Case analysis:

Emotiv systems, inc.:

its the thought that count
By:
Group No: 11
Yogesh Garg
Surendra Singh Negi
Aditya Mani
Vikas Dahiya
Tarun Behal
Nisarg Trivedi

Synopsis:
Emotiv systems- a San Francisco based company
is launching the innovative Brain Computer
Interface (BCI) technology which converts brain
signals or emotions into digital form.

Emotiv had developed a headset using

Electroencephalography (EEG) technology. It
reads the brain signals of the person and is
transmitted to the computer to convert into
digital form.

Cont
Tam Le and Nam Do are in dilemma of whether to
launch the EPOC headset on PC Platform or to go
about integrating EPOC with the console platform
with one of the big three console makers.

They are also focusing on the marketing strategy

to be adopted for quick adoption in either case.

Key Issues
Single platform v/s Multi-platform..??

Marketing (Pricing, Promotional, Distribution)

strategy of EPOC.

Single Platform v/s Multi-platform

Console Market:
It is a huge market worldwide.
Its sales are projected to reach $40 billion in 2007
In U.S., 40% of household had a console device.
The big three console makers Microsoft (Xbox
360 console), Sony (PlayStation 3, or PS3) and
Nintendo (Wii) has the great brand equity.

Single platform v/s Multi-platform

Console Market:
Association with console makers may even help in
boosting the adoption in PC gamers.

Trend in console gaming is booming (Guitar Hero &

Wii System)

Single Platform v/s Multi-platform

PC Market:
Emotiv has to persuade only the game developers to create
EPOC supported PC games.
As the PC games are compatible with Microsoft Windows
operating system, Emotiv may have a greater control when
EPOC is released.
No royalty to the console makers.
Emotiv to have higher profit margins
EPOC to come with premium pricing ($299)

Should Emotiv keep trying to convince major console

makers to endorse its technology as part of their platform
or is just being PC enabled sufficient for the launch?

Yes. Emotiv should first focus on the console

makers with following assumption:
(There is a certainty with console makers before fall
2008, if not they should go with PC markets)

Now options available are:

Microsoft (Xbox 360)
Nintendo (Wii System)
Sony (PS 3)

Cont
Why not Microsoft (Xbox 360)..??
Favouring wait and watch approach
Result in delayed launching

Why not Nintendo (Wii System)..??

Satisfied with the motion controller console
Lack in compatibility to support EPOC technology
Reluctant to adopt new technology due to phenomenal
success of existing motion detection capabilities of
console

Cont
Why to go for Sony (PS3)..??
Unexpected success of Wii (Nintendo)
Provide less features compared Nintendo
Have internal gaming division
Popularity with guitar hero

Marketing Strategy
Target Segment: Youth
Promotions:

Co-branding with console makers

Ads in game magazines (Wired)
Blogs
Game developing contest

Distribution Channel: Traditional channel against

e-commerce

Marketing Strategy- Pricing

Parameters

Margins

Cost of prod.

$199

$299

($60/$110)

($60/$110)

($69.65)

($ 104.65)

Retailer
margin

35%

Returns

10% of
wholesale
price

Console
Royalty

3%-5% - say
4%

($ 7.96)

($ 11.96)

Game
developer

2%

($ 3.98)

($ 5.98)

Console
model

$ 57.41/$
7.41

$ 116.41/$
66.41

PC model

$ 65.37/$
15.37

$ 128.37/$
78.37

Profit margin

Alternative Applications
Medical:
Psychiatric patients
Physical disabilities

Military
Market Research:
Consumer behavior

Thank You