Plan
Marketing
Audit
Group:
MMK1
L
Laura
Jane
Willen
(117544)
Esra
Toker
(117013)
Management
Abstract
This
marketing
audit
is
concerned
with
the
marketing
analysis
of
the
company
Nintendo
It
analyzes
in
detail
the
macro
and
meso
environment
of
the
gaming
company
Nintendo
as
well
as
the
current
marketing
strategy
of
Nintendo
in
regard
to
the
gaming
console
Wii.
With
the
help
of
the
PESTEL
model,
political,
economical,
socio-cultural,
technological,
environmental
and
legal
factors
influencing
the
company
within
the
Netherlands
are
explained.
The
Netherlands,
being
a
political
stable
member
of
the
EU,
has
strict
policies
regarding
businesses.
The
current
economic
recession
has
a
strong
influence
on
the
company
by
affecting
buying
power
of
customers.
Demographics
show
that
the
Dutch
population
is
aging
while
the
technological
progress
is
becoming
faster.
The
Netherlands
are
very
aware
of
the
necessity
to
protect
the
environment
and
try
to
educate
the
population
in
that
regard.
Legal
factors
influence
the
company
via
trademarks,
copyrights,
licensing,
etc.
The
task
environment
of
Nintendo
includes
competitors,
suppliers,
shareholders,
customers
and
distributors.
All
stakeholders
contribute
to
the
success
of
the
company
and
are
valued
highly.
Nintendos
current
marketing
strategy
follows
its
mission.
The
desire
to
broaden
the
gaming
audience
is
served
by
an
extensive
promotion
strategy,
a
low
price,
wide
distribution
and
a
product
with
innovative
features.
The
target
group
is
defined
by
psychographic,
behavioural
and
demographic
factors.
With
its
current
positioning
strategy
it
differentiates
itself
in
consumers
perception
from
its
two
main
competitors
by
price
and
environmental
friendliness.
The
end
of
this
marketing
audit
analyses
the
different
aspects
according
to
the
SWOT-model.
Here
the
before
given
information
are
used
to
give
some
conclusions
about
the
strengths,
weaknesses,
opportunities
and
treats.
The
information
in
this
model
shows
the
current
situation
of
the
company
with
some
points
to
improve
in
order
to
have
a
successful
status
in
the
gamer
industry.
1
Table
of
Contents
Introduction .............................................................................................................................. 3
1. Product and Company ......................................................................................................... 4
2. Macro Environment .............................................................................................................. 4
3. Task Environment ................................................................................................................ 6
4. Current Marketing Strategy .................................................................................................. 7
5. SWOT-Analysis .................................................................................................................... 9
Conclusion ............................................................................................................................. 10
Appendix ................................................................................................................................ 11
Bibliography ........................................................................................................................... 13
Introduction
This second part of the Marketing Plan is concerned with the marketing analysis of the company Nintendo. Desk research was undertaken to find specific information about influences on the company within the Dutch market and also explains the current marketing strategy of Nintendo in regard to the gaming console Wii. This report therefore serves as a base for future analysis of the company Nintendo. After a short introduction to the company and its current product offering, the Wii, the macro environment will be analyzed with the help of the PESTEL framework. Then, the meso environment is taken a look at with general information about the market and the companys stakeholders. After that, the companys mission and vision are explained followed by an analysis of the current marketing strategy. The report will be concluded with a SWOT analysis to clarify the strengths, weaknesses, opportunities and threats that the soon to follow marketing plan will be based on.
2.
Macro
Environment
The
macro-environmental
analysis
will
be
done
with
the
help
of
the
PESTEL
framework
model.
Political
Influences,
which
can
be
categorized
into
the
political
factor,
include
taxation
policies,
foreign
trade
regulations
and
social
welfare
policies.
As
Nintendo
is
an
international
company,
it
has
to
be
aware
of
different
(especially
Dutch)
political
regulations
and
policies.
The
Dutch
government
is
a
parliamentary
democracy
with
the
Queen
as
the
head
of
the
state.
The
government
has
strong
implementation
policies.
The
EU
backs
the
government
for
all
political
decisions
and
being
an
EU
member,
the
Netherlands
is
strongly
supervised
in
regard
to
policies.
Presently,
the
main
focus
of
the
government
is
the
economy.
The
government
aims
to
restore
economic
growth
through
tax
cuts
and
decreased
public
spending
in
the
face
of
an
economic
slowdown.
The
collapse
of
many
banks
has
forced
the
government
to
intervene
in
the
economy
and
it
is
expected
to
continue
with
this
policy
in
the
near
future.
This
shows
that
the
Dutch
government
together
with
the
EU
parliament
exercise
a
certain
influence
on
the
business.
It
has
the
authority
to
control
entities
such
as
the
contents
of
video
games
that
are
being
published
in
different
countries.
Nintendo
has
to
make
sure
that
these
regulations
are
being
observed.
(Datamonitor,
2009)
Economical
The
economical
aspect
reveals
interdependency
between
the
company
and
the
Dutch
economy.
The
gaming
industry
constantly
contributes
towards
the
national
GDP;
this
has
an
effect
on
the
economical
situation
of
the
whole
country.
Therefore,
the
video
game
industry
forms
an
important
part
within
the
economy.
On
the
other
hand,
the
economy
also
has
an
effect
on
companies
like
Nintendo.
The
Netherlands
have
a
well
developed
economy
with
strong
infrastructure.
It
has
been
a
free-market
system
for
the
last
two
decades,
and
the
government
has
keenly
reduced
its
role
in
the
economy
to
regulation
and
taxation.
In
2009,
the
country
was
troubled
by
the
general
global
slowdown
and
increasing
problems
in
labor
inefficiency
and
the
downward
trend
of
the
economy
has
continued
in
2010
with
a
deepening
recession.
Yet,
it
can
be
expected
that
unemployment
rates
will
come
down
and
the
trade
surplus
will
broaden,
i.e.
Nintendo
can
expect
growing
consumer
spending
in
the
near
future.
The
quantity
on
consumers
disposable
income,
which
is
directly
affected
by
the
economic
situation,
has
an
effect
on
their
buying
behaviour
and
hence
affects
Nintendos
profits.
This
means
that
the
Dutch
economic
situation
is
highly
relevant
for
the
marketing
of
the
Nintendo
Wii.
(Datamonitor,
2009)
4
3.
Task
Environment
Market
developments
After
entering
the
Product
development
area,
Nintendo
also
wanted
to
develop
the
market.
Therefore
the
company
made
research
about
how
to
reach
more
customers.
The
target
group
was
widened
and
after
creating
Nintendo
Wii
within
a
new
market
it
is
possible
to
say
that
the
company
is
fully
working
on
diversification.
(Kotler,
2008)
Much
more
information
about
the
whole
gamer
industry
could
not
be
found.
Competitors
The
major
competitors
of
Nintendo
are
Sony
and
Microsoft.
Together
with
Nintendo,
they
form
the
so-called
Big
Three
of
the
gaming
industry.
Sony
has
about
70%
market
share
with
Nintendo
and
Microsoft
dominating
the
rest.
The
other
small
players
like
Sega,
Vivendi
and
Universal
Games,
concentrate
mainly
on
arcade
games,
which
do
not
create
a
major
threat
to
Nintendo.
Sonys
PlayStation
3
and
Microsofts
xBox
360
pose
a
major
competition
to
the
Wii.
(Rosenberg,2009)
Customers
The
group
of
people
playing
video
games
consists
of
an
increasingly
large
group.
Nowadays,
the
average
gamer
is
35
years
old
and
has
been
playing
for
thirteen
years.
Yet,
todays
video
game
players
include
a
diversity
of
students,
employees,
military
troops,
seniors,
mothers
and
fathers.
The
band
of
multi-generational
gamers
has
multiplied
exponentially
over
the
last
few
years,
not
least
because
of
the
introduction
of
the
Wii.
Thus,
the
current
target
group
of
Nintendo
ranges
from
3
years
up
to
110
years.
The
decision-making
behaviour
of
a
consumer
within
the
video
game
industry
is
characterized
by
high
involvement
and
is
based
on
the
views
of
opinion
leaders.
The
influences
that
affect
consumer
buying-decision
within
the
video
game
industry
may
be
either
the
personal
or
the
social
factors.
(Weber,
2007)
Distributors
and
distribution
channels
Distributors
play
an
essential
role
in
the
video
game
industry.
They
include
the
local
store
distributors
as
well
as
online
distributors.
Nintendo
sells
some
of
its
own
products
online,
but
the
majority
is
being
sold
is
through
other
retailers.
Stores
such
as
Wal-Mart,
GameStop
and
Amazon
are
trusted
with
selling
Nintendo's
products.
(Moats,
2008)
Suppliers
As
Nintendo
does
not
manufacture
all
parts
itself,
the
company
needs
firms
who
supply
them
with
the
needed
quantities.
It
purchases
from
companies
such
as
Panasonic
(batteries),
IBM
(processors)
and
ATI
(video
cards).
Nintendo
tries
to
keep
a
good
relationship
with
these
firms
to
get
low
prices
and
fast
deliveries.
The
fact
that
the
company
trusts
in
known
brands
shows
that
it
intends
to
deliver
the
highest
possible
value
to
the
customer
with
the
help
of
good
quality
parts.
(Nintendo
Co,
Inc.,
n.d.)
Interest
groups
Interest
groups
within
the
company
include
shareholders,
employees,
suppliers,
and
customers.
In
order
to
maintain
the
position
in
the
market,
Nintendo
must
satisfy
the
needs
and
wants
of
all
stakeholders.
(Moats,
2008)
5.
SWOT-Analysis
Strengths
The
game
console
is
first
of
all
very
innovative,
because
of
its
uniqueness,
which
gives
more
freedom
to
the
gamer.
It
targets
a
wide
range
of
people
between
3
and
110
years.
Both
competitors
developed
new
technology
within
the
wireless
and
motion-sensitive
controllers.
Nonetheless,
both
Sony
and
Microsoft
still
focus
on
the
younger
target
group.
The
openness
of
Nintendo
towards
broader
audiences
might
entail
a
strategic
advantage
over
its
competitors.
It
is
affordable
for
people
with
average
or
little
income.
The
use
of
Nintendo
Wii
is
very
easy,
because
of
the
similarity
of
the
menu
with
TV
channels.
Furthermore,
many
people
can
play
the
games
directly
at
once.
Hence,
little
children
and
elder
people
with
weak
skills
can
use
it
without
problems.
The
development
of
motion
sensing
controls
gives
the
people
a
new
experience.
The
movement
of
the
body
will
have
a
sportive
effect
and
this
causes
healthcare
while
entertaining.
Weakness
The
product
is
not
very
environmental
friendly.
This
means
that
the
emissions
during
producing
the
product
are
high.
Customers
who
care
about
their
environment
could
be
distracted
from
the
Nintendo
Wii
because
of
this
issue.
The
graphics
of
Nintendo
Wii
are
far
behind
the
competitors
graphics.
The
Wii
has
64MB
GDDR3
and
Playstation
3
has
256MB
GDDR3
graphics.
Due
to
the
fact
that
the
pricing
is
low
there
are
low
earnings
per
unit.
Nintendo
does
not
own
the
motion
sensing
software
and
therefore
other
companies
can
compete.
Opportunities
Focusing
not
only
on
B2C
but
also
B2B
consumer
could
widen
the
capabilities.
The
Nintendo
Wii
could
be
sold
to
retirement
homes
or
some
activity
clubs
for
elder
people.
The
movement
with
the
console
could
count
as
sport
and
the
healthcare
institutions
could
support
the
product.
The
low
price
of
Wii
could
cause
an
opportunity
in
selling
more
and
having
a
higher
market
share.
The
emissions
by
producing
the
product
could
be
hindered
by
making
research
how
to
avoid
them.
This
would
also
lead
to
more
satisfied
customers,
who
care
for
the
environment.
Some
design
changes
with
the
console
and
the
Nintendo
Wii
could
be
made,
so
that
it
is
even
more
easy
for
people
to
use
the
console.
Threats
The
low
price
of
Nintendo
Wii
could
cause
problems
for
the
organization,
because
the
hardware
costs
in
general
are
very
high.
They
have
a
short
lifecycle.
Due
to
the
fact
that
Nintendo
releases
products
in
periods,
they
have
to
regulate
the
demand
and
supply.
If
shops
were
left
sold
out
this
would
mean
a
loss
of
sales.
The
durability
of
the
console
is
also
one
of
the
threats.
The
console
can
easily
fall
from
the
users
hand,
if
the
band
is
disrupted.
The
third
party
game
support
has
stopped,
because
Nintendo
gave
limitations
(e.g.
no
violence)
for
the
features
of
the
games
they
produced.
This
means
limited
selection
of
software.
Due
to
the
fact
that
the
Nintendo
Wii
is
not
environmental
friendly,
competitors
could
be
more
attractive
for
the
target
group,
because
nowadays
people
try
to
use
green
products.
(Gamegrap,
2006),
(Moats,
2008)
Conclusion
The Analysis about the internal and external environment of the company Nintendo Ltd. gave information about the Macro environment, as well as about the marketing strategy. The information got by these analyses helped to come to the conclusion that there were the strengths, weaknesses, opportunities and threats. The internal environment with the marketing strategy gave the information about for example the strength that the number ob the target audience is relatively high. On the other side there are the graphic cards, which have a relative low quality. The external environment caused a conclusion about the opportunities, which the company could focus also on the Business-to-Business market. A threat could be, that Nintendo Wii is a not environmental friendly product and therefore the target audience could be distracted. With these information considering the environment of the company it is possible to make further research and create a new strategy plan in order to improve for a successful status in the gaming industry.
10
Appendix
1:
(Modfreak, n.d)
11
3:
12
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