Marketing Plan

Group: MMK1 L Laura Jane Willen (117544) Esra Toker (117013)

Marketing Plan

E. Toker & L. Willen

Management Abstract
This part of the assignments was made in order to realize a marketing plan, which is divided into the strategic marketing plan and the operational marketing plan. The strategic marketing plan gives information about the new SMART objective to increase 7% of the sales of Nintendo Wii. In order to realize this objective, Nintendo will focus on targeting Dutch people between 60 and 75 years. The Nintendo Wii will be improved by manufacturing in an environmental friendly way, so that it is possible to say that Nintendo Wii is a green product. These opportunities and objectives are determined with the aid of the TOWS-model. In order to target a specific target group it is also very important to segment, target and position them in the market. Therefore several criteria and objectives are used in order to determine the target group in a real matter. Here, a perceptual map is used to demonstrate the aim of Nintendo for the following year. The operational marketing plan deals with the marketing mix. The developments of the product, price, place and promotion are listed. The product life-cycle is shows a maturity stage of Nintendo Wii and due to this fact there are some changes, which have to be considered. Branding and packaging are improved, the communication objectives are renewed and also the promotional aspect is considered. The channels do not vary much but intensive distribution becomes more important.

Marketing Plan

E. Toker & L. Willen

Table of Contents
Management Abstract .............................................................................................................. 1 Table of Contents ..................................................................................................................... 2 Introduction .............................................................................................................................. 3 1. Strategic Marketing Plan ...................................................................................................... 4 1.1 Objectives and strategy .................................................................................................. 4 1.2 Segmentation, targeting and positioning ........................................................................ 6 2. Operational Marketing Plan .................................................................................................. 8 2.1 Product ........................................................................................................................... 8 2.2 Price ............................................................................................................................... 9 2.3 Promotion ..................................................................................................................... 10 2.4 Place ............................................................................................................................. 11 Conclusion ............................................................................................................................. 12 References ............................................................................................................................. 13

Marketing Plan

E. Toker & L. Willen

Introduction
The final marketing plan presents a new marketing strategy with a new aim for the gaming company Nintendo. To increase sales within the next year, the company will improve their strategy based on this report in order to get a benefit. It is very important to know the external and internal factors, which affect the planning and realizations of the plan. Based on all previous reports and their results, an effective strategy was developed to approach the new target group in the best possible way. The marketing plan consists of a strategic level but it also includes a short-term, tactical plan on the operational level. The strategic part focused on setting new objectives and goes through the steps of segmentation, targeting and positioning. The operational marketing plan describes in detail the marketing mix (4 Ps), namely product, price, promotion and place. The report will be completed with a short conclusion.

Marketing Plan

E. Toker & L. Willen

1. Strategic Marketing Plan

1.1 Objectives and strategy
The new SMART objective of Nintendo for the next year is to increase sales of Nintendo Wii by 7%, focusing on a specific target group. The new target group should be elderly people (60-75 years) who have played games before or whom the Nintendo Wii should encourage to start playing. In order to attract these people, Nintendo will also manufacture the product in an environmental friendly way (green product). Referring to the Marketing Audit (Module Assignment part 2) the SWOT- analysis showed the strengths, weaknesses, opportunities and threats. Forwarded, here the TOWS-analysis is depicted:

External Opportunities (O)

External Threats (T)

Internal Strengths (S)

SO
- Target audience (3-110) - Sportive effect healthcare - Easy use

ST
- Low costs - Innovative unique console

Internal Weaknesses (W)

WO
- Not environmental friendly - Low graphic quality

WT
- Low earning - Does not own the motion sensing software

As can be read from the table, there are strengths, which can become to external opportunities and threats. An opportunity is first of all the target group. The company could specify their target group in order to win more costumers and increase the sales. Therefore, the new strategy is to target Dutch people between 60 and 75 years. It is also possible to focus more on the business-to-business market, because also residential homes might like to purchase Nintendo Wii. The sportive effect and healthcare is also an opportunity and this strength is useful in order to target this audience, because elderly people need to do some sportive activities in order to stay healthy. The easy use is another opportunity and strengthens the argumentation to attract elder people, because they cannot use complex built gadgetry.

Marketing Plan

E. Toker & L. Willen

There are also strengths, which can become to external threats; for instance the low costs count to those. The low costs can cause less profit for the company. The uniqueness of the console could be also a threat, because at the beginning elder people could have some problems to use the console even if it is easy to use. Furthermore, the weaknesses can become opportunities, such as the fact that Nintendo Wii is not environmental friendly. There could be an improvement of the product and the new advertisements could focus on the environmental friendliness, because according to the Target Group Research (Module Assignment part 3) elder people would like to use environmental friendly products. Therefore, this kind of promotion for the improved Nintendo Wii would attract them. The improvement of the product could also include the graphic quality of Nintendo Wii. Weaknesses can also turn to external threats. Here, as mentioned before, the low costs are listed and also the fact that Nintendo does not own the motion control software. Other companies could also buy this innovative motion-control and the software and cause more competition. Until July 2011 the production of Nintendo Wii has to be improved and the environmental friendliness has to be increased. Besides, the graphic card will be improved, too. In August 2011 the first promotions with a focus on elderly people and the USP (unique selling point) that the product is very sportive and therefore enhances healthcare will be broadcasted. This will mean that the target group will buy the Wii before winter starts, because elder people might like to stay at home if it is cold to play Nintendo Wii. (Kotler, P. 2008; Moats, B. 2008)

Marketing Plan

E. Toker & L. Willen

1.2 Segmentation, targeting and positioning

Due to the fact that each buyer has own needs and wants, each of them counts as a market. However, it is important to segment the target group in order to set a strategy. In the first line, it is clear that the company will work in a segmenting market, because this is the most efficient way in order to increase sales. Geographic segmentation: It is possible to segment the market in the area of the Netherlands as a country or whole Europe. It is also possible to segment different cities within the Netherlands and the northern area and southern area. This marketing plan focuses on people in the Netherlands in general. Therefore, geographical segmentation is used here. This idea could be spread through whole Europe or the whole world but several research fragments were made in and about the Netherlands. Demographic segmentation: The age of the target group plays a role. There are several opportunities to segment the target group in a demographic matter. Due to the fact that the population is aging which is (see Module Assignment part 2), the new focus of Nintendo will lie on elder people between 60 and 75. This means that the demographic segmentation with the age is used in order to target older people. Psychographic segmentation: The psychographic segmentation is used in order to attract elder people who are interested in the gaming industry or were interested and stopped to play such games. The general gaming industry is more focusing on younger people but now through Nintendos new strategy also elder people should think about being a part of the gaming lifestyle. (Kotler, P. 2008) In order to evaluate, it is important to know if the target group is approachable, accessible, sufficiently large and practicable. The target group between 60 and 75 years could be not very easy to deal with. By using several promotional strategies in order to reach these people it can be realized. Therefore, it is possible to say that this target group is accessible. The group is also sufficiently large because the Target Group Research (Assignment 3) showed that there are 3 million potential customers in the Netherlands. (Sociaal en Cultureel Planbureau, 2007) The target audience is also practicable because people in this age group could have some health problems but they surely want to have some fun in their lives (according to Target Group Research). In general, the targeting strategy is dealing now with concentrated marketing, because Nintendo is now focusing on a large share of one submarket. This means that elder people are targeted and the goal is to sell the Nintendo Wii as often as possible.
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Marketing Plan

E. Toker & L. Willen

With the aid of the Ansoff-matrix, which is a common methodology for increasing sales, the marketing strategy will be determined. In this case Nintendo will increase the sales with market penetration, because the product itself is not changed very much, such as the market. (Kotler, P. 2008)

As can be seen in the perceptual map, Nintendo Wii and the competitors products XBOX360 and Playstation3 are all in a similar area if the greenness and the age of the consumers are onsidered. The problem in this situation is that the competition takes a better position. If Nintendo Wii realizes the new plan to target older ages and to offer a more green product by producing it in an environmental friendly way, the Nintendo Wii will be in an area, which is not much touched by the gamer industry. This would lead to a success in the plan to increase the sales of Nintendo Wii. (Kotler, P. 2008)

Marketing Plan

E. Toker & L. Willen

2. Operational Marketing Plan

2.1 Product
Type of product The Wii is a durable shopping product. Potential customers compare the product with others in regard to suitability, quality, price and style. The Wii can be used many times and therefore only purchased once. Product-life-cycle The Nintendo Wii is in the maturity stage of the product life-cycle. It was introduced to the market at the end of 2006, i.e. that is has been on the market for three and a half years now and proved to be a huge success. Nintendo has sold over 72 million units up until now. To prevent the product from going into the decline, a new target group was chosen to delay the next stage. Quality Since the quality has a direct impact on product performance, the product quality should remain on a high level to ensure the best comfort and a long life of the product. Branding The brand Nintendo Wii is already an established phrase within the market. Nonetheless, the company has to spread the brand further to reach the highest possible level of brand awareness within all target groups. The aim is to have people identify the product easily and be assured of a certain degree of quality and consistency. Packaging The packaging should match the design of the Wii. Currently, the packaging shows the Wii and a controller and the box is either white or black depending on the colour of the product inside. We will keep this concept in order to keep a certain degree of consistency. The product should look the same for everyone. Product support services In regard to product-support services, it would be advisable to expand the hotline service. With the target group being between the age of 60 and 75, the customer might prefer to call instead of check the internet for information and help. However, some people might like to check the internet. For this, the companys support website offers a lot of information, contact data and fora. The warranty for the Wii is 12 months. After that time, damages will have to be paid by the customer. (Kotler, P. 2008)

Marketing Plan

E. Toker & L. Willen

2.2 Price
Based on the fact that the Wii has reached the maturity state of the product life-cycle, it is advisable to develop a pricing strategy to successfully compete with competitors prices. As stated in the Cost Price Analysis, the costs for manufacturing one Wii amount to $187. This leaves a margin to lower the price when necessary. However, the Nintendo Wii already offers the lowest price among its competitors, so that a decrease in price becomes oblivious. Should one of the competitors lower the price for their product, Nintendo does have to possibility to reprice the Wii as well. The price will be set at $199. Depending on future demand, the price can be adapted to increase sales. To encourage purchase, the company could use promotional pricing to create buying excitement. Nintendo could offer the Wii for $189 for one month to attract customers and still make a small profit with every unit sold. (Kotler, P. 2008)

Marketing Plan

E. Toker & L. Willen

2.3 Promotion
Communication target group The communication target group are people who can hear from the product or know it from advertisements through promotion. These are the target group who own a television and watch the commercial. These can be also people who got a magazine in which Nintendo Wii can be seen in an advertisement. Communication objectives and message The objective of the promotion strategy should be to attract as many people from the target group as possible. The company should try to lead the customer through all six buyer-readiness stages. As most people are already aware of the product (be it from commercials or grandchildren), the aim should lie on the second and third stage, namely knowledge and liking. If these stages can be obtained successfully by promotion, the other stages will follow more easily. The message Play Wii, stay healthy should encourage customers to think of the Wii as a fun way to exercise at home, either alone or with friends and family. With the help of emotional appeal such as guilt (for being lazy) or joy, this slogan sends a clear message to the audience. As the target group research showed, few people between the age of 60 and 75 are practising any sports at all. This could be changes when promoting the Wii in this manner. Promotion mix To promote the Nintendo Wii to people between 60 and 75, the pull strategy will be applied. This implies advertising to the customers directly, who then demand the product from retailers and wholesalers. Advertising should mainly be done on television, radio and in magazines aimed at elderly people. The target group research has shown that over 95% of the people within the target group in the Netherlands own a television and many read magazines either at home, the doctors office or the hairdresser. This way, a broad mass of potential buyers can be reached. Personal selling might be useful as well, e.g. in retirement homes to show people how the device works and to let them try it themselves. Furthermore, direct marketing could be used to target the B2B market such as retirement homes and private clubs. Selling to those customers might further rise interest in the brand and attract new customers as well. It is highly important to make sure that all marketing communication is integrated and deliver the same and consistent message through all channels. (Kotler, P. 2008)

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Marketing Plan

E. Toker & L. Willen

2.4 Place
Choice and length of the channels In customer marketing, the indirect channel level Nintendo uses consists of the manufacturer, one wholesaler, retailers and consumers (channel 3). In business marketing, Nintendo uses the fourth channel, which involves the manufacturer, the manufacturers representatives, a business distributor and the business customers. The channels are organised in a contractual vertical marketing system as the independent channel members have contracts with each other to obtain the highest possible profit. Both wholesalers and retailers play an important role in the distribution process. The channels do not differ from those for other target groups, though. Hence, no adjustments have to be made. Intensity The chosen channel breadth strategy is intensive distribution. The product Wii is made available in as many stores as possible to make sure people can buy it when and where they want. The Wii can also be bought in department stores as well as in toy stores or electronic stores. Online options The Wii can also be bought online in retailers such as amazon.com. People can order the Wii and it will be delivered home. Of course, an additional shipping fee has to be paid for that service. (Kotler, P. 2008)

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Marketing Plan

E. Toker & L. Willen

Conclusion
All in all, the objective to increase sales by 7% in the next year will be realized by targeting a specific target group (60-75 year-old Dutch people). In order to emphasize the attractiveness of Nintendo Wii, the product will be improved in order to set it into the list of green products. If this can be realized, Nintendo will target a group in the market, where not much competition exists. This will lead to a more efficient and profitable success. The marketing mix in the operational marketing plan shows several developments of the product, which is in the maturity stage (product-life cycle). The branding and packaging etc. are improved, just as the communication objectives in order to target the specific group in a better way. Also the pricing strategy could be changed in a matter where the company also considers the competitors pricing strategies. There are also communication objectives, which are connected to the promotion mix. The pull strategy will be applied as before but the B2B market can be entered with a new promotional strategy. The length of the channels does not vary much from the current situation but are emphasising the intensive distribution within the country.

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Marketing Plan

E. Toker & L. Willen

References
Bayer, G. (2005). The Nintendo Strategy. Retrieved 21 May, 2010 from http://www.n- sider.com/contentview.php?contentid=331 Kotler, P. (2008). Principles of Marketing. (5th). New Jersey: Pearson - Prentice. Moats, B. (2008). Marketing Plan for Marketing Management: Nintendo Wii. Retrieved 27 May 2010 from: http://brianmoats.com/Portfolio/Nintendo_Wii_Marketing_Plan.pdf

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