. Different types
of strategic initiatives under the 4Ps model of marketing would also be dealt with in the report
for developing an effective presence of Razer along the Asian economies.
2. Situation Analysis
2.1 External Analysis
2.1.1 Opportunities
2.1.1.1 Market-Economic Factors
The total numbers of gamers based in China accumulated to a figure of 600 million by 2018 that
generated revenue of around $37.9 billion. The above figures thereby help in figuring out China
as the global leader in the gaming industry both in terms of number of gamers and also based on
the revenue generated for the same (Dong, 2018). From 2013 to 2017, the digital gaming
industry based in China rose from $13.8 billion to around $32.5 billion. The same is reflected in
the following graph.

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(US-China , 2018)
The following illustration reflects the breaking-up of the digital gaming sector of China along the
personal computer and mobile sector ranging from 2014 to 2017.

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(US-China , 2018)
The market share of the digital gaming companies operating in China during 2017 is reflected in
the following illustration.

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(US-China , 2018)
The size of the e-sports market of South-East Asia is taken to gain an increase by a compound
annual growth rate or CAGR of around 36 percent between the periods ranging from 2015 to
2019. The number of gamers associated to the PC and Mobile gaming market pertaining to the
South East Asian markets is taken to reach to a figure of 400 million and is evaluated to generate
revenue of $4.4 billion by around 2021. Around 98 percent of e-sports gamers are observed to
reside in regions like Malaysia, Philippines, Thailand, Indonesia, Vietnam and also Singapore.
Gamers in Malaysia contributed in around $589.4 million during 2017 (Tech Collective , 2019).
2.1.1.2 Technological Factors
The performance and shares of Asian gaming companies were affected during the final quarter of
March 2019 owing to the announcement made by Google regarding the launching of a cloud
oriented gaming platform. Microsoft generates further challenges associated to the generation of

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a streaming service in the gaming industry. The announcement made by Google regarding the
launching of Stadia affected the shares of Asian gaming firms like Nintendo, Sony and Nexon
thereby leading to sharp declines (Nagumo, 2019).
2.1.2 Threats
2.1.2.1 Political factors in the Asian markets
The Chinese government has frozen the path for generation of approvals regarding launching and
marketing of new games in the region. The above policy measure undertaken by the Chinese
government is a clear indication that the government of the region renders little significance to
the gaming industry as a whole and is also very least concerned about the success of developers
and gamers in the market (Handrahan, 2018). The uncertainty in the approval process of the
Chinese government for the gaming industry potentially benefitted the global gaming companies
where they tend to enter the gaming industry based on the use of Steam’s platform. To level-out
the uncertainty the Chinese government is focusing on totally ceasing the international arm of
Steam such that the platform can be largely made accessible to the local players (Handrahan,
2018). The Chinese Ministry of Education during 2016 approved e-sports as a sporting event
approved by the Chinese Universities. Apart from encouraging students to pursue studies based
on e-sports the same is also used for attracting foreign tourists in the region (US-China , 2018).
2.1.2.2 Varying socio-cultural fabric in the Asian markets
Among the South-East Asian regions, Korea is observed to effective embrace the e-sports culture
compared to other regional economies. Seoul based in South Korea has potentially embraced the
electronic sport culture unlike any other regional nation. Starcraft, as an effective strategy
oriented e-sports game is observed to ideally reflect the culture of South-East Asia along its

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different scenes. Further, the e-sports programs developed in Seoul ideally reflect the existence
of increased competition compared to other e-sports events (Randall, 2017). E-Sports is
identified as a power sports in the Asian markets like India such that it is held to help the nation
gain an effective stand in Olympics (The Hindu , 2018). The Thai citizens identified e-sports as
an effective career option owing to the growth of local and national competitions while it also
created opportunities for women in building up potential stand in the e-sports market (Alonzo,
2019).
2.2 Internal Analysis
2.2.1 Strengths
The management of Razer Inc. reflects that it continually focuses on the development of gaming
ecosystems incorporating the right type of hardware and software for servicing the gaming needs
of customers along diverse markets. The company effectively developed good business for the
hardware and peripheral components and also the software systems that in turn helped in the
launching of the Razer Phone. The launching of the mobile system helped Razer in generating an
effective foray into the telecommunication market. (Razer Inc. , 2017). Again, the software
segment of Razer Inc. is also observed to gain considerable growth in terms of encompassing a
large base of registered customers amounting to around 40 million. Razer Inc. enhanced its
competitive advantage through the launching of virtual credits based services known as zGold.
The launching of the same contributed in enhancing the potential of its services based business
segment such that it was evaluated to have gained considerable popularity among gamers spread
around the globe (Razer Inc. , 2017). Razer Inc. gained a revenue growth of around 32.1 percent
on a year-to-year basis during 2017 compared to the 2016 period. Again, the level of the gross

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profit margin of the firm gained an increase from 27.9 percent to around 29.2 percent along the
stated period. Increased amount of profits were made by Razer Inc. regards to its peripheral and
systems businesses. The hardware business segment of Razer Inc. contributed in the generation
of maximum profitability followed by the peripheral business sector that reflected a year-on-year
growth by around 13.4 percent during 2017 compared to the 2016 period. The systems business
segment also reflected a year-on-year growth by around 51 percent during 2017 with also the
growth of the financial sector associated with the systems business that reflected a year-on-year
growth associated to the level of gross profit margins (Razer Inc. , 2017). In the others segment
encompassing mainly next generation products, the Razer Phone that went for an effective debut
during 2017 actively contributed in the generation of around $31.6 million in terms of revenues.
The development of the Razer Phone is evaluated to help in enhancing the level of competitive
advantage for the Razer Inc. in that it serves as a differentiated and innovative product in
creating needed customer hype in the target market and thereby helps the firm in drawing greater
revenues. The service business sector of Razer Inc accounted total revenues of around $10.6
million during 2017 with also increased gross profit generation potential that surpassed the level
of profitability associated to the hardware sector (Razer Inc. , 2017). Razer Inc. gains needed
significance in the esports industry owing to its contribution in sponsoring gamers and also
esports tournaments for more than ten years. The Razer team encompassed around 175 athletes
hailing from around 30 different global nations. The esports company further developed its
potential in terms of entering into franchisee agreements with well known and top franchisees in
the esports industry like SK Gaming and also Rise Nation. Razer Inc. also earns the advantages
of cultivating an effective presence in the digital market based on the use of the social media